27 Aug Loyalty Is Royalty in the Aesthetics World
If it seems like just about every business has a loyalty club nowadays, you’re right. HubSpot notes that 82% of people are loyal to some kind of brand. What’s more, rewards program members spend up to 18% more than non-loyal customers. The takeaway? Securing loyal customers is a surefire way to boost revenue–if you know what you’re doing.
Rewarding repeat customers has multitudinous benefits for the business. According to Harvard Business Review, it can cost anywhere from five to 25 times more to acquire a new customer, compared with retaining an existing one, so keeping existing customers should be a priority.  Loyalty clubs attract the right patients from the get-go, thus retaining clients and increasing their rebooking rates.
Once you have repeat customers, rewards programs can also help boost sales by modifying buying patterns. Clubs give you more opportunities for up-selling (selling a more expensive version of a product) and cross-selling (sell a complementary product).
So how should you get started? The following are essential considerations when architecting any loyalty program: club structure, staff buy-in and training, and club branding and marketing. Let’s dive deeper into each and explore what you’ll need to know to grow your business.
A litany of different strategies exist, but one of the most lucrative is membership based. For example, we are a medical spa that offers aesthetic medical treatments like Botox, dermal fillers, laser skin rejuvenation, body contouring, plastic surgery, and medical skincare. We offer the following promotion: A $99 monthly membership for 12 months earns the patient a complimentary monthly skincare treatment, a value of $130, plus various options to upgrade. Upgrade options include discounts on injectables, laser treatments, body contouring, and even products. Complimentary consultations are included with membership, as well.
With 31 members, each paying $99 per month to be a member, that adds up to $3,069 revenue a month–that’s $36,838 per year from memberships alone. Say 15 of those members, or a mere 48% of our total membership base, opted for injectables, upgraded their service, and purchased products. Botox sells for about $550, on average, which would yield an additional $8,250 every year if all 15 people opt for the treatment at some point during the year. Filler, meanwhile, goes for an average of $975–that’s an additional $14,625 of yearly revenue from those 15 members.
Clearly, a loyalty program can be quite profitable. But you need the right team to help you convince customers that the membership is worth it. Convincing your staff to believe in the benefits of the loyalty club is a crucial step. To do this, you’ll need to train them to sell the benefits of membership, equipping staff members with an elevator pitch that touches on the major selling points. Rewarding staff for sales is a good way of incentivizing pitches. You might also give staff complimentary memberships so they have firsthand experience when addressing prospective customers’ questions and concerns.
A branding strategy is another key part of creating a recognizable, trusted loyalty club. You’ll need a club name–something different from the regular business name–along with a matching, professional rewards logo, and tag line. You’ll use these assets when marketing the club.
In addition to brochures, print ads, and postcards, you’ll want to advertise your loyalty club online. This includes organic social media marketing as well as paid social promotions, plus the usual website content and email marketing campaigns. A loyalty program is a great way to getting customers’ contact information so you can keep them in the loop. In the end, successfully managing a rewards club is one of the smartest things you can do for your business.