Gift cards provide amazing opportunities to build brand awareness, encourage client loyalty, and win back customers. Take a look at a few ways to utilize them in growing your salon and spa business.
Build Brand Awareness
Method: Offer an incentive for gift card purchases
Primary target: Potential clients and their significant others
Communication: Targeted Facebook advertising, cross promotions
Often, the greatest challenge for a new salon is to get people through the door so that you will have an opportunity to wow them and convert them into a loyal client. Especially around the holiday season, gift cards are valuable for attracting new clients. While gift cards are consistently the most-requested item on holiday wish lists, it can be a challenge to push your salon's gift card to the top of that list.
When targeting potential clients (or their significant others), consider boosting a Facebook post to your ideal clientele based on demographics (gender, age, etc.) and interests. Another option is to partner with another business which serves your intended audience. For example, men frequenting a barber shop would appreciate the convenience of purchasing a gift card to a salon for their spouses.
Whichever channel you choose to use, showcase your salon brand and offer an incentive to entice them to purchase right away. It could be a free hair product or nail polish to be used as a stocking stuffer. Or you can sell $100 gift cards for just $80.
Method: Run contests for gift card prizes
Primary target: Everyone
Everyone loves free stuff! Even people who aren’t within your target audience may enter to win for a friend or share your post with their own social networks. Either way, it is a great way to build brand awareness, keep current clients engaged, and win back lost customers!
There are many ways to run the contest: selecting a random client who visited your salon this month, choosing a random person who shared one of your Facebook posts, or having people nominate a friend or family member who deserves a makeover or a spa day.
The gift card gives the winner the flexibility to select how they wish to utilize the prize from selecting specific services or bringing a friend with them. Gift cards of lower values can also be used as secondary prizes as well. More chances to win will likely encourage more people to enter the contest.
Increase Client Spending
Method: Encourage additional spending by offering free gift cards
Primary target: Existing clients
Communication: Signage within the salon, email newsletters, text messages, social media
Gift cards can be a great way to say thank you and an incentive to increase client spending! The key to making the most of this promotion is to set a necessary spend level to be slightly higher than the average client's invoice amount. Clients will then need to purchase an add-on service or product in order to reach it. This opens the door to get them hooked on to new services or add-ons, thus increasing their spending for future appointments as well.
In addition to the immediate revenue boost, you are also providing an opportunity for clients to spoil themselves when utilizing the gift card at their next visit. When paying with a gift card, many people opt to purchase something that they would not normally spend their own money on. But even if they stick with their regular services or products, you are still building a positive relationship between your salon and the client.
Method: Negotiate prices for bulk gift card orders
Primary target: Businesses
Communication: Networking with business owners and managers
Over 80% of businesses use gift cards as an employee incentive, according to GiftCards.com. Talk to people that you already know (start with existing clients, family/friends, and surrounding businesses) and promote your gift cards as an excellent reward or present. If they are interested in purchasing a bulk number of gift cards, you can negotiate a special rate as, realistically, the full value of the gift cards will probably not be used. However the more they are used, you will have more opportunities to win over new clients.