Read Part 1 and Part 2.

Part 3: What to do about it!

If I was being held captive at Massage Envy and forced to undergo mundane massage over and over again, and my only chance of escape was to come up with the one thing that would define how best to compete with them, it would be:

Great Service!

If you're a value oriented massage therapy practice with mediocre service, then the Massage Envy down the street will win. But let's assume you have the right focus on service and the great client experience that entails, and talk about how to use that to compete with ME.

Everyone likes to divide the world into two groups, and I'm going to do it here: high-end, luxury spas and relaxation-oriented spas vs. value-oriented spas and massage therapy practices:

High-end, Luxury Spas and Relation-oriented Spas

For the luxury spa, high-end day spa or spa with significant revenue outside straightforward massage, Massage Envy has more pluses than minuses:

• Massage Envy creates more prospective clientele for your spa. They're introducing massage to more people, who are now better prospects to upgrade to the full experience.
• Over time, Massage Envy will become increasingly effective at competing with discount-oriented day spas and massage therapy practices. As long as you are not one of them, it will reduce the number of competing discount voices in the marketplace.

Many consumers that I've talked to visit both: Massage Envy for a regular massage, and their favorite day spa for a real treat. You may think ME is taking business away from you, but it's more likely they just would have went without. Going to ME is a quick in and out, last-minute appointment, while going to the spa is a planned event.

Strategies:

• Stay high-end: You don't really compete with ME, and in fact, they're generating more future clientele for you. I caution you to be very careful in changing your strategy and going down market to a more value-conscious consumer. There's been a lot of pressure to do so during the recession, but it's a big challenge to change your cost structure and the meaning of your brand to go down market.
• Don't rest on your laurels: Here's a comment from a spa goer that sums up a common theme:

  I have had it with the attitude at many of the high end spas. If I'm paying $500 for four hours at a spa, I want to be catered to. I don't want my therapist leaving the room while a mask sits on my face, I don't want people walking into the treatment room while I'm getting a massage b/c they confused rooms, and I certainly don't want some twit at the front counter ignoring me while I'm waiting to check in. Small things like the ones I mentioned are enough to taint a $500 experience. Which means that any time I go to any spa, high end or low, I know I'm taking a risk that the service won't be up to par. Like any risk adverse individual, I want to minimize that risk if I can by paying less.

  In other words, back to ensuring that you provide great service. Expectations are high, particularly in this economy.

• Promote mini-escapes: Create "power hour" services that emphasize the convenience of a quick escape. Combine services like a foot massage and a scalp massage to create a unique mini-escape.
• Reevaluate your menu: If your spa menu looks the same as when you opened 5 years ago, it's time for rejuvenation. People come to you for an experience, and it's time for an update. Don't let Massage Envy be the new thing.

Value-oriented Spas and Massage Therapy Practices

For a massage therapy practice or a day spa with a lot of 1 hour appointments, Massage Envy is potentially a more potent threat.

Strategies:

• Great service: I hate to be repetitive, but great service is key. We've worked with a number of SpaBoomers that have faced the prospect of a Massage Envy opening down the street, and it's usually turned out to be a positive. But that's only because they've got great service. Susan Kirk at Village Therapeutics:

I do have a Massage Envy right around the corner from my business. At first I really felt threatened, but the longer they have been here, the more people have been turned off by them. They are currently offering facials here too. Of course we can't match their prices, but our fair prices, great customer service, and skilled therapist and estheticians, have kept our business strong. One of the things that I now mention in my advertising is that there are no contracts and no monthly dues. It seems to be of interest to those who have tried Massage Envy and were turned off by the sales pitches and often inexperienced help.

• Find your niche: Specialization is a great strategy regardless of who the competition is. Be the best at pain relief, wellness, or special modalities. Look at the scheduling habits of your clients — they may already be telling you what your niche really is.
• Promote the specialties of your therapists: craniosacral, thai massage, shiatsu, Ashiatus, etc. all create closer client relationships.
• Focus on convenience: Attack ME's strength: add an additional therapist so that you can schedule last-minute appointments.
• Shoot the answering machine: Returning messages just doesn't compete with calling Massage Envy and scheduling on the spot. Offer online booking and find a way to always have someone answering the phone.

In either case, excellent strategies for any SpaBoomer:

• Gift certificates: I'm sure Massage Envy sells a number of GCs, but none of ME's customers that I've talked to would give a ME GC. For SpaBoomers, however, GCs are the perfect referral mechanism for your clients to bring in more clients. And those that have been to ME will now get the upgraded experience at your spa.
• Encourage repeat clientele: Don't let your clients wander away! Keep in regular touch with them, via the method they choose. Media has fragmented, and you have to be there: up-to-date website, email marketing, FaceBook and Twitter. Enter your marketing message once in SpaBoom, and it's automatically broadcast to all these channels.
• Convenience: It's not just Massage Envy: the ease with which you can book travel, make restaurant reservations and pay bills online has taught consumers to expect convenience. You have to be available when and where your clientele expects.
• Secret shopper: Give a gift certificate to your most honest friend in exchange for a detailed report on the experience from start to finish: front desk check-in, therapist, atmosphere, cleanliness, checkout, product suggestions — everything! You'll be amazed at what you learn. Tip: it really must be secret.

Just to keep with the theme: if you have great service, you have nothing to fear from Massage Envy.

Help your fellow SpaBoomers! Share your experiences and strategies for dealing with new competitive threats.

2 Responses...

1. Aaron G. says:

   May 30, 2010 at 9:15 am

   This 3 part editorial was very informative, and in the end I think we all come away feeling ME is more worried about independent establishments then we are about them.
2. Kim says:

   June 10, 2010 at 1:33 pm

   This is very true. We have not worried to much about ME in fact we increased our prices a little and added that we offer Organic, chemical free products in our services. We won't lower standards to compete and yes we believe ME should be more worried about us too…