Choosing the Right Discount Strategy There are several ways to determine which discount strategy will work best for your spa. First, start by gathering customer feedback, whether through emails or surveys, in order to establish what products or services they find appealing and what they do not see value in.
According to Steven Savad, senior vice president of business development for Travelzoo Local Inc., publisher of high-end travel, leisure and local deals, Travelzoo’ s audience find facial treatments among the website’ s most appealing offers while hair treatments( e. g. coloring, blow-drying and hair removal) among the least appealing.
It is crucial then that you observe what products or treatments guests favor to use or request in your spa in order to make your discount promotion attractive in the first place.
It is also essential to note that offering discounts will attract“ discount-seekers.” While these individuals will fill an empty slot fast, it is harder to convert them into loyal patrons. Thus, it is important to align the business with the appropriate discount strategy, whether it is giving a bounce-back offer that would compel customers to return for additional treatments or an up-sell tactic that would get them to spend more, in order to attract the right demographics for the spa.
Stories of Success and Failures Ken Lee, spa director at Kelly’ s Spa at The Mission Inn located in Riverside, California, says his most successful discount strategy took place while promoting the spa’ s Epicuren lip balm. Each staff member was encouraged to spread the word, informing each guest of their retail promotion. In a span of six hours, the spa had completely sold out of the lip balm. The item was reduced by only two dollars; however, it was the team’ s overall excitement about the product that influenced the guests’ purchase. It is currently still the most popular and requested product in the spa even at full price.
Paradise Point Resort & Spa in San Diego, California, is another resort spa that has found success in its in-house discount method. Upon checking in, resort guests are asked by the hotel front desk staff about their plans during their stay and, if guests do not mention the spa, the staff offers them a promotional card( 15 percent off one spa treatment or 25 percent off two spa treatments). The special promotional cards are especially offered during slow periods or when spa bookings are low. Since the implementation of this discount
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Three-fold Guideline to Determine If a Discount Strategy Will Work for Your Spa
1. Is the product or treatment enticing to the guest? If it doesn’ t catch a client’ s eye, it’ s a waste of marketing time and material.
2. Once the appropriate discount strategy is decided upon, make sure to look into every single logistics, including your providers’ compensation structure. Huge discounts could greatly impact their earnings, resulting in lower morale.
3. Lastly, the discount strategy needs to make good business sense. Services can’ t be given away for free, so there needs to be a target increase, whether it’ s in treatment revenue, treatment numbers or retail product sales.
Kelly ' s Spa at The Mission Inn ' s most successful discount experience involved word-of-mouth marketing by its own staff.
28 PULSE ■ August 2012