I was pretty clear in my recent post Groupon sucks about the dangers of aggressive discounting. But what about SpaFinder Deal Days, which are running right now? And the original, SpaWeek (whose motto is now amusingly "Imitiated but never duplicated")?

I think it's a bit more complicated. For one thing, since everyone is discounting at the same time, it provides cover for your spa to do so without the brand damage that comes from heavy discounting through sites like Groupon (not too mention the bottom-line damage from the outrageous 50% cut that Groupon takes). The theory of Deal Days and SpaWeek is to generate PR that drives newcomers to the spa experience. And SpaFinder and SpaWeek are certainly more attractive brands with which to align your spa.

On the other hand, can you give up a week's worth of operating margin? Generally, spas' labor costs for providing treatments need to be in the 40-44% range to drive profitability, but are often higher than 50%. Which means for most spas that there isn't much room in $50 treatments to pay for overhead. I was very happy to see they are explicit that "SpaFinder Gift Cards & Certificates may not be used for this heavily discounted special promotion," because taking another 18% off would be almost as bad as Groupon.

I'm a fan of intelligent discounting that drives long-term business, and for many spas I think Deal Days / SpaWeek qualify, assuming the focus and dedication to create repeat clientele. What do you think?

• What is your experience with SpaFinder Deal Days and SpaWeek?
• Do they bring in new clients that become repeat clientele?
• Is it worth it?
• If you don't participate, does it affect your business that week?

My wife Sharon and I met in Santa Monica, and at least once a year we take a long weekend to go back and hang out at the pier and stroll down Montana Avenue. I love to bike the trail along the beach, but what I remember this time more than the beautiful day and the surf crashing on the beach was the surly attendant at the bike rental stand. It's not the body builders on Venice beach or the girls playing volleyball that is etched in my memory, but that horrible service experience.

I wish this was unusual, but bad service is the new normal. We stand in lines 10 deep at the supermarket, get stranded on the runway sitting in a airplane for three hours and wait on hold for what seems like days to talk to someone in customer service for whom English is a third language.

On the other hand, every time we go to Santa Monica, we always seem to end up having lunch at The Lobster and shopping at Subtle Tones. Why? Great service!

Service is the single greatest point of differentiation for small, local businesses.

Relax. Rejuvenate. Renew…

Entering its 19th year, International Esthetics, Cosmetics and Spa Conference, Las Vegas is the largest spa conference and exposition in the nation. It is the perfect venue to network and relax with peers, renew your passion and rejuvenate your business for the year ahead.

IECSC Las Vegas includes:

• 600+ leading skincare, wellness and equipment companies looking to do business with you on our Tradeshow Floor
• 100+ FREE Manufacturer Education classes
• FREE admission to the Spa Business Conference
• Admission to the International Beauty Show - Las Vegas

Daily Admission tickets are $35. Prices increase after March 29.

To register, visit IECSC or call 800.498.6984.

Maximize your online visibility using smart SEO tactics!

Your website reflects the essence of your business to the online community. The biggest hurdle you must face is being seen online, consistently and easily. Search engine optimization, design functionality and activating revenue potential are a few of the key components to maximizing your online presence.

Join Janell as she outlines the top five secrets to website success! Increase visibility for your spa/salon and generate revenue while you do it!

This webinar is FREE so be sure to join in and learn!

SpaBoom Special Offer: Sign up for a Full Service Dynamic Website and we'll include our Smart SEO Service at no extra charge! A $499 value! Offer valid through March 31, 2010.

Title: 5 Secrets of SEO
Date: Tuesday, March 16th, 2010
Time: 1:00 PM - 2:00 PM EDT

Space is limited. Reserve your Webinar seat now!

After registering you will receive a confirmation email containing information about joining the Webinar.

Or, why Groupon sucks…

We all love to get great deals. But it's one thing to take advantage of them personally, and another entirely to take your spa down the slippery slope of discount oblivion. It can be tempting, especially when you see your competitors doing it, to start throwing some ridiculous discounts out into the marketplace.

