Spa Business Management

The Dodo Bird almost exclusively, epitomizes extinction as undoubtedly, unquestionably and irretrievably dead. The Dodo extinction occurred during recorded human history, and is undeniably attributed to human activity.

Are we bearing witness to something equally without doubt, unquestionable and irretrievable, as our politicians blindly and ignorantly rampage a very important and crucial form of revenue for small and medium sized businesses within their respective jurisdictions? Are service-based gift certificates "dead as the Dodo??!?"

As I mentioned last month, many states have changed their laws pertaining to gift certificate expiration dates (See Changes in GC laws for some states …). More will follow. This article, understandably, is causing consternation among some SpaBoom clients in the affected states. One area that seems to be on everyone's mind, is the difference between dollar-based and service-based gift certificates.

Every client I've talked to is of the belief that service-based gift certificates are no longer a viable option when they are not allowed to expire the gift certificates they sell. The problem is, service-based gift certificates are important to your business, because (1) many gift certificate purchasers do not wish to have the amount displayed on their gift, and (2) gift certificate purchasers, on average, will spend more buying a service-based gift certificate than a dollar-based certificate.

The biggest concern I've heard, regarding selling service-based gift certificates without an expiration date, is the fear of having to offer a service five or more years from now, when the price may substantially change. In other words, having to provide a $200 massage when presented with a gift certificate that was purchase 10 years ago for $75.

I'm here to tell you that this isn't a problem. The key is in your terms of sale, when selling your gift certificates. Here's the magic language to use:

If that's too open-ended for you, consider placing a time-frame on it or the circumstances for which might trigger the conversion. Here's a suggested clause that includes both:

This language works with all the GC laws I'm aware of, because the laws are trying to protect the value of the gift certificate. Value being money, and as long as you protect that value by converting the gift certificate to a dollar-based certificate, you'll be able to protect yourself while keeping compliant with your state's laws.

Posted in Spa Business Management, General • 5 Comments »

SpaBoom will be in booth #215 at the upcoming TSA Symposium at the Omni Orlando Resort at ChampionsGate, Orlando, Florida. The Expo is open on Sunday, Jan. 13th and Monday, Jan. 14th, so please come by and say "Hi!" if you're planning to attend the event!

Learn more about TSA Symposium #12. TSA has put together a dynamic seminar featuring nationally recognized speakers, business educators and industry icons to expound on this year's theme: "It's About Time."

Posted in Spa Business Management, General • Comment »

This topic got sparked a couple of weeks ago when I was driving in the car with my husband Larry, and his two girls, to take them for haircuts. I told Larry that we couldn’t go to the “usual” place because the person who answered the phone told me they were “booked up for the day.” Larry’s response to this was, “Good for them!”

Many of you may be thinking the same thing, BUT I am hear to tell you that such thinking slows the growth of your business; no if, ands, or buts about it!

As we drove to a new place to cut the girls’ hair, I launched into a 15 minute diatribe with Larry about how this view of productivity and client retention was skewed. It went something like this …

Retaining clients is paramount in growing your business, and productivity is certainly one of the most important measurements of team effectiveness for spas and salons. Studies prove that when productivity is higher than 80%, retention begins to suffer. As productivity initially increases, so does retention. But, when productivity rises above 80%, retention stalls and reverses direction. The result is short-term sales without long-term growth and profits.

Let’s look at the problem from the client’s perspective: Client access becomes restricted when technicians are “booked” at or near capacity because clients have a harder time getting a convenient time slot. So they go elsewhere, as in the case with Larry and his girls.

Is there an easy solution to this? Measurement of this phenomenon can be difficult, but here is some quick tips to ensure you are not turning clients away and stunting your company’s growth:

• Requests only - If you have technicians who receive a high percentage of requests, don’t book him/her with clients that do not request them. Fill the book of less productive technicians with these clients.
• Schedule the slow times first - If a client’s schedule is flexible, book the slow or hard-to-book times first, knowing the peak times will always fill.
• Gridlocked technicians - When a technician begins to get gridlocked or “booked up,” systems should be in place to orient these clients with other equally trained team members or it may be time to hire someone new to the team.

Remember: it’s expensive to get a client to walk through your door the first time; don’t screw it up by being “booked up” and forcing that client to go to one of your competitors. The choice is yours.

With almost 10 years experience in new business start-ups and transformations, Ana Loiselle-Donahue is a specialist in finding new sources of revenue and growth for companies of all sizes. She founded theSECRET in 2004 to help businesses flourish through creative —and powerful —new solutions; including brand development, strategic financial planning and employee training. Mrs. Loiselle-Donahue can be reached at 866/288-7353 or at www.thesecretconsultant.com. Check out her blog!

Posted in the SECRET, Spa Business Management • 11 Comments »

Next to getting the client to walk through the door for the first appointment, the most important step is getting the client to come back.

I am simply amazed at how many salon and spa owners “miss the boat” on this easily applied marketing tool - The New Client Tour.

It may seem obvious, but you can’t imagine how many times I'm not given a tour or offered a brochure, when I visit a salon or spa for the first time. Oh, and if I am lucky enough to be given a tour, it's often hastily conducted, confusing or incomplete. I often feel like I'm imposing on the one giving the tour. Ever have this happen to you??!?

Because cultivating new clients involves a long lead time and expense; when you get them in the door use every opportunity to make them a client for life and to utilize more than one of your services!! Giving a well thought out and scripted tour is an integral part in increasing client retention and cross-selling your services.

Why is a tour important?

