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Report on the New York Spa and Resort Expo
and Conference 2007 by Julie Register 
I've attended each Spa
& Resort and Medical Spa Expo and Conference since the first one in 2002.
This year the 6th annual event was held at the Jacob Javits Center September 8-10.
I attended on Sunday September 9. While the medical spa side continues to expand,
I spent all of my time on the spa and resort side. I listened to two talks, Secrets
of the Savvy Spas...Best Practices of Successful Spas by Angela Cortright
and How to Build a Marketing Plan for Your Spa by Wendy Bosalavage
& John Gray, and spent the rest of the day touring the Expo. The
first talk was Secrets of the Savvy Spas...Best Practices of Successful Spas
by Angela Cortright. This alone was worth the trip for me. Angela is the owner
of Spa Gregories, a
very successful spa with two successful locations in California. Spa Gregories
ranks in the top 5-10% of all Day Spas as measured by Day Spa Magazine annual
survey. It has had double digit growth every year since inception, almost zero
turnovers, 12+% EBITDA and local and industry accolades. Angela has implemented
principles that work well, but she constantly talks to other spa professionals
and reads professional magazines to see seek and learn about new best practices,
then she applies those that would be appropriate for her spas.
Spa
Gregories goals are to:
-
Create a Rewarding, Harmonious Working
Environment for Staff -
Create a Spa Experience that will make clients choose Spa Gregories
over any other -
Optimize Operations and Profitability
The best practices of successful spas
fall into six categories: -
-
-
-
-
- Keeping Balance
1. Staffing The first priority of a successful spa
is to have a great staff. In order to do that, you have to create a FANTASTIC
working environment. The best staffing practices
for Hiring include: -
Hire the best; make sure they share your
philosophy -
-
ALWAYS recruit- even if you are fully staffed,
and leverage your staff -
Interview with multiple staffers. A person may act differently
in front of different people -
-
-
-
-
Dont be afraid
to look outside spa industry for admin, management, operations
The best staffing
practices for Recognition and Rewards include:
-
Recognition is
the #1 Motivator -
Share customer praise, sales successes with your staff
-
-
-
Bonuses for desired behavior
-
-
-
-
Spa Gregories has a staff drawing for a
trip around the world twice a year uses its AMEX points to pay for it -
The best staffing
practices for Communication include:
-
Daily Open Door
Policy, 2-way communications -
-
-
Take action on recommendations
-
Fun
activities Ball game, Holiday Party -
Regular team meetings open dialogue
-
The best staffing practices for Leading by Example
include: -
Always be calm and positive even in the midst of chaos - Be
the person you want your staff to be at all times
The
best staffing practices for Compensation include:
The best staffing practices for
Training include:
2. Superior Client Experience
Know your client! The best practices for creating a Superior Client Experience
include: -
Foster Passionate, outstanding Therapists & staff -
Special Touches the Wow
Factor - Gift in locker or treatment
room for special occasions
- Reading Glasses in rest areas
- Special
lockers/robes for large clients
- Key system to avoid crowding
- Welcome sign for groups/special occasions
- Recognize top
clients by name
- Notes in client files (babies, weddings, special
needs)
- Guest name on assigned locker
- Customer
Service
- Spa concierge, Front Desk, Telephone Staff, Attendants
- Telephone standards
- Responsiveness to needs
- Anticipate
Needs (know the guests' names, favorite magazines, teas, make a restaurant reservation,
call a cab, etc.)
- Service Excellence Manager
- Offer
Something Unique
- Fruit-infused water
- Positive Affirmation
Cards
- Warm robes
- Wishing well (Spa Gaucin)
-
Rituals
- Freebies for very good customers
- Follow
up!
- Satisfaction Survey
- Thank You Card / Offer (i.e.
10% discount for self or friend with expiration date)
- Birthday Card/Offer
- Targeted Special Offerings
- Reward Frequent Guests (guests
accumulate points they can use on services or retail, total appears at the bottom
of their receipt)
- Overcompensate your mistakes
- Empower your Front Desk to take care of small problems so they won't become
big ones. Try to get them to come back again..next time...
3.
Marketing The best Marketing Practices include:
- Leverage!!! Get others to market for you.
- Clients (bring
a friend, reward referrals, etc.)
- Other businesses (cross promote
a spa date with a local restaurant)
- Vendors
- Concierges
- Community Events
- Events
- Med Spa Med
Fair: Seminar, food, vendor participation
- Free GC for first
service (in a series)
- Vendor-specific specials
- Girls
Night Out (tarot, handwriting analysis, fashion show)
- Anti-Aging
Festival (with plastic surgeon, fitness centers, vendors - have them pay to participate)
- Bridal Bliss Event
- Healthy High Teas
- Participate
in Community/Charity Events
- PR
- Send out at
least one press release per month
- Web
- Email (2x/mo)
- Charities
(offer 25% proceeds of a charity day if they promote the spa to their database
of names and post on their web site)
- In Store Merchandising, tie-ins
(must be consistent)
- Time-based promotions call to action
- If
a slow day, email a last minute deal
- Advertising
- A
typical advertising budget for an existing spa should be 4-6% of the gross. For
a spa just opening, it's 20%.
- You must advertize 7-9 times before anyone
sees your ad. If you're not prepared to be in it for the long run, don't bother
starting.
