Maintaining the Brand When it comes to concerns about discounting possibly diluting the spa brand, Larnin says she can see both sides of the argument, but agrees that there is the danger of negatively impacting the brand.
“ If the focus of the company is to uphold the brand, then discounting will definitely scar your reputation. So, instead of discounting, you [ need to ] find ways to increase the value of your services,” she says.
For Lee, he understands that guests are always looking for a deal.“ I truly believe [ guests want to ] receive an added value to the money they spent on spa services. I believe if the team is excited and they express to the guests what wonderful savings [ they are getting ], the guests will not view the
product [ or service ] as something the spa wants to move or discontinue.”
In the end, determining whether discounting could work for or against your spa is a matter of carefully weighing the pros and cons. Only then can you truly make an informed decision on which marketing and retail strategy to move forward with. ■
BEFORE YOU ADVERTISE on discount sites, learn the five-step plan by Travelzoo Local Inc.’ s Senior Vice President of Business Development Steven Savad. Read digital Pulse on experienceispa. com to get Savad’ s advice.
PROS
The Pros and Cons
According to this feature’ s sources and results from the June 2011 ISPA Snapshot Survey, there are multiple pros and cons when it comes to implementing a general discount strategy. A few include:
● Your company gets business when it needs it most.
● The spa gains exposure to clientele who may not have heard about the spa.
● Discount strategies allow the spa to highlight and move less popular products fast.
CONS
● The use of discount strategies can create a less loyal customer base.
● There is the potential to offer a discount to a customer who would have paid full price regardless.
● Discount strategies do not always generate a real income for the spa.
● Offering discounts on a regular basis encourages the spa-goer to only visit when there is a deal. Furthermore, spa-goers will begin to expect a deal to be offered regularly.
● Discounts can directly impact the service providers’ earnings and commissions, lowering staff morale.
● If done wrong,( e. g. targeting the wrong audience), one may fill the spa with undesirable patrons.
● The use of discount strategies may imply that you are decreasing the value of the service. To prevent this, offer value-added services as opposed to straight discounts.
August 2012 ■ PULSE 31