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What’s Up With Spa Retail Selling?

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For the past several years there has been an ongoing conversation about the difficulty of getting spa therapists to sell retail products. Most spa experts agree its important.. I gathered feedback from three industry insiders who shared their thoughts in recent publications.

Why does the word “selling” get such a negative response?

Nina Curtis, Founder and President of the Nile Institute weighed in this way. “Mainly because no one really wants to talk about it in the spa world where we believe it is only our position to make people feel good, well at least when it comes from the therapist’s mouth.”

Ouch. I totally agree and I’ve been saying similar things. It’s really critical.  Remember when I said I taught myself to sell on the job? Seems Nina had the same experience. She says..

“I had this thought at one time as a therapist but only because during my basic cosmetology training no one presented sales as a part of my soon to be career. The same was true of my massage training. Nowhere during my training did any of my instructors present the importance of product selling in one of their lessons.”

 

Who’s responsible for driving retail sales in your spa?

Everyone in the company has a role to play in successful retailing and increasing revenue.

Industry veteran Lisa Starr knows this better than most. According to her,  “Spas know that retailing is an important component of revenue generation, and yet many still struggle to reach hoped-for results. Who’s responsible for driving retail sales in your spa? Management? Therapists? Support Staff? Product Companies? It’s actually all of the above.

Role of Management

As with many initiatives, effective retailing starts at the top. The most impactful action management can take is to be purposeful in hiring and training staff who can create rapport with guests, and in creating compensation and advancement plans for therapists which include retailing benchmarks as part of the career path.

What Therapists Can Do

Without a doubt, therapists play the biggest role in retailing to spa guests. As the uniformed experts, their artfully presented home care suggestions, in tandem with their one-on-one interaction with the guest, will be the biggest driver of sales activity. Making home care recommendations MUST be part of every treatment on the spa menu.”
 Lisa StarrSpa Consultant, Management Educator, and Journalist

Estheticians who post 35-45% of their total revenue in retail are  Rock Stars! And YES, they EXIST!

In Designed to Sell: Integrating Retail into Your New Spa Peggy Wynn Borgman talks about the importance of adding home care presentations to client workflow. She writes, “Our consultancy conducted a survey of spa shoppers that showed 93% of the spa client’s decision to buy home care was based on the recommendation of their spa technician or therapist.”

In the absence of recommendation, guests will buy familiar brands, sometimes refilling a product they’ve purchased in the past. This has led many spas to conclude that brands, not employees, are the most powerful source of sales. This simply isn’t true.

Massage therapists who post 10% of their total revenue in retail are top performers. Nail technicians and hair stylists who attain 15% retail ratio are stars. For estheticians, this number rises to 35-40% in the Stay Spa setting. But none of these employees have a chance to attain such numbers if they can’t easily make home care presentations to their clients as part of normal workflow. Most Stay Spas unwittingly make retail sales a challenge for even the most motivated employee.”

 

As you can see retail selling is spa has broad impact. But I feel it’s time for more spas to move beyond conversation and begin implementing. There is a culture shift that needs to happen. And if you’re not aware that this change is underway your spa is out of touch.

In my own experience, therapists who make on-point product recommendations raise the level of customer experience dramatically. This is why I focus on introverts and helping them use their natural listening skills. It shows that they are listening closely. It proves that they care enough about their guest to try and improve their well-being. This will keep your customers coming back.

So how do you do feel about spa retail training?

Three Million Dollar Mistakes Your Spa Might Be Making

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In bench-marking studies from the past year, the average retail revenues at Five-Star hotel spas ranged from 3% to 10%. It’s a shame because with retail profit margins higher than services, they have the potential to represent 20-35% of the overall revenue earnings.

Some exceptional examples in the industry like The Spa at Hershey and Gianni Versace’s spa actually have signature retail lines which provide a whopping 45% of their profit.

But both have a system of selling that is consistent and effectively in place.

At too many spas, there is inattention to the impact of everyday processes. Employees perform with comfortable repetition without examining the effects or implications of their actions to the larger picture.

Here are three of the most common mistakes resulting in millions of dollars in loss of potential revenue for international hotel brands.

 1. Non-existent Retail Process

In various parts of the world, spa intake forms that customers painstakingly fill out are required only for government compliance.

Shockingly, they are not used to initiate guest conversation because the therapists are unable to speak the customer’s language. So the form is simply ignored.

And in its stead, no process is put in place to  ensure smooth communication between the therapist and guest. No mechanism or liaison  is provided which guarantees that the appropriate treatment and product recommendations are given.

Guests are allowed to leave the spa without closure aside from paying their bill. Discussions about follow up treatments or home care never take place. This often results in feelings of disappointment. Of having paid a premium price for an  experience that was nothing special and therefore unnecessary to repeat.

2. Non-selling Massage Staff

How many of your massage therapists sell retail products? With the exception of cruise ships, many upscale spas give massage therapists a pass on product recommendations. In many cases products that are perfect accompaniments and home care solutions to massage treatments are sitting in plain view on the shelves but they’re never mentioned.

