Revenue management Spas have been getting even more savvy about yield management since the pandemic began. Spa Business asks how software suppliers are supporting them
photo: zenoti - ezpulse
By booking a high-value facial versus a wax during peak times, the spa not only makes more profit on the facial, but also generates 45% of the treatment price in additional product revenue Frank Pitsikalis
Operators using our revenue management capabilities see a 30 per cent uptick on the average ticket size and an increase of 23 per cent in new customer acquisition. That’s because the system’s dashboards present sales, projections, and trends at all business levels, meaning owners have access to data and a bird’s eye view of where they’re at, where the business is taking off and what can be done to fully leverage and optimise this success. Zenoti offers several tools to help businesses drive revenue growth, including automated marketing programs that target customers based on their behaviour patterns, upsell add-on services for a visit and remind customers about their next visit. EzPulse and ezAds are two unique functions the platform supports – with the EzPulse mobile app, business owners and employees gain revenue visibility and insight by tracking key metrics against goals and
82 spabusiness.com issue 3 2021
Most software incorporates variable pricing (time of day and day of week), but ResortSuite also supports dynamic pricing and dynamic availability. Dynamic availability is our key differentiator, as it’s a more effective and powerful revenue management tool. Menu and prices don’t change, but the mix of when services are available changes, ensuring higher profitability during peak times and better use of non-peak times. ResortSuite revenue management takes many decisions out of the hands of staff and we find spas that focus on dynamic availability, typically achieve a 20-30 per cent increase in profit during their high demand days/times. As a side effect, more lower-margin services are pushed into non-peak dates/times, filling time slots that would typically go unsold. This creates an additional 10-15 per cent increase in profit during off-peak times. Revenue management is also used to ensure that the mix of treatments on offer positively impacts retail sales. For example, by booking a high-value facial versus a wax service during peak times, the spa not only makes more profit on the facial, but also generates on average 45 per cent of the treatment price in additional product revenue relative to other types of services.
Operators using our revenue management capabilities see an increase of 23% in new customer acquisition collaborating across teams with messaging capabilities built into the app. They can compare current performance to past performance, congratulate employees who are doing a great job and support those who are struggling. ezAds automatically manages digital ad placement across sites such as Google, Facebook and Instagram, helping the business acquire new customers. Spas only have to set a budget and ezAds takes care of the rest from allocating that budget across channels to figuring out keywords.