The current craze in discounting devils are new websites like Groupon and BuyWithMe. They sign up a small spa, restaurant, etc. to sell coupons at a steep discount:

Balani Custom Clothiers Inc., a Chicago men's suit and shirt tailor, offered a promotion through Groupon where, for one day in October, consumers could spend $95 on a gift certificate from the tailor shop valued at $225 that's redeemable for up to one year. But at least 50 cards needed to be purchased for any to become valid … "We were all over Twitter and Facebook that day," says owner Sonny Balani … Still, Balani paid a hefty price for the exposure—50% of the earnings generated from the promotion went to Groupon—which means the tailor received just $47.50 per gift certificate sold. —Wall Street Journal

It's great for exposure if the deal is really good, but it also stays out there forever. Every future client entertaining coming to your spa will know that you're willing to sell your services for dirt cheap. Why should they pay the full price that your services are worth? Discounts only work in one direction and only from some established value. Once you are exposed as a discount seller, you have lowered the value of your brand and begun your slide. Sites like Groupon feed on nice local brands like the devil. You get exposure, they get your soul.

Instead, use intelligent discounting that rewards loyal clients or is likely to generate repeat clientele. BOGOs are one of my favorite techniques: you sell your services at full price, with the added bonus of an additional, small gift certificate which generates an additional visit to your spa (and an almost guaranteed upsell).

During my years at design school the modern design principle, "form follows function" was systematically drilled into our heads as a reminder that shape should be primarily driven by its purpose.

Never has that concept been more applicable than within the context of SpaBoom’s Dynamic Web Design Philosophy. Good web design balances the complexities of consumer-centric functionality and the experiential and creative expression of the spa owner. When synergy happens it produces amazing results, dynamic websites that drive traffic and revenue.

Waves Salon’s physical location epitomizes a modern design philosophy. The approach to the salon’s threshold grants an instant and crystal-clear view of the owner’s creative expression and contemporary design aesthetic. It is that clarity that drives the SpaBoom implementation staff to articulate the salon owners' vision for their Dynamic Website.

Information gathered in the initial implementation phase is critical to an effective website design result. Waves Salon's success was driven by a few targeted questions asked and paired with very direct and precise answers.

• Waves Salon provided SpaBoom with a list of websites that met their aesthetic and design standards. Universally, the list consisted of successful and industry respected spas and salons and all expressed a modern and contemporary aesthetic.
• Waves Salon communicated specific details they wanted to convey in the website and that facilitated the team’s delivery of an effective and experiential website.
• Photography was a key element within Waves Salon’s successful website design process. The photos were taken by a professional and served to aesthetically express the salon and transport online traffic right to their doorstep. Ultimately the photos drove the design and established a dominant spot within the website.

The SpaBoom staff drew upon these key elements to design the Waves Salon website. It is a highly functional and aesthetically pleasing design that serves its purpose to enhance the salon’s brand, drive online gift sales and deliver new clients to their physical location.

We'll be at the upcoming IECSC event at Javits Center, so come by, catch up with our team and let us show you our newest features!

Show hours:

• Sunday, March 7th: 9:30 am — 6:00 pm
• Monday, March 8th: 9:30 am — 6:00 pm
• Tuesday, March 9th: 9:30 am — 5:00 pm

We hope to see you there! And yes, there will be chocolate. Blissful, yummy chocolate!

For info on the show, visit IECSC or call 800.498.6984.

An email autoresponder, simply put, is a message that is sent back automatically to anyone who sends you an email message. Here's an example of a real email we receive from one of our spas:

Thank you [name] [email address] for contacting [spa]. We will be contacting you regarding your request very soon. Due to the volume of online requests, it may take up to 48 hours for us to respond. If you wish to contact us sooner, you can reach us directly at (123) 123‑1234.

Email autoresponders are used heavily throughout the business world — a quick Google search will turn up far more results for how to use them than results on why they are bad, bad, and possibly even dangerous.

Yet everyone seems to use them — are they really such a bad thing?  Let's think about it by taking yourself out of your business and into your personal life for a moment with this scenario:

You will be hosting a dinner party.  You invite lots of people, both those you know and those you do not — future friends, future networking contacts, family, anyone.  You arrange for the catering or do lots of advance cooking to make sure your guests will be fed well.  You buy great wine to serve with the food.

