The new design features a large "cover image" at the top with all other photos, videos, and events below. Content and posts are organized in a . . . → Read More: The New Look for Your Spa’s Facebook Business Page]]> Have you heard about the coming update for your Facebook Business Page? Whether you’re ready or not, the change is scheduled for March 30th!

Facebook’s New Design and Layout

The new design features a large "cover image" at the top with all other photos, videos, and events below. Content and posts are organized in a timeline sequence.  If you haven’t seen Facebook’s announcement, there’s no better time than the present to take a look.

Cover Photo: The ideal dimensions for this image are 851pixels wide x 315 pixels high.  You can use your logo, products, service images, but do consider a special treatment or graphic to really engage your visitors.

Cover Image No-No’s

• Do NOT use price or purchase information, such as “40% off” or “Download it at our website.”
• Do NOT include contact info, such as web address, email, mailing address or other information that belongs in the “About” section.
• Do NOT reference Facebook features such as Like or Share.
• Do NOT use calls to action, such as “Get it now” or “Tell your friends.”

Is Your Day Spa or Salon Ready for the Change?

I’m not sure why, but I haven’t come across any day spas or salons that are using the new design, and that’s kind sad because they’re missing a big opportunity to really shine. However, there are many brands that are already taking advantage of the sleek new look.  Here are just a few examples.

• http://www.facebook.com/Tiffany
• http://www.facebook.com/TheVow
• http://www.facebook.com/herbalessences

My Thoughts:  Change is inevitable. Be proactive now and embrace it. This new design will allow you to really shine the light on your day spa in an elegant fashion. Send the right message and make your page look professional.

Spa products can be very hard to sell on your website. Let’s face it, there’s a lot of competition out there.  The online marketplace is so saturated with skin and body . . . → Read More: 10 Tips to Optimize Your e-Commerse Site]]> So you have an e-commerce site but sales are down from previous years? If so, this post is for you.

Differentiate Your Spa Products!

Spa products can be very hard to sell on your website. Let’s face it, there’s a lot of competition out there.  The online marketplace is so saturated with skin and body care products that it’s difficult for consumers to distinguish one from the other.

In order to get a consumer’s full attention, you’re going to have to focus on gaining trust. If you have an excellent product – then you need an excellent website and processes in place to sell those products.

Here are some tips to kick your sales into high gear this year.

1. Reduce prices.  I start with this because it’s the most obvious. In today’s economy, everyone seeks value in their purchases. Competitive pricing keeps people in your online store longer; they put more items into their shopping cart; and they’re likely to come back more often. Besides, when people buy from you online, you don’t have to pay a commission to your therapists. That increases your margin – sometimes significantly.

2. Offer free shipping. This is a proven tactic to increase sales.  Use it – at least on orders greater than $100.

3. Make your products claims believable. Skip the marketing hype. Today’s consumers are savvy and they don’t fall for ridiculous claims that aren’t substantiated. As the old saying goes, “if it sounds too good to be true then it probably is.”  Your customers will trust their friends and online reviews before they believe proclamations that sound too good to be true.

4. Let someone else do your bragging. Use online reviews, endorsements, and testimonials to help sell your products. Why? Because people believe other people.

5. Use security icons & logos plus other “credibility” links throughout your checkout process.   The presence of a security/trust icon or a link to your security policy and/or return policy will reduce shopping cart abandonment. These two simple measures will improve your conversion rate and increase sales.

6. Simplify your checkout process.  A simple checkout process reduces shopping cart abandonment.  Do not require that shoppers create an account before buying.

7. Send out targeted emails to registered users who left items in their carts. This is a know tactic that big retailers use. Why not you? It works.  Persuading shoppers to complete their order is not hard. You know they are interested in your products because they put it in the shopping cart. Depending on your margin, you may entice them with an additional discount…if not on this order, on a future order.

8. Use a well-placed up-sell. Depending on the number and types of items in their cart, you may want to offer a discount like “Buy two, get 20% off the second,” or  something similar.

9. Test your offers. One of the most successful offers that I’ve seen for online spa retailers has been a simple one: “Sign up for our newsletter and get a coupon code for 10% off your first order.”  Get creative. What worked previously, may not work today. The web is constantly evolving and you need to constantly test everything related to your online business.

