Blog. 9 May 2024

Empowering Spa Success

Written by Petula Elzenaar

Empowering Spa Success

Navigating Retail Challenges.

 

The spa industry, which is experiencing significant changes due to various factors, including the COVID-19 pandemic, is experiencing a shift in guest expectations and needs.
This evolution is a golden opportunity for spas to improve their ability to meet and exceed guest expectations.

In the highly competitive spa industry, driving sales is crucial for business growth and success.

Retail sales are a key factor in the profitability of a spa.

Establishing a meaningful retail concept and encouraging therapist engagement in the sales process is a challenge that many spa directors face.

Therapists, who are excellent technicians, may lack confidence or enthusiasm towards sales, not fully recognizing it as part of their job responsibilities.

To become an exceptional seller as a therapist and discover how enjoyable selling can be is a journey that requires time and strategic training.

While offering quality treatments and exceptional service are essential, incentivizing therapists through commission structures can significantly boost sales performance.

The first crucial step involves in-depth training on the products and treatments of the cosmetic brands they work with.

The more therapists are educated and have a thorough understanding of treatments and products, the more confident they will be in their sales approach.

 

However, this journey is not without its challenges. Balancing the training schedule with the operational needs of the spa, especially when staying open is imperative to maintain revenue and satisfy guests, can be a demanding task.

Spa directors must find a delicate balance to ensure that therapists receive comprehensive training without compromising the guest experience or the spa’s financial stability.

 

Another challenge lies in staff turnover. Spa directors are responsible for making sure therapists stay engaged and avoid getting bored by continuously involving them in the learning process. Encouraging creativity and allowing therapists to contribute to or create new treatments for the spa menu. It not only keeps the team motivated but also provides guests with new and interesting options.

 

In the dynamic world of spa management, the key to success is navigating these challenges strategically.

To ensure that the therapists are well-prepared with the knowledge and confidence necessary for success in sales, while maintaining a spa environment that encourages growth, engagement, and creativity.

 

Although most spas aim for a 15% retail revenue, some have managed to achieve an impressive 40%.

The retail offer needs to be adapted to meet the unique needs of clients, which is the key.

The spa’s retail items must be differentiated from generic alternatives to provide guests with an exclusive experience that they can’t find anywhere else.

 

Effective Commission Strategies for Spa Therapists

  1. Performance-Based Commission:
    One of the most common commission structures is performance-based, where therapists earn a percentage of the revenue generated from their services. The percentage can be fixed or flexible depending on the sales performance like in between 3%-10%.
    To improve sales performance, it’s better to avoid having a minimum amount to reach before the staff receives commission.
    This approach aligns incentives with outcomes, encouraging therapists to actively promote and upsell treatments. By tying compensation directly to sales performance, therapists are motivated to maximize their productivity and deliver exceptional service to clients.

 

  1. Tiered Commission Rates:
    Implementing tiered commission rates based on sales targets or performance levels can provide additional motivation for therapists. For example, therapists can earn a higher commission percentage once they reach certain sales milestones or exceed predetermined targets. This tiered approach incentivizes continuous improvement and rewards top performers, driving overall sales growth.

 

  1. Product Sales Incentives:
    In addition to service commissions, offering incentives for retail product sales can further incentivize therapists and increase overall revenue. By providing a commission on products sold alongside treatments, therapists are motivated to recommend and promote retail items to clients. Training therapists on product knowledge and sales techniques can also enhance their confidence in promoting retail products, leading to increased sales opportunities.

 

  1. Team-Based Incentives:
    Encouraging teamwork and collaboration among therapists can be achieved through team-based commission structures. By pooling sales targets or setting collective goals, therapists are incentivized to support and motivate each other to achieve common objectives. Team-based incentives foster a sense of camaraderie and accountability, driving collective success and fostering a positive work environment.

 

  1. Seasonal Promotions and Bonuses:
    Introducing seasonal promotions or bonuses can provide additional incentives for therapists to boost sales during peak periods or special events. Offering rewards such as cash bonuses, gift cards, or spa vouchers for achieving specific targets can create excitement and motivation among therapists. Seasonal incentives can help maintain momentum and drive sales during slower periods, ensuring consistent revenue generation throughout the year.

 

Conclusion:

Implementing effective commission strategies is essential for motivating spa therapists and maximizing sales performance. By aligning incentives with business objectives, providing opportunities for growth and recognition, and fostering a culture of teamwork and collaboration, spa owners can create a dynamic and results-driven environment that drives revenue growth and enhances the overall client experience.

 

Today’s guests are looking for a spa experience that is unique.

From the moment they arrive at the spa, this journey begins and ends with them.

 

 

Petula Elzenaar

Senior director SPA and Hospitality with more than 15 years of experience in the wellness industry and strong expertise in the spa business of 5-star hotels in France and Switzerland.
Specialist in opening, organizing, planning spas with the goal of generating profit.

Throughout her career she has repeatedly served as spa manager as well as director in facilities such as Six Sense SPA in Gstaad, Switzerland, Grand Hotel de Bordeaux, Hotel Martinez, and others.