For me, the onset of winter (I live in Michigan, and we have snow on the ground.) prompts me to "go inside". I mean to "go inside" for a closer look at what the past year brought and what I'd like to bring in to the next year.
For some businesses, this past year has been full of increases in income and clientele. Yes, despite what "they" keep telling you, some businesses are thriving! In fact, several of my clients are so busy that they are having to update systems and work processes in order to manage all their new clients.
So how are we supposed to interpret what is going on? In the past month, I've spoken with someone wanting to build a 44 acre wellness center, a multi-unit spa-lon operator who has sold one of her two operations and is now operating one profitably. I've also spoken with a new and growing hospital owned wellness center and two very successful multi-operation spas; one with ambitious growth plans, the other with a "hold for now" business plan.
Then at a recent conference, I heard that Botox and nail polish may have been the cosmetics that did not miss a beat as far as sales were concerned during the recent recession, similar to red lipstick and nylon stockings in the 1929 Depression. I'm hearing that it is difficult to get spa service appointments at high end spas and that people are purchasing $100 dollar eye creams. So, am I seeing that the spas that cater to an exclusive clientele are not suffering but growing? Are we experiencing a growth in demand for high end services and prices? Are those who have the money spending it quietly so that those who are experiencing economic challenges can't see it?
In my discussions with business leaders across multiple industries the need for "Innovation" seems be in vogue these days. I don't know if it is a sign of the recovering economy and the results of cutbacks in R&D during the downturn, or if innovation is just the newest buzzword or fad following the likes of "synergy," "band-width," "transformational," and my personal favorite "out of the box."
Innovation Methodology - Click image to EnlargeAs I began to hear the word "innovation" used more and more in conversations, it sparked a desire (dare I say obsession) with a need to know more. Now, I am no stranger to innovation. In fact, I have enjoyed participating in a number of truly innovative initiatives over the years including the reinvention of the Hampton brand called "Make it Hampton" and the conceptualization of the Home2 brand during my time at Hilton Worldwide. So, my study on the topic was based on some real world experience with the concept. After reviewing the most recent literature on the subject, studying some of the current best demonstrated practices, and mixing in my own past experience, I am convinced more than ever that "innovation" is not magic – at least to the magicians. I say that innovation is not magic because there is a process by which any organization can systematically become more innovative. The magic, of course, is in the execution of the process.
Primal Branding seems to be a construct that effects people at deep-skin levels to create groups of people attracted to one another.
Brand communities like Nike, Apple, Starbucks and Coke have been able to fill in the seven pieces of primal code over time, by hiring smart people, gut instinct, and by spending millions of dollars. Because primal code is innately human, it in no small way has allowed these brands to become global. As a result they have created relevant, resonant communities of loyal consumers numbering in the millions.
These consumers have become the zealots, advocates, and members of the word of mouth community that marketers yearn for. A community that flows beyond the boundaries of simplistic functional benefits.
What a blessing it is to have inspiration and purpose!
Growing up in Alabama, football was a religion and we showed our devotion at the altar of the SEC (the Southeastern Conference, not the Securities & Exchange Commission). You might worship in the church on Sunday, but Fridays and Saturdays were reserved for services conducted on the gridiron. Football, however, took on new meaning for me more than a decade ago when my niece suited up at age 4 and played her first game of "bunch ball." In this new "football," there are cleats but no pads; shorts instead of pants and the ball is round. Through the years, my respect for the game grew as I noted that there are no time-outs in soccer (except for a very short halftime...no marching bands or baton-twirlers) and the players remain on the field for both offensive and defensive series. Soccer is more finesse than power; more touches (feet, no hands) than tosses. As a result, soccer players have to be agile, swift and above all, well-conditioned.
Seven Elements of Primal Code
Can you name this company?The creation story is the beginning of your brand saga. It's how (and probably why) you got started. Google was started in a dorm room. EBay was started in a spare bedroom. Hawaiian Tropic started in the garage (as did Apple and Hewlett-Packard). Starbucks started in Seattle's flowery Pike Street Market. Nike started with Phil Knight selling shoes from his car trunk. Telling us where you've been also tells about who you are and where you're going.
A Plan for All Seasons 11.11.11
Maximizing Revenues does not automatically mean changing prices, but means reacting to the market, to your competitors to some degree and to the uniqueness of your clientele.
| Food for Thought? |
| To often Spa Managers view their published rates as absolute. You may (not always) be well served by studying Hotel revenue management tools. |
 |
Most markets have some kind of seasonal demand. When it is off-season, some rates naturally tend to drop due to lower demand. A proven practice even in off-season is to maintain some high rates because rate alone is not the only driver of business to our hotels. Customers choose hotel and spas partially because of price, but also because of location, brand preference, previous positive experience or simply availability.
As I continue to plan the next iteration of SpaClique, I've come across a branch of marketing philosophy that seems obvious at the surface but one I now realize is incredibly foundational and one we have not invested nearly enough thought and resource into. This is more than a litrtle embaresing to admit considering community development is in the SpaClique name and charter.
Creating Customer Communities
Even before I took Marketing 101 way back in the ........ (never mind the decade is not important), the marketing types have talked about how some brands have a soul, a voice, a personality. They rant long and hard about how Apple brand has a cult, Nike has a tribe, Coke has enthusiasts, and other beloved products and services have brand loyalists, advocates, zealots and vigilantes.
The importance of this has grown almost exponentially over recent time. It has become more and more obvious that brands of the future will be those who are able to surround themselves with communities of customers. And whether we call them evangelists, vigilantes, loyalists, just plain good customers or our obvious favorite cliques, marketers require enthusiasts of every stripe to stick to their brand no matter if they are leapfrogged by technology, pricing strategies, or newly devised distribution models.
