Attracting new customers might feel like the ultimate win, but here’s the truth: retention is where the real magic happens. In today’s crowded marketplace, customer loyalty isn’t just a “nice-to-have” — it’s the backbone of sustainable growth.

That’s exactly what one of our Daring360 clients, a spray tan business, discovered when they faced a troubling challenge: while they had no shortage of first-time customers, their retention rate was a glaring weak spot. Only 24% of their customers came back, leaving untapped revenue and potential brand advocates on the table.

We took a deep dive into their financials, operations, and customer data to identify the problem and craft a solution. The result? A complete turnaround in customer loyalty — and a roadmap for how other small businesses can do the same.

The Core Problem

The spray tan business had plenty of first-time customers walking through the door, but keeping them? That was another story. With a retention rate of just 24%, it became clear that something in their approach wasn’t clicking.

Our analysis uncovered a major hurdle: pricing. Their rates were 30–40% higher than competitors, which might have attracted first-time curiosity but didn’t encourage repeat visits. Customers were trying them once and then turning to more affordable options.

This revelation led us to a two-part solution: adjust the pricing model to meet market expectations and boost customer engagement with a strategic email marketing campaign.

Step 1: Recalibrating the Pricing Model

The first move? A pricing overhaul.

We created a detailed financial model that projected revenue at various pricing tiers, balancing profitability with competitive positioning. By pinpointing the sweet spot — a price point that resonated with their target market while keeping the business profitable — we turned pricing into a strength rather than a stumbling block.

This recalibration wasn’t about being the cheapest option. It was about aligning perceived value with what customers were willing to pay. Once the new pricing went live, the spray tan business saw a steady uptick in repeat customers who appreciated the balance of quality and affordability.

Step 2: Building Engagement Through Email Marketing

Pricing alone wasn’t going to seal the deal. We knew we had to create a stronger emotional connection between the business and its customers. That’s where email marketing came in.

We shifted the focus away from social media (which often gets lost in the algorithm shuffle) and leaned into direct communication. Weekly emails now deliver more than just promotions — they tell stories. These emails remind customers why they fell in love with the brand in the first place, sharing behind-the-scenes moments, tips, and updates that create a deeper connection.

By keeping the tone conversational and authentic, we turned email marketing into a powerful retention tool that customers actually look forward to.

Step 3: Launching a Customer Loyalty Program

To further sweeten the deal, we introduced a loyalty program. Simple, effective, and rewarding, this program incentivized repeat visits with tangible perks. Customers loved it — and the results showed.

The loyalty program wasn’t just about discounts or free products; it created a sense of community and appreciation. When customers feel valued, they’re not only more likely to come back but also more inclined to recommend the business to others.

The Results

The results were exactly what we hoped for:

• Retention rate improvement: The 24% retention rate jumped significantly, with more customers making repeat visits.
• Increased revenue: The combination of competitive pricing, engaging emails, and a loyalty program boosted overall sales.
• Stronger brand connection: Customers began engaging more deeply with the brand, turning into loyal advocates instead of one-time buyers.

These strategies didn’t just patch up a problem — they created a foundation for long-term growth and success.

Conclusion: Increasing Customer Retention for Small Businesses

For small business owners struggling with customer loyalty, here’s the bottom line: retention isn’t just about luck. It’s about strategy. Whether it’s aligning your pricing with market expectations, creating genuine connections through email marketing, or implementing a loyalty program, the tools for success are within reach.

If you’re ready to level up your customer retention and build a business that thrives on loyalty, we’re here to help. Apply to work with us at www.daringhaus.com/inquire and let’s create a strategy tailored to your business.

With the right approach, increasing customer loyalty doesn’t just boost revenue — it turns customers into raving fans who stick around for the long haul. Isn’t that what every small business dreams of?