The first appointment with the client is very important, and a tour is the single greatest way to welcome a new client to your business - to make them feel like a true guest, and that there is nothing greater for your business, than to serve this new client. This gives you an excellent opportunity to exceed the client's expectations.

Simply put: a tour is an outstanding educational tool, sales tool, and dramatically increases customer satisfaction and retention. It provides a wonderful opportunity to provide a soft-sales pitch for your business and its services. It gives the customer an opportunity to see the different parts of your business and how you stand apart from the competition. It also, gives them an understanding of the various services performed, why they might want certain treatments and a chance to ask questions they might not otherwise ask.

How to make a tour successful?

Don't think you have time or can't otherwise do it? Make it a part of your culture and business model. Don’t lose out on this opportunity for increased sales with excuses or obstacles. You must plan for it. Ask your new client to show up 15 minutes early. If you don't do a call-back to confirm the appointment, start doing so, and remind the new client to show up 15 minutes early.

An effective tour must be carefully scripted. Everyone on staff must know how to give one and what their role is in the tour. The greeter (often the receptionist or adviser) should be thought of as the sales and customer service force of your organization. During a tour, they become the tour-guide. Make this the most important thing they do, when they do it; and they can’t rush through it because they need to cover the front-desk or phone. When other staff sees a tour in progress, they must be especially friendly and helpful.

Don't conduct the tour in the hallway. Make sure to actually take the new guest into each and every room (as much as practical). Keeping a new client n the hallway is awkward, and fosters the perception of rushing. Standing in the hallway doesn't help him or her truly appreciate what each room (and the corresponding services) has to offer.

Don’t forget to give them a brochure.

When your clients are ready to leave your salon or spa, always give them a brochure. I convinced one of my clients to hand out laminated cards. The results have been wonderful. My client tells theirs, “We have had this card laminated because we want you to always have it. Even if you run this card through the washing machine, you will still have our number. We want you to know that if you have any questions about your service or products, or anything that you would like to do in the future, you can give us a call. From now on, we are your expert therapist, so if you have any questions, ever, about your skin/hair you can call us.”

Remember: It's expensive to get a new client into your door, so don't take that new client for granted. Reinforcing that you care about your clients, their questions, and their success, keeps them coming back and sending their friends and family.

With almost 10 years experience in new business start-ups and transformations, Ana Loiselle-Donahue is a specialist in finding new sources of revenue and growth for companies of all sizes. She founded theSECRET in 2004 to help businesses flourish through creative —and powerful —new solutions; including brand development, strategic financial planning and employee training. Mrs. Loiselle-Donahue can be reached at 866/288-7353 or at www.thesecretconsultant.com.

Posted in the SECRET, Spa Marketing, Spa Business Management, General • 3 Comments »

Thank you to all those who had contributed comments — online or offline — regarding my previous blog post entitled A picture is worth 1,000 words. In that post, I asked for feedback on what sort of statistics would be useful to you and your business.

David has taken this feedback, and we have a prototype that's pictured at right. What do you think? (You can click on the image to see a closeup!)

In the Information Technology world, we call this a "dashboard." And the dashboard is comprised of many "widgets," a widget basically being a graphic chart that you can configure individually. The dashboard is meant to give you a quick, bird's eye view of the performance of your business and in particular, your Instant Gift Certificate sales.

Our intent is to deliver a default dashboard, you can modify as you think most appropriate, either by changing what each widget displays or by changing what widgets show up and where. For example, the line-graph in the upper-left of the prototype dashboard (above) is meant to represent monthly sales volume for the past 12 months, with last-year's sales data superimposed so you can see how you're doing this year versus last year. You may decide you only want to see the past 6 months, or you may not be interested in this year's sales in comparison to last year's sales.

Our intent is to also give you some baseline information that helps you assess how you're doing, relative to your peers. We're hoping this can provide some feedback to you and your business, so you know where you stand. We're learning here, so your comments and feedback are going to be very helpful. Take a look at the graph below (it's a blow-up of the upper-right widget in the dashboard above):

"Others Like You" means organizations that are in your state, of the same org type (i.e. other "salons" if you've told us you're a salon), and are within 5 employees (plus or minus) of you. Is that fair? Would this be valuable to you, to see how your sales and average GC price compares to others like you?

If you have a dynamic website with us, we also know where your traffic comes from. In answering a question from our previous post, we can create a pie-chart widget on traffic locations. Take a look:

What other widgets do you think would be helpful or interesting to your business? Are we on the right track?

Posted in SpaBoom New Features, Spa Business Management, General • 2 Comments »

Did you know the money from your Instant Gift Certificate sales can go direct to your bank account — without additional cost from SpaBoom??!? This is a free service from us. (Note: If you use PayPal, there is an extra step involved before your money gets to your bank account).

If you consistently sell more than $1,000 a month in Instant Gift Certificate sales, you might want to consider integrating your SpaBoom account with an online merchant account. This is especially helpful during the holidays, when your online sales of Instant Gift Certificates goes through the roof!

There are a number of advantages to doing this, such as:

• Save time. You don't have to manually process each credit card with every sale.
• More secure. Since each credit card is immediately submitted to your merchant account upon each sale, the provisioning of an Instant Gift Certificate doesn't occur unless there is a successful credit card transaction. This means no one can print or email an Instant Gift Certificate, unless their credit card has been successfully processed. Also, the credit card companies will allow us to ask for the card code, when the credit card transaction is immediately forwarded to the merchant account. See the PCI Data Security Standard (PCI DSS) for more information.
• Save money. The rate merchant account providers often talk about - and compete with - is the "qualified rate" (learn more about rates). The problem is, most merchant account providers won't give you a qualified rate when you cannot swipe the credit card, and some will default to a non-qualified rate (the worst available). You need to check with your merchant account provider for the specific details, but some will give you mid-qualified rates for Internet-based transactions when the card code is included.

