Ready To Setup A Rewards Program?

July 24, 2014 Kathy Watts permalink

Reward stampReturning clients spend an average of 67% more than new clients. So it only makes sense to focus on bringing your clients back again and again. One great way to do that is to reward them for being loyal customers. SpaBoom offers great functionality for running your rewards program. But before you turn it on there is a lot to think about. Here are some things to ask yourself when you’re ready to set up your rewards program.

What activities do you want to reward?
You want to make sure you are rewarding behaviors that help your business to grow, either in the number of clients you have or the amount of revenue being generated. Some of the most popular activities to reward are:

  • Purchasing Gift Certificates
  • Purchasing Services
  • Using Online Booking
  • Purchasing Deals
  • Referrals for services or purchases
  • Signing up for Email Marketing
  • Share with a Friend
  • Shared Friend Signups

How many points will be rewarded for each activity?
You need to decide what sorts of behavior you want to reward the most. Is it more important to keep your clients coming back again and again? Then make purchases and services worth more points than referrals. Or maybe referrals are more important, so you would want to make referrals for services or actual signups worth more points. The default in the Rewards setup is 1 point per dollar spent and 100 points for email newsletter signup. But you can change these and fully customize the point values for each individual activity.

How much is each point worth?
A good starting point might be to make 10 points worth $1. This makes it easy for your clients to quickly earn rewards, which is a good thing. SpaBoom gives you full control over how much each point is worth, so you can decide what works best for your business. But keep in mind that people who participate in a rewards program typically want to be able to redeem their points in 3-6 months. So making it easy to earn points, and easy to redeem them, will make your rewards program much more effective.

What rewards do you want to offer?
Create rewards and incentives that your clients desire, but also that are unique to your business. You also want to make sure that your Rewards program is helping to grow your business and isn’t hurting your bottom line. So keep that in mind when deciding on rewards. Some rewards options are:

  • Discounts on services
  • Gift certificates for services or products
  • Bonus products
  • Add-on experiences
  • Monthly special – an exclusive offer for reward members

Studies show that clients tend to be happier with rewards other than discounts. But now might be a good time to ask both your staff, and some of your top clients, what they think the rewards should be. Tailoring your rewards to meet the needs of your clients will make your program more successful.

How will you promote it?
Be sure you promote it on your website and via social media. But, more importantly, make sure your staff are ambassadors for your program. They should all understand how it works and why it is a benefit to both the client and the business. Some spas even have displays showing what you can receive at each point level. Talking with your clients about your rewards program should be part of the checkout process at the end of every visit. Let them know how many points they currently have, and also what they can redeem them for, as well as an incentive for re-booking at the time of checkout.

How will your clients earn, track, and redeem points?
This one is easy. SpaBoom rewards make it easy to do all of this from your SpaBoom account. You can even set it up to automatically redeem points. When a certain level is reached, SpaBoom will automatically send your client a congratulatory email with their reward attached as a gift certificate. We also make it easy for your staff to look up how many points a client has earned and redeem them right there while the client is still at your front desk. Efficiency in use guarantees a successful rewards program.

You are now ready to turn on and set up your Rewards program in SpaBoom. But keep in mind that your rewards program is a living entity. Follow-up regularly with your clients to make sure your program is meeting their needs as well as yours and that the rewards are really worth it. Communicate with them regularly, both about what is available in the rewards program this month, and also about how many points they have currently. And make changes as needed to keep it competitive and successful.

A successful rewards program not only rewards your clients for their loyalty, but can help to reinforce the relationship they have with your business. Making it an easy program for your clients to participate in, and also for your staff to administer, will ensure that your clients are happy and keep them coming back for more.

Need help getting your Rewards program set up? Give us a call. We’re always happy to help!

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