Pulse May 2019 - Page 19

advantage of the opportunity to help relieve people of some of that stress. it also saw spas connecting more with their local areas—an incredible 94 percent of spas in the 2011 iSPa u.S. Spa industry Study said they had done something to help their community in the previous year, such as donating products or services, holding ‘open house’ events, or charitable giving. While this may not directly grow revenues, community involvement can boost a business’s profile and educate on the benefits of the spa experience. While inflation persisted at the time of the recession, the average price of spa services fell. in part, this was due to discounting and promotions offered by spas as a way of incentivizing existing clients to spend more, as well as attracting new customers. This aim comes through clearly when looking at the data on the types of promotions offered by spas at the time. almost two thirds of spas (64 percent) in the 2010 industry Study claimed to offer a referral incentive program and 63 percent offered incen- tives for first-time clients. Even though the average price per service fell, many credit discounting for stimulating demand and playing a part in the industry’s return to profitability. Like many industries, another big theme in improving profitability was to exert greater control over labor costs—a more brutal human aspect experienced by the industry during the crisis. in 2010, more than half of spas (58 percent) were estimated to have reduced either the number of hours worked by employees, or the number of hours the spa operated. in addition, exactly a third took the difficult decision to reduce the number of employees. These measures, while painful to take, gave spas greater flexibility to ensure their labor requirements met the reduced demand of the time, and allowed many to retain staff whose skills PromotIonS ImPlemented In 2009 referrAl IncentIve ProgrAm 64% dIcoUntS or IncentIveS for fIrSt-tIme clIentS 63% cUStomer loYAltY ProgrAm 60% lASt-mInUte dIScoUntS offered throUgh SocIAl medIA 54% free gIft WIth PUrchASe SPecIAlS 52% SPecIAl offerS for locAl memBerS of the commUnItY 51% SPecIAl BonUS offerS I.e. BUY one get one free 48% gIft cArd dIScoUntS 35% free gIft cArd WIth PUrchASe of A gIft cArd 29% IntrodUced memBerShIP ProgrAm none of the ABove 18% 4% MAY ■ PULSE 2019 17