Needing to grow its client base, Mälstrom Salon commissioned Serfwerks to develop its marketing strategy. Serfwerks’ Previous Performance Analysis identified that in order to obtain a significant improvement in revenue, the salon would only need to obtain 14 new customers per day. The Competitive Analysis found plenty of opportunities to position the salon effectively amidst the throngs of competitors. Data showed a distinct gap between the positioning of other high-end salons within the trade area and the preferences of a large segment of Generation X house wives and their Baby Boomer, empty nester counterparts. Data also revealed the need to develop a custom process in the provision of hair services that would not only ensure more consistent results, but also improve customer value perception needed to justify the salon's price points.
The strategy that Serfwerks developed positioned Mälstrom Salon as the high-end salon that helps Gen X house wives and Baby Boomer women be fashionable, stylish and sophisticated without being too over-the-top, edgy, or funky, which are the biggest complaints of competing salons. Serfwerks developed a marketing strategy to not only recruit more new customers, but to create customer loyalty, and repeat business as well as referrals among existing customers. Tactics used included direct marketing to existing customers, in-store promotion of products and services, grass roots networking with local businesses and participation in charitable and special-interest events.
In less than three months after implementing only a portion of its marketing strategy, Mälstrom Salon experienced significantly high revenues (a +30% increase) in six of the next eight months. In fact, all of those months fell within the salon’s top 10 revenue months of all time. Now that's a good ROI.
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