BUSINESS SOLUTIONS | MARKETING
Win the Price War Without Coupons By Lauren Snow
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he price war has been waged, with the surge in online deal sites and review sites in the past five years. A deep discount may seem like a great way to attract new clients, but ask yourself, “At what cost are you willing to get clients in the door?”
The Cost For a $100 facial, discount sites will ask you to knock off 50% and split the profits of that $50. That puts you at a $25 profit, but you’re also stuck with credit card fees, deducting another 2-3%. So rather than earning $100 for a facial, your spa will have only made $23.
It’s Not You, It’s Her While you may be willing to take a $23 hit for a repeat client, she likely won’t be back. Don’t take it personally, you were probably fabulous. They don’t return because they go where the discounts go. Here’s a little known secret, Groupon has a unique algorithm that tracks what its clients purchase. If they purchase a spa treatment, Groupon will target those buyers with more spa services to entice them to purchase again. The odds are stacked against you. You can win the price war, and the three tools you need are clients, contacts and customer service.
Clients A happy client is one of the best marketing tools you have. When was the last time you asked a client to tell their friends about you? Offer them a few referral cards and be clear on how you’ll thank them. A reward can 30
May 2016 © Skin Inc.
be an upgrade, add-on, product or a special price for a service. Research shows clients who receive a personal recommendation are much more likely to return than those attracted by a price or promotion.
Contacts Contacts you already have can make up your referral network. When you approach your contacts, let them know you’re building your business and would be honored to receive their referrals (or even them as clients). Give business cards, a menu of services and a short write-up of the benefits of skin care (if necessary). In return, offer to send people their way, if appropriate. The cross-referral can become a great relationship. Of course, plastic surgeons and dermatologists come to mind quickly, but think of the people you or your family interact with regularly. From pediatricians, OBGYNs, dentists, and other health care professionals, to yoga teachers, acupuncturists, and personal trainers, you are sure to drum up some business if you put yourself out there. Look for people who share your building, including massage therapists, nail technicians, hair stylists, accountants, attorneys, and even your landlord. Consider reaching out to parents, teachers and coaches to let them know about what you do. Do not forget about contacts at churches, youth groups, and charities, too. Contacting your local high school clubs and teams, and even sororities at a nearby college campus can expand your client base.
Customer Service Customer service needs to be the focus of your business. Instead
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of focusing on getting new clients in the door, focus on the clients you have. Are your spa services a customer-centric experience? Remember, the service is about them, their concerns and their experience. Imagine how your clients might feel or what they would experience while being there. If anything doesn’t seem just right, fi x it. Each client comes in for a different reason: some for relaxation and others for results. Find out what brings your clients in and deliver it. If they want to relax, deliver a tranquil, rhythmic (and quiet) facial experience... every time. Remember the saying: People can forget what you’ve said, but they’ll never forget the way you made them feel. Making your clients feel like the most important client not only keeps them coming back to you, but it can also add more stars to your online reviews. When you put your business growth in your own hands, not only do you get to choose who comes in your doors, but you also get to keep your profits. Building a business only takes your time, it shouldn’t have to take your money too.
Lauren Snow is director of membership for Associated Skin Care Professionals (ASCP). She is also a licensed esthetician and a public speaker whose work can be found in various industry trade publications.
Reproduction in English or any other language of all or part of this article is strictly prohibited. © 2016 Allured Business Media.