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Commitment and the booking fee (research results)

Dec 05, 2023, Update: Dec 05, 2023, author: Powderbrows.com / Holistic PMU
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"Is charging a booking fee a smart strategy for attracting more clients, or does it create a sense of distrust that turns potential customers away? This article explores this question, presenting insights from actual research data collected from hundreds of customers across dozens of pigmentation artists. Find out how a booking fee impacts client acquisition and retention in the competitive world of semi-permanent makeup."

1. The Research


Commitment and consistency are among the most extensively researched topics in the Powder Brows and microblading industry. In this article, we will delve into the findings from four such research projects conducted between the years 2018 and 2022; one of these studies is still ongoing. These projects encompassed a sample size of over 630 customers who eventually converted. Interestingly, more than 64% of these customers had previously interacted with similar offers without converting. These studies aimed to examine the extent to which commitment facilitates the ultimate conversion to undergo a procedure and to measure the negative impact on conversion when introducing elements of commitment into the offering. Additionally, the research included 142 artists who varied their approach to asking for a booking fee during different time frames while keeping all other variables - such as pricing, service, and location - constant.

The Central Question Asked and Answered

The primary question at the heart of these studies was whether asking for a booking fee for Powder Brows or microblading procedures is advisable and to what extent it influences clients' willingness to commit. The succinct answer is that implementing a booking fee in the brow business is highly beneficial, yielding nearly a 25% improvement in facilitating conversions. The specifics behind this result will be elaborated upon in the subsequent sections of this article.

Psychology of Commitment and Consistency

At its core, the concept of commitment and consistency is fairly straightforward: once an individual makes a commitment, there's an internal drive to follow through with it, and this idea itself requires little elaboration. What's more intriguing, especially for the research at hand, is understanding the various factors that come into play when a person makes that commitment, which compels them to maintain it.

Historical roots

It can not be underestimated how the psychology of commitment and consistency is rooted in our inherent need to maintain coherence among our attitudes, beliefs, and actions. Upon making a commitment, be it a verbal pledge or a formal written agreement, we feel both internal and external pressures to stay consistent with that initial promise. This need for consistency arises because any deviation generates a mental unease, commonly called cognitive dissonance. To alleviate or steer clear of this discomfort, we naturally work to align our future actions and attitudes with our original commitment. Thus, firstly, the clients themselves would feel bad if they broke that commitment. 

Additionally, consistency is a trait that is highly valued in society. Consistent is often synonymous with reliability, dependability, and trustworthiness. As a result, when an individual makes a public commitment, the social expectations to maintain consistency amplify the internal pressures, compelling them to adhere to their original promise. Therefore, secondly, the client would feel unease to communicate to the artist that she is not consistent.

Furthermore, consistency serves as a mental shortcut in our decision-making process. Once a commitment is made, it sets the tone for future actions, minimizing the mental effort needed to make subsequent decisions. This is precisely why an initial, even minimal, commitment is so impactful in directing later behavior along a similar path. Thirdly, committing is an excellent way to finalize the decision-making process and end any need for further research about the most suitable artist.

2. Commitment in the Brow Business


In the world of brow artistry, the principles of commitment and consistency have multiple applications. They can influence everything from a client's loyalty to a single artist for multiple services to their progression within a particular training academy. However, for the scope of this article, we will focus primarily on the element of commitment and consistency as it relates to bookings and procedures. This is a particularly crucial aspect where many artists face practical challenges and dilemmas.

Making a procedure commitment

Two opposing forces usually come into play when considering commitments, especially those with financial consequences. One set of forces propels the individual toward making the commitment, while the other promotes hesitancy, reluctance, and even outright rejection of the commitment. In our research, this "act of commitment" was represented by the payment of a booking fee for the procedure. In our specific case, this fee amounted to $85, representing 20-40% of the total cost of the procedure. Our analysis focused on understanding the factors that either increased or decreased the clients' internal motivation to finalize this commitment. First, we'll examine the factors that enhance the drive to commit, and then we will delve into those that induce second-guessing.

3. Positive Forces


First, let us explore, what are the psychological forces driving clients towards commitment through the act of paying for the booking payment.

Closure in the Decision-Making Process

As discussed, a key factor facilitating commitment is the psychological relief of "closing the loop" on a decision. Committing allows individuals to liberate some of their active thinking, achieving a sense of cognitive ease. Once a decision is made, the brain no longer must continually evaluate new information or options. This liberates cognitive resources for other activities, reducing mental fatigue.

