Client theft. When customer records get stolen
Client theft isn’t an issue you hear about very often in the hair & beauty industry, however, it occurs quite regularly behind closed doors. In fact, it’s an issue many beauty businesses struggle with. Client theft has many faces, but most often comes in the form of untrustworthy staff, who steal your client records for personal gain or your competition from across the street, which has been enviously eyeing your salon’s foot traffic for some time now. So how can you prevent this from happening at your own salon?
Client records
If you are a salon owner or work in a salon then you know all too well about the cost of gaining a new customer. You invest in to-go menus, listings in your local newspaper, Facebook and Instagram ads and a number of other activities, in hopes of reeling in new clients. When they finally come in, you are overjoyed – your efforts (and budget) didn’t go to waste! But then the worst case scenario happens – a staff member accesses your customer records and makes a copy for themselves. Now you are in a very difficult situation – not only are your records compromised, but your salon is no longer GDPR compliant, as customer data should be safely stored. This will not only affect your business’ reputation, but you may also be faced with legal issues.
This situation most often arises when you lay off a difficult staff member or you rent one of your booths out to a mischievous stylist or specialist. If your customer records are stored in a notebook, all it takes is for the employee to sneak behind the counter when you are not looking and take a few pictures of the records. With this information, they can contact the salon clients and service them outside of your salon, thus causing a loss in profit and customers. But it can get worse – your former staff member can take your list and get hired elsewhere, bringing new clients to your competition.
Secure your data!
If you have experienced this situation, then you know exactly how stressful and demoralising it can be for you and your staff. But for those of you who have not, it is better to prevent than to cure! For salons in the EU, you must be compliant with GDPR regulations, and customer data security for theft prevention is a must! A paper notebook won’t do – for ultimate safety, it is recommended to look into salon software. Versum lets you store client data in its built-in customer data section. In it, you can include allergies, before and after shots, appointment history and even a client’s favourite treatment or product. Best of all, all of this data is under lock and key – and you have the ability to deny staff access to such sensitive materials.
Tip: Versum offers two tools for data security – access restriction, which limits select staff members from accessing sensitive data, and the customer contact details protection, which lets you control and restrict access to client contact details.
Competition
Although losing your clients to competition isn’t deemed as “theft”, many of us who work in the hair & beauty industry treat it as such. Gaining new customers is difficult and expensive, but with just the blink of an eye, they might make their way to the salon across the street. If it comes to this, you are going to have a tough time bringing them back. Sure, there are salon hoppers – or clients who go from one salon to another – but if your regular customer cheats on your salon, then you may feel like you have failed them.
Your competition has a number of tricks up their sleeves for getting your loyal clients through their doors. Anything from hosting events and bringing their prices down, to staying open longer and copying your treatment ideas. Not only will this get on your nerves, but you may actually begin to lose customers!
Get clients back!
To reduce client theft in your salon, you need to focus on two things – promoting what makes your business stand out and improving customer loyalty. A large number of discounts your salon offers doesn’t make your business unique, this only reduces your treatment and product worth in the eyes of most clients. Instead, look over your treatment menu, products, awards and all of your certifications – these are the things that truly make your business shine! If you provide a one-of-a-kind treatment or use top-shelf products, then let your customers know! Share this information on your fan pages, or better yet, send a text or email notification to the first-time clients, after they’ve left your business, informing them of what makes your business stand out!
Let’s face it – even your most loyal clients may be swayed by your competition, however, you can avoid this from happening with a simple tool – a loyalty program. Imagine this: a client books a treatment, pays for it, and gets awarded a number of points. They receive this information via text or email notification and the first thing that comes to mind is your list of rewards. The client books treatments, leaves online reviews of your business and brings their friends in, in order to get closer to winning the desired prize. This tool is available in Versum, and is perfect for keeping clients tied to your business.
Losing clients can be devastating for salon owners, especially after working so hard in getting them through your doors in the first place. However, you can avoid losing them in the first place with the right solution. See how Versum can help prevent client loss! Sign up for your free account today!
