SNAPSHOTSURVEY2011
REMEMBER: Visit the Snapshot Survey Portal at http:// snapshot. experienceispa. com to access results reports for the surveys you participated in or to purchase reports for the months you missed.
This chart was taken from the December 2011 ISPA Snapshot Survey on the 2011 year in review in which 369 ISPA members participated. The chart provides a snapshot of the spa-goer changes spa respondents saw in 2011.
The desire for discounts was identified as a major consumer trend in 2011. Within the December 2011 Snapshot Survey, spa respondents were also asked to provide feedback as to how this trend impacted their spa’ s business practices and overall profitability in 2011. While some spas indicated that discounting has led to increased traffic and revenue, others have stayed away from standard discounting and opted to use added-value promotions. The following is a sampling of the responses.
“ Actually has not had a negative impact. It has increased business, repeat guests and built awareness.”
“ We have not discounted at all on treatments, and we have reduced discounting in our retail area significantly as we feel strongly that we need to move away from doing this. It is too detrimental to our business moving forward if consumers get too used to being able to expect deep discounts.”
“ Margins have been managed well so that they are the same.”
“ Discounts and coupons have greatly increased the number of visits and sales.”
“ We feel that it really hurt us. Though we did not participate in any of the deal sites, we felt that we had to promote some kind of discount to potential clients for them to continue coming to our spa. What we realized is
that these promotions did not bring new customers to the spa but actually diluted the pool of full paying customers( as they are the ones taking advantage of these offers).”
“ Discounting did attract more new guests and also gave the repeat guests a break. It leaves us now in a hard position trying to get back to not discounting- guests are asking / looking for them. As this brought in some new clientele sometimes the atmosphere was sacrificed with too many bargain guests.”
“ We have been able to adjust and maintain our expenses based upon lower average tickets. We have actually come out ahead because volume has increased more than the rate has decreased.”
“ There is now a growing expectation of discounting. This has affected cash flow in a positive way and profitability in a negative way.”
“ Discount deals helped keep providers busy; however, of those who purchased many do not return unless another discount is offered. Morale was also affected by discounting. Profitability increased for summer, but it tarnishes your brand.”
“ We are looking at how to pull back from discounting. As we looked at average price paid for service, the amount is considerably lower, indicating few people are paying the full rate for services( similar to airlines and hotels).” ■
March / April 2012 ■ PULSE 57