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Generating More Revenues from Relaxation

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Presentation on theme: "Generating More Revenues from Relaxation"— Presentation transcript:

1 Generating More Revenues from Relaxation
Spa Services 2018 Profiler Brought to you by Media Group Online, Inc. Generating More Revenues from Relaxation © 2018 Media Group Online, Inc. All rights reserved.

2 Spas Ride the Wellness Wave
Spas Ride the Wellness Wave According to the latest data from the International SPA Association (ISPA), the spa industry had another record-breaking year during 2016, with a 3.1% increase in revenues from 2015’s $16.3 billion to $16.8 billion. More than 184 million people used services at American spas during 2016, an increase of 5 million, or 2.5%, and another record. Revenue per visit increased 0.6%, to $91.30. The number of spas increased by 240 (1.1%) to 21,260. This increase is the equivalent of four new spas opening per week. Almost four in five (79.6%) spas are day spas, followed by resort/hotel spas, 8.6%, and medical spas, 8.3%.

3 Good Talent Is Difficult to Find
Good Talent Is Difficult to Find Almost two-thirds (61%) of spas reported service provider vacancies during 2016, estimated at 32,390 unfilled positions On the bright side, this is a 13% decrease in vacancies compared to 2015. Of these vacancies, 1,230, or 3.8% were for directors and managers. Most of these, 1,030, were for manager positions. Massage therapists accounted for 18,780 vacancies, roughly half of all open positions. More than half of spa operators surveyed (57%) said they planned to create new jobs, which would likely make the problem worse during the future.

4 Marketing the Wonderful Feeling
Marketing the Wonderful Feeling Research from the Day Spa Association (DSA) found that the majority (52.78%) of spas rewarded current clients for referrals by discounting clients’ next appointment for each referral that books a service. Almost a third (32.41%) gave loyalty or reward points. To convert and re-book first-time clients, 42.42% used personalized follow-up s, text or calls; % offered first-time promo pricing or complimentary add-on services; 23.23% sent handwritten thank-you notes; and 20.20% extended an offer. To capture leads, 65.48% used the “Contact Us” form on their Websites, 58.33% used an opt- in, 36.90% collected info from walk-ins or call-ins, % used Facebook contests, 27.38% partner with local businesses and 21.43% had a link in their s

5 Beauty Through Medical Science
Beauty Through Medical Science The American Med Spa Association (AmSpa) reported that there were more than 4,200 medical spas in the US during 2017, with $3.97 billion in revenues and a projected 8% growth rate through Adding medical spa services is an increasing trend. The average med spa generated $945,000 in total revenues during 2016, an increase of 6.9% from The states with the most med spas were Texas, California and Florida. Seven in ten medical spa visits were from repeat patients and 77% of all med spas were affiliated with a physician

6 The Future of Spa Services
The Future of Spa Services Although 67% of spas did not offer medical spa services, 7% had a blended day/medical spa; 7% offered regularly scheduled med spa services; 6% had preferred offsite partners for med spa services, and 5% had occasional services by a visiting medical professional. Personalization is a trend: 76% offered add-ons; 47% gave personalized “spa-scriptions”; 43% had a personalized, take-home program; 30% had private-label retail products; and 16% let clients plan their treatment for full or half days. Local focus is another trend: 39% sold locally produced retail products; 39% used work from local artists in the décor; 32% used area-based treatment protocols; 25% named treatments to reflect the area; and 18% sold treatment products with local ingredients

7 Advertising Strategies
Advertising Strategies Capitalize on consumers’ knowledge about and acceptance of nutraceuticals to add another revenue stream by selling internal wellness products to customers in-spa and online. If you offer services for men, then emphasize them by showing male customers in advertising, creating men’s specials for Father’s Day and offering couple packages. Emphasize indie products that you use and/or sell and any local ingredients or formulators.

8 New Media Strategies Make sure your Website has a “Contact Us” form, but test how much additional information you can gather by requesting more detailed information to respond with personalized services and offers. Create and promote “care packages” for which customers are able to schedule a weekly, bi- weekly or monthly appointment at a discount. Send reminders via text and with promotions to upsell your loyal customers. Ask customers to record a short video about their experience at your spa, how the treatments and/or products were specifically beneficial to them, the personalized attention of the spa professionals, etc. and post to their and your social media pages.

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