In these challenging economic times, clients may be cutting back on services, whether they are opting for less expensive treatments or scheduling fewer visits. Your response may be to turn up the heat on new client acquisition to ensure you meet your monthly and quarterly revenue goals. But shifting your focus to client acquisition can jeopardize relationships with existing clients and that can come at a significant cost. Some industry sources estimate that it costs five times as much to attract a new customer than to keep an existing one.[1]
Research from Bain & Company indicates that increasing customer retention rates by 5% increases profits anywhere from 25% to 95%. [2] That is because you have already built trust with existing customers who, because of their satisfaction with your service or products, may be more inclined to try something else you suggest.
Consider the success of your spa or massage therapy practice today. Your success can be tracked to satisfied clients returning year after year, with many increasing the services they book and the at-home products they buy. Furthermore, loyal clients are advocates who can be a great source of referrals.
Strategies that help retain clients
Strengthen the engagement: Employ a range of channels to keep in touch:
- Keep in touch frequently through emails and/or text messages to let clients know about new services and products, specials, and holiday promotions.
- Ask questions through social media channels to show interest in client concerns.
- Maintain a blog to provide information on trends and industry research.
- Be available to clients for questions or information even after their appointment is over.
- Take customer complaints seriously, using them as a learning experience to change something that might be an issue for other clients, too.
Build trust: Let clients know exactly what they are paying for and the results they can expect. If a client describes an issue they are having and requests a service you do not believe will provide desired results, let them know. Your transparency tells clients you have their best interests at heart.
Reward client loyalty: Create a loyalty program that provides clients with gifts, products, or discounts as they achieve different levels of participation with your business. Your program can be based around something as simple as a punch card or a credit card-style loyalty card. Track clients’ loyalty through a software program that integrates with your website so that clients can log in and check their points.
Be flexible: Clients appreciate it when you offer to come in early or stay late on occasion to accommodate their schedule. While you may not want to make a regular habit of doing so, being flexible shows a client that you care about their business.
Make clients feel special: Add that personal touch to client relationships in several ways. For example, reach out to a client when a new product comes on the market you think they would enjoy. Acknowledge a special occasion, such as a birthday or anniversary, with a note or even have a glass of champagne waiting for them. If a client has booked a skin treatment for a special event, provide a product sample to ensure the treatment lasts through the event. If your client mentions a product or treatment, research information and email or text it to them with your thoughts on its value.
Show gratitude: Clients will not forget something as simple as a thank-you note or text conveying how much you value their business.
Do not stop marketing to gain new clients. But make keeping loyal ones your priority.
[1] Saleh, Khalid, “Customer Acquisition Vs Retention Costs – Statistics and Trend,” Invesp, February 23, 2024. https://www.invespcro.com/blog/customer-acquisition-retention/
[2] Rizvi, Jia, “Don’t Spend 5 Times More Attracting New Customers, Nurture the Existing Ones,” Forbes, September 12, 2018. https://www.forbes.com/sites/jiawertz/2018/09/12/dont-spend-5-times-more-attracting-new-customers-nurture-the-existing-ones/