Marketing Case Study for Loyalty Programs: Tan2Day Tanning Salon

Company Overview

Tan2Day Tanning Salon opened in 2008 in Temecula, CA. Owners Heath and Natalie Ward started the salon after graduating from USC in 2006 with degrees in Accounting and Marketing, respectively. The Wards saw the potential in a well-marketed California tanning salon, so they jumped at the chance when a small suite opened up in a popular local shopping center. Upon opening, Tan2Day registered 150 clients, most of which were friends, family, and other acquaintances.

Initial Marketing Investment

For the first few months, the Wards’ social network, plus walk-ins, provided enough business for Tan2Day to be successful. Heath wanted to take the business farther, however, so he decided to implement a marketing campaign which focused on a mix of billboards, radio ads, and TV commercials. The campaign cost $20,000 for the first year. Natalie was worried to spend such a large amount on advertising, but she trusted Heath’s judgment.

Recommendations

  • Make your advertising dollar go farther by researching your market and strategically-selecting where to broadcast your message.
  • It’s important to have great offers for new customers, but don’t forget about returning customers as well. Keeping your current clients happy and loyal will sustain your business when you don’t have as much to spend on advertising.
  • Promote any new offer you have in a variety of ways. Customers come from all different directions and view things differently, so if you have your message in only one spot, you’re limiting your exposure.
  • Great marketing should always be evolving. When things get stale or stagnant, customers lose interest. Take what’s been the most-effective for your business and improve upon it even more-customers will respond!

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