^{CHAPTER FOUR:}
Beauty Businesses Are Betting on Loyalty Programs, and It’s
Paying Off

Our Most Compelling Data:

79%

of beauty leaders said their business has a loyalty or rewards program.

81%

of beauty leaders told us they plan to invest more in their loyalty or rewards program in the next 12 months.

Loyalty programs increase order size, repeat visits, and return on investment (ROI)

It’s cheaper to retain a customer than it is to acquire a new one.

That makes loyalty programs a valuable investment for any business. They’re a particularly good fit for the beauty industry, in which clients have recurring appointments for personalized services. The data show that beauty leaders agree.

Seventy-nine percent of beauty leaders told us their businesses have a loyalty or rewards program. The majority of beauty leaders said their loyalty or rewards program successfully drives every key business metric we asked about, including increased spend (85%), repeat visits (85%), and positive ROI (83%). With so many beauty businesses finding success with loyalty programs, it’s no surprise that 81% of beauty leaders plan to increase their investment in their loyalty or rewards programs in the next 12 months. Even beauty businesses that don’t currently have a loyalty program see the value and are planning to join the crowd. A staggering 97% of beauty businesses that don’t have a rewards or loyalty program plan to add them in the near future.

Customers’ and businesses’ embrace of loyalty programs is likely connected to the desire for more personalized experiences. When given the ability to select multiple options, the majority of consumers worldwide (69%) found personalization to be one of the most valuable parts of a loyalty program, right behind exclusive discounts (84%) and earning rewards (83%). And when you consider that 65% of consumers told us they felt either positive or neutral about businesses using their data to customize products and services, you can assume that many of your customers will appreciate (or at least won’t mind) getting targeted offers based on their past behaviors.

Key takeaway:

If you haven’t started a loyalty program, now’s the time. Consider your customers’ desire for personalization as an invitation to deepen your business relationship with them. You already have great conversations with them during their treatments, so why not let your loyalty program software build on that connection and discover what keeps them coming back?

Pro tip:

Customers enrolled in a Square Loyalty program spend 53% more and visit about 40% more often. Since Square Loyalty can connect with third-party apps like Acuity Scheduling, it’s especially convenient for customers to book in a variety of ways and still maintain their reward status.

Rachel Dang knows what keeps her local community coming back. She’s used personalization and hyper-authentic marketing to grow Seattle’s Urban Nail Box from an independent nail studio in 2017 to a popular nail salon today, with two locations, 34 employees, more than $1.5 million in annual revenue.

“An exceptional experience at the salon is part of our identity at Urban Nail Box,” Dang said. She relied on word-of-mouth referrals from her community when she first started. To keep customers coming back, her team now offers a personalized, in-salon experience by keeping detailed notes on each client and their preferences. Urban Nail Box uses Square Messages to view all client communications in one place, and it leverages the AI-powered Square Assistant to let clients reschedule appointments at any time. Dang also uses trend reports and seasonal email newsletters through Square Marketing to drive rebookings.

My goal is for our email newsletters to never feel like marketing,” Dang said. “Clients like to hear about what’s new with Urban Nail Box and the team. We also include services that are trending at that time of year and encourage clients to prioritize self-care. We have over 15,000 contacts in Square, and our emails get open rates above 50%.”

Rachel Dang, Owner of Urban Nail Box, Seattle, Washington, USA