Product recommendation is an important component to personalizing a guest’s experience. It’s a powerful and effective way to differentiate your brand from the competition. It has also been proven to stimulate return visits and customer loyalty.

By allowing your massage team to by-pass this step, your spa is sending a message that your level of service is inconsistent  according to the treatment selected, and that sub-standard service is OK.

3.  Annual Therapist Training

Does your spa team receive product training once a year that substitutes for “customer training”? Are you satisfied with it because its “free”? Guess what; it really isn’t free. It’s costing you a lot.

Product knowledge can now be accessed by almost anyone if they have access to the internet. Your customers often come to the spa equipped with far more product knowledge than your therapists.

To be competitive in today’s spa market, therapists must bring a different more relevant set of customer information skill sets. This requires regular training, feedback and refreshers.

If you’re not showing them how to deliver the best customer experience through active  listening, engagement, treatment and product personalization  your organization is behind the times and losing ground on revenue and repeat business.

Have you made any changes to the way you’re doing business in 2016?

How the Spa Industry Can Show more Love to Our Introverts

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Stress-free-zone700Despite the proliferation of introverts in the industry, old school methods of training are still being used in spas around the globe! This may be due in part because hospitality companies don’t often conduct personality assessments for their employees.

However, those of us who work in spas know that the serene atmosphere and mellow vibe tends to attract a more laid back soft spoken kind of person.

In the case of sales training, 99% of programs are designed for extroverts. Read More

For Spas Does Knowing Better Equal Doing Better?

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There’s a lot of noise in the spa consulting marketplace today. Everyone has a product that they want you to buy. You sign up for various mailing lists to ensure that you receive their newest information first. But what about the 100 people on the list before you? Read More

How to make money at your spa during holiday season

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Yes, it’s just the day after Labor Day. But that’s why you need to get on this now.

If you manage a spa you probably look forward to the holiday season. That period from mid-November to January 5 is ripe with opportunity for selling. Beginning with Thanksgiving (hostess gifts) and concluding with Christmas, High Holidays and Kwanzaa this time should be a retail selling bonanza. Read More

Customer Service Just Died; and Your Training Budget Killed It!

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Once a month the CEO of a certain Five-Star resort company would return to the home office. A status meeting was always held. All vice presidents and middle management would attend either in person or via Skype.

On this particular day as we were waiting for the meeting to begin, he regaled us with a story of his visit to one of the company’s more remote locations. He said 18 hours on a plane had earned him an extremely stiff neck. Immediately upon arrival he’d booked a massage. In a luxurious hut with the ocean as a backdrop, he’d explained his problem to a therapist in detail. He opted for an add-on treatment of Thai herbal balls; heated poultices which are rhythmically applied to sore or stiff body points to promote blood flow. He’d also requested that a heated towel be placed around his neck for the first 10 minutes prior to treatment. >>>To read more click here>>huff.to/1GEycWV

The Culture of Spa Called and It’s Mad!

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As a spa professional I am often highly disappointed in the level of service delivered at Five-Star spas and resorts. I’m an American living in Bangkok, so I’m particularly sensitive to respecting the local culture.

However, it seems as though a trade-off has taken place which has allowed the universal “culture of spa” to be compromised. It seems to me that it’s been replaced by a lazy, non-caring apathy masquerading as customer service.

Read the rest of my article on Huffington Post>>http://huff.to/1S4gaTc

Spa Industry Jobs to More than Double by 2018

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Education never goes to waste. This is particularly true if you are currently working in the spa industry. The Global Spa and Wellness Summit has released staggering information about the growth of employment in our industry.   Retail selling, customer engagement and social media training for therapists and management should be top agenda items to maximize revenue earnings.  Whether delivered online or in house, spa training is a critical need .

Spa Industry Jobs to More Than Double from 2007-2018: from 1.22 Million to 2.72 Million
Asia-Pacific will add most spa jobs, at 250,000, from 2013-2018
Sub-Saharan Africa will see highest job percentage growth at 215 percent in those five years

Want more information? Click the link to Beth McGroarty’s article>>>http://bit.ly/1Ih8RTn

Spa Training Mistakes – One-Sided Sales Training

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It is really amazing how often training is conducted at spas without first seeking input from therapists on what they actually need.  For many spas, training is delivered  yearly (if that) without variation or assessment of the areas where the therapists fail to deliver.

Also training is often thought of as a  disruption so the attitude of “lets just get through it”  prevails. To get the best ROI, perform a needs analysis before investing time and money on training. 

 This article from enterpriseref.com speaks to this issue.  Read More

The Case of the Good Bad Receptionist

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So often the performance rating of a receptionist is predicated on her charm or even her beauty. It’s rare that she or he is judged on their ability to engage with clients in a way that drives sales.

I like to tell the following story because I think that it’s indicative of so many spas. Your reception area can be a microcosm of your entire operation and as such can shed light on your flagging sales. Read More