Sunday, November 15, 2015

Why aren't your customers coming back? How to build customer loyalty.

You have worked on your marketing and promotions and you have new customers coming in daily. But it's a never ending exercise and it can get exhausting. It's very expensive and a constant battle having to come up with innovative ways to bring in more new customers. While you focus so much on bringing in new customers in the hope to bring in more profits, have you ever wondered what would happen if all your new customers re-booked and came back? Do you have a 100% re-booking rate? If you do, congratulations! You will soon be unable to accept new customers unless you expand. 

If however you find your customers retention rate is poor, have you ever wondered why your customers don't come back? I'm not saying that getting new customers is not important, businesses need to grow, but the only way the business will grow is to retain customers and build loyalty. Beauty businesses who have a strong loyal client base are far more resilient that businesses that rely on walk-by traffic.  

Do you have customers on your database you haven't seen for some time? Did you know that if you could get back just 5% of your lost customers, you can potentially increase your profits by 25% - 125%? We all know that it is far easier to sell to an existing customer than to a new one. Studies show that repeat customers spend 33% more that new customers. This is because they already have a relationship with you, they know you and they trust you. 

So why is it that some of your customers are not coming back? Studies show 96% of customers who have not come back, leave because of poor or average customer service. Your customers are real people with real feelings. If they come to see you and leave feeling just like any other customer, or worse, can you blame them for not coming back? If you received average service, would you go back? 

With so much competition in the beauty industry, customers are selective and choose to go back when they feel like they are important to you. Of those that don't come back, 68% leave because they felt you or the people in your business didn't care enough. This is really mind blowing, the reality is that it's not the product or the beauty services your business delivers, but HOW you deliver it. It's all about the delivery, the attitude of your staff, their ability to connect with your customers to make them feel truly special. It's about creating an amazing experience that will make your customers want more. 

Truly exceptional service is a skill and a mindset. The mindset you and your staff have to be in is that of complete focus and attention on the client when they are with you, how to make them feel more comfortable, how to create an amazing and unique experience and how to find and deliver a solution to their problem. The skills that are required include superior interpersonal and communication skills, knowing how to really listen and ask great questions. Being in the service industry, demonstrating good etiquette, manners, grace and style are very important in delivering exceptional service. Do you feel your business can deliver this better than your competitors? If they are not completely satisfied, 9% of your customers will leave because they tried the competition and liked them better. 

Businesses that focus on the customer experience generate 60% higher profits than their competitors. 

Some of your customers will leave because they were not followed up. Do you follow up a few days after they had a treatment or purchased products to ensure they were completely satisfied? Do you book a follow up consultation to ensure they are happy with the results and are using the products correctly? If you truly care, and you want to show to your customers that results are important to you, follow up is a must. This is one of the best ways to engage your clients, demonstrate your expertise and build long-term loyalty. 
If you feel awkward contacting your clients, why? Does this mean you need more training in communication skills and build your confidence? If you say you don't have the time to follow up, why is that? Aren't these customers important enough to you? If you feel that if you follow up, the customer may not be completely satisfied so you don't want to open a can of worms? This tells me you don't have the confidence in your products and services, why is that? More importantly what can you do to fix it? 

Do you regularly contact your customers you haven't seen for a while? It's good practice to go thought your client base regularly to touch base with your clients and invite them back in for a treatment. Do you feel awkward contacting your client because you don't want to seem pushy? Why is that? If you don't contact your clients, they will fall off the radar because they felt you didn't care if they come back or not. Try and see it from their perspective. Do you feel like you are being pressured when you doctor sends you a reminder for a pep smear? Do you feel pressured when you dentist sends you a reminded for a dental check up or an optometrist ringing to remind you it's time to get your eyes checked? Why do you feel awkward to contact your clients to remind them it's time for their wax, a facial or a skin check? Don't you feel these services are important enough that deserve the same respect? 

We are in the business of making people feel great about themselves, about discovering their beautiful self. We have the potential to change peoples lives by helping them build confidence in themselves through looking and feeling better. The ripple effect of spreading this love and care for people can be a life changing experience. Successful beauty businesses are built on loyal, returning clients and word of mouth referrals. If you focus on how you can change your customers lives for the better, you will have their loyalty and they will spread the word.

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Enjoy a successful and prosperous day!
Jana x

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