
Coming up with practical ways to grow your business can be time-consuming and costly – two things for which you likely don’t have an abundance.
One way to ensure financial stability is to be sure that your schedule is full with a decent balance of clients. Although it’s terrific to have an occasional break on an otherwise busy day, significant gaps in your schedule can cost you dearly. So, how do you fill those open appointments or replace any clients that have moved on? With more new clients, and the best way to gain new clients is with referrals.
The great thing about referrals is that they come with a recommendation from an existing client. It considered word-of-mouth advertising, which may be the slowest means in which to grow your business, but it’s definitely the most effective way. Today, peer-recommend products and services hold a fair amount of credibility. Having a client vouch for you and your mad skills to their friends, family, coworkers, and so forth is worth its weight in gold. It would naturally make sense for you to not only embrace this method of promotion but to pursue it.
To set up a referral program that works for you and your clients, consider the benefits for both. What would incentivize existing clients to make referrals and what are you willing to bring to the table to make it all happen? Fully appreciate that one side of this equation won’t likely happen without the other.
Consider offering a free add-on service or a discount on an existing service to any client that successfully refers others. It could be a simple conditioning or glossing treatment, a discount on full highlights or a free haircut to go with their a paid color service. You don’t want to offer anything that could break the bank for you, instead provide services that your clients would appreciate.
Perhaps your client does not have the financial means in which to splurge on themselves, but they desire a full set of highlights or a maybe even a smoothing treatment. In such a case, consider offering them a great deal on the service in exchange for a certain number of paying referrals. That way they get what they want out of it all, and you’ve gained several new clients. Just remember to wait for the references to complete their first booking before letting your current client cash in on the reward.
Another idea to keep the recommendations coming in by letting clients accumulate “points” as their referrals spend more at the salon or spa over time. Your clients can cash accrued points in on services with you at a later time. To set up this type of system, you first need to identify the value for a point, and then explicitly specify what salon or spa services are or are not available for redemption.
Regardless of what type of referral program you want to offer, the trick is to have a means by which to track them successfully. With your soon-to-be busy schedule, the last thing you want to do is to rely on your memory or post-it notes in or on your appointment book. Luckily, some salon and spa management software options provide a client referral feature. In addition to tracking and successfully redeeming referrals, some software will also help you to promote the program.
Once you have figured out an effective system for your referrals, test it to ensure that it works and then make adjustments accordingly. Avoid the impulse to launch the program to everybody on your client list quickly. Instead, consider starting with a few clients to make sure the plan is feasible for you and does not overextend you. Once you are comfortable with how the program is working, go ahead and open the floodgates. After officially launching the full-scale program, be sure to promote it by using marketing tools such as targeted eblasts, newsletters, and posts on social media. Your clients can share or forward the information to whomever they wish from there.
For those who prefer to go old school, there are other ways of getting the word out. You can hand out specially designed business cards or promotional postcards so clients can add their name and hand the card off to their referral. Also, consider creating a branded artwork for your front desk and each station to help get the word out. The most effective way in which to promote your referral program is to offer it to your most loyal clients personally, that way they feel special by you asking.

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