rescheduling discounts
Hi friends and Happy June! I wanted to know if anyone had any advice on my current re-booking discounts. I offer a 20% discount to all of my clients who rebook their next appointment. It's worked out great and I always have a great return rate. I am getting new customers daily but if I tally up my discounts I get sad at the amount I could have brought in. I wanted to change my re-booking discount to 10% for all new clients and allow my old clients to keep their 20% off because they are the ones who continue to fuel my business. What is the best way to advertise this without worrying my old clients? Thanks all and Happy June!
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Replies to This Discussion
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Permalink Reply by Orrin Black on
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Tiffany,
this is a very good question, and you seem to notice the potential challenges of changing prices for some clients while keeping them the same for others already. My recommendation would be to create a sort of "vip member" club for your clients. For example, if you were to place all current clients in the 20% category, and then create a criteria for new membership (possibly rebooking 10 appointments or having at least 1 appointment a month for x amount of months) this creates a sense of exclusivity and incentive for your clients and a goal to work toward for the new clients coming in. They come in at 10% but actually Want to rebook their appointments to get to the eventual 20% (don't make it too easy, i wouldn't be ashamed of a 12 month waiting period in the least) this also creates a constant flow of new customers, you could make it easier for a new customer to become a VIP (definitely want to come up with a more customized clever name related to your spa) but maybe for ever referral a 10% customer brings you, they get a month knocked off their waiting period, maybe even 2 months. Based on a 1 year wait, that's 6 referrals or 5 referrals and 2 months wait or roughly 1 rebooked appointment. I hope these ideas are helpful to you and if you would like to discuss more I'd be happy to :) peace and health.
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Permalink Reply by Tiffany Carmona on
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GREAT! I love this idea and I am ready to implement! Thanks so much for your great ideas!
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Permalink Reply by Samantha Maline on
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In your situation I would stop offering 20% to new clients. Let old clients know that they will continue to receive their 20% discount but there are only a few receiving that so not to mention that to anyone they're referring (they like to feel special). Then as these clients drop off for extended periods of time (a few months) and return, give them the new discount. If they don't like that, understand that you're going to have a natural cycling of clients over time and when old ones leave, you will receive new.
Don't underestimate yourself. Clients aren't coming to you because you're providing a discount, they're coming because they like your work. Discount or not, nobody is going to spend money on second-rate work. Keep your values up (or even better, raise them) and your clients will keep on coming. One's who are coming in for discounts...they were never yours to begin with.
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Well said. It makes so much sense! Thanks so much for the feedback.
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Permalink Reply by Relax & Rejuvenate on
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Are you offering this discount ONLY if they rebook before they leave from their current visit? Are you allowing any reskeds on re-booked appts and still allowing the discount? One way to minimize it is to tighten the terms and conditions. Airlines do it all the time -- applicable only on certain days of the week, for certain services with no changes and booked on the spot...
Don't think about what might have been. You will drive yourself nuts over something you don't know to be true -- some might not have re-booked without the discount.
I agree, phase out the rebooking discount now, but also look towards phasing out your re-booking discount altogether.
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I've never believed in discounting because I think it devalues the service you're offering. However I have implemented a 10% discount for my "frequent fliers". If they're coming within x amount of time repetitively, I give them a "break". I do explain that my discounts are only offered to those that are spending a lot of money with me. I have 3 week Brazilian and eyebrow clients who get this and it has really improved my rebooking rates. So I do think there's a time and place for discounts.
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Permalink Reply by coldsalineplexus on
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I do this too, but only with Brazilians. I have a "New Growth" rate and a "Maintenance" rate and you save $10 if you're in the maintenance period (4-6 weeks).
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I want to phase it out all together. I plan on not telling any new clients about a rebooking discounts. I feel like if I keep discounting I will never make the money I want to make. I allow my "VIP" clients to receive their discount but only if they book the first 15 days of the month. i'm still trying to work out all the kinks and make sure I take care of me but show love to the people who have been with me since the beginning.
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I would set up two versions of your facial - one at "full" menu price, and one at 20% off that rate, with a little less massage, or minus one machine, or something. Whatever version you are comfortable doing at the previously discounted rate - even if new clients choose it. Create a postcard with full descriptions and prices of those two services. Then, handing them the postcard, I would let your loyal clients know that you are phasing out this discount, and thank them profusely for helping to get your business to the point where you are booked enough to do that. Let them know that they have three additional months to enjoy the re-booking discount, but that new clients will not be offered that discount, so please if they would not mention the discount when referring. Explain that the new service offerings give them the opportunity to remain at their comfortable rate with option 2, or continue to receive a full-service treatment with option 1, and that you look forward to continuing to take care of their skin.
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It is evident by your approach to this situation that you are a very passionate customer service professional as well as a skilled esthetic professional. My only thought/contribution on this idea is that if I were a consumer in the chair and this offer was put before me, I would think of my options as 1: continue paying what I've always paid, but get less service for it, or 2: Pay like one of the new clients who hasn't given the loyalty and the business that I have. In either case, I would feel somewhat jilted.
Another important thing to note is is that depending on the service (i.e. of course a 90 minute facial should always be 90 minutes) if it is a maintenance service, for example hair removal as the other ladies have mentioned, it stands to reason that a client should receive some incentive for being a "good client" and maintaining their regular appointment. Especially in the case of hair removal, discounting to provide this incentive doesn't short-change the operator at all. Allow me to explain:
If clients A and B are first time brazilian clients, and you charge $85 for your brazilian. If you manage to do both of them in an hour (for the sake of discussion) that would be $170 in that hour. Flash forward to a few months later, when both clients A and B are regulars, and get their brazilian done ever 4-6 or even 2-3 weeks, if you rebook them at a "frequent flyer" discount down to even 70 or 65 (let's say for the sake of caution go on the low side) $65, but now they only take you 15-20 minutes each, and have referred client C who is on the same track as them, you can now fit 3 clients in to that same hour, making $195 dollars in that hour. Now of course the other thing to consider is that if you make the incentive big enough to incentivize a 2-3 week period between appointments as opposed to 4-6, then you're also getting that client in to your spa up to twice in the month instead of once, allowing for more familiarity/trust between you and your clients, which makes it easier to let them "think it over" on a product you recommend to them without them having a full month to forget about it before coming back again. Again you make very good points. These are just my thoughts.
Peace and health.
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Excellent way to explain this.
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Thank you
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