Archive for the ‘In Spa Retail Marketing’ Category

Know the Competition - Calculate what works for you

Saturday, September 27th, 2008

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Who’s your competition and how you can blow them out of the water in today’s environment? You’re an enlightened owner/manager who knows most salon/day spa owners are folks who:

  • have worked for other salons/day spas as a technician,
  • were probably very successful at doing their job as a technician,
  • thought they were smarter than their bosses,
  • believed they would make more money as an owner, and/or
  • believed that because they knew how to do the technical work, they knew how to run a business, which did the technical work.

The sum total of this experience brings to the market competition that, while it may look good on the surface, when you wipe off the “make-up,” actually is nowhere near close to being good on the inside.

However, unless you’re their accountant, you will never know it. All you see is that “bright-shiny-new” salon/day spa with their slick brochures. It would be only natural for you to believe they’ll take market share (clients) from you and that would be a disaster, especially in this economy. You wouldn’t want that to happen, would you.

Although you may have some competition that has actually managed and marketed well, it can be a revelation to realize most of your competitors run substandard, marginally profitable businesses.

Why? Simply because they don’t know how do it any other way. Rather than re-invent themselves and their businesses, they cling to their beliefs about what a salon/day spa is and what it isn’t, and how to market the business.

Rather than invest in themselves and learn how to navigate their businesses through rough waters, not realizing the journey is well worth it, they’re willing to go down with the ship, clinging to their beliefs on how to run a successful business.

You’re an owner/manager who knows your business will only grow if you build and operate an effective marketing system. This week’s feature gives you six strategies (systems) for increasing your client visitation patterns. See which one (or more) works best for you and then implement it—now!

Building Spa Retail

Wednesday, August 27th, 2008

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Spas: Customers buy Relationships, Employees buy Opportunities…Are you selling yours?

Everyone is looking for something to buy; whatever your “Authentic Signature” is you need to uncover it ~ define it and market it aggressively -

If you don’t know what you are selling, how will anyone else know? Our clients are looking for value, results and convenience.

But on a deeper level, and perhaps more importantly, they want to enjoy pleasurable relationships that provide them with a sense of belonging and importance. If you can tap in at this level, you need to sell it.

Our employees want professionalism, flexibility and fair pay. These are important values, but if we as Leaders can create an environment that deliberately challenges and encourages personal growth, we need to let that be known, and sell it.

Let’s break these two stories down and begin with the client.

We learn something from someone every day. Learning develops an automatic connection between the teacher and the recipient, and if fed, it is a relationship that can thrive for years. So, in a word, “education” may well be what sells relationships. As soon as a client enters your life:

Ask for “Permission to Educate” her, and then tell her “This is what you can expect from us”

  1.  We will target your needs
  2.  Set mutual goals
  3.  Focus on results
  4.  Monitor and adjust
  5.  Reach goals and set new ones

In obtaining her permission to educate, you have accomplished many things:

You have prepared your client to receive immediate and ongoing guidance and recommendations for services and products;

  • You have opened the door for staff to feel comfortable in recommending these items;
  • You are setting in motion, relationships that could potentially last a lifetime;
  • You have provided your staff with a challenge and the potential for personal growth;
  • You are contributing to your Spa’s bottom line and therefore your sustainability.

As you progress through the steps to achieving her goals, she begins to catch on to the concept of “Self-Care” and personal goal setting. With this comes the promise of both a relationship and results - just what she is looking for. If you view every client as a life-long client, the rewards will come.

As we work with our clients, we learn their desires and their fears. We begin to open our eyes and our hearts and start to see them in a very different light. We are better able to recognize their potential and how to reach it with them. This relationship is what conveys the sense of belonging and importance that you’re client so carefully seeks out, as well as the personal growth that your employees so desperately desire. This is not to say that we encourage our staff to develop “ownership” of the client. The system that works is a system that is able to change faces. So we all need to share the same long-term goals. It will be up to you, the Leader to plant the seed.

There are other important components involved in developing the relationship:

    Show them you understand time is the new money - Implement time-saving opportunities

    Strive for health over wealth - guide them with caring hearts and human touch

    Offer solid business services and value-added incentives wherever possible

  • Incorporate their family and even their pets into the experience
  • Make their convenience your priority - be their servant - show them your smile
  • Support spiritual wellness - share the occasional secret
  • Be aware and participate in the community
  • Be environmentally conscious
  • Offer them support through your business alliances
  • Encourage the “I deserve it” mentality of self-reward, small indulgences and forbidden or exotic pleasures.