The only downside to an online merchant account, is that no one will let you use your existing retail-based merchant account. You must obtain a new merchant account that is strictly for online sales. I recommend talking to your existing merchant account provider, and checking into the costs of an online merchant account. Then, compare what you're told with the options I present further below. Before I do, consider that you need to look at several factors when considering different merchant account providers:

• Your bank and your merchant account are two separate pieces. Most banks offer merchant account services, but you're by no means restricted to doing merchant account business with your bank.
• Compare ALL THE RATES: qualified, mid-qualified and non-qualified, for each merchant account provider. Get all the costs, including monthly, misc recurring costs and other fees - you may be surprised at how all of this adds up. Check out my merchant account analysis spreadsheet, discussed below.
• Look at the determining factors that decide which rate you're charged. If you're looking for just an online merchant account, make exactly sure what rate you'll be charged (i.e. some merchant account providers automatically assume all online credit card transactions are non-qualified).
• When considering an online merchant account, know that you need a payment gateway. It's the equivalent of your terminal in your store. SpaBoom is compatible with Authorize.net, and merchant account providers usually will provide you the gateway for an additional cost. Note that you can obtain the payment gateway yourself (more on this below).
• Use this opportunity to keep your existing retail merchant account provider honest. You may not be getting as great as a deal as you think you are, because the bulk of your transactions are being treated as mid-qualified. Or, your "introductory rates" have long since expired. I have personal experience in getting a lower rate, simply by threatening to leave. Don't sign long-term commitments, and seriously train yourself to switch merchant account providers as necessary to keep your rates as low as possible. You can save yourself thousands.
• Finally, if you're serious about this, I've prepared a spreadsheet to help you with your analysis. It gives you a view of several scenarios, based on your level of transaction volume. Assuming you know that, you can see an estimated monthly costs for each merchant account provider you're considering.

Assuming you are ready to take the plunge and obtain an online merchant account to interface with SpaBoom, you have only two major steps. First, obtain an online merchant account (with or/and a payment gateway) and second, let SpaBoom know about it. There are two merchant account options with SpaBoom: Authorize.net compatible or PayPal Web Payments Pro. Both of those links take you to detailed help information, with instructions on how to sign up (if you're interested) and connect them to SpaBoom. The Authorize.net option allows you to plug SpaBoom into just about anyone.

If you are considering a merchant account provider (other than the PayPal Web Payments Pro option), please make sure they are Authorize.net compatible. Most banks and merchant account providers should be, but not all are. I've heard of one unscrupulous merchant account provider actually telling one of our customers, "Yes, we're Authorize.net compatible" just to get them to sign the contract. But, when it came down to it, the sales person meant "we're just like Authorize.net" and wouldn't actually provide an Authorize.net account. Make sure you double-check this with bargain-basement merchant account providers.

The Merchant Account Analysis Spreadsheet

If you have a bit of MS Excel skill, you might be interested in my merchant account analysis spreadsheet. Download it here. This is not supported by myself or SpaBoom, and is only meant to give you a little help in figuring out the best merchant account deal. I've done my best to remove any errors and make it simple to understand.

It requires you to do a bit of homework, then fill in the blanks regarding costs and your best guess as to the performance of your business (i.e. number of and average transaction amount each month). The cells you need to fill in are light red in color. You can create some scenarios. Then, based on those scenarios, you'll have a potential cost each month of your merchant account. The results may surprise you. Often, the lowest "advertised discount rate" is not going to be your cheapest option, depending on what percentage of your transactions actually are qualified, versus mid-qualified or non-qualified. Also, PayPal tends to provide a very competitive option, if you're processing less than $10,000 in transactions each month.

I do apologize for the complexity of the spreadsheet. It's just a model, and not meant to accurately predict your merchant account expenses each month.

I'm definitely not an expert in this area, so welcome comments and suggestions that help fellow SpaBoomers select, choose and utilize merchant accounts!

Posted in SpaBoom New Features, Spa Business Management, General • 11 Comments »

I'm so frustrated. I can't believe all the spa and salon owners I come across, who simply fail to appreciate, understand or execute on what I believe are absolute "no brainers," to making more money and becoming more successful.

Let me tell you a bit about my background. I'm one of the few that "made it" in this industry. I started my own spa and salon from scratch, making it a Salon Today "Top 200 Salon" two years in a row, and eventually sold it for a tidy profit three years ago. That salon and spa still exists, and is doing well. It is Anna Luis Salon and Day Spa in Michigan. Since then, I've been a consultant working on startup and turnaround spas and salons all across the nation. I work hard to help these owners realize their dreams: Opening and maintaining a healthy and growing business.

My clients, like the clients of other consultants in this industry, have a leg up on their competition: They made the difficult decision of hiring a consultant. They realize that engaging an expert provides valuable input, a second pair of eyes, and raises difficult questions that ultimately have one goal in mind: Success.

There are scores of spa and salon owners who are having trouble staying out of the red, bringing in business, keeping their employees, maintaining outstanding service levels, etc, yet steadfastly refuse to hire a consultant. Worse, they refuse to implement what I believe are absolute no brainers. Over the rest of this year, I'm going to post a number of no-brainers. These no brainers are easy, inexpensive and absolutely critical to your success.

