It has been said that the greatest form of advertising is word of mouth and, ironically, this power is already in your hands. Your current clients are the most powerful resources you have for developing new client relationships and ultimately securing new clients.
Creating a buzz through referrals or implementing a referral system is not only one of the best and cost-effective ways to bring in new business, but it is a surefire way to grow your bottom line and create salon and brand awareness. Here are 4 reasons why developing a referral system is crucial to your success.
1. Client referrals lead to even more client referrals. Client referrals work much like the domino effect. When someone experiences your services based on a client referral, they recommend you to other people, and other people refer other people. A client acquired through a referral will no doubt give more referrals, and because many of those clients will offer you multiple referrals, it increases your growth potential exponentially.
2. Referred clients are more loyal. Referred clients tend to stay longer than clients who may come to you in other ways because they have already established some form of trust in you and your business. When new customers who are referrals arrive at your salon, they already know about you, your services, and other important factors that fit their needs and lifestyle. Because of what they already know, they come with the mindset to stay, and subsequently help build a steady stream of income for your salon long-term.
3. You're the expert. Because referred clients know their friend or colleague has had success in following your direction, they are more likely to see you as an expert or advisor and follow your tips, instructions, and suggestions when it comes to their hair, nails, skin, and even products. Thanks to the person who referred them, the trust is already there; all you have to do is establish the relationship!
4. More money, no problem. When referred clients sit in your chair, your service costs are usually a non-issue to them. One of the pieces of information that a referrer will usually pass along to the potential client is the price range for various services. New clients come to you with an expectation to pay a certain amount of money and typically don't flinch when you have the cost conversation. They are prepared and they've already chosen you! When new clients come referred to you by someone they trust, they are almost always willing to pay a little more for services.
At the end of the day, your clients are your sales and marketing team in their own way- don't allow them to keep you all to themselves! Ask them to refer you and offer them incentives for doing so. If you establish a strong referral method, you may never have to pay to advertise again!
Photo: Shutterstock | antoniodiaz
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Tiffani Douglas is an author, speaker, beauty-marketing consultant and licensed nail technician with over 20 years experience in the beauty industry.
A graduate of the University of Kentucky, Tiffani worked her way through college as a manicurist to obtain a Bachelor of Arts degree in Journalism, with a concentration in strategic marketing. After college, she went on to work in corporate America as a marketing and media maven, but ever passionate about the beauty industry, she founded her own mobile spa.
During that time she also began consulting other beauty professionals in the areas of marketing and branding, which sparked an idea to write two e-books, Social Media Marketing: A Guide for Beauty Professionals and Are You a True Beauty Professional– 7 Practical Steps to Being More Professional, Upgrading Your Business and Increasing Your Revenue. She recently released her first published book, Straight Outta Beauty School - 10 Things You Need to Know and Do After You Graduate.
Tiffani resides in Dallas, Texas where she continues to inspire beauty pros young and old by offering them the tools they need to grow personally and professionally.
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