Now, our coveted employees. The desire for personal growth and to see others grow, is an inborn characteristic that most caregivers possess in abundance. In order to gain and retain the best contenders out there, you will have to sell this as one of your Spa’s Opportunities.

The opportunity to grow with the clients, grow the business and ultimately grow personally is not common in our industry. It gets talked about a lot, but is difficult to find. If it is made clear that this is alive and thriving at your Spa, it will become ultimately clear to your employees that coming to work with you was, or is, the best choice possible.

So the ability to develop and transform your employees is perhaps the biggest opportunity you have to sell, but you may also want to consider creating an outstanding “package” of opportunities that will clearly outweigh the competition. This is referred to your “Value Packed Proposal”. Here are some other opportunities that could potentially form your proposal:

Caring Culture - Driven by Inspiring Leadership

  •   Work/Life balance
  •   Flexible work arrangements
  •   Ongoing Talent Recognition and Action Plans - Cultivating potential
  •   Training and Development programs to provide stretch experiences and opportunities
  •   Diversity rules!

Compensation - A performance-oriented reward system

 

  • Bonus Plans
  • Incentive Programs
  • Recognition and Reward Systems
  • Service and Product Allotments
  • Training and Educational opportunities
  • Employee Benefit programs

All of human-kind wants the same thing - to treat and be treated kindly and feel a sense of importance. As Leaders we are in a position to make this difference. Are you doing your part?

Full Article

 

What’s New: “Hot” Ingredients

Monday, August 4th, 2008

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Spa Business / Spa Press Releases / Spa Marketing

Can all so-called “high tech” skincare products really be true to their PR-issued claims? In the March issue of DAYSPA, writer Monica Schuloff-Smith helps to separate fact from fuss, sharing straightforward information about the action and ineffectiveness of some of today’s most-talked-about ingredient powerhouses, from antioxidants and botanicals to peptides and hormones. Here, we continue the discussion with some very frank opinions from the industry’s top skincare experts, along with their favorite picks from today’s ingredient choices.

Chandra Bredel, national educator for SAMPAR

“Day spa owners really need to understand that though an ingredient may be hot in New York or L.A., or even in another country, it may not translate to their local area. Also, they must insist that the vendor supplying the service or products provide clinical data that supports their claims. In-the-know day spa owners do a little research before they add a high-tech treatment because they know that a little pain before the purchase will save them.”

Bredel’s ingredient(s) of choice: “There are some interesting ingredients from seaweeds such as Sphaceloria scoparia and sea vegetables, sea cucumber and sea whip. Sphaceloria scoparia is a brown algae that has been clinically proven to prevent the formation of new cellulite. Sea cucumber is wonderful for lifting and firming, as well as acting as a high level anti-inflammatory. Sea whip has been shown to strengthen the skin’s ability to repair damage from UV exposure.”

Sam Dhatt, cosmeceutical chemist, founder of DermaQuest Skin Therapy

“A day spa owner should look f0or supporting documents that prove the ingredient can perform as it claims. The science behind the product is important in today’s skincare market,” he says.

Dhatt’s ingredient(s) of choice: “I think peptides are still the hottest ingredients in the market at this time. Science and research has determined that biochemical functions in our skin can be replaced by very specific amino acid sequences to create certain peptides, which has lead to research in how we can use peptides to manipulate certain functions in the skin. One new and ‘hot’ ingredient that will hit the skincare market soon is a skin-lightening peptide that can replace a 4% hydroquinone.”

Mark Dillon, biomedical engineer, owner of Bio Med Sciences

“This is an exciting time, but it’s very confusing as well because skincare products are largely unregulated. I think without FDA regulation, it’s too easy for fly-by-night companies to claim anything they want. The old saying applies: If it’s too good to be true it probably isn’t. Spa owners have to be their own allies because the FDA doesn’t step in until a company claims to treat a medical condition. A legitimate company is very careful to not cross that line unless they are prepared to back it up.

“Consider the company. Ask questions like, ‘Is this a new company? Are they a trusted name? Do they have a medical/scientific background? How long have they been in business?’”

Dillon’s ingredient(s) of choice: “Botanical ingredients from the sea are hot. The problem is that putting them into any old lotion or potion doesn’t make them any more effective. The best new products will offer new ways of delivering sea-based ingredients to the skin, thereby offering improved effectiveness.”

