Thursday, 10 March 2016 10:31

Promote Wellness Through Retail

Written by   Jenny Hogan, media director at Marketing Solutions, Inc.

Dramatically boost spa revenue with a simple shift in mindset.
A simple shift in focus and mindset will make all the difference in a spa’s revenue potential. According to retailing experts, Tracie Wertz and Bill Barczy, an immediate increase in incremental profit can be achieved by promoting wellness through retail.

Most spas will face many challenges when it comes to retail, including a lack of money, time, dedicated staff, and product knowledge. But if basic steps are taken to prepare a retail plan, choose the right products, and let the staff help drive sales, any spa can be on the road to retail success.

UNLIMITED OPPORTUNITIES
There is an unlimited financial opportunity with retail, unlike services where there will be physical, time, and operational constraints to the amount a spa can earn. As long a spa can keep their shelves stocked with the right products, plan effectively, and follow the basic, proven principles of retailing, their revenue can increase infinitely. According to the 2014 ISPA survey, the United States spa market has a retail-to-service sales ratio of 11 percent. “We are almost a $15 billion industry,” Barczy explains. “This means that we retail about $1.65 billion annually. When you start to move that needle even a few percentage points, we are talking about hundreds of millions, even billions of incremental revenue per year! This further illustrates how important it is for spas to give some dedicated attention to their retail program.”

COMMON CHALLENGES
Most spas face challenges when it comes to retail. For example, financial constraints may prohibit proper product sourcing and staffing; a spa may lack retail experts. By identifying the retail enthusiasts on staff, the spa can help bridge the gap for their retail needs. Another challenge is that spas are often tasked with running a retail business while staying focused on providing amazing services. Look into taking retail courses, in person or online, to help tailor plans for the business. Wertz noted that the number one problem many spas face is little-to-no retail-attachment happening with massage services. Spas should attach retail to every massage treatment and choose wellness products that go along with a specific lifestyle or wellness goal. Professionals can start making wellness recommendations that enhance clients’ lives. When a professional has a consultation and the client says that they have stress or pain, they should take those cues and start making recommendations that will improve the client’s life on a daily basis, not just for an hour on the table. It is not a matter of selling a product; it is simply about promoting wellness.

PROMOTING WELLNESS
Wellness has gone mainstream and the new wellness consumer is a powerful one. Wertz states, “[The wellness consumer] is looking for products and services that support their beliefs and passion to live a healthy, vital life. They are coming to the spa, so it is imperative for that spa to have the wellness products they seek. In today’s landscape, there is more competition than ever; professionals can set themselves apart by becoming the wellness trailblazer in their community.” Whether it is providing consumer education, retailing unique products, making sure the staff is well informed, or offering a sensorial boutique that allows the client to experience something new, it is all part of promoting wellness and becoming a better retailer.
By redesigning the language that is used with the staff, professionals will understand that it really is just about promoting wellness and not selling products. Barczy says, “We are in the perfect setting to give clients everything they need. We have wellness clients who want to spend their money with us. The way to do that and survive and thrive is to make retail and wellness part of what you provide for clients.”

LINENS AND ROBES
Spa linens are also a great item to retail as clients have direct contact with them. Displaying them in the retail area is the perfect way to encourage clients to buy them as gifts. Spas can also offer a complimentary sheet set as part of a spa package or a bridal gift promotion.

BEGIN AND END WITH A PLAN
Planning is the first step of retailing and should be an ongoing process. There are many aspects to planning; one idea has to do with gift card redemption strategies. Wertz shares that managing gift card programs is key to good planning for yearly spa promotions. “It is the perfect example of how spas can plan for success. By offering incentives at the point of purchase to guide redemption when the spa is the slowest, the gift card recipient will be more likely to come into the spa to receive that special offer. Any time the spa is giving something away, there should be a high-perceived value for the client with a low cost to the spa. For instance, spas can give a free eye treatment with a signature facial in March. The cost may be only be three dollars, but it should be perceived as $30. As a result, the spa will have more clients coming during a traditionally-slower month.”
Start a retailing plan now to boost business, increase sales, and build clientele. By selecting professional products connected with wellness, learning and practicing the basic strategies of retailing, and bringing the spa team on board to provide vital help and enthusiasm, spas will be on their way to retail success!

Jenny Hogan is the media director at Marketing Solutions, Inc., a full-service marketing, advertising and public relations agency specializing in the professional beauty and spa industries. mktgsols.com or This email address is being protected from spambots. You need JavaScript enabled to view it.

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