The magic day arrives and someone knocks on the door, but you are probably busy.  So, how do you handle the situation?  Easy — your high-tech front door is programmed to automatically open and then play a message to say, "Hi!" and welcome the guest through the doors, letting them know that you'll be with them in as soon as you're able. 

Here are the potential effects of your very special automated door:

• Does the door know whether or not this is an invited guest?  No — it opens and plays the message for any knock.
• If it is a guest, how do they feel?  Like you are placing an artificial barrier between their interaction with you, and supplying information that is not helpful. (Of course you'll be with them soon — after all, you invited them to a party!)
• Further, if it is a guest that you have not yet met, you are now giving them a rather impersonal first impression of your hospitality.
• If it is not a guest, what then? They know you're hosting a dinner party, that's for sure.  But they also know the inside of your house, the fact that you're a cook, what your social practices are, et cetera.

This is what you do every day with your autoresponder.  You supply a temporary and unnecessary barrier to your real and valued clients, a virtual brush-off to potential clients, and a opening to your business email address to marketers and spammers.

Once you've disabled your autoresponder, what should you do?  Easy.  Set aside two short windows of time each day (or more if you are not busy all day long) to genuinely respond to each email that you receive.  Give it the attention it deserves, whether it is a personal response or a quick trip to the trash bin in your email client.

Your business will be more focused, your customers will appreciate the personal touch, and you'll receive less spam.  Can you beat that?

Let the Rejuvenation Begin!

International Esthetics, Cosmetics and Spa Conference New York is celebrating its 8th year as the premier Northeast spa show. Thousands of spa professionals from across the U.S. have looked to IECSC NY to keep them abreast of the latest trends, techniques and business practices in the fast-paced and ever-changing industry.

IECSC New York Offers:

• FREE Tradeshow floor Admission with over 200 leading skincare, wellness & equipment companies
• 45+ FREE Manufacturer Education Classes
• Industry-leading Conference Program designed to build your bottom line

To register for your free admission, visit IECSC or call 800.498.6984.

Spamming strangers doesn't work. Spamming friends doesn't work so well either, but it's certainly better than spamming strangers. –Seth Godin.

Read the article.

I used to work in telecom. Our company was notorious for pushing out millions (really) of promotions to customers every month in the form of bulk mail. Needless to say, it was not my most popular gig as evidenced by the multiple times I was cornered at a party so someone could rip into me about how much they hated getting the latest 'Call Forwarding' mailer. I saw firsthand the waste, the nuisance and irritation we caused our customers, just with the bulk mailings sitting in their mailboxes.

The moment customers had a telecom alternative they fled in droves and I am convinced that this tired and staid marketing effort of the late 90’s left a negative and indelible mark in the minds of consumers. If you send them something they don’t want, they want the power to say NO THANK YOU, any time, anywhere and when they choose.

SpaBoom’s email marketing tool is designed for spas as an extremely powerful way to communicate your message to prized clients and potential customers. It must be used wisely and with care to get the results you need.

In the new world it is less appropriate to think about how big your list is and much more appropriate to think about how much of your list is active. That is, how many people are acknowledging your messages by opening or clicking through? And, if they are not anticipating, opening and reading your messages, what good does a big list do? –Bill Nussey, Inc.com

Read the article.

For that reason, SpaBoom ardently sides with the new world, CAN-SPAM act, with a double opt-in policy. Once a person requests your communication and verifies that it is indeed their email address, the relationship can begin.

There are so many good reasons to double opt-in but the most important is that it puts the power where it should be, in the hands of your clients. To send mailings to people who do not want them does not help you immediately and it diminishes your brand long term.

At SpaBoom we spend a great deal of time looking for ways to create effective Dynamic Websites for spas that are also visually appealing and sophisticated.

We have taken the stand that Flash, a multimedia software used to add video and animated graphics to a web page, can affect the consumer’s user experience, expose them to viruses and inhibit Google’s ability to accurately read content embedded within Flash. After all, the consumer's capacity to easily and effectively navigate a website is paramount to a spa's success –- a bad navigation experience is a deal breaker. Any specific variable that may cause your spa website to slow down or diminish the experience is better left to web designers building a site for your spa competition.

