Pulse Legacy Archive August 2012 | Page 32

UNDERSTANDING THE PROS AND CONS OF DISCOUNTING (CONTINUED FROM PAGE 28) According to Paradise Point Resort & Spa, drawing discount-seeking customers back to the spa to pay full price for a treatment was its biggest challenge. strategy, the spa has seen an increase of bookings of multiple treatments. According to Paradise Point Resort & Spa Spa Director Brenda Larnin, around 75 percent of their guests who use the promo card end up booking more than one treatment whereas, in comparison, only 30 percent of guests not offered of any promo card book multiple treatments. However, what works best for one spa might be a failure at another. Larnin, points out that their biggest discount failure occurred while utilizing flash sales websites. Though a temporary increase in business was noted, there was zero percent return in clientele. The huge discount has greatly affected the service providers, resulting to lowered morale. The majority of guests who purchased the flash sales often had more complaints and were, overall, more difficult than guests who paid full price for services. Overcoming Challenges Additional challenges that may occur with the use of certain discount strategies include not knowing which promotional 30 PULSE ■ August 2012 products the guests will respond best to and keeping the staff interested in the promotion. If team members do not use the offered product or have not experienced the treatment themselves, it can be challenging to keep them motivated to promote a sale, leading to lower than expected sales numbers. And there is the issue of retention. Customers who availed themselves of discount promotions will likely not return to pay full price for future services. In some instances, there will be no way to determine whether or not a guest will visit the spa again. Larnin relies on her dedicated staff to ensure guests return for full price treatments. Her method includes giving the guest who pays a discount price the best treatment and service experience possible in a clean and friendly environment. The staff makes connections with the guest and offers suggestions for future sessions. In Larnin’s opinion, by making the discount an introduction, a guest will eventually return to pay full price for a spa treatment at a place where “customers are treated like family.”