1 Introduction: The proposal identifies our business, which comprehends a hairdresser salon,

1

Introduction: 

The proposal identifies our business, which comprehends a hairdresser salon, which focuses more on hairstyling. The services of a hairstylist are highly personalized, need creativity, and are appealing to personal grooming. They have a significant role in determining physical appearance, and have an impact on identity, among other personal characteristics (Lowe, 2016). 

Hairstylists and their clients communicate closely and personally to help these clients reach their goals. These lead to the formation of close professional connections between employees and clients, to the point where the stylist is familiar with the client’s identity, hair type, hair care routine, preferred haircuts, and even line of work (Barrie, 2015; Lowe, 2016). 

However, it is clear from the interview with the small business that the owner has some issues, which are listed below: for example, many customers may come into the salon and request specific goods. If the item is not in stock, they can lose them as clients. To meet the needs of the consumers, they will need to stock up on a variety of things, which will be costly. Additionally, because running a salon is a highly competitive industry, it can be challenging to gain and keep the loyalty of your clientele. Indeed, the salon owner mentioned that there are a lot of other salons down the road that provide comparable services. 

Moreover, another issue is employee recruitment because she will need to hire professionals in order to provide the range of services she has decided to sell in her salon because there are several types of services that can be found in a salon. 

Issue

It can be a challenge maintaining loyal customers when running a salon mainly because the hairdressing and beauty industry is highly competitive due to its low barrier to entry (Ibis, 2021). Several researchers have acknowledged the link between customers satisfaction and loyalty. Drawing in customers is crucial to the success of a business but so is retaining them which is a common issue faced by small business owners. Most times owners make more effort in getting new customers when in fact the aim should be giving customers satisfaction with the ultimate aim of retaining them (Amoakoh et al, 2017). Keeping customers satisfied amplifies sales through referrals as they could be really pleased with the service given and share it on their social media. This would then invite and create more trust to potential customers as the positive word of mouth are coming from a fellow customer (Danaher & Rust, 1966; Homburg et al., 2005). Three different categories of customer loyalty were made by Gremler and Brown (1999) which include emotional loyalty, behaviour loyalty, and intentional loyalty. Emotional loyalty is attained when a customer feels that a company corresponds with their value, ideas, and passion. Behaviour loyalty is repeating purchasing behaviour while intentional loyalty is the possible buying intention. Maintaining this shows that the company is extending beyond itself.

Hair care and hair grooming is perceived as an essential service sector as these services are required regularly. So, building a relationship with customers and giving an experience they won’t get elsewhere is detrimental to this line of business. Creating a personalised experience for customer makes it less likely for the customer to get serviced elsewhere (Morgan, 2020) which in return increases revenue and loyalty.

In a world where trend is always changing, staying on top of trends will give a competitive edge but it can be quite challenging particularly because what may have worked a year ago may not necessarily be as effective the coming year. Making use of the necessary tools such as customer engagement (Brodie et al., 2013), social media, networking events and reading blogs can set the business inline with great opportunities for growth (Ali, et al., 2020). Failing to adapt to evolving demands of customers could prevent long-term loyalty (Amoakoh et al, 2017) and therefore defecting to competitors.

Reference List:

Ali, W.N.A.W. K. Katty. Idrus, S.Z (2020). “Promoting Salon Service Business through Interactive Video” – Journal of Physical Conference Series. Available at: https://www.researchgate.net/publication/342270075_Promoting_Salon_Service_Business_through_Interactive_Video [Accessed: 31st June 2022 ]

Amoakoh E.O & Matsidiso N. Naong (2017). “The relevance of relationship marketing model for hair salon’s competitiveness: a theoretical perspective. Problems and Perspectives in Management” [Accessed: 30th June 2022]

Danaher, P. J., Rust, R. T. (1996). Indirect financial benefits from service quality. Quality Management Journal, 3(2), 63–75.

Gremler, D. & Brown, S. 1999. The Loyalty Ripple Effect: Appreciating the full value of customers. International Journal of Service Industry Management, Volume 10, Issue 3, pp 271-28.

Homburg, C., Koschate, N. and Hoyer, W.D. (2005) Do Satisfied Customers Really Paymore? A Study of the Relationship between Customer Satisfaction and Willingness to Pay. Journal of Marketing, 69, 84-96. https://doi.org/10.1509/jmkg.69.2.84.60760

Ibisworld, (2021). Hairdressing & Beauty Treatment in the UK – Market Research Report. Available at: https://www.ibisworld.com/united-kingdom/market-research-reports/hairdressing-beauty-treatment-industry/ [Accessed: 27th June 2022]

Morgan, B, (2020). “50 Stats Showing The Power Of Personalization” – Forbes. Available at: https://www.forbes.com/sites/blakemorgan/2020/02/18/50-stats-showing-the-power-of-personalization/?sh=27d90aae2a94 [Accessed: 30th June 2022]

Conclusion/Recommendation

There is a high level of competition in the industry, and those that can specialise their services to cater to niche markets can avoid price competition.

Creating a strong brand can therefore support demand.

The experience you offer your clients once they come through the door is also a key part of your unique branding.