It turns out we are not the only company concerned about utilizing Flash technology. In a recent New York Times article, Nick Bilton reports that Apple is looking at this issue as well.

Apple has argued that the Flash technology is too slow and unduly taxes laptops and netbooks. The company also has concerns over Flash’s vulnerability to viruses and other malware, as well as the way Flash-based content can voraciously consume battery life. –Nick Bilton, New York Times.

Read the article.

What does this mean for your business?

It is a critical reminder; companies that put their customers first will have an advantage in the marketplace. A spa website that is quick, consumer friendly and easy to navigate has taken the first important step in building online traffic for their spa. Dynamic Websites allow your spa brand to shine through the clutter and put your consumers right where they belong, in your spa.

You've asked us for the ability to reward select groups of clients using referral (or promotion) codes, and, just in time for your spring marketing strategy, it's here!

I'll run through a quick tutorial on how to create and use referral codes, and this guide is also available as a Help Topic, or just search Help for "referral".

Here's how to create your first Referral Code:

1. Go into your Marketing tab and choose Events from the left sidebar.
2. Create a new Event, and select the brand-new type "referral code" from the drop-down list.

   

3. Type in a name, description, and the code you'd like to use.  That code is what you can give to your clients.  If you're sending via email or the web, a weblink is also created in the textbox below, ready to copy & paste.

   

4. Choose your date range by typing in the date, or using the pop-up calendar

   

5. Now, just select the type of special you'd like to extend to your clients - Featured Services, Buy One Get One, or Percentage Off - and just set those up like you normally would.

   In this case, we're taking the usual $75 massage and offering it for just $62, as you'll see:

   

6. Distribute the code in any number of ways - cards at your front desk, email marketing (through your SpaBoom account or your 3rd party solution - all you need is the link!), flyers you drop into purchase bags, your Twitter account - any way you'd like!  Be creative and have fun with the codes.  You could even link to it on your website, giving the perk to anyone who visits your site often.

IGC Purchases With Referral Codes

With the referral code link, when they click on the link it will send them directly to your IGC page with the type of GC you are promoting already up on the screen, ready for them to choose it:

With the code only, the purchaser will be prompted for their code on the 3rd screen in the checkout process:

Notes About Purchase Options

1. Tax, if you add tax to your GC purchases, will be calculated on the discounted price.
2. Gratuity, if you feature that option, will be calculated on the NON-discounted price.
3. Mail delivery option fees are assessed as normally configured.
4. The IGC after purchase - just like with any other special - shows only the full value or name of the service to the recipient.   If the promotion is a Buy One, Get One, your purchaser will receive their bonus GC just like normal.

Let us know what you think and how you plan to use your Referral Codes this holiday or all spring long!

Imagine a lovely hotel in South Beach; swaying palm trees, a lovely sun-warmed breeze and a relaxing massage in the afternoon. The Swedish massage is fantastic and the therapist could not be more delightful. Add to this perfect equation, a spa facility replete with amenities designed to relax and delight any travel spa client.

Unfortunately this beautiful experience ends abruptly, with a frustrating shower test of the spa’s private label products. It manages to instantly end the bliss. The skin feels tight, hair is an uncontrolled rat's nest and the perfect moment is broken. It turns an ideal spa experience into a real downer and gives the client pause to recommend the hotel spa to local friends and family. All the warm fuzzy feelings wash down the drain with mediocre products and the client is now left with a film of disappointment. It can blemish the entire spa experience.

It doesn’t have to be that way. The good news is that there are wonderful private label product companies that use quality ingredients to meet your spa needs and increase revenue. The trick is to find the one that works for you.

1. Be willing to use the products yourself, on a regular basis. This doesn’t mean the spa products in the shower area have to be from the line used during treatments but as a spa owner you still need to stand behind the products. A client’s ability to test the product leads to an increase in purchases so make sure it is up to your personal standards.
2. If a product company promises the stars, moon and sun, chances are they will fall short. Stick with the straight shooter, your private label company will be a partner and their objective should be to develop quality products to keep you happy long term. Empty promises will lead to disappointing product sales in the spa so follow your gut.
3. Remember, it has your spa name on the bottle. Your marketing plan should include a strategic vision for the products your spa carries; private label spa products are an extension of your spa’s brand. Clients that purchase your products will be taking them home, and each time they are used it will remind them of your spa.
4. Word-of-mouth is a good start. It is worthwhile to do the research, talk to other spas, and find a vendor that will work hard to meet your spa’s needs. It will make all the difference to your clients and it will improve your spa brand.