Many clients admitted that even if their chosen artist might not be the optimal choice - meaning there could be a better artist available who offers either a lower price for the same quality or marginally higher quality for the same price - the act of making a final selection is inherently rewarding. For example, clients have stated, "I can't keep browsing for hours every day," "I just need to clear my mind," or "I feel selfish spending so much time selecting an artist when I have other responsibilities.”

For these clients, paying the booking fee is a pivotal moment that concludes the often stressful and open-ended decision-making process. By "taking the issue off the table," they experience emotional relief, which adds to the internal motivation to finalize the commitment.

Sense of Power and Control

Interestingly, the act of paying a booking fee also instills a sense of power and control in many clients. While it may initially seem counter-intuitive, the psychological underpinning is quite compelling. Clients often described the act as a "testament to their autonomy," a declaration that "they are in control of decisions concerning their own body, specifically the brow area," and an affirmation of their "financial independence, even if only to some extent.”

Because the decision to get powder brows is usually intrinsically motivated and rarely influenced by external opinions or pressures, paying the booking fee reinforces this autonomy. It becomes an outward expression of their agency and control over their own lives and choices.

Progress Toward a Desired Situation

The act of paying a booking fee also resonates with those who have long harbored a dream of enhancing their brows. For these clients, making the payment feels like a "small win," contributing to a sense of accomplishment and inching them closer to fulfilling that dream. Terms such as "enjoyable," "rewarding," and "a feeling of progress" were frequently mentioned by clients to describe the emotional satisfaction derived from making the payment. In this context, the act of paying the booking fee is more than just a financial transaction; it symbolizes a meaningful step toward improving their overall appearance and, by extension, their quality of life.

The Impact of FOMO (Fear of Missing Out)

In scenarios where the artist successfully creates a sense of scarcity - perhaps by presenting limited "available times" or urging clients to decide quickly for scheduling reasons—paying the booking fee also safeguards against the fear of missing out (FOMO). Clients expressed this sentiment using phrases such as, "By making the payment, I felt secure that I've secured the time slot," "I felt victorious that I had beaten others to that time," and "I saved myself from potential regrets of missing out due to my hesitance to act when the opportunity presented itself.”

Booking Payment as a Dual Confirmation of Identity

The act of paying the booking fee functions on two identity-related levels: association with a reputable artist and personal integrity. Firstly, clients said that paying the booking fee helps them associate with a reputable artist and, by extension, high-quality eyebrows. Phrases like "this demonstrates that I deserve the best because I am the best," "it places me in good company," and "it's proof that I'm worthy of it" encapsulated this sentiment.

Secondly, the act serves as a marker of personal integrity and reliability. Clients noted that "being viewed as someone who honors commitments is integral to who I am," "it's a testament to my overall trustworthiness," and "this enhances my social capital as an individual.”

In conclusion, many psychological forces encourage clients to make the booking payment in the Powder Brows and microblading industry.

4. Negative Forces


Next, let us explore what psychological forces make the client hesitate when making the booking payment.

Fear of Making a Mistake Due to Limited Information

One of the leading factors causing hesitation among clients when faced with making the booking payment wasn't necessarily related to the specific artist. In 46% of such cases, the root of "serious hesitation" was a general "fear of making a mistake" regarding the procedure. Clients expressed concerns like, "I feel I don't know enough about the procedure," "I'm unsure whether I have any contraindications," or "I don't know if this is the best solution for me." These moments of hesitation can actually present a valuable opportunity for artists.

A practical takeaway from this finding is that artists should invest time in educating the client beforehand. Discuss any potential restrictions and assure them why they are suitable candidates for the procedure.

Concerns About Potential Regret

Another significant factor that makes clients hesitant about making the booking payment is the fear of future regret. This concern isn't necessarily related to the specific artist but is more aligned with the client's personality traits. For instance, clients have often expressed sentiments like, "I lack confidence in my judgment," "I might want to cancel when the appointment day arrives," or "I tend to second-guess myself." These feelings are common among many people and are particularly prevalent among women due to certain personality traits.

Based on this observation, a practical suggestion is to normalize such feelings in the consultation process. Inform clients in advance that doubts like these are common and have surfaced in many cases. Use real testimonials or data from your track record to assure them that clients who were initially apprehensive ended up being highly satisfied with their decision and the results.

Cost-Related Considerations

Financial constraints also weigh on clients when they consider making a booking payment, especially if the cost of the eyebrow procedure takes up a significant portion of their budget. Clients have mentioned thoughts like, "This will commit me to the full cost later on," "I'm not sure I can afford this," or "This feels like a luxurious expense rather than a necessary one." While such financial concerns are both common and understandable, they affect fewer potential clients than artists might initially think. In fact, financial considerations were a primary concern for only 24% of clients when deciding to make the booking payment.

