The Key to a Successful and Profitable Barbershop: Customer Retention

Victor Young

Marketing & Business Development Manager

Attracting new customers is important for business growth. However, what many barbershop owners overlook is the role that customer retention plays in sustaining and expanding their business. Customer retention refers to the ability to keep customers coming back to your barbershop on a regular basis.

In this article, we will explore the importance of customer retention and strategies to improve it in your barbershop.

What does Customer Retention mean for Barbershops?

It's really all about building a loyal customer base and ensuring that they continue to choose your barbershop over your competitors.

It's not just about attracting new customers but also about keeping the ones you already have engaged and satisfied.

So if you think about it, you're turning a customer who spends $30-$60 for a haircut into a loyal customer who comes back and spends that every 2-3 weeks.

Great right?

How do we keep customers coming back?

Surprisingly it's not just the quality of haircut that keeps customers coming back.

When you focus on customer retention, you prioritize creating a positive experience for your customers at every touchpoint.

From the moment they step into your barbershop to the time they leave, you strive to provide exceptional service, personalised attention, and a comfortable environment. This commitment to customer satisfaction helps foster loyalty and encourages customers to choose your barbershop over your competitors.

Here's some of things we focus on for customer retention:

  • family oriented service - treat their haircut like you're cutting a family member's hair
  • understand, listen and confirm what they want and how they like their haircut
  • remember what haircut they usually get
  • remember their name!
  • exceed their expectations with communication, vibe or even the service you provide

By priortising positive experiences, you're giving customers even more reasons to come back.

Why leave when things are good?

From a business standpoint, retention is a no-brainer

One of the main reasons is that it is much more cost-effective to retain existing customers than to acquire new ones.

From our paid performance campaigns, we average a cost of getting a new customer from $5-$50 - of course this depends on the offer you're promoting!

Which means you either might be making a positive return, breaking even or losing on their first haircut.

But that's thinking in the short term.

Long term, if you've put in place high customer retention measures like the stuff mentioned above; there's a high chance these customers will come back over and over again throughout the year.

Meaning you're making more and more money back from your initial investment to get them.

It might sound confusing, but what we tell all our franchisees:

It's not about getting a new customer. It's about keeping them and your existing customers.

Loyal barbershop customers are more than a source of revenue

They become brand advocates who spread positive word-of-mouth about your barbershop. Satisfied customers are more likely to recommend your services to their friends, family, and colleagues, which can lead to a steady stream of new customers without the need for extensive marketing efforts.

Also, whenever you start a new service or product - loyal customers are more likely to try! They trust your expertise and are open to exploring different options within your barbershop. This presents opportunities for upselling and cross-selling, increasing the average transaction value and boosting your profitability.

By focusing on customer retention, you can create a virtuous cycle of customer satisfaction, loyalty, and business growth. As you consistently deliver outstanding experiences, your customer base expands, and your barbershop becomes a trusted destination for all their grooming needs.

Strategies for Improving Customer Retention in Your Barbershop

Now that we understand the importance and benefits of customer retention, let's explore some effective strategies to implement in your barbershop.

Providing Family Oriented Customer Service

Nothing beats excellent customer service when it comes to retaining customers. Make sure that your barbers and staff are friendly, attentive, and skilled. Create a welcoming atmosphere where clients feel valued and comfortable. Going the extra mile to provide exceptional service will leave a lasting impression on your customers and keep them coming back.

Imagine this: A customer walks into your barbershop, greeted by a warm smile and a friendly hello. Your staff engages in meaningful conversations, taking the time to listen to each customer's preferences and needs. As the customer settles into the barber chair, they are offered a complimentary beverage and a selection of magazines to enjoy during their visit. The barber skillfully executes the requested haircut, paying attention to every detail. The customer leaves the barbershop feeling satisfied, not just with their haircut but with the overall experience.

Implementing a Customer Loyalty Program

A customer loyalty program can incentivize clients to remain loyal to your barbershop. Consider creating a rewards system where clients earn points for each visit or purchase. These points can then be redeemed for discounts, free services, or exclusive offers. By rewarding loyalty, you show your customers that you appreciate their business, further strengthening their connection to your barbershop.

Imagine this: A customer walks into your barbershop and is greeted by a sign promoting your customer loyalty program. Intrigued, the customer decides to sign up. With each visit, they accumulate points that can be redeemed for various benefits. After a certain number of visits, they unlock a free haircut or a discounted grooming package. This not only encourages repeat business but also creates a sense of excitement and anticipation for the customer, making them eager to continue their relationship with your barbershop.

Offering Unique Services and Products

Standing out from the competition is crucial in the barbershop industry. Consider offering unique services or products that set your barbershop apart. Whether it's a specialty grooming service, exclusive hair care products, or a signature massage, providing something that cannot be found elsewhere will give customers a reason to choose your barbershop over others.

Imagine this: Your barbershop introduces a new service called "The Ultimate Grooming Experience." This service includes a haircut, a hot towel shave, a facial treatment, and a relaxing scalp massage. It's a comprehensive package designed to provide the ultimate pampering for your customers. Additionally, you collaborate with a local artisanal grooming product brand to offer exclusive products that are not available in any other barbershop in the area. These unique offerings create a buzz in the community, attracting new customers who are eager to experience the exceptional services and products your barbershop provides.

By implementing these strategies, your barbershop can enhance customer retention and create a loyal customer base. Remember, the key is to consistently provide excellent customer service, reward loyalty, and offer unique experiences. With these elements in place, your barbershop will thrive and stand out in a competitive market.

Measuring Customer Retention

Once you've implemented strategies to improve customer retention, it's important to measure the impact of your efforts. This will help you track your progress and make adjustments if needed.

Key Metrics for Tracking Customer Retention

There are several key metrics you can use to measure customer retention. These include customer churn rate, customer lifetime value, and customer satisfaction scores. By regularly monitoring these metrics, you can identify trends and areas for improvement, allowing you to further enhance your customer retention strategies.

Using Customer Feedback to Improve Retention Rates

Your customers' feedback is a valuable resource when it comes to improving customer retention. Encourage your clients to leave reviews and provide feedback on their experience at your barbershop. Use this feedback to address any issues, make necessary improvements, and ensure that your customers' needs are being met.

Case Studies: Successful Customer Retention in Barbershops

Let's explore two real-life case studies that highlight successful customer retention strategies implemented by barbershops.

Barbershop A: Leveraging Loyalty Programs

Barbershop A implemented a customer loyalty program where clients earned points for each visit. They offered rewards such as discounted hair care products and free additional services. This program not only encouraged repeat business but also increased customer referrals, resulting in a steady growth in their customer base.

Barbershop B: Excelling in Customer Service

Barbershop B focused on providing exceptional customer service. They trained their barbers and staff to deliver personalized, attentive service to each customer. By making every visit a pleasant experience, Barbershop B built strong relationships with their clients, resulting in a loyal customer base that consistently returned for their grooming needs.

The fact you're reading this article means you're thinking about the right things.

This is a crucial learning for all our franchisees and is a big component as to why we have high retention rates with our customers.

If you're running a barbershop, keep it up! You're on the right track.

If you're looking for a new opportunity? This is your sign to contact us about our franchising opportunity!