10. Send out your newsletters regularly – and TEST them each time.  Consumers are tired of receiving dull, boring emails. Who wouldn’t be? Make your newsletters entertaining with targeted offers to your subscribers. You’ll be surprised at the positive responses (opens and “click-thrus”) that you’ll receive. The key is in testing. Test your subject line. Test your images. Test short copy versus long copy. Test your discount. You get the picture. You’ll be rewarded with a more loyal subscriber base as well as increased product and service sales.

The above items are all proven to increase conversions and sales. Need help implementing them? Call Spa Marketing at 860-655-2283 to get started.

Happy New Year! Hopefully you’ve had some time to recover from the holidays. Now it’s time to get serious about your business. Here are 10 simple tasks to get your day spa off to a great start.

Send holiday messages more frequently. By increasing the number of messages to your most active customers, you’ll increase the chance that they’ll . . . → Read More: Make Your Spa Email Marketing Successful This Holiday]]> In our last post,  Cut Through Holiday Email Clutter, we gave you a few tips to cut through holiday email clutter. Below are several more ideas to piggy back on the previous ones…

Send holiday messages more frequently. By increasing the number of messages to your most active customers, you’ll increase the chance that they’ll make a purchase – and that’s especially important for spa gift sales.

Include your special offer in the subject line. Your open and click-through rates will improve if the subject lines contain a “percent-off” or ”free shipping” incentive.

Keep all your holiday specials comparable.  I recently received an email from a day spa promoting gift cards for the holiday.  The following week, the same spa sent me another email promoting gift cards…but this time, with a percent off.  Imagine the disgruntled clients who bought gift cards following the first email!

 Thank your customers.  Let your customers know how important they are.  A simple thank you message will go a long way to bolster your relationship. It’s a great way to finish off the year.

However, as email volume increases, reaching the inbox and getting your subscribers’ attention becomes . . . → Read More: Cut Through Holiday Email Clutter]]> The holiday selling season is underway and many day spas use email marketing in weekly, if not daily, email blasts.  As well they should. Let’s face it, the holidays are the best time of the year to engage with your customers.

However, as email volume increases, reaching the inbox and getting your subscribers’ attention becomes more difficult.  Below are few tips to help your spa marketing message stand out  from competitors.

Tips to Cut through Email Clutter

To combat the rise in email volume, try sending your holiday mailings later in the day. Most spa marketers send emails n the morning. If you schedule your email for later in the day, it’s likely to stand out more because there are fewer competing messages.

If your day spa is using a daily deal strategy as part of your holiday program I suggest that you let people know ahead of time and to give them the ability to opt in or out. Remind them that they can control the type and frequency of emails in their preference center. That will help eliminate potential “spam” complaints.

Most holiday messages offer discounts. The most common is the percentage-off email. However, you might want to employ free shipping, gift-with-purchase, BOGO deals and others. If you’re implementing a multi-day email strategy, you’re going to need a variety of compelling messages to entice your subscribers to click and purchase. Remember, one size does not fit all.

Need help getting your email program back on track? Find out how Spa Marketing can improve your email campaigns.

Enter the daily . . . → Read More: To Deal on Not to Deal]]> Coupons. They’re all over the internet. Most likely, you’re even offing them on your own website. Under normal circumstances, I advocate the use of coupons. They stimulate sales, they’re an effective way to draw new clients into your salon or day spa; and they provide an easy reliable way to track conversions.

Enter the daily deal sites. All of a sudden, the dynamics have changed. No longer are merchants offering 10-20% off their products and services. Now, they are discounting 50-90% services. What’s not to love IF you are a consumer?

Are daily-deal sites training your customers to buy only when they get a deep discount?

You bet. In a previous post titled “Can Your Day Spa Afford to Use Groupon Deals?”, I did the math to determine whether social coupons make sense for day spas. There are many variables to consider and a lot depends on your own circumstances. Simply put,  you need to run the numbers.

Potential fallout.

1. The dollars and cents often just don’t work out.

2. Beyond losing money, I see the greatest threat as damage to your brand. Those people who pay half price are generally thrilled about their deals – yet most will never return until the next deal. Those people who pay full price, are often unhappy when they hear about the deal they missed. Sadly, these are generally your existing “regular” customers – the very people you should care about most.

