Pulse November 2016 | Page 62

ASK THE EXPERT

HEATHER LEMERE BY MAE MAÑACAP-JOHNSON

Do you know your profit potential ? Heather Lemere , one of this year ’ s Professional Development Sessions ( PDS ) speakers , helped attendees unlock growth areas that are often overlooked by spas and small business owners . Founder , CEO and marketing director of Salon Success Strategies , a marketing agency for the beauty industry , Lemere understands the key factors that could lead to growth because she herself was once an owner of a successful salon and day spa .
Fresh off the ISPA Conference , the marketing expert shares tips and expert ideas on how to tap your spa ’ s hidden potential .
Pulse : In the spa or salon setting , what are some of the areas often overlooked that may result to missed revenue opportunities ? Heather Lemere : The two most overlooked areas of growth are frequency of visit and average ticket increases . Most businesses will review what appointments they have on the book for today , this week and this month , but will fail to look at the bigger picture , which is how many times per year is ( or isn ’ t ) this client visiting the business . This is such a critical number that could actually double the business revenue without spending money to bring on even one new client .
For example , if a client is visiting once every four months , spending US $ 100 per visit , then that client ’ s annual value is US $ 300 . If that same client increases his or her visit to once every three months , then the same client ’ s annual value increases to US $ 400 . This missed opportunity can be overcome through systems within the business , but can also be strengthened through targeted marketing campaigns designed to increase areas of growth .
P : What do you see as a major retail problem that needs to be addressed in the spa industry ? L : When a staff member does not recommend to a client everything he or she needs because they don ’ t want to “ sell ,” this is a big problem in our industry and one that does a huge disservice to the client . Fear of selling means completely missing the reason why clients come for a service in the first place .
I have seen staff turn away a sale because of this fear . The client will be asking questions about what to use , how to use it and what to buy and the service provider will actually redirect the subject matter to a topic that is less intimidating , which leaves the client to figure out what to do on his or her own . This is often the
reason why the client will leave and buy a product somewhere else within the next 24 hours of a service . Not only is this missed revenue for the business , but it also greatly devalues the service .
P : Can you share some tips on how to maximize add-on services as a way to increase value and profitability ? L : Add-on services are the epitome of increasing average ticket price but often , this strategy fails because of the delivery of the offer . Simply asking “ would you like fries with that ?” is going to gain a big “ no ” from your client . Add-on services need to be presented in a way that the client understands the benefit and reward for experiencing the additional service .
If you are trying to shift the needle , bundle your add-on treatment with a popular service and then combine this new package with product or enhancement to create an exclusive package . If priced correctly , it will give the illusion of value to the client while exposing them to the additional service . To strengthen this strategy within your marketing , incorporate a credit voucher applicable toward the same add-on service that can be redeemed on the next visit . This is important because you need to create a habit out of booking with the additional service . Not all clients will rebook with the add-on service ; however , a percentage of them will , which is what we want to see happen in this type of strategy .
P : Once a loyal guest is lost , what are the best steps to take in order to win them back ? L : Chase your lost clients , relentlessly . Business owners today think that a single reactivation email is enough to win a client back , but in reality , the lack of proper marketing is likely the very reason that a client left in the first place . Reactivation is not a “ set and forget ” strategy with a one-trigger email . Email open rates are
60 PULSE ■ November 2016