4 Top Strategies To Maximize Revenue In The Beauty Industry

Maximising your salon’s profit is essential in ensuring business growth. Learn how increasing your revenue can be achieved through these 4 useful strategies!

Maximizing revenue in a saturated market such as the beauty industry can be challenging, particularly in hair salons. Whether you are starting a business or sustaining it, it is understandably hard to stay afloat with the challenges you might face along the way. Now, with the ongoing COVID-19 pandemic, companies are constantly on the lookout for ways to boost their revenue and take their business to the next level. 

As a salon owner, tapping into all sources of revenue and making the most out of them might just be the key to sustaining and growing the business – especially in times of crisis. Here, we have curated 4 ways in which you can come out of the pandemic financially more robust than before.

Place products strategically in the salon

Suppose your hair salon includes products you are selling on top of the hair services you offer. In that case, product shelves play an essential role in maximising profitability – through appealing shelves that draw attention to prospective customers; they are more likely to enter the salon. Not many might know this, but when grabbing clients’ interest in products, it should ideally help them with their beauty woes so as to engage them. In addition to resolving customers’ hair issues, placing these products strategically in the salon could also grab the attention of individuals looking for hair care products, such as near the exit gate or at the checkout counter.

Implement a customer loyalty solution

Putting into practice a customer loyalty programme is ideal for any industry and service, including hair salons. The primary goal behind this programme is to build customer retention: by rewarding them for repeat purchases through means such as offering a 50 per cent discount for the next haircut or a free haircut on a customer’s birthday month. Through creating these irresistible offers and discounts, clients are more inclined to come back and eventually remain loyal to the company.

While there are many loyalty rewards management systems in Singapore that you can implement, a bonus to look out for would be one that can integrate seamlessly with POS software and other eCommerce platforms – such as the loyalty programme from Edgeworks Solutions. That way, your business would have all it needs to engage customers in an efficient manner. 

Offer gift cards

Offering gift cards with better flexibility for change and an extended validity that can be redeemed in the future is ideal for building customer retention and increasing revenue. Since individuals are more inclined to visit a salon that their friends or loved ones recommended, gift cards are the top solution when it comes to introducing prospective clients to your salon through existing customers. When you set proper, customer-friendly terms and conditions on the gift cards, both existing and new customers would likely be drawn to using them.

Execute a referral programme

A well-executed referral programme is one of the most effective ways to grow your hair salon business and boost income. As a consumer is more likely to engage in a service that their closest friends and family recommend, it is a given that customers are more likely to trust their network in comparison to sponsored advertisements.

When implementing a referral programme, consider giving special bonuses such as offers or complimentary consultations when a client brings a friend. This will entice regular customers to start bringing new clients, simultaneously boosting their loyalty to your company. Since word-of-mouth influences every step of the customer’s journey, the new clients are hence more likely to be repeat customers in the future.

Explore the options available

No matter the pandemic situation, sustaining your business is still essential – you still have a business to run, and customers make up the primary resource you need to invest in to drive sales in these tough times. While exploring the ways to increase your hair salon revenue or any other businesses under the beauty industry for that matter, it is vital that you allocate the funds correctly to ensure overall efficiency. 

At Edgeworks Solutions, we offer a value-for-money customer loyalty solution that caters to all your business needs with valuable features meant to drive profitability – from in-app credit card payment to membership rewards management.