No one wants private-label letdown. Spas work diligently to help clients live more meaningful, happy lives; it is the power of spa in action. Remember, the spa experience does not end until that completely satisfied client leaves the spa ready for the next occasion. It will make the full hotel elevator ride truly blissful.

Business owners often find themselves disseminating their usual marketing message without taking a fresh look at reaching the right spa clients with the right message. In reality, a spa’s client base may evolve over time or change quickly due to the economy or other conditions. It is very easy to overlook a demographic target that is in need of your services and is able to spend the money on regular spa treatments.

The market shifts, a major retailer driving traffic to your center moves, what do you do? Take the time to reevaluate and research your target client. In the Wall Street Journal, Willa Plank provides fresh insight to businesses seeking to acquire new clients and meet revenue goals.

Read the article.

First, you must identify your ideal customer.  "Do you know your target?" says Tom Patty, a volunteer small-business counselor for the Orange County, Calif., chapter of SCORE. "What do they do? What do they value?" Mr. Patty, a retired advertising executive, says he worked with a video biography company that attracted more business by simply shifting its focus to younger customers—baby boomers rather than seniors. –Willa Plank, Wall Street Journal.

Her advice is very applicable to the spa industry.

1. Go to where the growth is. Day spas and salons need to clearly understand what the growth potential is for their business. Increasing your customer base requires time and research.
• Is there a population in your area that is not being adequately serviced in spa? Get the specifics, design treatments to meet their needs and put effort into attracting them to your spa.
• Is there a well educated/professional demographic your area? If so, are you in an urban (single, young) area or more suburban setting (married, children). As you conduct your research let your answers guide you toward a new client target and set a course to increase your client base.
2. Ally with other businesses. Developing creative partnerships and community relationships is critical to the long-term success of your spa.
• Seek out partners that have a proven track record with your target demographic.
• The synergy of a well-suited partnership can increase revenue, streamline business practices and provide insight that can lead to new customers.
3. Use online tools. Redesigning your website can have a dramatic increase in your spa revenue. Why? Transitioning to a dynamic website puts the control in your hands.
• You can update the look and feel of the site to attract a new audience. It will enable you to easily add content, sell instant gift certificates and communicate effectively with your email contact list.
• In addition, a spa blog on your website adds content which can improve your ranking. As you improve your Google ranking you will see an increase in target traffic.

More from the Wall Street Journal:

Marie Danielle Vil-Young, owner of event-planning company À Votre Service Events LLC, says she is redesigning her Web site to attract a specific audience—young, professional brides—by changing the site's colors to black, hot pink and white. Ms. Vil-Young said social-networking is important; her intern's sole responsibility is to research and write for the company's blog. –Willa Plank, Wall Street Journal.

This is a perfect opportunity to adjust your target customer and seek out ways to reach them. It can improve revenue and bring a fresh set of clients seeking relaxation, tranquility and peace.

A big "Thank you!" to those who attended our webinar on Tuesday.  If you couldn't make it, or you'd like to go over the materials again, we have a video of the whole session, as well as our presentation in pdf format (see below for the download link).

Or, click to download and follow along with our presentation [PDF] 

Don't forget to give us a call for assistance with your Valentine's Day marketing ideas, how to use some of the features we've discussed, and ask any other questions you might have!

As a spa business, it is your job to make an impact on clients each day, to make their lives perceptively better, more balanced and richer.

That impact is incredibly inspiring, the notion that you can make a person’s life better, and it must carry your staff through the most challenging and hectic moments. There is no question that your spa produces a valuable impact on individual health and wellness.