No Brainer #1: Get a Professional Logo.

How do you feel, when you try to do business with someone with a crappy logo? Did you have low expectations about that company? Did it leave you feeling a bit anxious about their product or service?

Every business needs a professional logo to help the customer feel comfortable and identify the promise of the goods or services they are about to receive. Professional means that it doesn't look like a photograph, business card or plain text. It must exemplify and promote your brand (i.e. The promise you want to make to everyone about what they will experience when they do business with you). It must be easy to recognize and read at any size (large or small).

For an experiment, go to Spa Emergency and type in your zip code or metro area. Quickly scan the logos. What catches your eye? What looks the most professional? Now search for "Michigan," and scan that list. Notice the logo for Grande Med Spa (one of my clients)? How does that logo look in comparison to the competition?

The Grande Med Spa logo highlights several important issues:

• It's professional and stands out amongst the rest.
• We know they are targeting men and women.
• We know it's a medical spa.
• We feel comfortable that it's a quality establishment (i.e. It forms a high expectation of the potential experience).

By the way for you SpaBoomers: The Grande Med Spa logo also takes advantage of SpaBoom's "transparent" logo capability, which allows the logo to "float" above the background image. This makes for really beautiful gift certificates. Check out SpaBoom's help for logos, for more information.

I really recommend spending the money to hire a spa consultant (who understands branding concepts) to come up with a logo for you (Of course, I'm biased on this ). If you're the "hands-on" type and REALLY have some creative, artistic skills; then I'd suggest checking out Logo Maker. You build it yourself and spend approximately $40. Word of caution: Make sure you get at least five of your friends to review and give you a thumbs up before etching your new logo in glass!

Some additional tips to consider when coming up with a logo include:

• Build it to last - It should never have to be redesigned.
• Don't make a photograph your logo - Make sure it looks good in black-and-white (i.e. newspaper advertisement), and can be reduced in size to look great on a business card.
• Make sure it can be adapted to work on other products, marketing and sales collateral.
• It must work with your overall marketing strategy.
• Use a combination of your company name and emblem.

It's been said before, but this is one proverb that bears repeating: You never get a second chance to make a first impression. If you don't have a logo, or you have a crappy logo, make this your top priority. It's a no brainer.

With almost 10 years experience in new business start-ups and transformations, Ana Loiselle-Donahue is a specialist in finding new sources of revenue and growth for companies of all sizes. She founded theSECRET in 2004 to help businesses flourish through creative —and powerful —new solutions; including brand development, strategic financial planning and employee training. Mrs. Loiselle-Donahue can be reached at 866/288-7353 or at www.thesecretconsultant.com.

Posted in the SECRET, Spa Marketing, Spa Business Management, General • 7 Comments »

Seth Godin writes in his business blog about a common practice — that of talking down to the very people who bring in their money and interest and passion for your services. Putting unreasonable limitations on them only hinders the relationship, such as the sign in the image below which was spotted in an otherwise upscale retail store.

I might need to pick up yoga again or meditation as a de-stressor, because when I run into this kind of disrespect for clients, I start to feel like a cartoon character — all knotted up and desperately needing some relaxation.

Seth writes, "No exceptions? Really?" When you tell someone that a rule or suggested action truly has no exceptions, you are essentially saying that you are unwilling to spend any time having a conversation about how their experience in your location can be made easier on them. The message his article leaves is to take care of your customers and they will reward you with loyalty and respect.

Enjoy the rest of your week and this unseasonably warm weather!

Posted in Creating Customers, Spa Business Management • 1 Comment »

We are happy to announce that SpaBoom and SpaFinder are now working hand-in-hand, bringing our combined energy to the spa marketing table to create new and exciting ways to benefit our clients. SpaFinder has purchased an interest in SpaBoom, and we have agreed to share technology as well as customers as we identify new and better ways to increase your exposure (in a good way!) and help you sell more gift certificates to boot.

“Our investment in SpaBoom is part of our commitment to help our spa marketing partners succeed in an increasingly competitive marketplace,” said SpaFinder, Inc. CEO Pete Ellis. “We’re looking forward to providing spas with a new level of marketing value that’s going to immediately pay off with more customers and more profits for them.”

Bill Bice, founder and CEO of SpaBoom shares his thoughts. “Gift certificates, which typically represent between 10 and 25 percent of a spa’s total sales, are a critical source of revenues and customers for spas. This agreement will enable our shared customers to increase gift certificate sales on two powerful fronts: their own web sites and SpaFinder’s vast distribution network. It's really about creating the best of both worlds for our clients, and ultimately increasing their reach and revenues in the process.”

Ellis and Bice both anticipate a deepening partnership moving forward, leveraging the companies’ respective technological, data and marketing strengths and services to develop new solutions and ideas for the global spa industry.

Stay tuned for more announcements in the coming weeks. We are excited about what the future holds, and will share news as it develops!

In the meantime, know that all of the things you've come to expect from us at SpaBoom will continue–our great service, our love for all things 'spa', and our respect and appreciation for all of the great SpaBoomers out there who have made it possible to grow and make cool things happen in our first 3 years!

Posted in SpaFinder, Spa Business Management, General • 46 Comments »

When running a business, getting feedback from your customers on how they perceive your company is critical. Do they appreciate the value you provide? Is buying from you a fun experience? You can always ask people directly, but that can be awkward or time-consuming.

SpaBoom has now added a new feature that allows you to collect this kind of information about your clients' Instant Gift Certificate purchase experience, and by extension, their opinion of how well they were able to use your website overall.

