According to a recent study by research group Neilsen,
“Disloyalty levels are on the rise among the world’s consumers, with just 8% of people considering themselves to be committed loyalists when it comes to their favourite brands, according to a global consumer study conducted by global measurement company, Nielsen.
Nielsen’s Global Consumer Loyalty demonstrates that consumers are actively on the lookout for new brands as the gamble of buying new products is de-risked by levers such as rising income levels in developing markets. A significant 42% of global consumers say they love trying new things and nearly a further half (49%) of consumers – whilst preferring to stick with what they know – can be moved to experiment.”
So it’s more important than ever to develop some kind of “sticky” loyalty program to keep your salon & spa clients close to you.
(See our story here about How to Sell Salon Memberships to see how a membership program is one kind of loyalty program that really works to keep your clients for the long term.)
According to Nielsen, there is a better way to build a mousetrap, in this case, a program that ensures stronger loyalty, as well as profits.
This intriguing study says that giving clients what they want for rewards isn’t always the best idea, if you’re looking to increase profit margins.
The point is to develop a customer loyalty program that gives clients strong rewards and builds your bottom line. To achieve that, you have to ask yourself a critical question: What do you want your loyalty program to accomplish?
Nielsen outlines what consumers want most and least in a loyalty program and it gives you some real insight for developing or expanding your own program.
Do agree with this study? Leave a comment below.