Spas and
health service providers have so far faced a pretty tough business as it is.
And in the current economy it might get a whole lot worse before it gets
better. Where would you like your business to be? The cost of labor has
traditionally been too high since the inception of the contemporary
spa-industry and costs are steadily rising without the possibility of easily
raising menu prices.Market demand has created
a boom but growth alone does not assure financial success. Profit margins
are slim and success requires a robust business practice in all areas from
marketing to human resource management. The spa business is not forgiving
because of the narrow profit margins. Failure to operate all parts of the
business expertly can easily jeopardize financial viability and with most
spas not having a strong financial foundation or easy access to credit, even
a small mistake can kill a business.
Many operators of individual spas and many spa
directors come to the business from a single area of expertise and more
often than not with a lot of idealism and desire to be of service. While
these motives are admirable and important and instill value and merit into
the activity of health and healing, we often find talented but on some level
inexperienced managers and operators. Rarely can an individual cover all
bases with the level of knowledge and experience needed to fill each task
expertly. Challenges in certain areas can be offset by bringing in expert
advice, educating oneself or outsourcing areas such as payroll to
specialized providers, but this increases the cost too and makes the
business vulnerable. In the current economic environment staying in business
may even get tougher as guests reevaluate their spending habits and
disposable income decreases making under-managed areas more visible. Maybe
you have shortfalls in certain areas and by all means you should address
these immediately. But there is also a common sense approach to business
that one can cultivate by leveraging an abundant resource anyone can tap
into: The Client. The tendency will often be to project problems onto
external conditions. But rather than defaulting to "it's the economy", the
current context can also provide opportunities to address problems within
the system that can mean financial survival. While it is certainly easier to
assign blame to circumstances that cannot be changed rather than take
responsibility for tackling issues that live on our own doorstep, there seem
to be many opportunities some of which do not require a whole lot of
training or experience.
I would like to invite you to take a fresh look at
your own business culture or "How we do things around here". I would like to
select one of those areas today and investigate a little deeper. How well do
we see the business from the perspective of the [potential] customer as
opposed to projecting our own ideas as to how clients should think, feel and
behave? I can only imagine that spa operators and health service providers
rarely step back to take a client's view at how their business is presenting
itself. How else could one explain the challenging experience we often have
when visiting a spa or receiving a spa or health treatment?
When we start to realize that the smallest
challenges in the chain of events that lead to a successful sale can abort
the process, we also see the potential embedded in closely analyzing and
optimizing the client experience from the client perspective and not from
what we think is right. For example: There just cannot be any mistakes in
the communication process leading up to the sale. Have you recently checked
to see how difficult it is to book a treatment at your location? Have you
reviewed your published materials to make sure it is obvious and
self-explanatory to everyone you want to reach, what you are about, why
contacts should become clients and that you have given them direct access to
the goods and services?
The number of irregularities, mishaps and shortfalls
in the booking, selling and client communication process at any given spa
are huge. The lost opportunities are even greater. From lack of a direct
phone number, comprehensive directions, hours of operation, an attractive
menu, prices, online booking, great photos etc. on the website, to the front
desk's inability to sell, up-sell, upgrade or rebook, we see many easy ways
to improve our business one client at a time - which is what the spa
business is about. We nearly always find a lack of clearly defined and
implemented processes or standard operating procedures that describe the
activities, steps and sequence of events needed to ensure that every contact
has the best possible chance of becoming a client. And this is the mind set
required: People are actually looking for you! If you offer an excellent
product and service in an attractive environment at a competitive rate the
only thing that can stand between you and your client is your ability to
communicate effectively! Especially during an economic downturn where
everyone from the manager to the therapist is complaining about the loss of
revenue the level of apathy is apparent. My recommendation is to learn to be
your own customer.
Think like a client, act like a client, ask like a
client, feel like a client, experience like a client, pay like a client and
apply your highest standards. Treat your contacts and clients, as you would
want to be treated. Any perceived lack of performance, quality, value or
availability is prime leverage point to create the most effective positive
change to your revenue. To achieve an improvement we are often not even
talking about 100% customer satisfaction, I'm sometimes amazed that we can't
even get the basics covered. Statements from the reception instead of "we
have no availability" but rather a "we're really booked, but let me see how
I can make this work " would be a start, and then hopefully someone has
thought about having some on-call contractors lined up who can show up
within an hour or two.
I can forgive a default on providing a service - I
can't forgive not trying. How about some recommendations to enhance my
treatment? "You can add ½ hour to your massage for just $30 - the results
will be exponential, it's certainly worth it" Complete communication, a
pleasant demeanor at the front desk, effective treatments, a clean, neat and
appealing ambience should be the minimum requirements yet so often even
these basic elements need to be addressed. So with this in mind I invite you
to take as much time as it takes to review your business, whether as
individual provider or spa professional from a client-centric perspective
and adjust every established disparity. Good Luck.
Nicolay Kreidler is a licensed massage therapist and
massage instructor and a facilitator at
Spa College.
He is an active consultant to the spa industry with
iSpad and an
author of the eBooks.