Case Study: Growth Hacking a Hair Salon and Day Spa

Finding the Hidden Growth Potential in a Full-Service Hair Salon & Day Spa

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Growth Hacking Case Study:  Full-Service Hair Salon & Day Spa

Our clients tend to be obsessed with growth.  And so are we.  Here’s the growth hacking story of how we found hidden revenue in a full-service hair salon and day spa.

The Business

A Moment’s Peace Salon & Day Spa was founded in the Nashville suburbs in 2002.  As a mature brand, well-known among its core prospects, it has a long-standing expectation of double-digit YOY growth.

The business is unique in its area, mainly because it offers 10 core services all under one roof:

    • Hair Salon
    • Nail Salon
    • Massage
    • Professional Skincare
    • Med Spa
    • Sunless Tanning
    • Waxing
    • Unique Gifts
    • Gift Cards
    • Spa Parties

Most competitors only offer 1 or, at most, just a few of these service options.

The Challenge

How do we grow a business such as this at an even more accelerated pace?

We learned over the years that growth was coming from 2 primary paths:

  1. Referrals — People had a great experience and recommended it to others
  2. Gifts — Men (mostly) gave their spouses/significant others (women, mostly) a gift card

So we focused our marketing on 2 primary goals.  The first (internal) is to encourage more referrals.  The second (our external growth hacking) is to double down on gift-giving.

The Answer

Once we figured out that it was much easier to sell men on the idea of a “gift she’ll love,” than women on “why A Moment’s Peace,” it became obvious that men were the path to creating new first-time customers (women, the end-users of the gift cards).

And when we analyzed the data and found that first-time women customers using a gift card became regular customers 57% of the time, the ROI of this strategy became even more obvious.

The Strategy

Target the men in the lives of the women we want to be regular customers and sell them gift cards for birthdays, anniversaries, Christmas, Valentine’s Day, Mother’s Day, and anytime you’re in the “doghouse” remedies.

Using our basic digital marketing formula, we developed several plausible tactics:

Then, we applied our unique Bullseye Digital Marketing Method to test these tactics and refine them over a period of 90-120 days, which in our case coincided with the Christmas and Valentine’s Day holidays (2 times of year when gift card sales tend to spike).

The Results

As we executed and tracked each tactic, we used a performance dashboard we created using Google Data Studio to monitor the results and ROI by channel and even variations of creative and other variables.

After several iterations now, we’ve learned which variations work best at each time of year.  And we’ve even been able to make the sports talk radio campaign more trackable through the use of creative ways to engage listeners digitally.

We now generate over $1 million annually just in gift card sales, and redemption of those gift cards is the primary driver of new, first-time customers.  That 57% retention rate has held up, and has allowed us to utilize early-week and evening capacity.  In fact, the facility is expanding to be able to keep pace with the growth.

Key findings:

  • Different tactics and combinations produce the best results at different seasons
  • The spikes at Christmas, Valentine’s Day, & Mother’s Day offer the best growth opportunities
  • However, birthdays and anniversaries provide a year-round growth opportunity

How To Growth Hack Your Own Hair Salon & Day Spa

Our company was founded on core principles that include leading with education and investing in our clients long before they invest in us.

We work category-exclusive by city or designated marketing area (DMA).  If you’d like to find out if we’re available in your market, just inquire here.

By gaining an understanding of your unique situation and applying the same principles, we can work together to growth hack your business and find new revenue that’s just hiding away right now.

Here’s more about our marketing strategy for hair salons and day spas.

 

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Steven Ludwig
After 3 decades as a professional marketer, serial entrepreneur and business consultant Steven Ludwig shares his best practices for small business marketing for owners, managers, and marketers with limited time, money, and expertise. Steven started his professional marketing career in broadcasting in the early ‘90s in Chicago after attending Valparaiso University. After a brief stint at an advertising agency specializing in entertainment and sports marketing where he worked with radio and television stations, movie theatre companies, record labels, musicians, and professional sports teams, he moved to Nashville to form The Marketing Group with his long-time business partner, Jim Wood. Having worked with some of the largest brands in the world, in 2010 he returned to local marketing primarily out of an interest and excitement for working with small business owners to build stronger companies. That desire comes out of early days in radio, where he worked closely with everything from car dealerships to restaurants, insurance and real estate agents, banks, home services companies, and specialty retailers of all kinds. Over the past decade, he has been on the bleeding edge of digital marketing technology, constantly seeking to understand complex strategies employed by giant corporations and then translate those capabilities into tactics small businesses can execute at a local level. Today, in addition to other business ventures with his wife and other long-time business partners, he still lives outside Nashville in Franklin, Tennessee and currently serves as Executive Chairman of EmpowerLocal, a digital marketing company building a nationwide network of digital, hyperlocal news and lifestyle publishers to provide efficient advertising opportunities for local, regional, and national brands.

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