Any time someone buys an Instant Gift Certificate from you, they will see this extra section on the post-purchase screen:

Submitting a review is completely optional - they can end their transaction immediately, or click on a button to purchase another Instant Gift Certificate. If choosing to provide a review, they can select a rating of one star through five stars, and also leave a comment detailing their experience. Once submitting , they are again taken to a screen thanking them and allowing any additional purchases.

For your business, a new SpaBoom account report has been added to list all of your clients' reviews so you can see how things are going, and also to address any problems that the might have encountered. When you login to your account, you'll see a new item in the Today screen mentioning that you have new Reviews. You can view them by clicking on that link, or through the main Reports screen.
From the Reports tab, click on "Reviews" on the left side of the screen, to see this view:

You can sort by any of the columns, see the average rating at the bottom, and even click on the client's name to view their record.

We hope this will be a useful tool for you to keep in touch with your customers' attitudes and feedback for the services you offer, both through SpaBoom as well as your overall website design and functionality. Please let us know if you have questions about Reviews, or any other suggestions for great new features we can add in the future.

Posted in Tutorials, SpaBoom New Features, Spa Business Management • 3 Comments »

We're not sure what's up, but when we read Anitra Brown's recent article Spa Industry Statistics, 2007 we started scratching our heads.

According to the article, which is based upon ISPA's preliminary spa statistics report (the final of which comes out in November), some interesting things happened. Day spas grew in number from 10,988 in August, 2006 to 11,736 in August, 2007.

But in spite of 748 new day spas this year, revenues DROPPED BY 22%!!

2006 annual revenues in the 11,736 day spas in the U.S. came in at $5.294 billion, where 2005's total was $6.794 billion.

How can that be?

We decided to see how you guys have been doing saleswise with Instant Gift Certificates, and our numbers reflect same store INCREASES of 61% (Valentine's Day), 36% (Mother's Day), and 37% (Just July) over 2006.

Now if we take the idea even further, a 22% decrease in overall revenues for the day spa market would equate to about a 27% decrease per spa. Do you believe these numbers?

Please share what you think! We're all ears!

Posted in Spa Business Management • 5 Comments »

While doing some research I came across a promotional video from a spa company that sells franchises. The information they provided was solid and in alignment with what I had read in other materials. They stated that 17% of Americans received massages in 2004, which means the industry performed 117 million massages in 2004, and the day spa segment generated approximately $6 billion in sales. They also stated that Spa goers want: the ability to make appointments in the spur of the moment, Spa locations to be in high traffic central areas (preferably near other stores), and reasonable prices. This got me thinking about Spa customers and what it is that they really, really want from a Spa visit.

According to the most recent statistics published by the International Spa Association (ISPA) in 2006 we had; 13,757 Spas throughout the USA, with 131 million spa visits in 2005, and $9.7 billion in revenue generated by the Spa industry. These numbers simply continue to prove that the Day Spa Industry is growing and that we will continue to see new day spas opening near us. It also made me wonder about the level of services that is being provided. In a recent article published by The New York Times, what most consumers complained about was the inconsistency of the level of service in the treatment room.

As consumers we are bombarded by email promotions, fliers, newspaper ads, magazine ads, and local TV ads to entice us to try the newest Day Spa or the existing Day Spa in our community. Unless you are still in an area where you do not have any competition in a 40 mile radius, we are all competing for the same client; the one that is shopping in the same mall we are located at, or the one that resides only a few miles away from our business. We think we know what they want; we have extensive menus of services, we create excellent seasonal promotions, we cater to their needs, we keep their birthday dates and anniversary dates on file and we want to make sure they stay as our client for ever and ever. Yet, sometimes we forget the most important aspect of what we are supposed to be offering; I hear about expectations not being met, appointment times not being available, service not being equal to the last visit, etc. etc.

When we think of promotional practices we tend to think of specials, treatment series, gift certificates and discounts, which are typical sales strategies for all kinds of businesses. I submit to you, that in addition to the above you also have to consider the experience that all these customers will be receiving. Don't over promise and under deliver, because you will never see them again, and they will tell ten more people about their negative experience.

Everyone has competitors and just implementing something that is working at the Spa a block away will not insure increased sales or customer satisfaction. Service is the number ONE factor that contributes to a customer's overall satisfaction; it is the total experience what will have them coming back to you time after time. We all want to provide excellent customer service; we want 100% customer satisfaction. Then every action, every word, every gesture, every day, plays a part in the overall service experience. This includes any telephone interaction your client has with your spa; it includes the state of the facilities when they visit, was the changing area clean, were there enough towels, was Suzy at the Reception area efficient, pleasant and effective?

EVERYTHING counts! The promotion, advertisement, or special service might bring them in once, but it will NOT keep them coming if they do not leave feeling 100% satisfied. Marketing research data tells us that if a customer has a complaint, 54-70% of those customers will do business with you again. However if the complaint is resolved then 94% will give you another chance if it is resolved quickly, immediately on the spot. Complaints could happen daily and if not dealt with correctly, empathetically and with true care it will cause you to lose business.

I repeat: there is a lot of competition out there, it is not about offering the latest service, the latest product, the most advanced, and it is not about having the most expensively decorated facility with all the amenities imaginable. It is about offering the highest quality service for the best price. To meet these expectations and to rise above competition, it is up to you to ensure that every single team member at your location provides that 100% excellent customer service all day, every day, without fail. Our job as owners and/or managers is a never ending story, we have to want to do this every single day to be successful, it will not happen on its own. If we don't take the time to set up the foundation in our business, with the right employee selection, recruitment, training and follow-up, we will not be able to provide this level of service in a way that will have our clients coming back for more.

