5 Benefits Of Implementing A Loyalty Program At Your Tanning Salon

Does your tanning salon have a simple loyalty program to help increase customer retention or entice new members to sign up? 

Did you know by simply increasing your customer retention rate by only 5% boosts your profits by as much as 95%? Many tanning salons often choose to focus on attracting new members – not looking after existing ones. Understandably, you want to grow your eft member base. But how do you keep members who are more likely to buy from you again? One great solution is to create an easy customer loyalty program that rewards those members for coming back or becoming a particular tiered membership level. 

A simple loyalty program can offer members loyalty benefits, which is a great way to say thank you and entice more revenue. It’s suitable for your members, but what exactly are the benefits of loyalty programs to a tanning salon like yours?

The truth is there are many potential benefits which are both financially and non financially. Here, we will focus on the five key loyalty program benefits and how creating a simple loyalty program for your tanning salon will help you hold onto those all-important customers.

What are customer loyalty programs?

More and more brands have started to think about how best to encourage and reward customer loyalty in recent years. It is just one reason why brands invest more and more money into their loyalty and rewards programs. If it’s something that you’re looking to implement in your tanning salon, you should know what a loyalty program is before getting started.

Loyalty marketing programs have been around for hundreds of years! But the essential ingredients of a loyalty program haven’t altered much since. Part of your tanning salon marketing strategy can quickly implement a program that rewards a customer for an action you would like them to take.  

Are there different types of loyalty programs?

Each loyalty program for customers is different, especially at every tan salon. Your salon can easily choose what rewards you offer based on what you are looking to promote. There are, however, some broad categories of loyalty programs, but a simple approach is easier to understand, such as: 

Spend to earn. A customer takes your desired action or purchases in exchange for Points, ISA, or Bonus Bucks (earn). They can then use those points or instore account money to redeem their preferred reward or purchase products or additional service upgrades.

At Tan-Link, our software can help with your tanning salons loyalty program so that you can design the right one – not just for your customers, but your business too. 

Loyalty programs for tanning salons: Why does yours need one?

In short, your tanning salon needs a customer loyalty program because it has a significant impact. A ton of research shows a customer who signs up to your loyalty program is 40-50% more likely to buy from you again. 

And if you follow the 80/20 rule: 80% of your business will come from just 20% of your customers, you can see why it pays to invest in a rewards or loyalty program. 

But it’s not enough to send a thank you email or text each time they buy from your tanning salon. With an easy loyalty program, you can tap into the key insights that drive your customers to spend. Most shoppers in today’s world can admit that working towards a goal or reward makes them more loyal. An even higher share like to know that loyalty to a brand – your brand – can help them gain points.

So, what are the five benefits of a loyalty program for tanning salons?

We’ve just touched on customer loyalty programs – so let’s now take a look at five of the critical benefits for a tanning salon for implementing a loyal program.

Stop competing on price with competitors.

Today, it’s too easy for shoppers to compare prices in just a few clicks. If they’re only thinking about the services you sell instead of your store and brand, then you’ll find yourself just selling on price. 

One of the significant benefits of a customer loyalty program is that they can stop you from competing on price alone. Connecting with your customers’ emotions gives you a way to set your store and your brand apart, offering a much more enhanced (and personal) customer experience.

Customer loyalty programs are a highly effective way to entice members who shop with you – rewarding them for something previously unnoticed. Each time you award a customer, you’ll create an emotional bond with that customer. As the relationship develops, they see your tanning salon as more than just products or services. Essentially, it strengthens loyalty – encouraging repeat purchases that boost your profits. Also, it makes your members more likely to tell a friend or spend more.

Retain existing customers

According to Forbes, loyal consumers are most likely to spend 67% more on average than new customers. That is a statistic you can’t afford to ignore as it gives proof. At the same time, acquiring new customers can cost your tan salon at least five times more than retaining existing ones. Take care of your current members at your tanning salon, and you will see the positive impact it can have.

Even in complex or challenging times, members of a customer loyalty program can bring more value to your salon. 

Simply put, retention is one of the most cost-effective ways of growing your business. A significant benefit of a loyalty program at your tanning salon is you provide an incentive for customers to come back and spend more. Start turning existing customers into loyal ones; you’ll see the importance of customer loyalty in the long term.

Increase Customer Lifetime Value

Customer lifetime value or CLV is the net profit attributed to the overall relationship you maintain with a member. It essentially tracks how valuable a customer is to you – and how much this enduring bond is worth in the future.

Why is this important? Tracking this will allow your tanning salon to form solid strategies that retain your members—the benefit of a loyalty program that you have data on a customer’s unique buying habits. As stated earlier, we know how purchases are emotional decisions, making this data all the more vital – helping you better understand your member’s needs.

The data you have access to in your salon software is like a pile of bricks ready to be assembled. One of the benefits of loyalty programs for tanning salons is making sense of this data too. Your salon should be able to see the steps your customers take before they purchase. 

That means your salon can reward them at each step of the journey – and increase your CLV too.

Build personal relationships

Simply creating this emotional bond and make your customers feel loyal to your tanning salon shows how much you value them. Your customers or members are unique and are similar but all different.

Data is important.

Customer retention can’t be ignored. With the Tan-Link Software, you can access valuable customer data and insights such as order history, site activity, visits, and referrals. Knowing more about your members is a massive benefit of loyalty programs. Utilize critical data because it means you can better tailor your services or products to their needs.

Often, tanning salons only segment customers into one or two categories. 

We know there is more to a customer than just a generic member or non-member, and we can also see that most customers are increasingly looking to be a part or form a genuine bond with the brands they buy from or use services from. With Tan-Link Tanning Salon software, our management tools give you the power to provide unique service levels. With it, your tanning salon will start to realize the longer-term benefits of their loyalty to you just based on their profile and reporting.

Create brand advocates

Your most valuable members aren’t only those who just spend money, but they also generate it instead. We call them “brand advocates”. These members at your tanning salon the ones who will refer their friends or family to your tanning salon. 

Another benefit of implementing a loyalty program is that you can quickly build a brand advocate network. Most people trust word-of-mouth recommendations and are the majority factor driving customer purchases.

Using a two-way reward system, your tanning salon can show how much you value your existing customers. And you’ll get a new one too. It’s a compelling benefit of customer loyalty programs for everyone when everyone wins.

If your member or customer refers their friend or relative, give ISA or Gift Cards, and the other could discount their first purchase. Each is a different loyalty program detail – but both works to bring in new tanners and keep existing members loyal to your tanning salon.

How to start a customer loyalty program at your tanning salon?

With all the benefits of loyalty programs, why not start one for your tanning salon today? It just has to be a simple program enticing members.

The first step is to make sure what your loyalty program is and how it will meet your tanning salon’s future. How can your tanning salon ensure a seamless fit with your brand? Do you know what your members or customers want from your tanning salon loyalty program?

Using critical data and statistics, you can then start to build and launch the program. Using a dedicated tan salon software with a loyalty program such as ours, you have the freedom to create a simple program. 

Why choose Tan-Link Tanning Salon Software?

At Tan-Link, we’re all about helping create value for tanning salons to automate and streamline their operations to grow their tan salon to grow and succeed.

Your tanning salon can easily track everything and offer ISA, Bonus Bucks, and much more; our software is designed to help you grow. When you choose our software, you can easily create a loyalty program to keep your members – and win your salon new customers.