5. Psychology Behind the strategy
The Psychology Behind Effectiveness of "Unicorn Strategy”
The success of the "unicorn strategy" in the beauty industry can be largely attributed to two key factors: establishing trust and relevance within the beauty industry.
First Key Factor: Trust
Trust plays a pivotal role in the effectiveness of referrals from "unicorns." When a "unicorn," who has experienced the brow artist's services, recommends them to their clients, it creates a strong, immediate sense of trust. Several psychological factors underpin this trust, explained next.
Long-standing Relationships. Many clients have long-term, trusted relationships with their "unicorn" beauticians. These relationships, sometimes built over years, lend significant credibility to any recommendations made by the “unicorns."
Relevance within the Beauty Industry. The fact that the recommendation comes from within the same broad field – the beauty industry – adds to its credibility. Unlike a suggestion in a completely unrelated field like home electronics or yoga, a recommendation about brow pigmentation from a beauty professional carries more weight. Clients perceive it as a well-considered, informed suggestion from someone knowledgeable in the field.
The Impact of Industry Relevance
The "unicorn" strategy's effectiveness is further enhanced because the recommendation remains within the realm of beauty services. This relevance ensures that the referral is seen as more than just a casual suggestion. It is perceived as a thoughtful, expert endorsement from a professional within the same industry. This perception that the "unicorn" has effectively 'done the homework' for the client by selecting the best brow pigmentation service provider amplifies the impact of the referral.
Thus, the combination of established trust and industry relevance is what makes the "unicorn strategy" particularly effective. It leverages existing relationships and expertise within the beauty industry to create a seamless and credible referral pathway, leading to increased clientele and business opportunities for brow artists.
Second Key Factor: “Unicrons” desire to build a loyal customer base
The second underlying reason for the effectiveness of the "unicorn strategy" is more subtle yet profoundly impactful, involving the concepts of hidden reciprocity and information scarcity.
Enhanced Value Through Reciprocity
Interestingly, many "unicorns" began converting the -25% discount gift cards into even more attractive -50% offers for their clients. They achieved this by foregoing their potential 25% commission from the brow artist. This decision was motivated by a desire to strengthen their client relationships, valuing this over the immediate financial return. By offering these enhanced discounts to their clients and close friends, the "unicorns" effectively utilized the gift cards as a tool for reciprocity, deepening customer loyalty and appreciation.
The Scarcity Effect
The scarcity principle also played a crucial role in this strategy. The special arrangements and discounts were not publicly advertised but were instead presented as exclusive, privileged deals. This approach of treating the -25% discount cards as a unique, "for-your-eyes-only" offering, which actually amounted to a 50% discount, created a sense of rarity and exclusivity. Consequently, clients felt more compelled to take advantage of these special deals, perceiving them as rare opportunities.
High Utilization Rates and Mutual Benefits
The result of this approach was a dramatic increase in the utilization rate of these gift cards, jumping to an impressive 76%. This starkly contrasts the typical lower utilization rates seen with standard discount offers. The psychological impact of receiving a "special deal" motivated clients to act on the offer, feeling both a sense of obligation and the allure of an exclusive opportunity. This translated into a steady influx of business for the brow artist, often at a price point suitable for someone new to the field.
This mutually beneficial scenario created a win-win situation: "unicorns" could offer substantial value to their clients and friends, effectively "sponsored" by the artist, while the artist gained new business at a reasonable cost. This strategy fostered client loyalty for the "unicorns" and facilitated business growth for the brow artists, showcasing the power of strategic, psychologically informed marketing in the PMU industry.