Devoted, returning customers serve as the cornerstone of a flourishing lash venture.

Studies within the industry reveal that even a minor boost of 5% in client retention can potentially escalate profits by up to 95%.

Are you questioning the feasibility of this?

Let's delve into the rationale behind the significance of client retention…

THE SIGNIFICANCE OF CLIENT RETENTION
Attracting new clients comes with substantial financial investments:

Digital marketing expenses
Costs for print marketing materials
Email campaign overheads
Website upkeep costs
Expenses related to sales events and discounts
These costs are just the tip of the iceberg, not accounting for the time commitment required. Even after your engaging marketing efforts attract potential clients, you still face:

Organizing appointment schedules
Providing service details to inquiries
Handling initial consultations
Processing necessary waivers
The Impact of Client Retention on Lash Businesses

Additionally, newcomers tend to spend less on retail items and addon services than loyal customers do, and are more likely to miss scheduled appointments.

The resources spent on new clients—be it time, money, or energy—are considerably higher than nurturing your existing clientele, making it clear that the more attention you pay to current clients, the more lucrative your business becomes. Hence, the imperative nature of measuring and tracking your retention rate.

TRACKING CLIENT RETENTION RATES
You need to keep track of two metrics:

The retention rate of new clients (the rate at which first-timers return within a set timeframe)
The retention rate of existing clients (the rate at which repeat customers continue to return within a set timeframe)
A 90-day measurement period is advised as it’s extensive enough to assume that a client not returning within this timeframe is unlikely to ever do so. Yet, it’s also brief enough to allow for monthly follow-ups.

Here's the method to calculate it...

Evaluating Your New Client Retention Rates

Evaluating Your Existing Client Retention Rates

Regular analysis is crucial, ideally on a monthly basis, to promptly pinpoint potential issues.

INSIGHTS FROM YOUR CLIENT RETENTION RATES
Monitoring these metrics separately offers clarity on what areas of your business are thriving or needing refinement.

For your new client retention rate:

If it sits above the beauty industry’s average of 30%, you're on the right track.

Rates between 30%-50% are outstanding, likely reflecting a positive first impression and value. Yet, there's always room for enhancement. Surpassing 50% signifies you're outpacing competitors -- commendable work!

Dropping below 30% signals a potential need to adjust your initial client engagement or communication methods.

If your existing client retention rate is also on the lower end, it suggests a broader issue with your services.

Understanding Your New Client Retention Rate

For your existing client retention rate:

The industry standard float around 68%. Aim for the upper 70s, but rates over 85% are exemplary.

Falling below 68% means you might struggle maintaining customer numbers month-to-month. A lacking retention rate calls for service improvements or refined client care strategies.

For salons with multiple staff, tracking individual employee retention rates discerns top performers suitable for mentoring others or for promotion.

Understanding Your Existing Client Retention Rate

ENHANCING CLIENT RETENTION RATES
For in-depth strategies, refer to our blog post, but here’s a summary of impactful methods:

Prioritize Customer Care: Boost the client experience with thoughtful touches like complimentary indulgences and personalized gifts.
Maintain Detailed Records: Keep comprehensive notes on client lash choices, personal likes, and preferences for bespoke experiences (access our no-cost client consultation forms here).
Focus on Lash Retention: Acknowledge the pivotal connection between durable lashes and client devotion. Concentrate on proper preparation, selecting the right adhesives, and exceptional aftercare routines.
Supply Aftercare Information: Arm your customers with aftercare cards, sell aftercare products, and provide knowledge for proper lash upkeep.
Utilize Email Marketing: Gather contact details for future marketing initiatives.
Re-engage Past Clients: Draw back inactive customers with enticing offers through email or text.
Encourage Rebooking: Prompt clients to schedule follow-ups before departure.

CLOSING THOUGHTS
Incremental improvements in client retention can have a compounding effect: transitioning more sessions to familiar and less intensive refills with beloved clients will lead to fewer new, high-maintenance customers.

This shift minimizes resources allocated to attracting new clientele, freeing up opportunities for more rewarding, profit-generating activities in your business.

Regular retention rate analyses deliver invaluable insights, guiding necessary adaptations to your operation.

A dip in figures could signal a call-to-action for change, while an upward trend solidifies the health and desirability of your business from a customer's standpoint. Who wouldn't aspire to that?

Now, it's your move—examine your customer database, employ the given formulas to establish your client retention standings, and then strategize for either improvement or upkeep.