Getting new clients is hard work and expensive, 15 to 20% more expensive then marketing to existing clients. According to figures by Marketing Metrics new clients also spend LESS MONEY.
So if a salon or spa IS going to market too new clients its essential to use marketing methods to get the right clients.
In this article I'm going to cover the 3 types of spenders marketing will attract.
Transaction clients are the deal hunters, motivated by price, using promotions such as online coupon, or discounts.
They pride themselves on searching out the latest offer, with no loyalty.
If a client has become hooked on the pleasure of the deal, a discount addict, they’ll hunt down the bargains with no interest in a relationship with the brand, the service or product.
Whether the hunt is for insurance, groceries, a hair cut or a spa weekend, transaction clients (consumers) get a kick out of getting a deal.
Transaction clients are often highly demanding, have no loyalty, will have a higher level of cancellations or no shows, and they except everything for nothing.
Transaction clients are demanding and spend less money
Relationship clients are looking for a long term service or product provider, but the salon or spa must met their needs both the hands on service and the experience.
The most important element to these clients is the overall emotional experience.
Getting and keeping relationship clients is all about understanding which type of relationship the client wants, the real needs of people, and how us humans want to FEEL.
Relationship clients spend more money, they're committed to returning if you understand the type of relationship and the rules. Get it right and they'll love to tell their friends.
Clients who stay loyal to a salon or spa, relationship clients, will spend 60-70% MORE than new clients.
If a business wants to make money it's this client that should be the focus of marketing. Both the external (new clients) marketing but also essentially the internal marketing to existing clients, its these clients that want spend the most money.
Revenue and long term growth comes with developing Relationship Clients. Understanding what type of relationship the client wants, and how to market to them AND essentially developing the teams skills to keep them.
The In-betweener is just that, neither a bargain HUNTER or RELATIONSHIP client, YET!
They either haven’t formed a relationship with a company or they may not wish too.
In-betweener may take up a marketing offer but they won’t necessarily HUNT for offers.
If a business gets the overall experience right there is an opportunity to build a relationship.
It's this grey section, that can give the impression that a discount promotion or coupon has been successful. The business did keep some clients. The question always is how many and at what cost.
The In-Betweeners and Transaction Clients will make up 15-20% of revenue approximately, but are the least profitable clients and often the most demanding!
Relationship client spend 60-70% MORE... BUT just like building ANY relationship, there are different types and there are RULES.
So, in the next Revenue Newsletter I'll share the types of relationships that clients want so they stay long term in your salon or spa.
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