Everyone else will be left chasing their tails in the pricing and technology wars.
When we were children, the seasons were defined by holidays, the school calendar, family events and to some degree the weather. Now that we are adults, we see many variations of seasons. As hoteliers, we still see the holidays and the changes in weather, but we need to look at calendars and factors that affect demand much more closely.
| Food for Thought? |
| Mr Hogan's intended audience is lodging but Spas and Salons will find his advice valuable as well. |
|
School calendars have changed dramatically, with year-round attendance in some locations and major shifts in the beginning and end of the school year in others. Semesters at high schools and universities can vary, as do spring and winter breaks.
Remember the kindergarten game called "telephone" where everyone sits in a circle and a secret is whispered from person to person? The secret might be something along the lines of "I really like Frank's shirt today." But by the time the secret reaches the last person and is spoken aloud, it has transformed into "I think Frank has really let himself go over the past few years. Maybe we should stage an intervention."
Do your team members feel like they are in the middle of a game of telephone with "urgent" messages frantically flying in from all different departments? Are they trying to judge if the express-mailed envelope is more or less important than the e-mail? Do the important messages get in the way of the critical ones?
Has anyone else noticed that business etiquette no loner requires a formal conclusion to a verbal or written conversation? It wasn't that long ago that the courtesy of a return phone call just proper business etiquette. Unfortunately not in today’s business world. Smart phones, texting, email, and voice mail mean it’s easier than ever to avoid human interaction.
I'm not talking about someone not returning a cold sales call either. In recent years I've had extended, well developed business conversations just stop with no explanation. I've found myself asking "what just happened?" as I check my breath and smell my arm pits. That said, I'm pretty sure this is just one more sign of declining civilization rather than any immediate need I have for a shower.
The second most popular part of a facial is the mask (we all know the massage is the first). So have you ever thought of just marketing a mask each month or by monthly or seasonally as the perfect solution to skin's continual beauty?................and building services and retail ???
Well, it works....if you missed launching a Pumpkin (Orange) Mask for Halloween...get it on board for the Harvest Season, yes it starts NOW. Before I suggest a great mask resource, lets map out the upcoming months and target each by, monthly skin challenges to a great marketing plan.
If you own or manage a hotel or resort and you have not accepted the importance of social media marketing as an integral part of your marketing strategy, it's time you do. Social media marketing is not tomorrow, it is now and it affects all aspects of your business. Not to get ahead of myself, but your time is money and it is important.
Whether you try to manage social media in-house or it is outsourced, effective social marketing will require time, resources and professional skills. My following statements and recommendations are a result of years of working with all categories of hotels and resorts. This includes my personal analysis of industry surveys, daily activities and keeping up with never ending changes in the social websites and networks. The goal is to develop effective social touch marketing plans and initiatives with measured results.
The more I think about it, the more I realize that serving is about honoring. Hoteliers and spa professionals honor their guests…healthcare professionals honor their patients…educators honor their students and so on. To fully understand what this article is about, let us first define “honor”. A quick review of any dictionary will find that it means to show high respect or to hold in high esteem. No matter what industry you are in, each of your customers deserves to feel honored, regardless of who they are or whether they have been classified as a VIP or not.
Be Present
When our computers malfunction, many of us press “Ctrl-Alt-Delete” to refresh the screen and start over. Wouldn’t it be great if we all had Ctrl-Alt-Delete buttons on our bodies to refresh ourselves before serving each customer? Every customer should get the best version of us at any given time. However, it can become difficult if you are serving dozens or even hundreds of customers per day.
The annual employee survey for your hotel closed last week and you restlessly anticipate the results for your Spa team. You think you have a good sense for your team members’ opinions, but you’re still a bit nervous. All of a sudden you hear that familiar “You’ve got mail” ding as the anxiously awaited report lands in your inbox. As you scan the results, which are overwhelmingly positive, you notice you scored quite low in one area: encourages teamwork. What do you do now? Mandate monthly retreats, during which employees must take turns falling backwards from a 5-foot high platform into the outstretched arms of their peers? Or perhaps you go a tirade in the office, demanding to know why employees would think such a thing. In either case, you won’t really know for sure what the appropriate next steps are until you dig deeper to uncover the root cause of the issue.
Day Spas and Spa Clinics thought they were challenged with the Discount Coupon Media Market Sites and Blogs, but the bargain priced massage chains now including facials make day spas feel the push of the envelope. Fear includes lowering the quality reputation and lowering the income of the professional or putting the day spa out of business. The economic downturn has helped theses venues and hurt the professional Day Spas that are not fulfilling their markets needs. Sounds familiar, we've seen what has happened in the nail industry.
In our industry, we understand for many years that our business is all about creating a multi sensorial experience for the clients. And everything has been done in this direction to create environments where customers can forget all about their daily stress and problems. There is only one area where we haven't yet understood that it is also about a multi sensorial experience: The Retail sales!! Why is it so difficult for a vast majority of spas to generate sizable retail sales? The answer is simple: Everything in the spa is about an experience, BUT the retail products! Could that explain why so many clients leave the spa without buying products, and within 24 hours go to department stores or drug stores to buy low grade, un-efficient and expensive skin care products? So what should we do to include our "skin care retail service" within the multi sensorial experience of the spa, and stimulate dramatically the retail sales without the clientele feeling pressured?
I have just finishing up a review of SpaClique's marking and brading efforts. I under took this little exercise in part for the normal reasons a company should do this frequently. That said, I was primarily focused on finding opportunities to improve on the services we provide to our advertisers and more specifically, our Spa iExpo exhibitors. One important realization was that I had forgotten, or at least have been neglecting many of the basics found in my old college Marketing 101 text book.
I thought I'd share a few a few of the 101's that I think may be relevant to Spa and Salon operators and vendors alike.