Remember, the wave of spa synergy begins before the client reaches your threshold. It is wound up in the little things your business does, the follow-through, the 'in the moment' opportunity to exceed expectations. When you ponder client needs, looking for ways to harmonize and improve the entire spa experience consider these loyalty-building fundamentals:

1. Give clients multiple methods to reach your spa.  It is so important to have a website that is easy to find online and content that leads clients directly to your spa. That means your target customer must be able to communicate with your staff using their preferred vehicle: email, phone, face-to-face, Twitter, and Facebook.
2. Personalize their experience.  Value radiates from spa experiences that incorporate tailor-made treatments to meet a client’s specific needs.
3. Respond to client needs 100% of the time.  If there is a problem, respond and resolve it. It is your best advertising at work, and that action leads to glowing recommendations.
4. Give clients as much control as possible.  Hand it over whenever possible, it shows that your spa understands the value of convenience. Allow them to book their appointments onlineand don’t wait to confirm their appointments, give them a prompt response.
5. Give clients more than they asked for each time.  It is called a bonus and it will be memorable to them.
6. Follow up with clients.  Keep the communication flowing and let loyal clients teach you how to improve your business. It is very valuable to see your business from a different perspective; you can listen, absorb the information and gauge its value to your organization.
7. Go to your clients first.  Use email marketing to promote your business. Existing clients are already engaged and aware of your business. They are much more likely to respond to promotions, events and new spa treatments.
8. Reward immediate action.  If you have a series of unexpected schedule openings, announce it on Twitter and then reward clients who respond right away. Once clients experience their reward they will be watching and waiting to take advantage of the next unexpected spa opportunity.
9. Exceed expectations.  First, know what they expect from their entire spa experience and then make a point of exceeding it.

Small businesses are definitely feeling the squeeze and are increasingly using social media as an important tool in staying connected to their customers.

According to a report that was sponsored by Sage Spark, an online business network:

More than 260,000 small businesses in the United States and Canada currently use social networking for business purposes.

Small businesses understand very clearly that customer engagement is paramount to success and are looking to social media to bring them closer to clients. Small businesses are taking the leap, learning what they need to get started in social media and liking its progressive approach to building their business.

This great article by Lauren McKay, associate editor of www.destinationcrm.com, reveals that small businesses face fewer hurtles in their jump to social media, the biggest challenge is making the decision to add it to their marketing programs.

Read the article.

We know spas are increasingly using social media right along with other small businesses to keep in touch with clients, offering up last -minute deals and an assortment of spa promotions. Has your spa taken the leap? What barriers did you overcome to get started? We would like to hear your story.

According to a current spa industry research report, over 60% of the avid spa respondents went to a spa at least 3 times a year and more than 9% went 10+ times per year.

Read the report.

It begs the question, could a spa membership program entice more avid spa goers to your business over the course of a year?

We all know that repeat customers are extremely valuable and tend to spend more at each spa visit. A Spa membership program ensures that high value clients visit the spa every month and creates new opportunities for you to build revenue.

There are definite advantages to spa membership programs but I am curious what local spas think, so leave a comment and let us know what your experience has taught you.

Are you using everything you have to promote Valentine's Day for your Spa or Salon? Join Janell to get a fresh perspective on some simple promotions to increase Instant Gift Certificate revenue and create effective promotions for the upcoming holiday of love.

Title: Create Love for Your Spa or Salon
Date: Tuesday, January 26, 2010
Time: 1:00 PM — 2:00 PM EST

Space is limited.

Reserve your webinar seat now!

System Requirements:

PC-based attendees require Windows® 2000, XP Home, XP Pro, 2003 Server, Vista
Macintosh®-based attendees require Mac OS® X 10.4 (Tiger®) or newer

Our Celebrating Romance Edition of Joy of Spa News is ready for you to make it yours! The Celebrating Romance edition touches upon choosing great spa gifts, learning to care well for oneself, as well as trends we're seeing in spa as a whole.

If you're signed up for the Joy of Spa News, it will launch to your clients on February 1st.

Remember, the Joy of Spa News is branded with your spa's logo and when your client clicks to read more, the website is branded with your logo, too! While the Joy of Spa News is complete as is, we recommend your taking a look at it and tailoring the special introduction area to your exact preferences. Be sure to send yourself a test email after making any edits, and remember that Events that encompass the February 1st date will be included in the email as well.

Not yet signed up to send a beautiful, branded newsletter to your clients on a regular basis? Now is your time to get onboard! Go to Setup, Basics to put Joy of Spa to work for your spa!