3. You risk converting an existing “regular” customer into a coupon customer.

Daily Deals That Might Work for Your Business…

It’s not all doom and gloom. Below are some possible “daily deal” services that might work for your business.

• Waxing. High margins, low incremental costs, quick turn-around on services. You can likely book 2-3 services in one hour.
• Classes. Exercise classes, yoga classes, etc. – basically any health class. You can “service” quite a few people in a studio – all for the price of one instructor. It’s best not to run these deals on existing classes.
• Tanning. High margins, low incremental costs, quick turn-around on services. Multiple beds allow you to services many clients in a short period of time.

Do the math.  “Busier” does not necessarily mean more profitable. You don’t want to work harder for less money, do you?

How Groupon Works:

Groupon partners with local businesses (including day spas) and sends daily coupon e-blasts to members.  Those who buy the coupon get 50-90% off . . . → Read More: Can Your Day Spa Afford to Use Groupon Deals?]]> “You’re the Boss” blog posted an article about Groupon back in November 2010.  It was extremely interested,  and I’ve adapted the original post for day spa managers and owners.

How Groupon Works:

Groupon partners with local businesses (including day spas) and sends daily coupon e-blasts to members.  Those who buy the coupon get 50-90% off on promoted products and services.   Groupon then splits the remainder with the retailer.

Groupon has the potential of bringing hundreds (if not thousands) of customers to your door. The question remains, is it right for your day spa?

1. How many potential customers in your area don’t know about you? Depending on your circumstances,the answer is quite different. For instance,  if you are an established day spa in a small town,the answer is most likely “very few.” However,if you’re a new spa in a populated area,then the answer is most likely  “a lot.”

2. Do you have excess capacity? Do you have equipment and rooms that are under-utilized?

3. Can you handle a surge? Can your staff and therapists handle an onslaught of customers? Are they willing to work extra hours?

Discounting and Branding

How does deep discounting  effect your brand? For many day spas, it’s quite possible that you will risk damaging your brand.  Let’s face it, if you can offer a service at half-price and only collect 1/4 of the fee, what’s the message sent to the consumer? People assume that you are making outrageous profits when you stoop to deep discounts. When they see that, they often wait for the deal and only the deal.

Doing the Math on the Deal

That brings us to the dollars and cents of advertising with Groupon…yes – Groupon is advertising. “Instead of writing a check for an ad, you are choosing to lose money on sales.”  And, with the Groupon model, you can really lose a lot if your customers don’t spend more than the coupon amount. That’s why it’s so important to go into this type of advertising with your eyes wide open.

The scenario or proposed deal: $75 Facial sold through Groupon for $37.

Below are eight calculations that you need to consider before you deal through Groupon.

1. Figure your incremental cost of sales — the actual cost percentage for a new customer. To figure this out, take the labor costs (hourly wage + commission) PLUS the cost of products. Do NOT use any of the fixed costs or overhead – because you are going to have to pay this one way or the other. Note that this number will differ for every day spa!  For this $75 facial,  labor + products = incremental costs($20 + $10 = $30).  Therefore the percentage is 40% (30/75) for delivering the facial deal.  Don’t confused this with the actual cost to deliver the service.

2. The amount of the average sale. If the coupon is for $75, will the customers spend more that that? Many businesses complain that few people spend more than the value of the coupon.

3. What percentage of people actually redeem the coupon. For this exercise, let’s say it’s 95%.

4. What percentage of coupon users are already your customers. This will vary based on where you’re located and how long you’ve been in business.

5. How many coupons does each customer buy? (The more they buy, the fewer people are exposed to your service.)

6. What percentage of coupon customers will turn into regular customers? Bargain shoppers abound and it’s likely that only a small portion will become regular customers. For this exercise, let’s say that 10% return; the remaining 90% only come back for the next deal.

7. What is the advertising value of having your business promoted to Groupon’s list — even if they don’t buy a coupon? This varies based on the location and number of recipients.

