As times stay “tough” we’re kicking things into high gear. We’re refining our marketing plans, business systems, marketing systems, retail, upsells, expenses… everything we can tweak to make us leaner and meaner to give us more of an edge on the competition as each day passes (and YES, these are the things we’ll be making available to you in our “marketing systems” program).
We even have an edge on the chain franchise discount places who have huge places (at triple our rent) and are still direct mailing the masses to get new clients through the door in the hopes of selling a membership.
Many places are in dire straights, so watch out for those opportunistic sharks who will be knocking on your door very soon. FYI, in the “internet marketing” world the new buzz word is “local businesses” and their plan is to cash in on YOUR despair by showing you how to do the simplest of tasks for big bucks (things we talk about daily in our forums online and monthly during our mastermind call, which is this morning).
… and leading the pack of these vultures are the hoardes of sites opening up in your town offering a “deal of the day” such as Groupon, LivingSocial, the local newspaper and others. So what do you do about them?
Well, the plus side is that these guys actually offer you a piece of the pie, unlike radio and tv that have been taking your gift certificates, selling them for half off and keeping it all in the name of “exposure” for you (btw, whenever someone plays the “exposure” card, it’s a bad idea for you). But half of something half off doesn’t leave you with much.
Things to consider:
- Are your expenses lean and mean? Can you do it for 25% off and still make a couple bucks?
- Is your staff trained in adding on services, upselling, spa-scribing programs and/or retail items?
- What are your real chances of selling this client on coming back when they’ll get another offer online in another week? Most spa clients don’t return but quarterly anyway at best.
- What will be the consequence of offering your services so low to your reputation? The “lowest price” game is one best avoided.
- How can you add value instead of lowering your price?
…and it goes on and on.
Here’s an idea, try this on. How about tapping into that goldmine right in your own back yard of your existing clients? When was the last time you emailed them? Sent them a card? (www.CardEmergency.com) or even simpler and cheaper, picked up the phone and called them???
How are your staff? Are they trained in all the opportunities you have available each time a client is with you? Is each welcome face through your door a potential goldmine or are they doing what most do… which is leave money on the table???
Have you started tracking your marketing to see what is getting you a ROI (return on investment)? Have you cut the stuff that ISN’T WORKING (i.e. the phone book)? Have you started marketing online and with social media?
There isn’t one way to get 100 clients, but there are 100 ways to get 1 client and you need to be setting all of these things up to bring you a steady stream of new clients automatically. (HINT: It all starts with a marketing PLAN).
…comment here on our blog please:) And make sure to signup as a member if you haven’t yet, because if you work ON your business an hour/day you could quite literally turn around your business overnight.
“Who loves ya?”
-Christopher
{ 8 comments… read them below or add one }
Great topic of discussion. In this tough economy time, when people expect to pay lowest prices for the great service, becouse spa and skin care business are hurting, we need encoragement to help remember how to survive and promote business.
As always, Christopher hits it right on the nose. Great info - but it’s no good if you don’t put it to work. It doesn’t have to be perfect, just implement something - and tweak as you go.
just do it! Have a great week - enjoy your customers, reward your staff and keep moving forward! You can do it! God bless!
p.s. I decided to NOT jump on the Groupon wagon. One time exposure to me is never worth it.
Thank god we are addressing this as an industry. I had one spa partner program put out a 50% off without my permission. So I felt obliged to honor the clients that came through as I have built a solid reputation through hard work, quality of services and high customer service.
Here is my experience of the few people that did book appointments:
One called and said she was unable to pay the $25 that her appointment was costing and could she reschedule. She also kept calling to make sure she would be receiving everything the regular clients would get, ie. sauna, steam room, jacuzzi, ocean view.
In addition to getting paid only $25, the spa partner also took out an additional $7!
Client #2, calls me 2 hrs before her appointment and says she cannot make it, can she reschedule for 6pm. I told her we are booked and that we had discussed there is a 24hr cancellation policy. I gave her a courtesy reschedule for the next day.
From the very beginning, she was the most unfriendliest person, I had ever met. She never even looked at me. We served her tea on the ocean porch and gave her the same courtesy that we would give any client. I knew something was not quite right as she came into the tea room and started some strange behavior. ie. moving things around abruptly, marching around the aromatherapy store, just things that made me scratch my head as to how I could put this client at ease. I decided that maybe a tour of the premises would put her at ease (she wasn”t at all interested in anything I said and still made no eye contact . I said to her, “I want to meet your expectations and be sure everything is exactly what you were expecting of your visit” she seemed assured and then she said ” I will let you know after I have had my treatment”. The red flags were there. To cut a long story short, she began asking some very strange questions, and this is the first client that I had to refuse service to (I had to - I even offered her a gift certificate for another day as a courtesy) she almost ran me over with her car as I tried to continue to please this client (I would never have been able to please this client). She left ranting that I would hear about this.
There were another 2 clients, one who was rude over the phone who hasn’t made it here yet, the other had said she was going to another spa that she got at half price next month, I wonder if I will see her again….She told me about all the spas she has been to at half price.
