My problem is I’ve had no increase in business. When I advertise, I get no calls. The discount salons in the area have taken our business right out from under us.
It is not about competing against price. It is about competing against value. Most of the time, salon and spa owners concentrate on finding new business when opportunities exist right under their noses. We as an industry have to work smarter with our existing database, which will in turn have the clients coming back and have them telling more people about you. The best way to increase business is by putting a rewarding referral program in place that benefits both the new and the existing clients you will be servicing. The best type of referral program is the “one-for-one,” where each new customer gets an incentive to become your client and your existing clients get a nice thank you for the referral. Referral programs, in order to be successful, have to be attractive and have to be consistent. Roughly 60%-70% of new business comes from referrals. This is where we should be spending our marketing dollars.