Karoline Kanani, product manager for G.M. Collin Skin Care

“ ‘Hot’ ingredients are always appealing to everyone, but it is wiser to make sure that they come with some data to authenticate them. Many formulations on the market, don’t come with any proof they work.”

Kanani’s ingredient(s) of choice: “There are several ‘hot’ ingredients. Most of them work through protecting, soothing skin and restoring skin homeostasis and, more recently, through acting on cutaneous functional recovery. Peptides are still very big and there are always new ones coming out on the market. We are working a lot on extending cellular longevity through different strategies.”

Mark Lees, Ph.D., owner of Mark Lees Skin Care

“Spa owners should try the treatments themselves to see if they have good results. Also, remember that any skin treatment is only as good as the upkeep products for home care—home care is 99% of the success of any program.”

Lees’ ingredient(s) of choice: “I hate to be a parrot, but I am very excited about peptide technologies! They can help tighten, firm, de-puff, relax the appearance of wrinkles, and there are probably many more we have not discovered!”

Howard Murad, M.D., dermatologist, founder of Murad

“Today’s skincare professionals have all kinds of options to address their clients’ needs. This keeps everyone in the industry learning and growing. It’s a very exciting time in skin care.”

Murad’s ingredient(s) of choice: “One of my favorites is Durian extract. This fruit provides a variety of fatty acids that have multiple benefits including adding moisture and protecting the skin’s barrier function. Durian pulp is a SUPERFRUIT (antioxidant, anti-inflammatory, hydrator) for skin (and overall health).”

Caroline Rushworth, director of education for SOTHYS

“Do your market research. The actives may be ‘hot,’ but the results and/or treatment target may not be appropriate for your main customer base. Ask whether

“Does the treatment have a home care program to support the results of the in spa service? Are there proven results to support the treatment?” adds Rushworth. “What other treatments are present in the market featuring these hot actives?”

Rushworth’s ingredient(s) of choice: “Look for powerful antioxidants such as idebenone, actives that stimulate growth factors, and probiotics and prebiotics. The research into these actives is ongoing and proving very exciting in terms of antiaging and inflammatory benefits. The study on ‘neurocosmetics’ and, of course, peptides continues and will remain on the forefront of the cosmetic industry as more results are proven and more peptides are discovered.”

Full Article

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Spa Reviews


Spa Marketing - Building your Spa Brand

Wednesday, July 16th, 2008

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Building Your Brand

Spa Business / Spa Press Releases / Spa Marketing

Now that the busy month of January is over with new clients, existing clients, and their new year’s resolutions, what kinds of things will you do the rest of the year to keep your customers coming back?

One way to do this is through keeping in touch with email marketing or E-blasts. Sending your clients email bulletins about events and happenings and monthly e-newsletters with great content will improve your client retention and profitability.

How? Let’s look at a few things.

Brand Bombardment.

How many brand impressions do you see during the day from companies trying to get your attention? You wake up and there is a brand name logo on your clock radio, your tooth paste and tooth brush has a brand name logo. Do you have a favorite brand that you keep buying? Your kid’s cereal, their toys, their favorite TV shows, your favorite coffee house. The list goes on and on. And did you know…

“Somewhere between 254 and 5,000 is a number that represents just how many commercial messages an average consumer gets each day”

- Advertising Age, April 2, 2007

That is a lot of messages. No wonder we are all so tired by the end of the day. What kinds of things are you doing to get your brand through all that clutter?

Direct Mail versus Email

Most privately owned spas have a limited marketing budget to get their messages out to their existing clients as well as new clients. Some send a lot of direct mail to their client list. They buy mailing lists to send additional direct mail to potential new clients. They send post cards, direct mail flyers, door knob hangers, hard copy newsletters. That all adds up very quickly.

In fact the average direct mail piece costs $2.00 (Statistic from McKinsey and Company). This is an average of the cheapest; small post card (still 26 cents for postage and cost to produce and print) up to a fancy direct mail newsletter or brochure. So if you have 500 clients in your database. That’s $1,000 for one mailer. Ouch. On the flip side the average price for email marketing is 3 to 10 cents. So even at the high end emailing to 500 clients is $50.00. Now that is something most small businesses can afford.

