Pulse Legacy Archive November 2011 | Page 38

GROWING BUSINESS (CONTINUED FROM PAGE 34) FASTFACT According to the February 2011 Snapshot Survey, spas are finding ways to cut down on cost. The survey indicated that day spas cut down expenses on marketing/ public relations (18 percent) and on fresh flowers (13 percent). For resort/hotel spas, the most significant cuts were on fresh flowers (24 percent) and travel (20 percent). pating in community groups and volunteer activities. “You have to talk their language, not yours, to engage these folks,” says Cherry. “This may be uncomfortable for a lot of people in the spa industry. Try to initiate relationships with those individuals who wouldn’t think of putting their foot in your door. This is where you can discuss how spas enhance productivity, reduce overhead, lower costs, and improve employee recruitment and retention. At the end of the meeting, they will likely schedule a visit to see what you’re all about.” If you are tempted to increase customer traffic through deep discounts, think again. Online coupon companies like Groupon and LivingSocial have made discounting a daily occurrence which, without the right strategy, may erode the bottom line. “You’re not likely to retain someone who comes based on an offer whose price point is half the normal cost,” says Borgman. “If you discount, get the price point on the offer closer to your average sale. You have to qualify customers or the churn will be destructive to both existing customers’ experiences and employee satisfaction.” Coaching Your Team Being innovative also requires having a creative educational plan in place for staff that is current with today’s market challenges. Employees must be able to understand who the best potential customers are and engage them in strong, customer-centric interactions that complement your marketing efforts. To build a strong, long-lasting brand, owners must be dedicated to communication and training. Employees must fully understand the brand and how to represent it, both inside and outside the spa. “Team members need to be taught not only to execute the service, but master the soft skills that make them a gracious and comfortable service provider,” says Phillips. “They represent your brand every minute they are face-to-face with a guest, yet most spas only rely on vendor-based education.” The new path to efficient education is a blend of on-site education, top quality product knowledge, and new online training. Larger staffs have a greater need for quality online training materials. “This is the theme of every larger resort I have talked with in the past four months,” Phillips says. “Owners and directors must control the education message and deliver it consistently to enhance the brand. Business only gets better when your team improves.” Training, however, should not replace communication—team members must be told exactly what is expected of them and how it will be measured. “We use very objective metrics for measuring overall performance, including retail ratio, retention ratio, and average ticket,” says Borgman. “We weight each of these metrics with points, and to advance to a higher treatment rate, they need to score 10 or higher. However, if a person is strong in one area (say, retai