Salon Marketing - Lifetime Value of a Customer
UNDERSTAND THE LIFETIME VALUE OF A CUSTOMER
It is often quoted that the average life of a salon customer is five year's; you must therefore understand the real value of attracting a new customer is much more than the value of your first service. Should you charge £20 per week and the customer visits 50 times per year the real value to your salon is £1000 per annum. Should they stay loyal for the 5-year period mentioned earlier, the real lifetime value to you is £5000! You must fully understand this principal before you can evaluate how much you are prepared to spend on attracting each new client to your salon.
I do of course fully understand that not all customers attracted by a specific promotional offer, will go on to become lifetime customers, I would however advise that if you work on a ratio of 50% you won't be too far away.