Here's why your ads aren't working
Booked & Banked: The Real Reason Your Salon Ads Aren’t Working (And What To Do About It)
“My ads aren’t working.”
It’s the sentence we hear from salon and beauty business owners almost every single day.
And we get it. You tried running Facebook or Instagram ads. Maybe boosted a few posts, got some leads, and hoped for the best. Then—crickets. Bookings dried up. Leads ghosted. You paused the ads and figured they just don’t work for your salon.
But here’s the truth:
Your ads aren’t broken. Your strategy is.
Most salon owners are measuring their ads using the wrong numbers. They’re basing their decisions on how much one client spends today — not what that client could be worth over the long run.
This short-term mindset is killing your growth. Let’s break it down so you can fix it and finally start running ads that book out your calendar and grow your profit.
The Big Mistake: Measuring Ads with AOV Instead of CLV
Let’s say you run a Facebook ad for a $100 facial. You spend $30 to get a lead, and one person books in.
You think: “I just made $100, but spent $30. Is that even worth it?”
That’s your Average Order Value (AOV) talking. And it’s exactly what keeps you stuck.
But now imagine this:
That same client loves their facial. They rebook. They come every 6 weeks. They try other services. They refer a friend. And before you know it…
They’ve spent $2,500 or more over 12 months.
Now suddenly, spending even $300 to get that one client wasn’t just smart — it was a power move.
Enter: Customer Lifetime Value (CLV)
Customer Lifetime Value (CLV) is the total revenue a single client generates over the entire time they do business with you.
When you shift from obsessing over AOV to understanding CLV, everything changes.
Because now you can:
•Spend more confidently on ads without fear
•Outbid and outlast competitors who are still guessing
•Make smarter decisions about what promotions to run and who to target
Let’s say your average client books 5 times a year and spends $150 per visit. That’s $750 per year. If they stay loyal for 3 years, their CLV is $2,250.
Even if you spend $100 to acquire that customer, you’re still massively profitable.
Why Dabbling in Ads Doesn’t Work
Here’s what most salon owners do:
•Run a campaign for 1 or 2 weeks
•Panic when bookings aren’t instant
But what they’re really doing is operating blind. There’s no clear CLV. No tracking. No system for nurturing leads who don’t book right away.
It’s dabbling — and dabbling will never get you fully booked.
You need to be data-driven, not emotional. When you know your CLV, you can play the long game. And the long game always wins.
The Domino Effect of Understanding CLV
When you know your CLV, it’s not just your ad strategy that gets better. Everything improves:
•You stop chasing low-value clients
•You create offers that bring in high-LTV clients
•You feel more confident scaling your ad budget
•You shift from just trying things to building a real growth engine
Most salons run ads like a tap — on when things are slow, off when things are okay. But a business built on reactive decisions never scales.
Knowing your CLV allows you to run ads consistently, build a strong client base, and keep your calendar full all year round.
So… How Do You Actually Calculate Your CLV?
Here’s a simple formula to get you started:
CLV = Average Order Value × Average Visits Per Year × Client Retention (Years)
Example:
AOV = $120
Visits per year = 6
Retention = 2 years
CLV = $120 × 6 × 2 = $1,440
That’s what you should be using as your maximum cost to acquire a client.
If you spend $150 to get a $1,440 client — you’re winning all day.
And if your salon is set up to retain clients (with email follow-ups, SMS reminders, loyalty offers, and a great client experience), your CLV only grows.
The Tools That Make CLV Work
Once you know your CLV, it’s time to build the system around it:
1.Run consistent Meta ads that generate quality leads
2.Use automation tools to follow up instantly
3.Nurture cold leads with SMS, email, and retargeting
4.Track rebookings and referrals to identify high-value clients
5.Upsell and cross-sell services over time to increase each visit’s value
This is how our salon clients go from spending $500 per month on ads to confidently investing $3,000 or more — because they know the return they’re getting.
Final Thought: CLV is the Secret to Salon Growth
If you’re only looking at what a client spends on day one, you’ll always feel like your ads are failing.
But when you zoom out and understand the true value of every client…
You stop playing scared.
You stop second-guessing.
You start scaling like a salon CEO.
So next time you think, “my ads aren’t working” — ask yourself:
Are you actually tracking what matters?
Get clear on your Customer Lifetime Value.
Build the system to support it.
Then run your ads with confidence — knowing that even a $300 lead could turn into a $3,000 client.
Want help installing the same system our clients use to stay booked out? Let’s chat. Book a call with us here: https://bananadigital.com.au/
Follow @bananadigitalaustralia for more salon marketing strategies that actually work.
