6 Strategies Guaranteed to Boost Revenue for Your Hair Salon

6 Strategies to Boost Revenue for Your Hair Salon

In a saturated market, how do you stand out? Should you use organic products? Focus on edgy haircuts or an unforgettable experience?

If you own a hair salon, you’re probably wondering how to increase revenue and take your business to the next level.

In this article, we’ll review what’s worked for other businesses and what the data says, so you can take advantage of proven strategies.

1. Sell gift cards or certificates

Selling gift cards is a no-brainer for boosting revenue. In the U.S. alone, gift card sales are expected to hit $140 billion in 2016.

By allowing existing customers to purchase gift cards for friends and family, you bring in new customers and increase sales. Make sure customers know you sell gift cards by advertising in-store, online, and via email.

Make it easy for people to purchase cards, even on your website. Consider offering a discount for those who buy them.

2. Create a referral program

A referral program is a win-win opportunity. Customers refer friends who receive a discount, and you gain new customers and foster loyalty.

According to a study by The Wharton School of Business, a referred customer is 18 percent more likely to stay with your company over time.

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Select rewards strategically, considering service time and cost. Asking someone to refer three people in exchange for a free blowout is more likely to succeed than waiting for 10 referrals.

3. Implement a "frequent flyer" program

Offer incentives for first-time or new customers to return. This keeps clients coming back.

For example, Davis Hairdressing offers a free visit to clients who prepay for a certain number of visits. Consider different loyalty program ideas that fit your salon.

4. Turn one-time services into subscriptions

Incorporate a subscription model into your services to ensure recurring revenue. Customers appreciate value for money and ease of use.

A New York startup called Vive offers a subscription that gives customers access to last-minute blowout appointments at top-tier salons.

5. Give client booking software a try

Offer online booking to cater to millennials who prefer it. An online booking system not only simplifies the process but also reduces no-shows and allows for immediate payments.

According to a survey, 50 percent of businesses grew after implementing online booking software.

6. Identify a niche and specialize

Focusing on a niche allows you to differentiate yourself from the competition. Identify what your customers need and serve their unique needs.

Consider niches like men’s grooming, express services for busy individuals, or salons specializing in curly hair.

Remember, specialization may not be possible for new businesses, but it can lead to success if there’s an untapped market.

Take your salon to the next level

Start planning your business using our free sample business plans for hair salons. If you know other strategies that boost revenue for hair salons, share them in the comments below.

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