Home Business Insights & Advice How to increase revenue for your beauty salon

How to increase revenue for your beauty salon

by John Saunders
26th Sep 22 5:22 pm

Competition among beauty salons is at an all-time high, with a 69% rise in businesses opening between 2015 and 2020. Many salons will now need to stand out from the crowd to ensure that they build up their customer base and continually increase revenue.

Consider online booking systems

Online booking systems can help to reduce the challenges that come with managing a busy salon. The systems allow clients to schedule an appointment online which will automatically synchronise with your employees’ schedules which is great if you have clients who always want the same beautician.

Implementing online booking can also reduce the number of missed appointments as they provide the customer with appointment details when they book in and you can require full payment, or a deposit, to be made online beforehand. This saves both time and money as it means you won’t have to deal with customers who have forgotten what day they are booked in, but also that employees aren’t turning up with a 3-hour session booked out only for the client to not show up.

Expand your range of treatments

You may look to expand your range of treatments in an attempt to increase revenue. To do this successfully you should consider what other salons are lacking and what potential customers would want. For example, if demand for tanning beds is high but few salons offer this, then investing in a professional tanning bed is likely to be a great way to draw new customers in. Alongside this, you could offer tanning accelerators like lotions and creams which have a markup between 80-100%, making them great for your business while also giving your clients better results.

Introduce a loyalty programme

It is five times more expensive to win a new client than to retain an existing one, so while increasing your customer base is important, it is equally important to incentivise your previous customers to return. Returning clients also spend around 67% more than new ones, so focusing your marketing strategy on retention can be key to increasing revenue.

Loyalty programmes are a great marketing tool when used effectively and can help to ensure that clients keep returning to your salon. Rewarding loyal clients is a simple way to reduce the risk of them going elsewhere for a cheaper ‘new client’ offer at another salon.

What you choose to offer your customers in the loyalty programme is up to you. You may look to offer free treatments or a percentage discount after a client has visited your salon 4 or 5 times or offer rewards based on spend, so a customer who spends £200 will receive a different reward than someone who spends £75.

Social media presence

89% of salon owners believe that social media presence has a strong or very strong influence on how a client chooses a salon, so if you’ve been neglecting your social media profiles, it’s time to start investing in them.

Social media is one of the cheapest ways to advertise your business online as it doesn’t require outsourcing. 83% of Instagram users say that they discover new products on the platform so you may consider setting up an account on this platform. On your profile, you should look to post salon updates and feature your employees’ bios as well as post images of your most recent work to advertise your treatments. You may also want to include a link to your website or online booking system to make it a quick and easy transition to booking an appointment.

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