Discover how recurring memberships could be the solution your business needs to keep clients coming back and boost your bottom line.
In a highly competitive and challenging industry, it can be difficult in harsh economic times to keep your appointments books filled and clients satisfied. A solution to these difficult times are recurring memberships, which have recently become a popular choice from both clinic owners and clients. By providing a steady stream of revenue and fostering strong client relationships, these programs can help businesses navigate tougher economic times.
To delve deeper into this topic, we spoke with Tara Shaw, Business Development Manager of Payleadr, a leading provider of subscription-based payment solutions. In this article, she shares her insights and expertise on the benefits of recurring memberships and how they can help spas and clinics boost their bottom line.
What are the benefits of a salon/clinic offering recurring memberships?
The beauty of membership is that there are significant benefits on both sides of the transaction – for the salons and clinics, and for their clients.
For starters, the salon or clinic gets the security of having regular, committed revenue from clients who pay on a weekly, fortnightly, or monthly basis. This helps the salon owners and their teams plan and forecast future revenue, which is especially important in an industry where no-shows and cancellations can wreak havoc on cash-flow. Plus, the recurring revenue is super attractive to investors and potential acquirers, which can mean improved business valuations.
But the benefits aren’t just for the salon or clinic – clients get to enjoy payment affordability, convenience, and flexibility. Just like how Netflix allows you to pay a monthly subscription fee for all the shows and movies you want to watch, salon memberships let your clients pay for treatments and services over time, spreading out the cost in a way that suits their personal circumstances. This makes a wider range of treatments, services, and retail products accessible and affordable, helping clients achieve your beauty goals without breaking the bank.
And the perks don’t stop there – membership clients also get a frictionless checkout experience that provides convenience and flexibility and also opens up incredible upsell, cross-sell, and retail opportunities. In fact, we know that membership clients spend a whopping 40% more per year in clinics and salons than non-membership clients. So not only do your clients get to feel like a VIP, they also get to indulge in some extra pampering and self-care without feeling guilty about the price tag.
Is there an eligibility criteria for clients wanting to select a membership, and is there any interest involved?
There is no interest component and so no credit check or assessment is required. It’s open to everyone, so you can welcome all of your clients and build those long-term relationships that keep them coming back for more.
Speaking of long-term relationships, that is what Beauty Membership are all about. With recurring payments and committed clients, you can improve your cash flow and plan for the future with ease. Plus, our smart surcharge feature means you don’t have to sacrifice your profits to provide affordability to your clients – it’s a win-win!
Often Buy Now Pay Later can feel like a fling – sure, it’s exciting at first, but there’s no guarantee of a second date (or purchase). And with high fees and interest rates, it can be a real pain point for you as a salon owner.
What does it cost the salon/clinic to offer this option?
When it comes to offering beauty memberships through Payleadr, there’s no need to worry about any set-up costs, minimum monthly fees, or lock in contracts. And the best part? Our transaction fees are comparable to those you’d pay for regular card payments! Plus, with our Smart Surcharging feature, you can easily pass on the fees to your membership clients, which is exactly what 95% of our salon merchants do. – making our platform FREE for salons and clinics.
What are some buyer psychology factors that are involved with offering memberships?
More than any other time in history, clients are conditioned to, and attracted to subscription and membership options. Netflix for our entertainment, HelloFresh for our dinners, GlamCorner for our outfits, the entire fitness/wellness industries, Who Gives a Crap for toilet paper… the list goes on.
The reasons those businesses have switched to a membership model are myriad (security and predictability of recurring revenue, that recurring revenue leading to massively enhanced business valuations, the payment options providing access to a wider audience). However, consumers have also responded in an overwhelmingly positive way. In fact, in the U.S. alone, 42 percent of men and 28 percent of women have three or more subscriptions.
When it comes to beauty memberships, clients are looking for convenience, value, and a sense of exclusivity. By offering a membership, salons and clinics can simplify the decision-making process for clients and provide access to a variety of services or treatments for a set period of time. This can reduce the stress of paying a large amount upfront and make the overall experience more enjoyable.
Additionally, salon memberships can offer retail discounts or other incentives, which can increase the sense of value and savings. You aren’t just providing value and savings to your clients by offering salon memberships, you are providing a sense of exclusivity and belonging.
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