Most of my clients are so precious that they actually leave and give me a hug, I find them relaxing like they never have before, I never tire of their compliments and I feel very blessed to enjoy such a work environment and to offer them a retreat at the ocean.
I think that these half-pricers are simply not our clients and I am shaking like a leaf after this traumatic experience. If we continue to allow them to sell our spas cheap we will all lose.
It is great to offer restaurants, boat tickets etc at half price but our services are really special in that we have an exchange of energy with another human. There are only so many massages a therapist can do a week without it being routine and machine-like. We are part of the health paradigm, this volume supermarket situation is truly going to hurt us all in the long run.
That was an amazing comment and very well said. I guess it is true - not everyone is your client. You can’t please people who want “free”. Ok all you “lurkers” out there in blog land - what are you doing to get your spa moving? Don’t be shy - post in the forum or here on the blog or at least give Chris a call and he will make you sit down and write up a to-do list and call you back in a few days and check in with you. If you need hand holding - just ask for it! Your staff will see you working hard and trying to make things happen and they will follow suit. Be the leader. Act like a leader. Make things happen! Great article as always Chris! Jan
Great input above. As a medspa owner, laser technician and MBA (not that titles mean anything….the school of hard knocks is just as helpful)…I’d like to applaud the efforts of those that stick to their marketing plans (you do have one right?) as well as their tracked strategies and refuse to be lurred into accepting 50% off 50% off! Last I checked, my tuition and training fees were due in full. I opened my first medspa 8 years ago in MD and my second medpsa (in TN) almost 2 years ago…times get tough - but clients are and can be loyal. This is a relationship builiding business! Treat your clients (and employees) well - it will be returned. Getting new clients in for the supposed “free” exposure and having to deal with the issues above….doesn’t feel good does it? Nope. Yet, giving a free add on service to a long-time loyal client who just recently divorced, etc…feels really good! When you aren’t giving your time and talent away - you can afford an occasional freebie to your loyal top 10 clients…it feels great and that client walks out a clients for life - and they tell everyone. One more point…you know those hard to deal with clients? Kick em off the short bus fast….because - birds of a feather flock together! Do you really want their friends in your spa? Have a great weekend. We’re booked full - laser running 8-10 hours per day - and it’s summer!
Great comments everyone but I think that the “Goldilocks Zone” exisits somewhere between Lori and Sandie. In our 8+ years, we have offered only 1 of these third-party “50% Off” deals (with a local television station). Our particular deal sold out (200 certificates) in less than 5 minutes. And yes, there were a handful of “new guests” who were obviously there only because of the deal and did present a problem. But the biggest problem that we found from participating in that “deal” was that many of our existing customers went and bought these 50% off coupons. That was over 5 years ago.
Groupon came calling last fall and we looked closely at their arrangement and finally said no after a long talk with their lawyers because they would not change the fine print which put the entire liability of any certificates sold (including the part that Groupon keeps) on us, the merchant.
Regardless, I think there is a way to specifically target certain audiences with special deals and bonuses - we NEVER discount but we are not afraid to offer very substantial bonuses (big difference there) because the key is the type of guest. We will offer 2nd services for free or “bring a friend for free” specials because if a loyal client is bringing a good friend who has never been to our spa - THAT new guest is probably going to be a good continuing guest (additionally, the friend who brought her is going to act as a personal assistant most of the day - give her tours, introduce her to staff, tell her what is great, etc, which helps us immensely).
Eva gives stuff away (products, treatments, dinners, louis vuitton purses) to our best guests all the time. It makes Eva feel good and it makes our guests rabidly, fanatically loyal - which makes me feel good. And they buy, more, often. The key (and the “Goldilocks Zone” secret) is that WE are the ones giving things away at our spa, not Groupon or the local radion station or some other outlet.
A bit rambling but if you want some details or just want to chat, ask Chris for our number and we can help you dominate your market. Have a great weekend.
Something I learned a long time ago- never give specials, just adjust. I have never in my 12 years of working in this industry seen so many use Groupon and as “wonderful” as they say the service is, once the coupon is out and a very professional service given the people who look for a deal will look somewhere else for a deal. Loyalty means nothing because of underselling. I love what I do but notice this coupon is detrimental to business and to continuity of care we put into each and every client and service. Just my 2 cents.
i have been promoting salons and spas for 17 years and all of my clients give something away. The fact is if someone is sitting around doing nothing, they are not making a penny. Granted my promotions are for new clients only and geared towards down time. The schools tell these kids these days that they will make 6 figures in this industry but does not teach how to get the client in the door.
Would you rather
A. Would you rather spend $1500 for radio or television or even a billboard or
B. Put that money into people who never been in your place, in services that cost nothing to do, that just takes time to show them what you can do.
I do understand and would not go with a groupon that will sell thousands and you cant get in your normal paying clientel but if you give away mini services your staff should be able to upsell or look for a new job!