Barbershop Loyalty: How Rewards Programs Grow Your Clientele
Barbers understand loyalty, but we are sleeping on loyalty programs! Like many topics, it can be a touchy subject. Hopefully, by the end of this blog you’ll see why I am a fan of them.
What is a Loyalty Program?
A loyalty program for a barbershop is a structured marketing strategy designed to reward and incentivize repeat customers for their loyalty. The goal is to develop customer loyalty, encourage retention, and increase customer satisfaction, leading to more frequent visits and a higher likelihood of referrals.
2 Types of Loyalty Programs::
Service Based: your client earns a reward after they receive a set number of qualifying services. For example, the qualifying service is at least $30 aka a haircut. You set the number of services to be 10 services or any other amount you’d like. This is called a ‘gate’. They must enter the gate to the qualify for the reward.
Value Based: your client earns a reward after they spend a specific amount of money. For example, they spend $300 and they receive a $30 reward. The reward could be a T-shirt, pomade, gift card etc. You choose. They must enter the $300 gate to qualify for the reward.
Before you start designing your Loyalty Program, you need to identify the goal.
Are you trying to increase customer retention, attract new customers through referrals, boost customer spending, or build a community around your barbershop? Your goals guide your the design of the loyalty program.
Designed to Improve Conversion Rates
At the end of the day, Loyalty Programs help conversion rates. Conversion is the process of moving someone from tier to tier. Let me break this down. There is a difference between first-timers, trial clients, clients and loyal clients.
Tier 1 = First Timer is a first-time customer. You are serving them for the first time. Let’s be honest, some first-timers never come back. They do not convert to level 2.
Tier 2 = Trial is someone who has returned for a second service. They are still in a trial period because they have not decided if you are their barber yet. The 2nd service might be more important than the first because it is a test of your consistency and ability to improve from your first service.
Tier 3 = Client is someone who continually returns to you. You have become their go-to barber. They are booking in advance. They are walking in and waiting for you. I consider someone a client if they have sat in my chair 3x.
Tier 4 = Loyal Client is someone who refers others to you. They are your promoters. They love you.
The most successful barbers convert first-timers into loyal clients at a high rate. Their service is so good, the first timer comes back and then comes back again and then starts bringing their friends.
Ok, so what is your goal with the loyalty program?
In order to figure that out, you need to answer this question: Where are you converting at a low percentage? You may have challenges converting first-timers into trials. You cut their hair once and then never see them again. Or maybe you are having trouble converting trials into clients. You cut them twice and then never see them again. Or maybe, you have clients but they aren’t promoting you.
Depending on your conversion rate, here are some ideas for how to use the punch card system to help turn those first-timers into loyalty.
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What is a Punch Card?
You might have a punch card in your wallet right now. A punch card is typically a business shaped card where you have the opportunity to earn rewards based on qualifying transactions. Every time you make a qualifying transaction, you receive a punch or stamp. There are typically various levels of rewards based on the number of qualifying transactions.
Coffee Shop example: 10 stamps and you get 1 free drink. This is very simple. For barbers, the cost of a haircut is much different than the cost of a coffee.
This is not a long-term strategy, but might be great for a barber who is looking to grow clientele.
Yoga Studio example: if you take 10 classes during your first 30 days, you get 15% off merch. If you take 15 classes during your first 30 days, you get a free t-shirt. If you take 25 classes during your first 30 days you get a free water bottle & exercise bands.
This is a strategy that requires products and merchandise. You have to be selling pomades, combs or t-shirts for this to work.
Your Starter Punch Card Method
This is an example of how you can be creative with your Punch Card. It rewards your customers to do meaningful activities that promote your business while serving them with your best services.
Punch #1 - Classic Service - client gets a haircut, give them a punch.
Punch #2 - Buy product - client buys a product from you (Ex: pomade, beard oil, t-shirt)
Punch #3 - Luxury Service - client books the haircut+facial service (Shave, Facial, Hot Towel)
Punch #4 - Write a Review - client writes a review on Google
Punch #5 - Post on IG - client posts on their IG story or their feed. Hold on to them for life.
Reward = Free T-Shirt, Free Classic Service, Free Product. If they have done everything on this list, their value is way more than the cost this reward. Make them feel appreciated for their loyalty and for showing you love.
Create Rules
One Punch Card per client. You want this opportunity to feel limited. Give the client this punch card after their first visit. They only get one. If they complete the punch card, they do not get another. This is a one-time thing.
Remember, Loyalty Programs should be designed to help conversion. Only you know your conversion rates, so make sure you do some analysis. Ultimately, I want this blog to spark ideas for you. Do not feel like you need to implement the Punch Card System exactly as I presented it. It is designed to spark ideas for you. Contextualize it to work for you.
If you are looking to implement a loyalty program and want to brainstorm your ideas, please reach out to me. I’d be happy to help you come up with a plan. Email me at hello@barberdoza.com
Written by Matthew Mendoza
doza is a licensed barber, educator and consultant in California. He is passionate about helping barbers pass their barber exam, develop their business and diversify their income. He hosts a podcast, writes a weekly newsletter and offers 1-on-1 consulting.
