Customer Rewards Programs for Tanning Studios

Customer Rewards Programs for Tanning Studios

Being a tanning studio owner, you must understand that success is not only about driving sales! Yes, it’s more about having a loyal customer base! So, if you are struggling to retain customers, don’t worry anymore.

Most business owners employ marketing strategies to enhance sales. In this race, they often forget that retaining clients is just as essential as acquiring them. So, let’s disclose the key to making your customers crawl back to your tanning studio

Reward Programs

According to recent studies, the reward program management market was valued to be around 5.5 billion USD in 2022. Allied Market Research claims it will reach up to 44 billion USD by 2032, growing at a compound annual growth rate of 23.5%.

Considering recent statistics, you can depict a huge difference reward programs must make in a business’s growth, right? We understand how launching reward programs might sound intimidating, but it’s no rocket science!

So, we are here to discuss customer reward programs for tanning studios. If you are new to reward programs, read on to know more!

Reward program: Understanding the core concept

Reward program: Understanding the core concept

A reward program, also known as a loyalty or incentive program, is a strategic technique to boost customer loyalty by rewarding them. You might be thinking that it may consume your entire marketing budget, is that right? Don’t worry! Once you have launched a well-structured reward program, it does not require a hefty amount since the maintenance is pretty cheap.

The reward program is a nifty marketing tool if implemented the right way. Using reward programs, you can boost customer loyalty and encourage them to bring more clients to your tanning salon. Since you are the one to decide the reward, you can choose something that is not pricey but will interest your customers immensely. So, it can be a win-win for everyone!

Types of reward programs for tanning studios

There are several types of reward programs based on the objective behind launching them. So, let’s take a look at them so that you can decide which type fits your tanning studio the best:

Punch card reward

If you are a startup struggling to find loyal clientele, punch card reward can help you. This type of reward program is specialized in increasing the frequency of visits. In the punch card reward system, you provide customers with punch cards where a card gets punched for a visit. Once all the cards are punched, the customer gets a reward.

Points-based reward

For enhancing sales of specific products or services, point-based rewards work like a charm. In point-based rewards, customers get reward points for every purchase, and when they collect a pre-decided number of points, they can redeem their earned points for a reward. This reward can be a discount or a free service.

Referral reward

If you are struggling to secure new customers, a referral reward program can be the best option. This type of reward program is specialized in acquiring new customers efficiently. The referral reward program uses a word-of-mouth technique. In referral programs, you ask existing customers to bring you referrals, and they are rewarded in exchange.

Value-based reward

For startups, value-based rewards play a significant role in fostering brand awareness. So, if you are worried about enhancing the brand’s visibility, you must launch a value-based reward program in your tanning studio business. In this program, you align your values with customers’ by donating a part of your revenue to charity.

Tiered points-based reward

If retaining existing clients is challenging for you, a tiered points-based reward program can help you. In a tiered points-based program, you can add tiers like silver, gold, and platinum, to in your points-based program. This way, whenever a customer earns a predetermined number of points, they get promoted to the next tier to get better rewards.

How to create an efficient reward program

We understand how intimidating it can be to create a reward program for the first time. However, it is what you have to do to drive growth and sales, right? That is why we have put together a guide on creating a reward program tirelessly. So, let’s take a look at the following tips:

Understand your customer

First things first! Understand your customer’s values, interests, and pain points. You must have sufficient knowledge of their needs and desires to make your reward program successful. Additionally, focus on what can keep them coming back to you even if the competition offers the same products and services. Once you have this valuable information, creating useful reward programs will be a breeze.

Determine your goals

The next step is to specify your goals and objectives. You must be aware of why you are launching reward programs. Since you know there are several types of reward programs, it is crucial to be aware of your objective to choose the right type. Your goal may be:

  • Enhance the frequency of visits
  • Increase your sales
  • Build a strong brand image
  • Boost client acquisition and retention

So, once you figure out your objective, align it with the preferences and interests of your customers to make it work best!

Decide a budget

This is a tricky but significant step! Do your math and figure out your budget and how you can launch reward programs within it. Make sure you stick to your budget and do not overspend. Moreover, decide on a reasonable yet exciting reward that you can easily manage within your budget along with other expenses. Another factor to consider is how much money you expect to earn from launching a reward program for your tanning studio. 

Craft a point system

Craft a point system

Now, it’s time to create a point system! Make sure the point system you create translates proactively into real rewards. Otherwise, it’d be just meaningless. So, be mindful while crafting a point system and ensure it is clean, inexpensive, and easy to understand. Moreover, pay heed to your program’s logistics. To put it simply, be clear about how your customers will earn and redeem points. Also, clarify the tips to track their progress towards different rewards.

Decide your reward

If you want your reward programs to be successful, offer TEMPTING rewards. Yes, if your rewards are not what your customers seek, your reward programs will not work the way you expect. For that purpose, make sure your rewards are tempting enough that they look like a gold mine to your customers. So, consider your customers’ interests and preferences while deciding rewards.

Promote the reward program

Now that you have created a reward program for your tanning studio, it’s time to promote it. You can send Newsletters, Emails, and SMS to your customers to inform them about your newly launched reward program. In addition, post about it on your social media handles and the studio’s website. What else you can do is run promotional ads to increase audience reach.

Measure the success rate

Once you have launched your reward programs, you must keep on evaluating their performance. It is important to measure the success rate in order to comprehend if you are moving towards your target or not. You can evaluate the performance of your reward programs by considering the following KPIs:

  • Increase in frequency of visits
  • Average number of product sales
  • Total number of customers over a certain period
  • Number of referral customers

Considering this data, you can make timely modifications if required.

Wrap up

Reward programs sound like a hefty investment, right? But it really is not! Investing in a reward program is not only rewarding for customers but for owners as well. With the implementation of a viable reward program, you can enhance your loyal customer base and acquire new ones effortlessly. Additionally, it helps you improve the brand’s visibility and reputation. So, if you want to increase your customer base and drive success, create a reward program for your tanning studio!