Repeat customers generate 80% of salon and spa revenue, despite accounting for less than half (42%) of the customer mix.
Meanwhile, one-time customers make up the majority of the client mix at 58% but contribute only 20% of revenue, according to new stats from salon software company Zenoti.
The brand’s 2025 Beauty and Wellness Benchmark Report analysed data from spas, salons and aesthetic clinics around the world.
It highlighted a need for businesses to invest in loyalty programmes, digital engagement, and personalised customer experiences to maximise revenue potential.
International salon trends
The report found that, internationally, the industry experienced an overall positive revenue growth of 2% in 2024. However, this was significantly lower than the 5% recorded in the previous year.
Interestingly, businesses that focused on selling memberships outperformed those that don’t use that model, with membership-based spas recording a 5% revenue growth in 2024.
Salons, nail salons and non-membership spas all recorded a 2% growth, while aesthetic clinics (medspas) and waxing salons both recorded a below-average 1% growth and barbershops saw a 1% decline in revenue.
Technology in salons
Technology continues to shape the industry, with digital booking becoming a crucial factor in operational efficiency. Nearly 97% of aesthetic clinic clients and 80% of salon and spa guests now prefer mobile appointment booking.
Businesses with high rates of online booking also report increased staff utilization, demonstrating the positive impact of digital convenience.
Another standout trend internationally was a surge in gift card sales, which saw a 20% industry-wide increase. Salons led this trend with a 93% rise in sales, followed by medispas at 23%.
With 24% of gift cards being redeemed by first-time customers, this payment method has proven to be a powerful tool for guest acquisition.
Challenges and solutions
Despite the overall positive trends, businesses face challenges such as declining new guest visits, which fell by 9% in 2024. To counter this, businesses are encouraged to leverage targeted marketing, automated follow-ups, and abandoned cart recovery tools.
Cancellations and no-shows also continue to be a challenge, with salons recording an 8% cancellation rate and a 3% no-show rate, meaning 11% of all appointments booked are missed.
In aesthetic clinics (medspas) the problem is even worse, rising to a 16% cancellation rate and a 5% no-show rate.
Nail salons performed similarly with 16% cancellation and 1% no-show rates and spas recorded 11% cancellations and 1% no-shows.
