GROWING BUSINESS
(CONTINUED FROM PAGE 36)
vary—it is important to be objective and
flexible.”
One metric that every spa should
track is frequency of visit (FOV). This
key growth indicator can swing sales by
30 percent or more. Spas must teach
and preach the results guests can
achieve with recommended treatment
cycle and home-care products.
“Customers are more likely to stretch
out appointments from four weeks to six
or eight,” says Phillips. “If you aren’t on
top of FOV, you could lose 50 percent of
your annual sales. You can boost FOV by
redirecting marketing, education, and sales
toward living the spa life, instead of
pamper. This gets you out of ‘gift certificate hell’ with Valentines’ Day, Mother’s
Day, and Christmas swing cycles and back
to how to get the best long-term results
through regular treatments.”
Parting Advice
Spas must understand that customers
want to feel valued and share a deeper
relationship with staff that gives them
greater confidence, less stress, more
energy, better clarity, and a stronger
image in the eyes of their bosses, colleagues, and customers.
“Ask great questions to stimulate dialogue and uncover their motivations and
desires,” says Cherry. “This important
interaction is critical to building
trust. Gallup research shows that customers are 12 times more willing to buy
from you if you can create an emotional
connection. Questions do just that. It’s
a core competency that your team must
master.”
Pay attention to what people are
saying about you online and react
quickly to resolve negative comments
and reviews. “Review sites like Yelp are
gaining strength as older consumers
begin to use them more,” says Borgman.
“It puts a lot of pressure on businesses,
but that can be good. Our most brutal
review last year actually spurred me
toward changes I knew I needed to make
in our facility, but had put off. It’s essential to respond to reviewers and work
with them to solve issues.”
Finally, stay positive. Phillips believes
the constant discussion of recession has
created an emotional depression that is
tough to overcome, even though the
economy is slowly improving. Now is
the perfect time to be proactive and
invest in improvements that will position
you to take advantage of the resurgence
when it happens.
“I remember when I built my first
spa, I read every book I could get my
hands on and went to sleep with an
inspirational tape playing every night,”
says Phillips. “Before I put my feet on
the floor I reached for some inspiring
words to help me start my day. Even
though you can’t control all the external
circumstances, you can control and
influence how your business responds—
and remember that your team is looking
to you every second of the day.” ■
MARK CRAWFORD is a full-time freelance writer in
Madison, Wisconsin. Author of five books, he specializes
in health, technology, and business writing. Contact
him at 1.608.240.4959 or at [email protected].
What are the right questions to ask when engaging corporate markets for
business partnerships? Cherry offers a list of questions that get results. Visit
digital Pulse at experienceispa.com to read more.
38 PULSE
■
November 2011
EXPERT INSIGHTS
AT A GLANCE
“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.”
— Peggy Wynne Borgman
President, Preston Wynne Inc.
“To strategically
plan for the future,
you need to slow
down and have
time [to think],
even if you have to
block out an
appointment with yourself. One of the
best times to do this is after attending a
trade show, especially ISPA—book an
extra day or two to develop an action
plan that incorporates the amazing ideas
you learned.”
— Carol Phillips
Founder, BEAUTEESMARTS
“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.”
— Paul Cherry
President, Performance Based Results