pulse points
Useful facts and tips for spa professionals.
Marketing Talk:
The Dangers
of Cycle
Discounting
W
hile offering discounts may
draw consumers in, TNS
Global director of retail and
shopper research Chris Kirby warns on the
dangers of “cycle discounting” which sets
a precedent for consumers to later refuse
to pay the full price of a product or service.
In fact, research group TNS’ Discount
Retailing Study (tnsglobal.com/news) discovered that 65 percent of Australians
have come to expect retailers to constantly
have sales.
“Consumers are no longer willing to
accept the first price they find; they know
there’s a good chance of finding it cheaper
somewhere else,” Kirby says. “In essence,
the industry is training us to become professional, if not predatory, consumers, or
what we’re calling ‘prosumers’.” The internet plays a factor in this shift of attitude,
with 97 percent of Australians proactively
searching online for bargains and deals.
14 PULSE
■
March/April 2011
Increase Market Share Through
Female-to-Female Engagement
I
n today’s economy, founder and economic chairman of World Economic
Forum Klaus Schwab says companies
and countries must “pay heed to one of
the fundamental cornerstones of economic
growth available to them—the skill and
talent of their female resource pool.”
Women of Leadership Forum (WOLF)
Means Business founder and CEO Julie
Gilbert whose company helps brands
expand market share and reinvent corporate culture through the “WOLF”
leadership strategy couldn’t agree more
(For more about Gilbert and the “WOLF”
strategy, see “Conversations” on page 48).
Women employees, when empowered
with training and decision-making capabilities, can easily help increase female market
share because they speak the woman’s language, understand their needs, empathize
and connect with them on a deeper level.
Create an environment of female-tofemale engagement within your spa
through maximizing your team’s ability to
connect with and market towards female
consumers.
Self-gifting:
A Sign of Consumer Confidence
If there’s any telling indicator of consumer confidence, industry experts claim it’s
the return of self-gifting. In an article published on washingtonpost.com, more
than 57 percent of surveyed shoppers admit to indulging a little bit by spending on
gifts for themselves.
According to the National Retail Federation, this percentage rose four points
(the highest increase in at least six years) since last year in the middle of trying
financial times. In comparison, today’s shoppers reportedly
plan to spend an average of $107.50
versus last year’s $101.37 for
themselves.
And what’s the
typical indulgence for
stressed shoppers? Spa
gifts. Take advantage of
this increased consumer
confidence by offering spa
clients easy-to-access spa certificates and packages or treats.