Lessons to learn from ME

Would you like get 30% to 40% of your non-returning customers back? Or conduct a fast, inexpensive offer to your customers with the double benefit of significant new business and new customers? Then I must tell you about the owners of ME, a salon in Auckland.

The clever marketing and customer service initiatives of owners Andy Grant and Iain Smith have significant relevance for any business. They have combined clever thinking with three business ingredients to their advantage (that so many others ignore). A customer database. Everyday technology. Customer communications.

Cross marketing Most salons offer hair, makeup and beauty therapy. ME strategically branded their three services as ME (hair), MAKEUP ME and TOUCH ME (beauty therapy). This creates three separate services to cross market. Their software system has built in bulk SMS messaging. They ran a campaign sending 500 (SMS) texts to hair clients saying if they use a TOUCH ME service they get a gift voucher of equal value for themselves or a friend.

Lesson: You have targeting. Cross marketing. Inexpensive, easy, Immediate and personal value added communications. The result is 300 out of 500, 60% took up the offer. That is 300 non-discounted new pieces of business. The fact most gave the voucher away means a fabulous inexpensive source of new clients. Further by giving discounts on services rather than cutting prices means  generating revenue rather than cutting income and creates a higher perceived value for all clients than the actual cost.

Raising the dead Each Monday they print two lists. The prior week’s clients and those that have not returned in four to six months. They have the receptionist telephone both lists. The first a customer service follow up ‘how was your appointment?’ The second a ‘we miss you, how can we bring you back’?

Lesson: This raising the dead list gives you a great vehicle for feedback and tweaking service – ME normally get 30-40% of the clients to return again. If you look at the average lifetime value of a client, let’s say $2500 here, this simple exercise is a significant revenue generator conducted during a quiet time.