How should a salon loyalty programme work?

The most common format is a stamp card — after a set number of visits (usually 8-10), the client receives a reward. Rewards can be a percentage discount, fixed amount off, free service or free product. Digital loyalty through salon software is increasingly popular as it tracks automatically and provides data insights.

What is a good loyalty reward?

The reward should be valuable enough to motivate repeat visits but not so generous it erodes profits. Common options: 10% off after 10 visits (costs 1% of revenue), £10 off after 8 visits, free conditioning treatment after 6 visits, or a free service after 10+ visits. The cost per redemption should be under 3% of total revenue.

Do loyalty programmes actually retain clients?

Research suggests loyalty programmes improve retention by 5-15% when well-designed. The psychological effect of progress toward a reward (the "goal gradient" effect) motivates continued visits. The key is making the reward achievable — too many visits required and clients lose interest. 8-10 visits is the sweet spot for salon loyalty.

How much should a loyalty programme cost?

Aim for 1-3% of total annual revenue as the cost of your loyalty programme. If your salon turns over £150,000/year, budget £1,500-£4,500 for loyalty rewards. This is typically far less than the cost of acquiring new clients through advertising, making loyalty programmes one of the most cost-effective retention tools.

CutCalcs

Loyalty Calculator — Reward Programme Costs

Design loyalty reward programmes and calculate the cost of client incentives.

Reward Type

Avg Service Price

Visits to Earn Reward

Stamps needed for reward

Discount %

Total Active Clients

Avg Visits Per Year

How We Calculate This

This calculator estimates the cost of running a loyalty programme and compares it against the estimated revenue benefit from improved client retention.

The formula

Reward cost = Discount % x Service price (or fixed amount)

Annual cost = Rewards per client x Cost per reward x Total clients

Net benefit = Retention revenue gain - Programme cost

Frequently Asked Questions

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Last updated: February 2026

All calculations are estimates. Always perform a strand test before chemical services.