How to Build a Loyalty Program for Your Barbershop That Works in 2025

TLDR

Offering free services for a limited time can seem like a risky move, but when done right, it can actually boost your business in unexpected ways. Brands like Dropbox grew exponentially by offering free trials, converting users into paying customers​. As a barbershop owner, you're going to navigate a competitive market where customer expectations are constantly shifting. Offering a free service, like a complimentary cut or product discount for a short period, can be a great way to differentiate your brand. To maximize the potential of this strategy, leveraging mobile technology for a seamless experience through loyalty programs, in-app marketing, and personalized offers can significantly enhance customer engagement.

Let’s dive into how you can craft a loyalty program that works in 2025 and beyond. 

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Why a Loyalty Program is Essential for Your Barbershop

Building customer loyalty is key to combating the challenges of client churn, improving retention rates, and boosting repeat business. A well-structured loyalty program can help your barbershop:

Address Client Churn and Boost Retention

Client churn is a common problem for barbershops. With so many options available, it’s easy for customers to get distracted or switch to a competitor. Loyalty programs reduce this by incentivizing repeat visits, ensuring your clients feel appreciated and more likely to return. Rewards like free cuts or exclusive discounts help keep your barbershop at the top of their mind​.

Increase Customer Lifetime Value

By rewarding clients for repeat business, loyalty programs encourage them to spend more. Offering rewards tied to their spending habits—such as discounts on high-end grooming products or services like beard trims—can increase the average spend per customer, leading to higher profits in the long run​

Build Brand Advocacy and Referrals

Satisfied, loyal clients are more likely to refer friends and family to your barbershop. Loyalty programs with referral bonuses can further incentivize this behavior, giving clients a reason to spread the word about your business​.

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Setting Up Your Loyalty Program Using Mobile Technology

The key to a successful loyalty program in coming years is mobile technology. By integrating tools like Square Loyalty and the Per Diem app, you can automate the entire process and offer a seamless, user-friendly experience.

Square Loyalty: Easy Tracking and Rewarding

Square Loyalty is a powerful tool that helps you set up, track, and manage a reward system based on customer visits and spending. When clients visit your barbershop, they earn points that can be redeemed for discounts or free services. The simplicity of Square Loyalty allows for automatic point tracking without needing manual input, making it ideal for busy barbershops​

Integrating Per Diem for Gamification and Customization

For a more engaging and personalized experience, integrate Square Loyalty with the Per Diem app. Per Diem adds fun gamification features like streaks, challenges, and even a "spin-the-wheel" feature for surprise rewards. This not only makes the loyalty program more exciting but also increases client engagement​

• Streaks and Challenges: Reward clients for consecutive visits or specific activities like referring friends. These challenges keep clients motivated to return regularly.
• Spin-the-Wheel: A fun way to surprise loyal customers with instant rewards, making the program feel more dynamic.

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Creating Irresistible Rewards and Incentives

Your rewards need to be appealing and aligned with your clients' preferences. Offering meaningful incentives can drive customer satisfaction and loyalty.

Free Services and Exclusive Discounts

The simplest and most effective reward for a barbershop is offering free services after a set number of visits. For example, after 10 visits, a client might receive a free haircut or beard trim. You can also offer discounts on premium products, like grooming kits, beard oils, or hair styling products, encouraging clients to explore your product offerings​.

Create Subscription Models

Monthly or yearly subscriptions can provide additional value to your clients while securing recurring revenue for your barbershop. For example, a subscription might include one free blow-dry every month or discounted services on specific days of the week. These models not only make clients feel like VIPs but also increase predictability in your revenue​.

Implement Referral Bonuses

Referral programs are one of the most effective ways to grow your customer base. Clients can earn points or free services for referring friends or family members to your barbershop. Promoting these rewards via push notifications or in-app messages ensures that clients are always aware of the benefits of spreading the word​.

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Promoting and Managing Your Loyalty Program

Once your loyalty program is set up, it's time to promote it and keep your clients engaged. The success of a loyalty program depends not only on its structure but also on how well it is communicated to your clients.

Use In-App Push Notifications

Push notifications are an excellent way to remind clients about their rewards, upcoming promotions, or new features in your loyalty program. You can use these notifications to alert clients when they are close to earning a reward or inform them about exclusive offers like seasonal discounts​.

Highlight the Program in Your App and Social Media

Promoting your loyalty program within your app itself is essential. Use banners or a social feed to display updates, reward milestones, or limited-time offers. Additionally, use your barbershop's social media channels to spread the word about the benefits of your loyalty program​.

Encourage Client Interaction with the Program

Make sure your clients are aware of how they can track their progress and redeem rewards. Clients should easily be able to see how many points they’ve earned and what rewards are available to them. This level of transparency encourages them to keep engaging with the program​.

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Final Thoughts

Building a loyalty program that works in 2025 is about making the experience as smooth, rewarding, and engaging as possible. By combining the power of mobile technology with the simplicity of Square Loyalty and the gamified features of Per Diem, you can create a program that not only keeps your current clients coming back but also attracts new ones through referrals and word of mouth.

Now is the time to take advantage of the tools available and build a customer loyalty program that boosts retention, increases revenue, and turns your barbershop into a thriving community hub. Start planning your loyalty program today, and give your clients the reward system they deserve.

Ready to boost your barbershop’s loyalty and retention rates? Start your free trial today to learn how Square Loyalty and Per Diem can take your business to the next level in 2025.

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