Let's continuously put ourselves in our customers' shoes and look at our services, our facility and our staff interactions from their perspective. If we do this every day and make the necessary adjustments to how we do business, we will be a step ahead of our competition. Here at Resources & Development we believe in excellence in customer service. Helping you to achieve greater customer service is part of who we are and why we exist. Let's roll up our sleeves and work together.

Zahira J. Coll is a Human Resources Executive, Executive Spa Director and business owner with over fourteen years (14) of experience in the hospitality industry. Ms. Coll has a unique combination of talents, expertise and experience. She began her career in Human Resources Management, and for the past eight years she has been involved in Hotel-Spa operations at an Executive level. She has participated in numerous projects as a Consultant, designing and implementing all the aspects of opening and operating a Spa, Hotel, Casino and Retail center. Ms. Coll is also Founder & CEO of Resources and Development.

Posted in Resources and Development, Spa Marketing, Spa Business Management • 1 Comment »

If you've put in the work and created a budget for your salon or spa, follow it! If you don't, you'll lose the benefits that you planned for when you built the little monster.

Get started by reminding yourself that your business budget is not the enemy. It's nothing more than a set of guidelines for your spending and saving habits. Below, are some common problems that pop up with many budgets, along with some solutions that can help you stay within your budgetary guidelines.

1. Accept there's a learning curve - Living with a budget is an education. Trimming your business expenses, knowing how long income is going to last or how much of a cash reserve to keep around will skillfully take some time. But you can learn to adjust a budget as you go, and what was once a shot in the dark gradually will become a more predictable and useful exercise.
2. Be prepared to miss your budget estimates and act accordingly - This is rule No. 1 in setting up your budget: knowing that your budget projections are at best a guess and nothing more. You're going to miss your estimates. That doesn't make you unintelligent or a bad businessperson. Instead, try to miss them intelligently and in ways you can correct. For example, if you budgeted $600 a month for your linen service and your bill consistently tops $650 - say, for at least three months running - adjust your linen allocation up $50. By the same token, if the bill is only running an average of $550, you can trim your linen share. To keep things in line as much as possible, you must reallocate some other area of your overall budget to account for the adjustment.
3. Be flexible - As with setting up a salon or spa budget, sticking by one often boils down to a willingness to be flexible. For instance, if your revenue doesn't match what you expected - and there's a good chance that might be the case - trim back your expenses to compensate. By the same token, if you're taking in more than you anticipated, it might be time to invest in better equipment.
4. Watch your cash flow - If you want to stick to a budget, make sure that your inflow more than compensates for your outflow. Monitor your income closely to make certain that you'll have adequate funds to pay your bills, particularly if your business is prone to phases of slow times. Even if it's just from the left pocket to the right pocket, cash-flow problems are what kill most salon and spa businesses. Keep checking to make certain that your revenues match or exceed your expenses.
5. Err on the side of conservative - When setting up your budget, it's a good idea to overstate your expenses and lowball your expected revenue. That approach is also a solid strategy when making sure your cash flow is going to hold up. Look into budget savers such as telephone calling plans, less expensive spa equipment and other ways to lessen the burden on your income. "People always feel they have to have the best equipment "but money you don't spend is money you don't have to earn."
6. Have a cash reserve - The uncertainty of budgeting - both in terms of income as well as expenses - stands as one of the biggest threats to the survival and success of any salon or spa business. While trimming expenses to the absolute bone is always a good idea, it's also prudent to set aside income whenever possible. If you can afford it, allocate a portion of the revenues you get and sock those funds away in a money market account. Not only can that money come in handy for predictable expenses such as year-end taxes, it also can prove an absolute lifesaver should an unexpectedly high bill suddenly crop up. By contrast, if you're thinking about starting a salon or spa sometime in the future, start saving - the money you set aside now ultimately may bail you out in ways you can hardly imagine.
7. Revisit your budget every month - This is a point that I cannot stress enough. Go over your budget every month and examine your cash flow to make certain your available funds are sufficient to meet your liabilities. If you're following point No. 2, above, and adjusting your budget as you go, you'll have some sort of emergency fund to take care of monthly overruns. Use it when things cost more than you thought and put money into the emergency fund if you come in under your expected numbers.
8. Get Help! - Setting up and sticking to a solid budget is the most effective way to guarantee you will be in business next month. Don't be afraid to turn to professionals and outside services for help to help get you started and making it stick.

Ana Loiselle, President of the Secret Salon and Spa by Design in Royal Oak, Michigan. A former salon and spa owner, Ms. Loiselle can be reached at 248/546-4312 or at www.thesecretconsultant.com.

Posted in Spa Business Management, General • Comment »

The famous words of "The Rocky Horror Picture Show" often ring through my head. No, not "The Time Warp", but the words never better sung "Don't Dream It BE IT".

Throughout my life I've only wanted one thing, "To be different", not rich, not beautiful, not normal, not average, but DIFFERENT, and have used that as my measuring stick of success. (Maybe that explains why I like "The Rocky Horror Picture Show", but I'll save that thought for my next therapy session.)

Nonetheless, at an early age I read "Whatever the mind of man can conceive and believe it CAN achieve", written by famous author W. Clement Stone, and this is where I learned the value of "dreaming", because I knew that if I could believe in my dreams I could achieve my goals.