8. How much does it normally cost you to acquire a customer through advertising?

Let’s look at an example of how this might work for a day spa offering a deal on facials.  For this example, we won’t consider product sales. Suppose you sell 1,000 coupons with a face value of $75 for $37. Then let’s assume the following:

1. 40% incremental costs.
2. $85 average ticket (Let’s be generous and assume each customer spends $10 more than the coupon).
3. 95% redeemed.
4. 35% used by existing customers.
5. 1.25 average number of coupons purchased per customer.  (Let’s assume a few people buy more than one.)
6. 10 percent come back again — or send friends.
7. $1000 advertising value.
8. $83 typical cost to get a new customer through other advertising methods. (Could you conceivably get a dozen new clients out of $1000 spent with another ad medium? Sure.)

Now, let’s do the math:

Number redeemed: 1,000 x 95 percent = 950.

Revenue:
1000 x $37 x 50% = $18,500 (Groupon sends a check.).
950 x additional $10 = $9,500 (additional money spent by each customer).
Total revenue = $28,000 (plus, you also get the $1,000 advertising value of having all those people introduced to your product or service).

Expense:
950 x $85 (average retail value) x 40% incremental cost = $32,300.

It works out that your day spa will take in $28,000 at a cost of $32,300. This means that it cost you $4,300 to run the deal.

Many of you are saying “Wow, that’s a lot of money to lose”…and it is. However, you have to consider how many of these clients will return to your day spa. If you divide the 950 (the actual coupons redeemed)  by 1.25 (the average number of coupons bought by each customer), you get 760 customers. Multiply that by 65% (to exclude existing customers) and you get 494. Multiply again by 10% (the percentage of new customers who return), and you get 49 new repeat customers.

Divide the $4,300 cost by 49 new customers, and the day spa in this example would have paid $87.75 for each new “regular client” – which works out to be slightly more than traditional advertising.  For practical purposes, let’s call it even.

Other considerations before embarking on the big deal!

On the minus side:

1. Sticking with our example, please consider how the disruption in service has affected your existing regular clients. Getting the additional 49 customers may have annoyed many of your loyal customers and you may have to get creative to find a way to make amends.

2. Has the deal damaged your brand? Are you inadvertently training clients to only buy on deal?

3. For day spas located in small cities and towns, these numbers will be much different. You’re likely to get a much smaller number of coupon sales.

On the plus side:

1. The onslaught of business has probably kept your employees busy during a slow time. That helps bolster morale!

2. The above calculations do not account for the lifetime value of the new customer, product sales, etc.

PLEASE NOTE: if you change any of the variables in this example,you’ll get very different results. Low incremental costs, high margins, and customers who spend a lot more than the ticket value will increase your bottom line. The point is: run the numbers before embarking on any daily deal site.

Let me know if you have tried Groupon and if you made money? Did Groupon bring in a loyal customer base?  Would you use it again? If so, under what circumstances would you use Groupon again?

In my opinion,  the answer is yes.

The reasons listed in the referenced . . . → Read More: Blogging and Your Day Spa]]> Quite some time ago I wrote a few articles about blogging and how it can help improve your search visibility. Since then, social media has really exploded.  Now, some people are asking if blogging is still as useful as it once was.

In my opinion,  the answer is yes.

The reasons listed in the referenced articles are still true. Just to recap,  they were:

• Search engines lover blogs.
  They return to your website frequently to index new content (blog posts).
• People love blogs.
  People inherently trust blogs and enjoy interacting directly your company.
• Well-written blogs attract links and positive “press” from other blog sites.
  Incoming links help search visibility and improve traffic to your spa website.

I’d like to take a look at some other reasons that are equally compelling – especially for small day spas.

• Blogs are often less expensive than a website to create.
  For a professionally designed website, you will need a website designer or at least someone familiar with coding for the web…and that costs money.
• Blogs can be self-managed.
  You can easily add pages (think spa services and spa products).
• You can post text and marketing collateral in minutes.
  Without any special training,  you can add relevant content, images, and entertaining videos.
• Blogs are dynamic allowing you to interact with your customers.
  When people love your content, they often comment and that will help build a strong online community.

If you have a blog for your day spa, you should consider claiming that blog on Technorati. It’s a simple process and you will have to post a claim number, like so: Y4VHVTYPEKM2. Other blog directories inlcude Blogged.com and Blogsearch.Google.com.

