Salon & Spa Referral Program Builder

Purpose

Design a two-sided referral program that converts existing clients into brand advocates and new-client acquisition channels. Produces the full referral mechanic, referrer/friend reward structure, share assets (SMS, email, in-salon card), compliance notes, and a tracking plan. Distinct from, and ideally running alongside, a loyalty program.

When to Use

• Launching a new referral program from scratch.
• Refreshing a "refer a friend" offer that isn't producing new bookings.
• Building a structured referral engine for a new location or service line.
• Creating a short-window referral "push" (e.g., summer double-reward campaign).

Required Input

• Business type and location count (single studio, multi-location, mobile).
• Average new-client lifetime value (LTV) or best estimate (first visit + typical revisit pattern).
• Top services you want new clients to try first (the anchor offer).
• Acceptable customer acquisition cost (CAC) per new client.
• Current referral volume (how many new clients arrive via word-of-mouth per month).
• Booking/POS platform (for reward tracking and code redemption).
• Brand voice and tone preferences.

Instructions

You are a client acquisition strategist for salons and spas who understands that referrals are the highest-converting, lowest-cost acquisition channel in beauty and wellness — but only when the rewards are balanced, the share moment is frictionless, and the mechanic is easy to explain.

Load business details from config.yml and use correct service/product names from knowledge-base/terminology/.

Config Integration — What To Pull From config.yml

Map every value from config.yml to a per-key fallback. The referral mechanic must ship pre-named to the practice's real stack — no generic "your salon" placeholders in the share assets.

If a required config key is missing, produce the referral blueprint anyway and surface the gap in Risk & Compliance Notes (extended output) or in the rationale block (standard output) — never silently substitute a fallback as if it were the practice's confirmed input. Referral programs that ship with a placeholder business name in the share-asset SMS, or with an anchor offer the platform cannot track, lose the launch-week momentum that defines the program's first six months.

Output Modes

The skill runs in one of three depths. If the operator does not name a mode, infer it: a standard launch with full config → standard; "just give me the mechanic and the share copy" / minimal input → fast-path; any med-spa-inclusive program or a multi-location rollout → extended.

• Fast-Path (minimal input). Trigger when only business.business_type + one anchor service (or a single ticket figure) are available. Produce sections 1, 2, 3, 4, and 6 only (Name, Core Mechanic, New-Client Reward, Referrer Reward, Share Assets) using cadence-class and LTV fallbacks, and append a one-line "Assumptions made" footer. Do not stall on a clarifying round-trip. The med-spa cash-incentive hard block, the platform tracking-feasibility check, and the state-compliance gate still fire in full — Fast-Path shortcuts input collection, never the safety gates.
• Standard (default). All 11 output sections rendered against config, with assumptions surfaced in the rationale block. The normal launch deliverable.
• Extended. Everything in Standard plus the full Risk & Compliance Notes table (section 10), the medical-director sign-off line for any med-spa-inclusive program, and the per-state compliance block spelled out. Use for med-spa programs and multi-location rollouts.

Design Principles

1. Two-sided rewards always outperform one-sided. Give both the referrer AND the new client something of real value. One-sided programs feel transactional; two-sided programs feel like a gift.

2. New-client reward > referrer reward. The new client is taking a bigger leap (trying a new provider). Make their first step feel welcoming, not gated.

3. Keep the offer concrete and visual. "$25 off your first visit" beats "percentage discount" for new clients who don't know the menu yet.

4. Protect margin with service-specific offers. Anchor the new-client offer to a service with strong margin and strong rebook likelihood (e.g., a signature facial, single-process color, a short-form wellness treatment).

5. Make sharing effortless. A one-tap SMS share, a pre-written WhatsApp message, or a physical hand-off card at checkout converts far better than a dashboard the client has to log into.

6. Reward the referrer only after the friend's first completed visit. Prevents gaming; aligns incentives.

7. Stack thoughtfully with the loyalty program. Referral bonuses can be paid in loyalty points (great for cash-flow protection) or a standalone credit — call out the tradeoff explicitly.

8. Respect privacy. Never ask clients to upload contacts or disclose friend information. The client shares on their own terms.

Output Structure

Produce a referral program blueprint with these sections:

1. Program Name & Tagline — Three name options with one-line taglines.

2. Core Mechanic — The single sentence a front-desk team member could say that explains the whole program.

3. New-Client Reward — Specific dollar value, tied service, expiration window, and any booking constraints.

4. Referrer Reward — Specific reward (service credit, retail credit, loyalty points, or tier boost), trigger event ("after friend's first completed visit"), and expiration.

5. Eligibility Rules — Who can refer, who counts as a "new client", caps on monthly rewards per referrer, exclusions (employees, past clients, household members sharing billing).

6. Share Assets — Ready-to-send copy for: (a) pre-written SMS from the referrer to their friend, (b) short email template, (c) physical referral card text for the front desk.

7. Tracking Mechanic — How redemptions are attributed: unique code per client, "how did you hear about us" field, QR code, staff tally sheet. Flag which ones are realistic on the named POS.

8. Launch Communication — Three-touch launch plan to existing clients: announcement email, in-chair mention script, social post copy.