The problem however was that my friends and relatives didn't always think that my dreams, goals, and ideas were good ones? The reason I found was a simple one - It's not their job to believe in my dreams, that's my job, because they are MY aspirations. It is their job to shine the light of doubt on everything we dream, to show us the flaws in our logic, to throw road blocks in our way, if only to test our resolve. Through this process our dream becomes more powerful or it fades away.

Criticism is a good thing, not a bad thing. While our natural reaction is to take it personally, if someone has a good reason that my dream won't work, it may take a day or two to digest the criticism, but in the end I have either stronger desire to accomplish something and have solved some problems or accept the fact that they saved me from a lot of wasted time and grief.

So now when I decide to take my idea further, I will then step the process up a notch by subjecting it to an expert's opinion through reading books and research, speaking to an expert or consultant in the related field, or analyzing how others are doing similar things. I seek criticism that doesn't just tear down my idea, but instead helps me refine it into something even better.

Resources become important in such endeavors and shining the light of cold reality builds confidence and helps to insure greater success. We have all seen people with more money than brains, who think they have a great idea and march right down the path to destruction without getting the expert help they should have sought. We also see the person who refuses to give up, but also refuses to get the help they need to successfully take the idea from the dream stage to a sound successful reality.

The point to writing about all this is to help us all to understand that sometimes it is our job to dream and sometimes it is our job to doubt, and that it takes both to make a successful business relationship. Also that finding those resources are critical to refining your dream and that is what we do a lot here at Resources & Development is help the Dreamer refine that dream into a sound workable business and sometimes in that process we are asked to dream along with our clients.

So I say to you, "Don't Dream It BE IT!" and if Resources & Development can help you in refining that dream and bring it to life, then give us a call.

Skip Williams, the author of "The Reluctant Spa Director and the Mission Dream", is a recognized speaker and author in the spa arena, recently voted "Spa Person of the Year", with over thirteen (13) years of experience in the Management, Financial Development & Operational fields, in the Spa and Hospitality Industry as Spa Director, Controller and Business project Consultant. He brings his previous years of analytical business experience in a broad variety of manufacturing, retail and service businesses to studying Resort Spas, Day Spas, Medical Spas, Wellness Centers, and Salons: their profitability, how they operate, and what makes them successful. Skip is also Vice President of Resources and Development.

Posted in Resources and Development, Spa Business Management • Comment »

Employee Training Series
Article III

Training your workers can be a tremendous drain on your time and resources. But before you dismiss the idea of helping your employees learn new skills, consider the ways that skill-based training can positively affect your employees and your company.

Training increases employee productivity. In addition to learning how to complete new tasks and take on more responsibility, employees can learn advanced techniques to help them service your clients more efficiently.

Training reduces turnover. Employees who don't receive guidance or have difficulty learning the ropes are much more likely to leave your company. Employees are less likely to leave if they have the opportunity to learn new skills and keep up within their industry.

Training improves job satisfaction. Investing time and money in employees’ skills makes them feel valued and appreciated, and it challenges them to learn more and get more involved in their jobs. Higher job satisfaction ultimately results in reduced turnover and higher productivity.

Training aids in the recruiting process. If you're committed to training, you'll be more willing to hire a desirable candidate who lacks a specific skill. Training also makes your company more attractive in the eyes of potential employees because it shows them that they have room to grow and accept new challenges. In addition, training existing employees could reduce the need to hire new staff.

Training rewards long-time employees. You'll be more willing to promote existing employees who have learned new skills and are ready to take on new challenges.

Training reduces the need for employee supervision. Not only does skill-based training teach employees how to do their jobs better, but it also helps them work more independently and develop a can-do attitude.

Ana Loiselle, President of the Secret Salon and Spa by Design in Royal Oak, Michigan. A former salon and spa owner, Ms. Loiselle can be reached at 248/546-4312 or at www.thesecretconsultant.com.

Posted in the SECRET, Spa Business Management • 2 Comments »

Employee Training Series
Article II

Well-trained employees are the key to your small business success. Studies have shown that the most successful, productive employees are those who have received extensive training. They’re the cream of the crop, often having the strongest stake in the company’s future. In an ideal world, you would be able to hire people who already possess the exact skills your business needs. But in today’s competitive labor market, demand for skilled workers far exceeds supply.

That’s where training comes in. Not only does instruction arm your employees with needed professional or technical skills, but it also shows that you are invested in them and interested in bringing them with you into the company’s future. This helps keep workers motivated and involved.

To successfully launch an employee training program in your own salon or spa, follow these 10 helpful tips:

1. Training as investment. The reason training is often considered optional at many companies is because it is thought of as an expense rather than an investment. While it’s true that training can be costly up front, it's a long-term investment in the growth and development of your human talent.
2. Determine your needs. As you probably don’t have unlimited time or funds to execute an employee training program, you should decide early on what the focus of your training program should be. Determine what skills are most pertinent to address current or future company needs or ones that will provide the biggest payback. Ask yourself, “How will this training eventually prove beneficial to the company?” Repeat this process as your business needs change.
3. Promote a culture of learning. In today’s fast-paced economy, if a salon or spa isn’t learning, it’s going to fall behind. A business learns as its people learn. Communicate your expectations that all employees should take the necessary steps to hone their skills and stay on top of their professions or fields of work. Make sure you support those efforts by providing the resources needed to accomplish this goal.
4. Get management on board. Once you have developed a prioritized list of training topics that address key needs within your company, you need to convince management to rally behind the initiative.
5. Start out small. Before rolling out your training program to the masses, rehearse with a small group and gather their feedback. This sort of informal benchmarking exposes weaknesses in your training plans and helps you fine-tune the training process.
6. Choose quality instructors and materials. Who you select to conduct the training will make a major difference in the success of your efforts, whether it’s a professional educator or simply a knowledgeable staff member. Having the right training materials is also important — after the training is over, these materials become valuable resources for trainees.
7. Find the right time. Select a training time and space that’s conducive to learning. Choose time that you can be consistent with, like before or after store hours.
8. Clarify connections. Some employees may feel that the training they're receiving isn't relevant to their job, i.e. retail sales or professionalism. It’s important to help them understand the connection early on, so they don’t view the training sessions as a waste of valuable time. Employees should see the training as an important addition to their professional portfolios. Award people with completion certificates at the end of the program.
9. Make it ongoing. Don’t limit training solely to new employees. Organized, ongoing training programs will maintain all employees’ skill levels, and continually motivate them to grow and improve professionally.
10. Measure results. Without measurable results, it’s almost impossible to view training as anything but an expense. Decide how you’re going to obtain an acceptable rate of return on your investment. Determine what kind of growth or other measure is a reasonable result of the training you provide. You’ll have an easier time budgeting funds for future training if you can demonstrate concrete results.

Ana Loiselle, President of the Secret Salon and Spa by Design in Royal Oak, Michigan. A former salon and spa owner, Ms. Loiselle can be reached at 248/546-4312 or at www.thesecretconsultant.com.

Posted in the SECRET, Spa Business Management, General • Comment »

Employee Training Series
Article I

Many salons and spas provide some sort of introductory training or orientation for most of their new employees. It may take the form of an older employee assigned to show the new employee "the ropes." Or it may be left to the manager to show them where the coffee pot is and how to apply for time off.

Yet some owners in this highly competitive industry recognize the value in New Employee Orientation (NEO) that goes a step farther. They require several weeks or even months of training to familiarize every new employee with the company, its products, its services, its culture and policies, even its competition.

There is a measurable cost to that training, but is it worth it?

Surprisingly, all the reasons you come up with (except cost itself) are actually reasons to train. If you have high turnover, low retail sales and poor morale; training new employees will make them more productive. They will feel better about themselves and the job and they will stick around longer.

If you have low profit per employee per year, you have major problems. You need to start training all your employees, not just your new employees, right away.

And if you still believe that our beauty schools provide adequate training to make students labor-ready you are living in a dream world. Yes, some job seekers make the effort to learn on their own the skills needed for a new job, but most get that training on the job.

That's where training comes in. Not only does instruction arm your employees with needed professional or technical skills, but it also shows that you are invested in them and interested in bringing them with you into the company's future. This helps keep workers motivated and involved.

Well-trained employees are the key to your small business success. Studies have shown that the most successful, productive employees are those who have received extensive training. They're the cream of the crop, often having the strongest stake in the company's future.

There is no better time to start employee training than your New Employee Orientation.

Ana Loiselle, President of the Secret Salon and Spa by Design in Royal Oak, Michigan. A former salon and spa owner, Ms. Loiselle can be reached at 248/546-4312 or at www.thesecretconsultant.com.

Posted in the SECRET, Spa Business Management • Comment »

Do you remember your very first visit to a spa? Did the experience lift you out of your usual worldly existence and, just for a little while, take you to a soothing and invigorating destination? Since you've obviously decided to take up shop in the spa business, I realize I'm preaching to the choir, but those memories are still important.

My own first spa visit was enjoyable and fun - it was to Betty's Bath (one of SpaBoom's original clients), when SpaBoom was a twinkle in a programmer's eye. The building was tranquil, the colors inside deep and inviting, and the camaraderie between guests and staff infectious.

Selling Instant Gift Certificates to your existing customers is a great first step in the growth of your spa. Along the way, do not forget about the third party - the GC recipient. They might be completely new to the spa experience, and you've got a fabulous opportunity to show them why they should change their thinking from "a spa is a nice but rare treat" to "spas are a necessary indulgence I deserve in my life".

When a new guest comes in the door brandishing an Instant Gift Certificate, pounce on the chance to "wow" them at every turn. For at most a 5% fee on their services, you've got a person that already trusts the recommendation of the gift-giver, your client. If their spa experience is fabulous, they will soon trust your staff as well.

• Have an enthusiatic staff member show them around the building and available facilities, including the ones your new guest might not be using on their first visit. Once they see how relaxing the areas are, they might be inclined to add services on top of their existing appointment.
• Guide them through what their experience will be like, and then live up to those expectations.
• On their way out, a follow-up gift to remind them of your spa while at home is a nice touch: a small bottle of lotion if they had a massage, or a mini loofah if they tried a body scrub. All the better if your spa's logo is on the packaging.
• Finally, a small reward for a new booking on the spot is entirely appropriate - a better rate on a package deal, their choice of product thrown in to any service - use your imagination and tailor your incentive towards their experience that day.

Acquiring new customers is a huge topic, so consider this just a starter post to get you thinking about always building your client relationships.

Posted in Creating Customers, Spa Business Management, Spa Gift Certificates • Comment »

Julie Register at DiscoverSpas thinks the spa industry is stuck in the chasm that separates early adopters (current spa clients) from the mainstream market (everyone else):

Spas need to make the jump:

Read the article, It's Time for The Spa Industry to Cross "The Chasm" and Step into "The Tornado".

What do you think? As industry, are we stuck in the chasm? If so, how do we get to the other side?

Posted in Spa Business Management, General • Comment »

Peggy Wynne Borgman points us to Setting the Table:

Posted in Spa Business Management • Comment »