Thriving Stylist Podcast: Episode #358 - Small Business Saturday Strategies
Release Date: October 21, 2024
Host: Britt Seva, Social Media & Marketing Strategist for Hair Stylists
Introduction to Small Business Saturday
In episode #358 of the Thriving Stylist Podcast, Britt Seva delves into effective strategies for hairstylists and salon owners to leverage Small Business Saturday (SBS) for business growth. Seva emphasizes the evolving landscape of the beauty industry, highlighting the necessity of robust marketing strategies over traditional reliance on reputation and referrals.
Notable Quote:
"The days of hoping your good reputation and referrals was enough to grow or maintain your clientele died out and successful stylists today need a real marketing strategy."
— Britt Seva [00:21]
The Evolution of Small Business Saturday
Seva provides a comprehensive overview of Small Business Saturday, tracing its origins and evolution. Initially launched in 2010 by American Express to support local businesses during the Great Recession, SBS has grown into an annual event aimed at celebrating and boosting small enterprises.
Historical Context:
- Origin: Created by American Express in 2010.
- Purpose: To support local businesses during the economic downturn of the Great Recession.
- Current Relevance: Marking its 14th season in 2024, SBS remains a pivotal event for small businesses navigating today's economic challenges.
Economic Climate Comparison: Seva contrasts the economic conditions of the last recession with the current trends. While the previous recession was marked by a housing crisis and widespread foreclosures, the present downturn lacks the foreclosure spikes but is characterized by increased consumer debt and more discerning spending behaviors.
Notable Quote:
"People are still spending, but they're being really picky. The value has to be there. They have to feel like they're getting their money's worth."
— Britt Seva [04:35]
Common SBS Strategies and Their Limitations
Seva critiques the typical approaches salons take during SBS, particularly focusing on retail promotions and discounting services. She argues that these methods, while seemingly beneficial, often lead to a prolonged sales cycle without substantial revenue growth.
Retail Promotions:
- Examples: Offering discounts on haircare products (e.g., 20% off shampoos).
- Issue: Encourages bulk purchasing, which delays future sales rather than increasing overall revenue.
Alternative Approach Illustration: Using a cupcake shop analogy, Seva explains that indiscriminate discounts on products often fail to entice customers to try new items, much like how clients may stick to familiar products even when discounts are offered.
Notable Quote:
"Because if you come in in November and you buy two bottles of shampoo and two bottles of conditioner and two bottles of my favorite, ... that's great. But I'm not actually increasing my spend with you."
— Britt Seva [10:15]
Effective SBS Campaigns: 'Give Back' and 'Create Buzz'
Seva introduces two innovative campaigns tailored for service-based businesses like salons: Give Back and Create Buzz. These strategies prioritize community engagement and client relationships over mere transactional discounts.
1. Give Back Campaign
Objective: Celebrate and support other local small businesses while indirectly promoting your salon.
Steps to Implement:
- Identify Local Businesses: Select 3-5 local establishments that align with your target clientele (e.g., coffee shops, bakeries, day spas).
- Create Meaningful Gifts: Allocate a budget (preferably $200-$500) to assemble thoughtful gift bags containing travel-sized hair care products and practical items rather than inexpensive, throwaway gifts.
Example:
"If you have a small budget, like $200 or $500, you can create gift bags with travel size shampoo and conditioner, mini travel size hairbrush..."
— Britt Seva [19:45]
- Gift Distribution: Personally visit these businesses on SBS day, present the gift bags to their team members, and extend sincere appreciation without any strings attached.
Benefits:
- Relationship Building: Strengthens ties with other local businesses.
- Reputation Enhancement: Positions your salon as a community-centric and generous entity.
- Potential Client Acquisition: Team members receiving gifts may become new clients.
Notable Quote:
"We are celebrating local small businesses in our community... we have chosen Shep's Coffee Shop here as one of the businesses we're celebrating."
— Britt Seva [22:05]
2. Create Buzz Campaign
Objective: Engage existing clients to promote your salon organically through social media participation.
Steps to Implement:
- Announce the Campaign: Inform clients throughout November that you are celebrating SBS all month.
- Encourage Social Sharing: Ask clients to take selfies with you and post them on their social media, tagging your salon and sharing why they love your services.
- Incentivize Participation: Offer rewards such as a $10 service credit or entry into a raffle for a significant gift card (e.g., $1,000 in services) as motivation for clients to share.
Example:
"Option number one is a $10 service credit... Option number two, enter to win a gift card for $1,000 in services."
— Britt Seva [25:30]
Practical Tips:
- Maintain Value: Ensure that incentives are enticing enough to motivate participation without eroding profit margins.
- Focus on Quality Interactions: Rather than aiming for sheer volume of shares, prioritize meaningful client engagements that can lead to authentic promotions.
Benefits:
- Amplified Reach: Clients' shares extend your salon's visibility to their personal networks.
- Enhanced Client Relationships: Rewarding clients for their loyalty fosters stronger bonds.
- Potential for New Clients: Personal endorsements through clients can attract new customers who trust their referrals.
Notable Quote:
"If you're like, I don't want to give that much away, I want to think of it differently. You're not giving away. This is the cost of marketing and it's expensive and I totally get it."
— Britt Seva [26:15]
Integrating Existing Clientele Without Pressuring Sales
Seva underscores the importance of engaging existing clients in SBS celebrations without pushing them to make purchases. Instead of promotional tactics that might feel like hard selling, she advocates for authentic interactions that celebrate the client-business relationship.
Strategies:
- Collaborative Celebrations: Encourage clients to participate in SBS festivities by sharing their positive experiences without direct sales pitches.
- Focus on Community and Connection: Highlight the salon's role in the local community and the mutual support among small businesses.
Notable Quote:
"The biggest thing about Small Business Saturday is I want you to make it about giving back to your community and giving back to your clients."
— Britt Seva [28:10]
Conclusion: Embracing Reciprocity and Community Support
Britt Seva concludes the episode by reiterating the essence of Small Business Saturday for service-based businesses. By focusing on reciprocal relationships, community support, and strategic marketing initiatives like the Give Back and Create Buzz campaigns, salon owners can foster sustainable growth and a loyal clientele.
Final Thoughts:
- Reciprocity in Relationships: Emphasizing the give-and-take nature of client and community relationships.
- Long-Term Reputation Building: Investing in community support leads to enduring business success.
- Holistic Marketing Approach: Moving beyond discounts to meaningful engagement strategies that resonate with clients and the broader community.
Notable Quote:
"I want you to really think about how you can love on others in your network and in your community, love on other small businesses. And I think you'll be amazed at how it all comes back to you, too."
— Britt Seva [29:45]
Key Takeaways
- Avoid Over-Reliance on Discounts: Traditional retail promotions often extend sales cycles without increasing overall revenue.
- Focus on Community Engagement: Building relationships with other local businesses can enhance your salon's reputation and attract new clients.
- Leverage Existing Clientele Authentically: Encourage clients to share their positive experiences without the pressure of making sales.
- Invest Thoughtfully in Marketing Campaigns: Allocate budgets wisely to create meaningful and valuable incentives that resonate with your target audience.
- Embrace the Spirit of SBS: Prioritize giving back and fostering community support to drive long-term business growth.
By implementing these strategies, hairstylists and salon owners can effectively harness the potential of Small Business Saturday, turning it into a catalyst for sustained success and a thriving business environment.