A practical approach to alleviate such concerns is straightforward. Address all potential financial objections proactively before the procedure. Artists shouldn't shy away from discussing the cost; rather, they should embrace it. Many successful artists proactively explain why clients "can't afford to miss out on this opportunity." They rationalize how semi-permanent makeup options like Powder Brows and microblading can be cost-effective in the long run, contrasting it with being ‘wasteful.'

When it comes to psychological factors that deter clients from making the payment, there are fewer such factors than one might assume. Even more surprising, perhaps, is that only a relatively small percentage—24%—are linked to cost-related financial concerns.

5. Actual Research Data


The Actual Data: Pros and Cons of Charging a Booking Fee

Many artists express concerns about requesting a booking fee, fearing that it might deter potential clients. However, let's examine the actual data to quantify the impact of charging such a fee. On average, implementing a booking fee led to an impressive 31% increase in client conversions—measured by the number of clients who actually showed up for their scheduled procedures—compared to when the same artists didn't charge a fee. This statistic strongly supports the case for implementing a booking fee.

Yet, that's only half of the story. The other side to consider is the percentage of clients who chose not to proceed with the procedure because a booking fee was involved. One complicating factor is that it's challenging to ascertain whether these clients would have ultimately gone through with the procedure even if they'd paid the booking fee. However, considering all factors, the percentage of clients who expressed "serious doubt" after being informed of the booking fee was relatively low, coming in at just 7%. The Net Positive Impact of Implementing a Booking Fee

Considering all the variables we've discussed, the overall positive impact of charging a booking fee is significant, boosting your client income by an impressive 25%. While you may encounter some initial resistance or questions from potential clients, preemptive measures can effectively mitigate these concerns. Specifically, artists who prepared in advance by crafting thoughtful responses to the three main concerns associated with a booking fee reported virtually no client resistance. As a result, nearly all such inquiries are converted into paying customers.

6. Optimal booking fee amount


Determining the optimal fee: Striking the Right Balance

When setting the amount for the booking fee, aim for the "sweet spot" that aligns with the principle of subsidiarity, which suggests setting it "as little as possible, but as much as necessary." This ensures you don't overcharge while securing a meaningful commitment for you and the client.

Two key variables should be considered when determining the fee: the percentage of the total service cost and the specific dollar amount of the booking fee. A/B testing indicates that the optimal range for the booking fee is between 20-40% of the total service fee. Additionally, two specific dollar amounts have emerged as effective: $49 and $99.

If the total service cost is such that $49 falls within the 20-40% range, then this amount would be ideal for the booking fee. Conversely, if the service is more expensive and $99 accounts for 20-40% of the total cost, then $99 would be the more appropriate booking fee amount.

A Tactical Approach to Client Objections

Many artists suggest to "hedge your bets". Inevitably, some clients will object to paying a booking fee for various reasons, be it a principle against prepayments, financial constraints, or concerns about the terms and conditions. Research indicates that disputing these objections is generally unproductive. The sales psychology behind this is straightforward: it's nearly impossible to ascertain the real objection due to limited opportunities for in-depth communication.

In such cases, a proven tactic is to inform the client that you've made an "exception" and will allow the booking without a fee. Remember that this approach carries a risk - the possibility the client may not show up. However, statistics indicate that over two-thirds of these clients typically do follow through. Thus, depending on your volume of bookings and your risk tolerance, this tactical move could be a viable option for you.

7. Conclusions


Requesting a booking fee in the brow business, particularly for Powder Brows and microblading services, proves beneficial, increasing sales by an estimated 25%. The optimal booking fee falls within the range of 20-40% of the total service cost. Two specific net amounts, $49 and $99, are particularly effective.

Clients have multiple psychological motivators encouraging them to pay the booking fee. Key drivers include the need to finalize artist selection, a sense of empowerment and control, progress towards fulfilling a long-held dream, fear of missing out (especially with high-demand artists), and identity-related factors such as aligning with a reputable artist and displaying personal integrity.

Contrary to common belief, only 24% of hesitations about booking payments are financially motivated. Most reservations stem from self-doubt, concerns about future regret, and insufficient information to make an informed decision about the procedure.

For clients who object to the booking fee, the most efficient way to maintain conversion rates is to offer an "exception" without delving into further discussions or questioning.
 
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Comments
 
Kaur
Thursday, Jan 18, 2024

I always ask for a booking fee and I think that the ones who will find some funny excuse when they have not paid the booking fee make up a large percent of clients. I htink many are emotionally inclined to not come when they have a chance to get out of it with 0 damage.


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