Marketing Case Study For Customer Retention Campaigns: Dye-Licious Hair Salon


Company Overview

Stephanie Metzger founded Dye-licious Hair Salon in Tempe, AZ in 2006. With 10 years of salon experience in Nevada and a loyal clientele, Metzger faced a major business challenge upon her husband’s job relocation to Tempe. Since she couldn’t take her clients with her, Stephanie had to start from scratch. Luckily, she was able to find a prime location for the salon, located on the corner of a busy shopping center. drivingschoolintoronto

Original Marketing Strategy

With only a few friends and family to start with, Stephanie knew that she had to focus on reaching new clients. Deciding to capitalize on the busyness of her location, Stephanie printed a large vinyl banner promoting her grand opening and new client special of 50% off the first cut or dye. This banner brought in roughly 50 new clients, and although it only cost around $100, the steep discount resulted in very little profit.

Customer Retention Campaign

Metzger had a plan in mind, however, and she knew that profits would be slim at first. “Hair is all about building a relationship,” she says, “I needed new clients to get started, of course, but I also had to keep them coming back.” With this in mind, every new client received a response card to fill out after their appointment, which asked for feedback as well as contact information. Clients were able to select how they’d prefer to be contacted by Dye-licious, be it via 1) phone calls, 2) direct mail, 3) email, or 4) text message. Using a sophisticated CRM program, Dye-licious is able to contact each customer when it’s time for their next appointment, and the system is also able to track client birthdays, anniversaries, and total money spent at the salon. For special occasions, clients are offered free products, a discount on services, etc.

Response

Just six months after opening its doors, Dye-licious had retained 72% of its clientele. New clients continue to book appointments thanks to the enticing banner outside promoting the first-time special, and the CRM software helps the Dye-licious employees keep track of their clientele. For a $5,000 investment (by purchasing the software as well as the storefront advertising), Dye-licious reached over 500 new clients, 360 of which are still booking appointments.

Business Recommendations

 

    • Have a new customer special-it’s the best way to get the attention of potential clients as it makes the transaction somewhat guilt-free.
    • Once you’ve gained a new customer, treat them like royalty. Don’t overlook the lifetime value of that customer, even if you’re just selling them a product. temp-mail
    • The customer that’s always looking for a discount isn’t necessarily the one you want. Recognize your customers and reward them for loyalty, but don’t cheapen your business in the process.
  • CRM software and other customer retention tools can be quite helpful as your business continues to grow. Don’t spam your customers with constant contact, but at the same time keep the lines of communication open so that they understand that you value their business.

 

Michael Allen works as a Director of Marketing in Boston, Massachusetts. He has worked with both large companies and small local businesses for over 20 years. His vast experience in the field of marketing positions him as an expert in helping businesses expand by using marketing tactics.

 


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