What social networking sites are the most efficient for day/urban spas’ marketing purposes, and how efficiently (or not) are spas using these tools?

From what I’ve seen, Facebook and Twitter are most popular among urban day spas, . . . → Read More: Social Media Marketing for Spas]]> Recently, I was asked about Social Media Marketing for spas. The question and answers are posted below.

What social networking sites are the most efficient for day/urban spas’ marketing purposes, and how efficiently (or not) are spas using these tools?

From what I’ve seen, Facebook and Twitter are most popular among urban day spas, followed by LinkedIn, blogging, and online videos sites. It’s very efficient for spas to connect with their clients via these social sites. It takes less time to construct a message on Facebook and Twitter than it would to write and distribute other forms of marketing collateral, such as a newsletter.

The viral nature of these sites can be a boon to a small business. However, many day spas do not take full advantage of the tools, and many do not have the resources (time and qualified personnel) to manage effective campaigns.

Most spas do not really engage with their audience, and settle for an occasional post. Very few spas use discussions to interact with fans.

What are the pitfalls of using social networking sites, and how can spa operators utilize them more efficiently?

There are quite a few pitfalls with Social Media Marketing.

Managing one site (such as Facebook, Twitter, or the company blog) is not too demanding.  Managing several social media sites is considerably more time consuming.

Some small day spas do not have trained personnel with good writing skills, and they have difficulty engaging with their audience. There’s also the possibility of making a “faux pas” in a post or tweet that could potentially damage your brand.

Many urban day spas don’t have a social media plan and results tend to be haphazard. Very often, you will find a Facebook page that has been completely abandoned. Evidently, the results weren’t worth the time and effort.

My advice: create a social media plan with clear objectives. Budget the resources to execute the plan and if you don’t have the in-house talent, out-source that aspect of your marketing. Social Media Marketing is about fostering strong relationships, so focus on your customers/fans. Share engaging comments, articles, useful tips, etc. This form of communication should keep them interested and in turn they will create a dialogue with you.  Also, be sure to pre-organize your posts and tweets to go out at specified dates and times. That will make managing your marketing initiatives much easier.

What effect have daily deal/flash sale sites, such as Groupon, had on the spa market, and how do you see impacting the sector in the long term?

These deal sites can certainly lure customers into spas but they really cut into profits. They are best for spas with strong margins and well-trained staff with the ability to up-sell services.

On the positive side, spas can reach a new demographic. Another plus is that they can fill up empty time slots in their schedule.

In the long term, I see them as problematic.

• Too many discounts diminish and damage your brand.
• They attract the wrong kind of customer – the bargain shopper. These are not necessarily loyal customers.
• They undercut your profits.

I suggest that spas use a proactive strategy with this type of customer by capturing their email address. Then, they can market to them directly – offering their own “daily deals” and cut out the middle man (Groupon).

How have daily deal/flash sale sites changed consumers’ purchasing behavior?

Consumer spending habits are definitely changing as new products or services are available to them at a substantial discount. Snagging a bargain is a powerful lure to many shoppers. I think the trend will continue as more people are connected via their smart phones and mobile devices. Since there are so many of these sites, I suspect there will be a consolidation of them in the future.

Are events a fruitful way of creating loyalty and how can spas do them better?

Yes, events are very good ways to create loyalty.  Planning the event well in advance will help guarantee its success.

A spa should broadcast the event at least six weeks prior to create some buzz. That should be easy by combining email marketing, Facebook, and Twitter.

Creativity and uniqueness is especially important. I know of one spa that runs an annual “event just for men” prior to Valentine’s Day. They offer free drinks and run a fashion show featuring ladies swim wear.  While the men enjoy their night out, the spa rakes in strong gift certificate sales. The event is a win-win for everyone. The men thoroughly enjoy themselves; their significant others get what they really want for Valentine’s Day (a luxurious spa treatment); and the spa has a very profitable evening. Events like these keep  loyal customers coming back.  Sure they take a little planning on the front end, but they’re easy enough to pull off and very profitable for your business. Most of all, they’re just plain fun for everyone involved.