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Beauty Businesses Are Betting On Loyalty Programmes, And It’s Paying Off

Our Most Compelling Data:

79%

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

81%

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

Loyalty programmes increase order size, repeat visits and ROI

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

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

Seventy-nine percent of beauty leaders told us their businesses have a loyalty or rewards programme. The majority of beauty leaders said their loyalty or rewards programme 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 programmes, it’s no surprise that 81% of beauty leaders plan to increase their investment in their loyalty or rewards programmes in the next 12 months. Even beauty businesses that don’t currently have a loyalty programme see the value and are planning to join the crowd. A staggering 97% of beauty businesses that don’t have a rewards or loyalty programme plan to add them in the near future.

Customers’ and businesses’ embrace of loyalty programmes is likely connected to the desire for more personalised experiences. When given the ability to select multiple options, the majority of consumers worldwide (69%) found personalisation to be one of the most valuable parts of a loyalty programme, 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 customise 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 behaviours.

Key takeaway:

If you haven’t started a loyalty programme, now’s the time. Consider your customers’ desire for personalisation 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 programme software build on that connection and discover what keeps them coming back?

Pro tip:

Customers enrolled in a Square Loyalty programme 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.

Seeing a need for healthy skin care regimens, Áine Lavery opened Skin Future in 2018. The mission of Skin Future is rooted in a more long-term holistic approach that includes thinking about nutrition, health and diet, stress, sleep, and supplements because it paints an overall picture of skin health.

Skin Future needed to move from managing bookings with pen and paper to an online system that allowed them to take and manage more appointments electronically. Using pen and paper was hard to track over a period of time, created potential errors, and time consuming. The business needed a tool that could grow with them—they knew adding online appointments would be a key feature—and Square came recommended by others in the industry.

Moving from a paper diary to Square Appointments allowed us to double the number of appointments we were able to take each day. That has significantly increased our revenue and the number of clients we can help.”

Vicki McGuinness, Front of House, Skin Future, Hillsborough, Northern Ireland