Notes from Spacifically 2002 in Atlanta, GA - "From Indulgence to Wellness & Wellbeing," the keynote address by Barbara Kaplan of Yankelovich, Inc.

Julie Register attended this spa industry event in Atlanta, Georgia October 6-8, 2002

Barbara Kaplan presented "From Indulgence to Wellness & Wellbeing" as the keynote speaker at Spacifically 2002 Atlanta, Georgia. Yankelovich, Inc. has studied the trends in the spa industry for years. They interviewed a sample of 2500 people in the US by talking 1-2 hours to quantify the answers. Ms. Kaplan highlighted the results of the most recent study in her address. The following are my notes from the presentation.

The events in this country caused a shift in paradigm from spas=indulgence to spas=wellness + wellbeing.

Consumers do not take lack of satisfaction lightly.

Target markets:

• 16-23 geny

• 24-37 genx

• 38-56 boomers

• 57+ ikes

Spa paradigm:

The changes started before 9-11 and were spearheaded by the boomers. There is an emphasis on youthfulness and individuality.

What is most important to people since 1971 is a great spa scenario:

We live in a world in which we value...

• Quality over Quantity

• Intangibles over Tangibles

• Time over Money

We live in a world in which we want density of connections not superficial relationships. This includes community, brands, experience, and spa.

We want vibrancy of experiences - things that bring delight, authenticity of relationships - real, honest, straightforward.

Consumers won't stand for less.

Trends:

•     Taking charge in an area of uncertainty

•     Cutting to the core

•     Seeking authenticity

•     Redefining "body & soul"

Unlike the early recession 90's, we are feeling all right. Clients are budgeting their priorities. Spas will get a share if consumers are satisfied.

Consumers have changed from exuberant optimism to cautious optimism.

76% agree with the statement, "I'm focusing more on controlling what I can and worry less about the things outside my control."

Tracking self improvement market - best sellers:

late 80's early 90's (acceptance):

•     All You Can Do Is All You Can Do But All You Can Do Is Enough

mid 90's (exploration):

•     Chicken Soup for the Soul

•     Your Sacred Self

today ( action):

•     10 Secrets for Success & Inner Peace

•     Life Make Overs

•     Why Your Life Sucks & What You Can Do About It

The take-charge consumer will not let life roll over them.

Opportunities:

• Give consumers self-improvement tools that are accessible and adaptable.

• Action with a realistic investment of time or money (e.g. stress relief, skin conditioning.) Customization is a big competitive edge.

• Think of the succession of "wonder" processes and products like botox and herbal remedies.

• Marketing, messaging and ad tonality (reflect the way consumers feel) must fit the needs of "take charge consumers" - wimps they're not!

• A great web site is a must - easy to access and navigate - build trust, build brand, make brand recognizable.

• Look for strategic alliances like Jet blue Airways and Crunch fitness.

• Reassure older consumers that it is OK to view self improvements as improvements to "me."

• It's an earned reward.

• It strength not weakness.

• Go easy on terms "indulgence and Pampering."

• Help "take charge consumers" help themselves.

• Present professionalism and credible information. Give the consumer the message, "You can't do it all yourself, you need expert help with straightforward information." Then provide it to them.

Cutting to the core.

People are finding what they are all about.

• What do I want for me?

• Where does leisure fit in?

• How does work fit in?

Entitlement is not guaranteed. There is a more realistic outlook.

We are tiring of the fast lane.

Priorities are family, health and energy, and primary relationships.

There is a focus on experience.

The client's expectation: "Treat me like I'm rich. You better treat me great! and with good service!"

There is a craving for uniqueness.

Spas need to address the desire to be exclusive and unique in spa offerings.

Opportunities:

• Leverage today's core values of family, connections, experiences, and self-fulfillment. Products should communicate this.

• Have family and friends programs.

• View leisure as more than free time.

• Consider good, fun, gathering spots that are affordable.

• Turn up the dial on pleasure.

• Focus on a spa envirionment that competes with other experience options such as sports and theatre.

• Offer up uniqueness as a problem solver or eye popper.

• Real uniqueness is the goal. So is real innovation.

• Give a big push to the lure of emotional qualities of product, place, touch.

• Provide venues for the customer to complain to you not about you.

• Be an oasis of service.

86% of people interviewed agreed with the statement, "Living with high levels of stress puts you at an increased risk for serious illness."

64% of people interviewed agreed with the statement, "I want to spend more time exploring my spiritual side."

55% of people interviewed agreed with the statement, "I need to find more excitement and sensation in life."

Consumers are not treatment averse.

As baby boomers age, are you ready to partner with them?

Pay attention to energy and youthfulness.

Position beauty as less looks per se than as an organic reference to well being.

Summing it up:

• Spas are main stream.

• The new paradigm signals a shift toward an organic sense of well-being.