Australian Budget 2024-2025: Key Insights and Impact
4 September 2024
Business disruptions is always a challenge and while no-one can guarantee you smooth sailing in 2022 there are several things you can put in place to support your ongoing income stream – one of them is looking at ways to increase skincare sales that don’t involve discounting.
So, if you are not going to revert to discounting what are proven strategies that can help you increase sales without devaluing your brand?
Here are a few to consider:
1. Bundles
Offering bundles is a strategy that provides value to your clients who choose to buy multiple products from you. Bundles like gift sets and package deals are ideal for buyers looking for good deals or simply convenience. Companies that are big on product bundles often dedicated an entire tab on their website called “Save on Sets” where they show exactly how much their clients can save when they buy one. By offering a small discount on a set of several products you make your clients feel like they’re getting more value while generating sales for your business.
Another great benefit of offering bundles is that it also ends up promoting products that your clients may have otherwise never thought about buying, for example combining a body product, or sunscreen product in with their skincare.
2. Points programs
A client loyalty program, or rewards program is a marketing strategy that rewards loyal clients that frequently engage with a brand. The points system focuses on the principle of the more you spend, the more points you’ll earn in return. Every time a client makes a purchase, they get a certain number of points depending on how much they spent that they can then use to earn exclusive perks.
One company created a faithful customer base using Clique, their points program that offers exclusive discounts on their products using the Swell Rewards platform. They earn these after reaching certain monthly purchase amounts, leaving reviews on their products, and following their social media accounts. Talk to your software company as often these programs are built-in to your client registration and booking program. Utilising these tools is easy and fun.
Another common practice is the two-tier rewards program. After a client spends $500, customers have access to a Platinum VIP program that comes with free goodies, early access to sales, and free delivery if a client wishes something to be posted to them.
3. Consultation promos
An in-depth skin analysis usually takes 45 minutes to an hour and comes at a charge. However, as it only involves time you can introduce is as a “Consultation promo” especially if you are introducing a new treatment to your business. This is a great promotion idea for salons and clinics who provide expert advice not just treatments.
There’s no single way to offer a consultation promo—it can involve a simple 10-15- minute consulting session with the expert behind the brand with a purchase of $200 or with a purchase of a deluxe comprehensive skincare set. Offering a quick consultation like a skin analysis or a makeup tutorial can excite customers to make a purchase and receive personalised value by purchasing from you.
During the consultation, you’ll also be able to get more information about your clients, understand who they are, and find out what their main concerns are so that you can serve them better in the future.
Makeup brand can offer masterclass tutorials with a qualified makeup artists in exchange for certain purchase amounts. We are also aware of several salons that include a free makeup for an additional $10 following a facial treatment. Many of them have reported a weekly increase in makeup up sales of over $3000 because of this special offer.
Another benefit of offering a free consultation is that you have the chance to recommend more of your products that can help them, leading to more sales. The client will also walk away with a more intimate connection to your brand.
4. Referral programs
Most business owners would agree that word-of-mouth is the best way to grow your business. Using referral marketing apps is a way to encourage customers to tell their network about your brand in the digital sphere.
A recent study found that 83% of clients are willing to refer a business’s services if they’re happy with their products. The reality is that only 29% of those people actually end up making the referral. That’s why creating an affiliate network for your e-commerce store is an essential step to growing your brand.
Here is a simple way to set this up based on “Milestone Referral Campaign” that features four different milestones with different instant prizes.
Referring 1 friend = receive free lipstick of your choice
Referring 5 friends = receive a free skincare product
Referring 10 friends = free facial treatment
Referring 15 friends = free body treatment
Affiliation systems are incredibly useful if you know how to use them to your advantage.
5. Create urgency
We all know that scarcity can lead to an increase in that “must-have” feeling and create a greater sense of value for an item. By setting up a deadline for your promotion or products, you can incentivise shoppers to take immediate action and to relieve their fears of missing out.
Biossance, a popular skincare brand, recently featured a promotion that included a free face oil and night serum with the purchase of one of their most expensive serums. Creating a “Limited-time offer”. The most successful way to achieve this is to make the reward the real value of the purchase. However, the purchase could be a body treatment pack of three, helping you secure more bookings.
6. Up-sell, Down-sell, Cross-sell
When a client is on your website, they’re in the mood to shop. This is your best chance to excite them about buying something. Up-selling, down-selling, and cross-selling are age-old strategies that increase the average order value as well as the lifetime value of a customer. How do you achieve this? By presenting related products at higher prices (upselling), lower prices (down selling), and unrelated products (cross-selling) that clients may be interested in. Digital marketer Carl Ocab said, “many marketers swear that real profits are not in the first sale, but rather in the up-sell, cross-sell or down-sell.” The ideal strategy is creating a “related products” category in product descriptions or an abandoned cart email.
This is one of the most commonly used strategies, and yet it’s still one of the most effective.
Think about how often this occurs:
Use your creative ideas to build exciting purchasing momentum that add value to your clients’ needs and keep the revenue coming in.