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
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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.”