Drive Revenue for your Franchise Business with Membership Program
Glosshouz offers a wide variety of luxury beauty and wellness services but, originally, we only had two types of customers. The first was our special occasion spa service crowd who came in for a spa service or a spa day from out of town or for a special occasion (Mother's Day, birthday, etc.). The second type of customer was our recurring service patron who would find us for a certain type of service they were looking for (like lashes, BOTOX, hair salon or other) and then that is all they would do repeatedly without trying anything new.
When we implemented the Benefit Flex Fund (BFF) Savings Program our business grew significantly and rapidly. Our BFF Savings Program monthly members love the program for its discounts, perks and benefits creating such a great value-proposition, and I love that it rewards our best clients for their patronage. It provides a great savings for them, and it encourages them to try new types of services they may not have tried otherwise. It's a win-win!
The Benefits of the BFF Savings Program(TM) - Look for a Franchise with Membership Program
Some of the most successful companies in the world center their revenue generation around a powerful membership model and so do we! Just think about Amazon, Costco, Peloton, Spotify, Netflix and more. The popularity of each of these business titans relies on their recurring membership revenue. The Glosshouz Spa Center membership model, called the BFF Savings Program(TM) is a diverse and compelling customer strategy that is especially advantageous and can be leveraged for franchisees of Glosshouz Spa Center.
You will want to look for a franchise with a membership program to increase revenue and profits:
Consistent revenue stream: Memberships typically involve recurring payments, providing the franchise owner with a predictable and steady cash flow. This certainly allows for better financial planning, cash flow analysis, payroll predicting, and investment in growth opportunities.
Higher customer retention: Memberships provide advantages in the way of perks, discounts, and benefits for customers which encourages them to stay loyal to the brand, leading to higher customer retention rates. Some Glosshouz customers have been with Glosshouz for 6 to 7 years by now 2023 (Glosshouz was founded in 2016). Creating a method for great customer retention reduces the cost of new customer acquisition and increases the lifetime value of each customer.
Increased customer engagement: Memberships can offer exclusive benefits, such as discounts, early access to new products or services, and personalized experiences. This can lead to higher levels of customer engagement and satisfaction, ultimately leading to increased revenue. Specifically, the Glosshouz Spa Center Franchise BFF Savings Program(TM) resonates with our guest clients. When they are able to "save" their credits monthly, they can plan ahead and easily budget for large ticket items that they may be desiring (like fillers, lasers, BOTOX, all day spa packages for example) that they may otherwise not be willing to spend on. This only increases business for Glosshouz while increasing our members' satisfaction and engagement with our service offerings.
Opportunities for upselling and cross-selling: Memberships can provide opportunities to upsell and cross-sell additional products or services, increasing revenue per customer. With the BFF Savings Program(TM) our guests are able to save on a second service if they book it on the same day as another appointment. Our members love this discount and it gives them an excellent savings to try new services they may not otherwise.
How to Know if a Franchisor’s Membership Program Works
Purchasing a franchise can be a great way to gain access to a proven membership model but all membership programs are not created equal. You’ll want to ensure that yours has the potential to drive revenue and stability for your business without eroding your profitability and business margins.
Look for these membership model traits to evaluate a proven Membership Model from your franchisor:
History of success: Look at the franchise's history of offering a membership program. If it has been in place for several years and has consistently generated revenue and growth, it may be considered a proven model.
Franchise support: Assess the level of support and resources provided by the franchisor to help franchisees develop and implement their membership programs. If the franchisor has a structured program in place with proven strategies and tools to support franchisees, it may be a proven model.
Market research: Conduct research on the target market and competitors to evaluate the demand for the membership program. If there is a clear need and demand for a membership program in the market, it may be a proven model.
By considering these factors, you can gain a better understanding of the franchise's membership program and determine if it has a proven track record of success.
What Else to Look for in a Great Membership Model
Consider these program facets to further evaluate the success in the marketplace of a great membership model for your business:
Characteristics of a strong membership program:
Clear value proposition: A successful membership model clearly communicates the benefits and value that members will receive in exchange for their membership fee.
Scalability: The model should have the potential to scale quickly meaning that it can handle a growing number of members in a short time.
Sustainable revenue: The membership model should generate consistent and sustainable revenue streams that can cover operating costs and allow for future growth.
Engaging membership experience: The membership experience should be engaging and valuable, with exclusive benefits and perks that encourage members to remain active and renew their membership.
Why the Membership Program is Your Best Business Move
According to Harvard Business Review, businesses that prioritize loyalty grow revenue 2.5% faster than their competitors and Harvard Business School points out that a 5% increase in customer retention can increase profits by 25% to 95%. Moreover, one survey discovered that 51% of retailers offering paid loyalty programs consider their members to be four times as valuable as their non-members.
With membership programs acting as a crucial aspect of customer loyalty, implementing a well-thought-out or previously proven membership strategy can have a significant impact on the longevity and revenues of your (future) venture.
The same is true for Glosshouz Spa Center franchise. Approximately 63% of Glosshouz’s annual revenues come from our monthly members and they enjoy valuable savings on services and products that keeps them coming back for more! Our business strategy is to ensure our guest customers are the happiest and most confident we can make them. The Glosshouz Spa Center franchise business BFF Savings Program(TM) is a valuable program offering for our clients that ensures loyalty, revenue, and value combined — it is a win-win all around!