- Use a "Who's calling" service to track what calls
came from which ads.
4. Retail Retail should be at least 20% of
the service totals. The best practices for Retail include:
-
Set Retail Sales Goals for Front Desk &
Therapists and then measure how they are doing -
Private Label House Branding
-
-
-
-
Sampling: Create Passion for Products in
your Staff let them test them! Same for guests - give a sample to the guest.
If they bring back the empty container, give them $1 off full size. -
Seasonal Solutions Winter, Spring,
Summer, Fall
5. Profitability The best practices
for Profitability include plugging the budget bucket holes:
-
Candles - by switching from burning candles
to battery operated flicker tea lights, Spa Gregories saved $7,000 per year. Additional
bonuses included no more soot on the walls and ceiling and cleaner air to breathe. -
Water- Spa Gregories invested in a $6,000
Reverse Osmosis water treatment system for the entire spa. Eliminating bottled
water saved $5,000 per year plus lots of storage space. -
Vichy Room Sheets - Spa Gregories switched
from using heavy towels to disposable towels saving $3-4 per treatment in laundry.
These can be washed up to 6 times. -
Robes - Don't buy robes with pockets. No
pockets in Robes = no lost jewelry! Also, never touch a client's jewelry. Whoever
touches is last is responsible for it. If a client takes of jewelry in the treatment
room, have a cup for them to deposit it into. -
Laundry: Air dry before heat drying (save
¾ of energy costs!) -
Cups - Use appropriate size cups for tea and water - smaller
-
SHOP
for best pricing: supplies, insurance, cleaning, etc -
Towels - Use appropriate (just big enough)
towel sizes for treatment, shower, hair, washcloths -
-
Pre-kit products to limit amount used - Limit
access to supplies use a sign out system with a manager's signature
- Doing
the above saved Spa Gregories $27,000 / year
-
Eliminate stand alone 30 minute services
- the room turnover is too costly. Only use 30 minute services together with other
services. -
-
-
Reward with non-monetary strategies
flex
time, benefits, trips donated by vendors -
Outsource Payroll: EE Manual, Workers
Comp, Hiring/Firing, Flex Spending, Retirement Plans, Compliance with State/Federal
Regulations save major $$ and headache -
-
Convert from commission to flat rate
6. Keeping Balance The best practices for Keeping
Balance include: -
Faith and Prayer! - Remembering it's not about me
-
Put
on a robe and go to a spa puts it all in perspective -
-
Make yourself happy in order to make others
happy put oxygen mask on yourself before assisting others
-
-
-
How
to Build a Marketing Plan for Your Spa by Wendy Bosalavage and John Gray
Wendy Bosalavage of American
Leisure and John Gray of Glen
Ivy presented information about marketing a spa. Wendy is a marketing consultant
based in New York and John owns the Glen Ivy Hot Springs spa in Corona, California
and three day spas. He found that they required different marketing efforts, and
he had to be flexible and act quickly once he realized that fact. In
order to start a Marketing Plan, you must have a good understanding your Business
Plan. The following summarize the slides used in the presentation:
Marketing
Strategy
A. Key Elements of Successful Marketing Strategy
-
Customer groups
or segments -
Think through consequences of marketing strategy realistic
-
Monitoring
and evaluating -
Constantly review and update Marketing Plan
B. Understanding Strengths & Weaknesses
-
SWOT Analysis Strengths Weaknesses Opportunities
Threats
C. Developing Marketing Strategy
-
Draw up detailed
Marketing Plan -
Question who, what, where, why, how
-
-
Follow-up
Market plan sets actions, dates, costs, resources and effective selling
programs Measure effectiveness of what you do. Be prepared to change
what isnt working. -
Pitfalls Making assumptions
about customers needs Ignoring competition Trying to compete
on price alone Relying on too few customers Growing too
quickly Becoming complacent, failing to innovate.
A. Summary &
Introduction -
-
Business Strategy Business mission
Key business objectives Broad strategy for achieving objectives
B. External & Internal Analysis
-
PEST Analysis
Political and legal changes (regulations) Economic factors (interest
rates, consumer confidence) Social Factors (attitudes, lifestyles)
Technologies -
-
SMART Specific
Measurable Achievable Realistic Time-bound -
EXAMPLE Business
objective: increasing sales by 20% Marketing Strategy: targeting
existing customer market segment to achieve growth Initiative: Sending
online and direct mail survey to existing Day Spa Guests Objectives
Specific: reaching 40,000 customers to achieve return business Measurable:
responses received, date for returning responses 1000 online responses, 4000+
direct pieces from mailer -12% returns (half way through the campaign) Achievable:
target - 20% (8000) Realistic: quality mailing piece Time-bound:
Date set for returned response, customer increase over six months.
D. Marketing Strategy for Plan
Highlight main points of strategy in plan
E. Plan Marketing Tactics
F. Implementation of Marketing Plan
G. Writing Marketing Plan -
Set clear, realistic and measurable targets
-
Include
deadlines for meeting targets -
Provide budget for each activity -
Specify who is responsible
for each activity -
-
There were hundreds
of exhibitors and over 75 new products debuting at the expo. Here is a small sample
of what was there: |
http://click.linksynergy.com/fs-bin/click?id=*EJTVpauQ/0&offerid=61746.10000013&subid=0&type=4
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