It is always important to measure your marketing success. Of all the marketing you are doing right now can you measure everything you do? If you place an ad in a local magazine or newspaper can you measure that? Are you measuring the success of any direct mail campaigns you are doing? On average the response rate for direct mail is 1-2%. Another ouch. In the example we did earlier of a direct mail to 500 clients that means for the $1000 you spent only 5 people responded to it. Another Ouch.

On the flip side email marketing gets tremendous results. Especially for small businesses who have nurtured their clients into giving them permission to send them emails. The trade lingo for this is an “opt in” email. With that permission based email the average response rate for the industry is 18%. At a cost of pennies!

“Opt in emails average a response rate of 18%, prompting one analyst to describe their results as positively dream like.”


“More than 63% of companies found email marketing the most effective method for customer retention.”

– Direct Marketing Association

Client Retention and Profitability

The statistics show that email marketing is a great way to keep your clients coming back. Of course if you are just starting out you will still need to do other marketing to bring in new clients. But once you have an established client base you should focus on them with their opt in emails.

One way to bring in new clients from an established and growing business is to ask your customers to refer you to their friends. It’s easy. One way to do it is to ask them to send your email newsletter to their friends. Another way is to start a “refer a friend” program at your club or studio and offer incentives for them to bring in their family and friends to experience your business. It really works.

“Regular email marketing to existing customers generates a 15-50% increase in total business.”

- Midnet Media

Good luck to you in 2008. I hope it is your best year ever. And keep sending your email bulletins and email newsletters to your clients. It’s a great way to build your brand.

“Save a tree, send email newsletters

Spa Business / Spa Press Releases / Spa Marketing

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E-Blasts build your guest frequency

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OWNERS SHOWCASE YOUR SPA WITH SPAVELOUS!

Spa Retail: Is your retail space giving you the right profits?

Wednesday, June 18th, 2008

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The opportunity to tap into a new source of revenue is here for your spa with retail products. Establishing a retail presence in your spa is not as scary as one might think. If you already have one in place, there may be some room for improvement. Retail products provide an opportunity for you to establish high profit margins with low overhead costs. This is a beautiful equation for any business owner. But, be careful how you plan, organize, spend and implement your retail presence.

Retail ideas every spa owner can use

  • Practice the idea of having your therapists both incorporate and suggest the retail products you carry to your clients
  • If you don’t know it then you don’t like it! Allow all of your staff to use the retail products you carry. Selling products you believe in and are passionate about makes things much easier.
  • Incorporate retail products to match specific treatments . As opposed to discounting services give added value by giving a free gift with service. Add a face cleanser or travel size facial product to a facial.
  • Use the KISS principle (Keep It Short and Simple). Keep things simple and educate both your staff and clients on the products you carry
  • Don’t keep your products in locked cases (people love to touch and feel) if you are concerned about theft, install cameras, inventory controls and maintain your presence on the retail floor. Provide samples when possible to allow your client’s to have an experience
  • Provide specific products promotions during seasonal holidays to attract more traffic in your spa
  • Take advantage of vendor collateral material and displays
  • Consider investing in a retail sales manager/trainer
  • Set sales goals and provide feedback to your staff
  • Encourage product sales by your staff by providing them with incentives linked to sales figures they generate
  • Prepare kits that incorporate several products you carry for a promotional price to allow customers to experience several products at once

2008 International Make-Up Artist Trade Show (IMATS)

Pasadena Convention Center

Pasadena, CA

360-882-3488

Jun 28-30

2008 International Esthetics, Cosmetics and Spa Conference (IECSC)

Las Vegas Convention Center

Las Vegas

800-624-3248

info@iecsc.com

Jul 13-15

2008 Cosmoprof North America

Mandalay Bay Convention Center

Las Vegas

800-630-3603

cpnainfo@probeauty.org

Jul 31-Aug 2

2008 Anti-Aging Congress & Exposition

Donald E. Stephens Convention Center

Rosemont, IL

(44)-20-8846-2906

mthompson@tarsus.co.uk

Aug 16-18

2008 Face & Body Spa & Healthy Aging Conference and Expo

Moscone North

San Francisco

630-344-6023

faceandbody@allured.com

www.SkinInc.com

Nov 10-13

2008 ISPA Conference & Expo

The Venetian Resort Hotel Casino

Las Vegas

888-651-4772

ispa@ispastaff.com

Dec 11-14

2008 Anti-Aging Congress & Exposition

The Venetian Resort Hotel Casino

Las Vegas

(44)-20-8846-2906

mthompson@tarsus.co.uk