The primary deliverables in your role as either the spa manager or the owner, is to efficiently manage spa business operations and ensure that your coffers are never dry. As a seasoned professional, who has spent years in the industry, we are sure that you’ve been able to reach the sweet spot of happy customers and perfect pricing. However, when it comes to the subject of maximum revenue, chances are that you may have missed look at a few spots. In this blog, we help you decipher seven ways which can help you improve your revenue and overall profitability.
Automate your processes
We start with the very basic. Automate your administrative processes. If you’re someone, who is still to adapt technology, please do so, now. From booking appointments to collecting post treatment client feedback, there is no route other than using technology. The benefits of a spa management software far outweigh the deployment costs. From offering online booking, and multi- channel payment methods to managing staff and monitoring your business, a spa software can accomplish it all. So, go ahead invest in one to improve your overall business efficiency, boost staff productivity and
Reschedule offerings based on Revenue
This dual pronged tool is an easy way to increase the revenue from spa business operations. Easily achieved with the use of technology and little ingenuity, it can help you improve your revenue by 20%. By simply reconfiguring your spa management software to dynamically schedule high value services to the peak hours, and the low or medium value services to the non-peak hours, which would otherwise go unutilized. Wondering which high margin services to schedule? Rely on technology to guide you. Zenoti spa management software comes with advanced analytics module, which analyses your past sales data to rank your offerings based on both margin and popularity.
Another easy to way to boost revenue is by offering add-ons. Similar to say piggybacking, the concept can be extended to both services and products. Suppose, a client is coming for a session of vichy shower, considering offering full body scrub. Ideally, you should price these add-on offerings at a lower value than the individual service price. Similar to service add-ons, you can also offer product add-ons. If someone is buying mud mask, offer rejuvenating serum at a discount. The add-ons are a great way to not only offer bundled services but also incentivize the clients. Infact, by leveraging technology you can start offering a customized bouquet of add-ons even before the client walks in through the door. Zenoti spa management software is designed to analyse client profiles and come up with client specific list of add-ons.
Amongst the key elements of spa business management strategy is to not only train your employees but also to incentivize better performance. Training will help your employees to learn how to handle clients and save you embarrassing situations, incentivizing their efforts in upselling products and services will increase your revenue. So, go ahead and offer them incentivizes in the form of quick money, or gift cards. Set up healthy competition such as whichever employee garners most upgrades will get a voucher for dinner at his or her favourite restaurant or get additional paid time off. A spa management software can easily help you track the performance of each employee, and keep the competition fair and honest. Further, employees can easily login in the staff module to know real time assessment of their performance. As is with any business, leaders must be rewarded and the laggards must be trained to improve.
Regulate your promotional campaigns
While promotional campaigns are undoubtedly a great way to acquire new clients, they’re best used sparingly. Prefer deploying them to either fill quieter times or utilize unforeseen vacancies. Thus, design your promotional campaigns with some thought. For instance, consider creating a last minute deal club, wherein you have a healthy mix of your loyal clients and the deal-hoppers. Dealing with a sudden cancellation? No problem, your spa management software can easily send automated emails and text messages to the members of the last minute club informing them of the steal deals. More often than not you’ll find that the unutilized spot is filled within minutes.
Pair up with local businesses
Collaborate with local business to acquire new clients organically. Consider offering promotional campaigns in tie up with a local beauty salon. Promote each other’s businesses with flyers, posters and one time referral discounts at your stores. Not only does this increase visibility of both businesses but also improves your standing in the local community.
Study your Business Performance
Monitor the parameters of your business with dashboard. Leverage technology to keep yourself abreast with the outcomes and progress, such that you can take timely action. One of the easy ways to do it is by setting up KPIs ratios for each metrics such as retail sales/ service sales, retail sales / guest etc. Most spa management software are equipped to generate on-demand reports. We particularly love Zenoti spa management software’s reporting and analytics feature, which comes with pre-set reporting formats and an interactive dashboard, which gives both overall and granular view of things. Additionally, as the software is cloud based it can be accessed anytime and from anywhere, thus giving you the complete flexibility to monitor your spa business operations.
Aside from the above, you may consider to optimize your process times, implement a lean inventory model, and fine tune both the loyalty programs, and the targeted marketing campaigns. With ingenuity, and help from technology, you can easily give the much needed boost your revenue. Have other ideas to improve revenue? We’d love to hear. Tell us in comments.