Organic Spa Business Growth
Sunday, March 25, 2018
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Entrepreneurs are always looking for ways to increase spa revenue, enhance performance, and grow their business. How about you? Are you looking for ways to boost your business in 2014? You can by focusing on organic growth.
Organic Growth is easy when your plan includes the 3Rs.
1. Referrals 2. Retention 3. Reactivation
1. Referrals: Whether you are a business owner, solo-preneur, doctor, or service provider reading this article, no matter what your position is, generating referrals is for everyone on the team. Did you know you can double your business if every one of your clients simply referred one person? Need I say more about how important focusing on referrals is? To gain referrals, you first have to create raving fans. Once you have fans, you can ask them to refer their friends, colleagues, or family members to you! The challenge we see currently in most spas is that there is no system in place to ask for referrals. Gaining new referrals as clients is the least expensive method of marketing. Increase your number of referrals by implementing the following:
a. Train the team to ask for referrals. Train both the therapist and reception teams
b. .Have a contest among the teams to see who can generate the most number of referrals for a certain period.
c. Have a referral campaign to reward your clients for referring others.
d. Ask current clients to give you reviews and testimonials to help you gain referrals.
Most importantly, make asking for referrals a habit and grow your business organically.
2. Retention: Is key to growth. Gaining new prospects and turning them into visitors requires a lot of time, effort and investment. Retaining them makes a big difference on your profit and growth efforts. How can we ensure a high retention rate? You can start by discovering what your current retention rate is and set a new goal to improve it.
To increase retention, you can implement the following:
a. Implement a guest comment card to gain feedback regarding the entire experience
b. Deliver consistent experiences. Have protocols and train the team to be consistent with the delivery of each guest experience.
c. Reward high retention. Measure each person's retention rate on your team and offer a reward system for the individuals who have a high retention rate.
I. Implement a system to reserve the following treatment before they leave.
II. Secret shopper. Assess your experience by having a secret shopper visit your facility and report back on areas for improvement.
III. Gather a focus group and survey your clients for valuable feedback.
Apply these strategies to increase your retention rate and you will increase your profits.
3. Reactivation: Reactivation is another area you can utilize to organically grow your business. It's a lot more costly to gain a new client than to regain a lost one. Have you reached out to bring guests back that you have not seen in a while? We recommend launching a Reactivation Campaign. Go ahead, dig deep and gather a list of all the people who have not visited your spa in a while and invite them back. Or, reach out and find out why they haven't been back. Host a "Let's Reconnect Event!" There are many strategies you can put in place to bring defectors back.
a. Monitor frequency of visits.
b. Implement a flagging system within your software to identify the people who have not been back in more than two months.
c. Send out a monthly e-zine to maintain a relationship with your clients.
d. Use the phone to call and check in on your clients.
e. Send a postcard inviting them back with an enticing offer.
To ensure organic growth, you must focus on the 3Rs. The interesting part is that all these strategies are very simple and easy to implement. Start today and grow your business.