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Cost Cutters Offers Mobile Coupons To Inspire Customer Loyalty

Cost Cutters ran a mobile coupon campaign in eight markets across the United States as part of a customer relationship management program to drive consumers into its budget hair salons.

Cost Cutters tapped mobile marketing company Qittle to let customers get discounts on haircuts and hair products to build a database of opted-in consumers and promote customer loyalty. When consumers texted in a keyword to a short code and opted-in to the campaign, they received a mobile coupon with a six-digit code that they can enter use at the point-of-sale.

"Cost Cutters wasn't collecting a lot of information about its customers at the various store locations, so having a mobile campaign allowed them to start getting consumer info and building an opt-in database in-store," said Casey McConnell, CEO of Qittle, Aspen, CO. "Everything is driven through going back in-store for redemption of the mobile coupon.

"It's more about consumer convenience than branding, as a big component is getting you a mobile coupon at the time you need to get a haircut," he said. "Having a coupon sent directly to consumers' phone encourages them to come into a Cost Cutters store instead of a competitor.

"The redemption rates were pretty phenomenal."

Cost Cutters is a national hair-care services chain that includes more than 850 salon locations across the U.S.

The ability to manage their databases per region is very important to Cost Cutters, so Qittle set up several campaigns for specific regions, each with its own keyword.

Cost Cutters distributed "Savings to your phone" fliers with the mobile call-to-action at its bricks-and-mortar locations within the campaign's target regions.

The flier distributed at Colorado Springs locations of Cost Cutters read as follows:

"Let us text you a reminder to get your hair cut. You'll get a coupon texted to you every time you need a trim as well as other special savings offers. Text COSTCUTTERSCS TO 32075."

The keyword Qittle used for Quad City, IA, was COSTCUTTERSQC, Central Wisconsin was COSTCUTTERSCW, and Glenwood Springs, CO, was COSTCUTTERSGS.

Cost Cutters did not do any marketing support outside of its stores.

Each of the text messages sent to opted-in consumers contains a link to Cost Cutters' new mobile Web site, which contains a store locator feature letting customers search for the closest Cost Cutters salon.

The rebate offers of the mobile coupons range between $2 and $5 off a hair cut or hair product, and 30 days after a particular consumer opted in, Cost Cutters sent a follow-up mobile coupon for a discount on a haircut.

Cost Cutters tested a similar mobile campaign with a competing vendor in four other markets.

"We got the national account and are looking to roll out nationally for Cost Cutters," Mr. McConnell said. "One challenge was getting buy-in with every store, making sure the front line knows about the mobile call-to-action and that the franchise owners are motivating their staff.

"The salons that made the mobile campaign a priority saw fantastic opt-in and redemption rates, whereas other markets where stylists didn't know about the campaign saw lower opt-ins because the front line didn't talk it up," he said.

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Cost Cutters Family Hair Care - Entrepreneur

Cost Cutters Family Hair Care is a chain of hair salons that strives to offer quality service at a low price for the whole family. Cost Cutters Family Hair Care started operations in 1982 and now has more than 600 branches throughout the United States. It is part of the Regis Corporation, which is one of the largest hair salon chains in the world.

Operating under the Cost Cutters Family Hair Care name, a salon offers quick services for busy families at convenient locations. Trained stylists ensure that the customer gets the cut they want when they want it. The customer may not need an appointment at a Cost Cutters Family Hair Care salon because the staff is prepared for walk-ins. 

Why You May Want to Start a Cost Cutters Family Hair Care Franchise

Cost Cutters Family Hair Care does more than just style hair. The salons offer a full range of coloring services. Customers are offered advice by a friendly stylist and can buy care products in-store.

Coupons and special deals draw in new customers, and salon staff encourages customers to post selfies on an Instagram account so their photos can appear in a photo gallery on the Cost Cutters Family Hair Care's website. This is part of a strategy to build a community of customers. Cost Cutters Family Hair Care's motto is "get more, pay less, and save time."

What Might Make a Cost Cutters Family Hair Care Franchise a Good Choice?

A potential franchisee does not need to be a qualified hairstylist. The Regis Corporation prefers that its franchisees have experience in multi-unit franchising, and therefore they should bring ambition, drive, and people skills to the business. A franchisee should be a strong, effective team leader dedicated to creating a welcoming environment for their customers. The staff style hair; you style the overall business.

Once Cost Cutters Family Hair Care has approved you as a franchisee, you will be offered access to all the experience Regis Corporation has to offer. Support includes a comprehensive training program for you and your staff. You will be given expert help in choosing a convenient location with lots of potential business. Cost Cutters Family Hair Care will also help you set up your salon to meet the standards the company sets.

How To Open a Cost Cutters Family Hair Care Franchise

To be part of the Cost Cutters Family Hair Care team, you should make sure you're financially ready for an initial investment made up of a franchise fee and other startup costs. In addition, you should prepare yourself for the existence of ongoing fees that will include advertising fees and royalty fees. Franchises will also need to meet the company's set net worth and liquid capital requirements. 

Before making any financial commitment or signing an agreement, you must perform your due diligence and establish if this is the right opportunity for you. As part of your due diligence, you may want to speak to existing franchisees and ask the Cost Cutters Family Hair Care franchising team questions.

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