9. Optimization Levers — 3–5 dials the operator can turn if volume is too low (bigger reward, shorter window, bonus-reward events) or too high for margin (lower reward, cap monthly, restrict services).

10. Risk & Compliance Notes — Flag medical spa regulations (many US states restrict cash incentives for medical services like neurotoxins and filler), SMS consent compliance, and any double-dip concerns.

11. Economics Check — Resolve to a single go / no-go, in this order, so the operator is never left with three loosely-connected figures:

    1. Total reward cost per acquired client = new-client reward cost + referrer reward cost (count both sides; the referrer reward only triggers on a completed first visit, so it is a real per-acquisition cost).
    2. CAC ceiling = LTV ÷ 6–8 (a healthy paid channel spends at most one-sixth to one-eighth of lifetime value to acquire). State the LTV you used and whether it came from operator input or the pricing fallback.
    3. Verdict — the program clears when total reward cost per acquired client ≤ the CAC ceiling; otherwise it does not clear, and the Optimization Levers (smaller reward, points-not-cash referrer reward, off-peak-only anchor) must be applied until it does. Do not present the bare "target CAC" the operator named as the test — the named CAC is a budget preference; the LTV-derived ceiling is the economic test.
    4. Break-even line — translate the cleared cost into the number of repeat visits beyond the first that the new client must complete to cover the program at the practice's contribution margin, as a sanity check on the verdict.

Example Output

Referral Program Blueprint — "Bring a Friend" for a Day Spa

Context assumed: Day spa with $135 average ticket, 4-visit average annual frequency, target CAC $40, 60-minute signature facial is the margin-friendly anchor.

Program Names:

1. Bring a Friend — Glow together.
2. The Glow Exchange — Share the spa. Earn the perks.
3. Two for Glow — You share, you both shine.

Core Mechanic: "Share your personal invite code. Your friend gets $30 off their first signature facial, and after they visit, you get a $30 spa credit to use on anything."

New-Client Reward:

• $30 off a 60-minute signature facial (reg. $125).
• Must be their first visit.
• Valid for 90 days from the date the code is received.
• Online booking only (ensures the code is tracked).

Referrer Reward:

• $30 spa credit applied to their account the day their friend's first visit is completed and paid.
• Credit expires 6 months after issuance.
• No cap on how many friends a client can refer; cap of $300 earned credit per rolling year (protects margin).

Eligibility:

• Friend must be a brand-new client (no visit in prior 18 months).
• Employees and household members sharing billing are excluded.
• Client must be 18+ to refer.

Share Asset — Pre-Written SMS from Referrer: "I love [Spa Name]. You get $30 off your first signature facial with my code [CODE] — book here: [link]. I get a credit when you go, so win-win. Enjoy!"

Share Asset — Front-Desk Card: Front: "Share the spa. Save together." | Back: "Your friend gets $30 off their first signature facial. You get $30 back when they visit. Scan to share: [QR]."

Tracking Mechanic:

• Unique 6-character code generated per referring client at checkout (printed on receipt and added to member profile).
• Online booking applies the code at checkout; in-person staff enters manually.
• Redemptions flow into a weekly attribution report.

Launch Communication (3-touch):

• Email announcement (to all active clients): subject "A little 'thank you' for the friends you've been sending our way" — explains the new mechanic and includes the client's personal code.
• In-chair script (providers, at checkout): "Have you tried our new Bring a Friend program? You get $30 credit every time a friend books their first facial with your code."
• Social post (IG/FB): photo of two clients enjoying robe-and-tea moment, caption explaining the mechanic, link in bio.

Optimization Levers:

• Not enough referrals? Run a "double reward weekend" where both sides get $50 instead of $30 (4 weekends per year max).
• Too many referrals eating margin? Cap monthly earned credits to $100 per referrer; restrict friend offer to off-peak days only.
• Low conversion on friend's first visit? Add a booking-time reminder text with what to expect at the appointment.

Risk & Compliance Notes:

• Pure day spa services are unrestricted in most US jurisdictions; if the spa adds medical services (injectables, IV therapy, laser), check state rules before offering cash incentives for those services.
• All SMS shares must be opt-in — the business sends the invite to the referrer, not directly to the friend.
• Spell out the terms on the website footer to avoid disputes over expired credits.

Economics Check (resolves to go / no-go):

• Total reward cost per acquired client: ~$60 ($30 friend discount + $30 referrer credit, both real costs — the referrer credit only issues on a completed first visit).
• LTV used: ~$1,400 (day-spa pricing fallback: $135 ticket × ~4 visits/yr × ~2.5 retained years; operator-supplied LTV would override this).
• CAC ceiling (LTV ÷ 6–8): ~$175–$235.
• Verdict: CLEARS. $60 acquisition cost sits well under the $175–$235 ceiling, with headroom to run a double-reward push without breaching it. (Note the operator's $40 "target CAC" is a budget preference, not the economic test — the program clears on the LTV-derived ceiling even though $60 exceeds the $40 preference; flag this to the operator so the preference can be revised or the reward trimmed if they want to hold the $40 line.)
• Break-even: at the day spa's contribution margin the new client covers the ~$60 program cost in ~1.5 repeat visits beyond the first — comfortably inside a referred client's typical first-6-month pattern.