Hair Salon Direct Mail Success Story

Hair Salon Direct Mail Success Story

Customer Objective

A Great Clips franchisee recently opened a new location and needed an effective way to attract new customers while being able to maintain his existing customers in the market.

Campaign Strategy

  • Develop a 3-month Grand Opening marketing plan

  • Profile households in the trade area to identify households most likely to use Great Clips

  • Mail the Impact Postcard during the first two mailings offering a $5.99 haircut

  • Mail the Wrap to saturate the market on the third mailing to increase awareness to the most households possible in the most cost effective manner

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Campaign Results

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coupons were redeemed during the first month’s promotion for an overall redemption of 3.8% from the Impact Postcard
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Of those 567 coupons, 392 coupons were redeemed by new customers
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1,000 coupons were redeemed from the Wrap during the promotional period and produced a 256% return on investment

Hair Salon Industry Trends

Salons were among the first of the businesses shuttered by government restrictions during the COVID-19 pandemic due to the close personal contact between patrons and employees and the discretionary nature of many of their services. As states begin reopening, salons continue to be under close monitoring and increased regulations on their operations are to be expected as the re-openings continue.

Here are some more stats around hair salon trends to inform your marketing strategy.

  • Large companies enjoy economies of scale in purchasing and marketing. Small companies can compete successfully by offering superior service or securing favorable locations.

  • The 50 largest beauty salon operators generate about 15% of US industry revenue, and the 50 largest barber shop operators account for about 30% of revenue.

  • Hair care product sales typically contribute 5% to 25% of salon revenue.

  • In the 3 months leading to July 2020, mass-market retailer sales of home hair care products spiked. Salons must win back customers who turned to at-home products during the shut-down.

Sources: First Research, SBDCNet.org

Hair Salon Industry Trends

There are 80,000+ salon establishments in the United States (77,000 beauty salons and 4,500 barber shops). Total industry revenue is $20B revenue annually; 95% from beauty salons.

Salons were among the first of the businesses shuttered by government restrictions due to the close personal contact between patrons and employees and the discretionary nature of many of their services. As states begin reopening, salons continue to be under close monitoring and increased regulations on their operations are to be expected as the re-openings continue.

Here are some more stats around hair salon trends to inform your marketing strategy.

Sources: First Research, SBDCNet.org

  •  Large companies enjoy economies of scale in purchasing and marketing. Small companies can compete successfully by offering superior service or securing favorable locations.

  • The 50 largest beauty salon operators generate about 15% of US industry revenue, and the 50 largest barber shop operators account for about 30% of revenue.

  • Hair care product sales typically contribute 5% to 25% of salon revenue.

  • In the 3 months leading to July 2020, mass-market retailer sales of home hair care products spiked. Salons must win back customers who turned to at-home products during the shut-down.

Source: First Research

Opportunities for Hair Salons with Direct Mail

Ads in the mailbox offer a great way to promote awareness of your business and highlight your services and products while targeting your best potential customers.

  • Many salons have fully embraced digital media – whether it’s maintaining an active social media presence, reputation management through online reviews, or SMS and email messaging.

  • An all-digital approach is not the most effective way to target potential customers, nor is it the best customer retention strategy.

  • For acquisition, ANA/DMA response rates for direct mail are currently at 5%, while digital channels are at 1% or less.

  • When you combine print with your digital strategy, you create an even more powerful marketing mix to drive hair salon clients and sales.

  • Print alone or combined with other vehicles drives the highest purchase intent.

  • 70% of purchase influence is driven by print and digital media.

  • 60% of consumers are more likely to make a purchase after seeing an ad offline and online.

Sources: AdMall AudienceSCAN 2020, print 2017 NHCS Adult Study 12-month; Response Rate Report: Performance and Cost Metrics Across Direct Media,” ANA | DMA, November 2018

Direct Mail’s Influence on Hair Salon Customers

Targeted shared mail is a proven customer acquisition tool. In fact, response to ads or coupons in their mailbox has been a proven marketing strategy for several hair salon audiences.

  • Customers who responded to and ad or coupon in their mailbox in last 12 months:
    • Potential Salon Switchers: 72.7%
    • Hair Coloring clients: 62.1%
    • Barber Shop customers: 58.6%
    Source: AdMall AudienceSCAN 2020

How Do I Find My Best Hair Salon Customers?

Our Consumer Analytics team are highly skilled in the science of micromarketing. What does that mean? Micromarketing is another way of saying that we develop a marketing strategy in which your direct mail advertising efforts are focused on a small group of highly-targeted customers. This gives your message the best chance possible to be seen by the right customers at the right time.

With increased competition due to shifts in consumer behavior during COVID-19, hair salons should be taking advantage of the resources or data services available to build a profile of the audience in the geography or geographies they serve. Having this insight is the first step toward getting away from the old way of marketing—hitting all households via digital or print—and instead focusing on targeting consumers who are more likely to see the value in what your salon offers.

Do You Have Any Questions About How Direct Mail Can Grow Your Business?

If you have any questions about how direct mail can grow your business, we would be happy to answer them. You can call us at 877-620-6283 or select GET STARTED TODAY to fill out our form.

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