There is a lot of talk in the spa industry around the potential of passive income streams to boost revenue opportunities and build client loyalty.
Beauty memberships, subscription services, and loyalty programs are expanding and dominating the beauty market. If you haven’t considered offering at least one of these programs, you may be leaving profits on the table. Programs like these are incentive-driven and chock full of benefits to the client including service or product discounts and rewards.
The core categories for incentive programs are:
· Loyalty point programs for regular clients
· Subscription retail boxes and spa membership programs with a theme.
How do you decide what’s a good fit for your business? Take a look at the basics to find out.
Facial Memberships: Offering a series or packages of certain facial treatments has been around for quite some time, but what about offering membership options that feature add-on services and/or discounted products?
Examples:
1. The Monthly: A full facial every month to revitalize the skin and address current skin conditions. Set prices at a discount for the monthly commitment.
2. The Double-Month: A comprehensive full facial and a 30 minute express facial (or peel) to reset the skin each month at a special price.
One of the challenges estheticians face (pun intended) is convincing their clients that skincare is a necessity, not a luxury. The goal is to get them coming back to the treatment room on a regular basis. Monthly subscription memberships can be a great solution.
Loyalty Programs: These programs are popular and profitable among all kinds of businesses, and they work VERY well for spa businesses. Studies show clients are more highly incentivized to spend money at businesses who use loyalty programs. The following are 3 of the more popular formats:
Punch card spa loyalty program. Probably the simplest of all promotions – give the client a card, punch the card for each appointment or product purchase, they get their reward when the card is filled. You can use a physical card or a digital system to keep track of client’s purchases.
Points-based program. There are digital systems available that make points-based programs easier to navigate, but basically the spa’s services and/or product purchases earn a certain number of points. When your client reaches the total set by you, they receive their bonus, gift, or reward. Then the points are reset to zero and start over.
Tiered points system. These programs are more complex and are most commonly set at a minimum of 3 levels – for example – Ruby, Sapphire, Diamond or Bronze, Silver, Gold. Tiers are based on how much the client spends, which gets them to a specific tier which has its own incentives or perks. Make sure you have adequate marketing materials that explain how the system works. Clients must be able to easily see how they benefit and what the value is to them.
Subscription Service: Any product purchase that can be automatically billed on a monthly basis. Subscription boxes are very popular these days with companies like IPSY, Birchbox and Boxwalla offering a wide variety of skincare products and beauty solutions. You can start simply, however, offering just one product, especially if it is a signature product from your spa. A very successful esthetician, “The Toner Queen” specialized in a monthly subscription service offering just toners for her client’s different skincare conditions.
Many of your spa clients may be getting subscription boxes already – they are fun, and the contents are always surprising which is why they are so popular. They’re also a good value, as the total cost is usually less than what you would pay to purchase the products separately.
Some examples:
Day Spa Box. Clients can have their own DIY spa day at home (and think of you and the next time they can get in for a treatment!) Products can include a gel, cream, or sheet mask, exfoliant, facial oils and aromatherapy oils for steaming.
At-home facial kit. These grew in popularity during the pandemic. A customized skincare kit for your client based on either an in-person or virtual skin diagnosis (or you can use a detailed online questionnaire). Include step-by-step instructions for use from cleanser to mask, eye, and lip treatments. Clients can receive information on key ingredients in their skincare products, application tips and professional advice. These can be printed or delivered via an instructional video and a follow up virtual chat via Zoom or Skype.
Other program ideas:
Monthly memberships. Charge a monthly rate for clients to get discounted products and treatments. The method still rewards your clients for their loyalty, while bringing in monthly revenues that can be predicted. They can be charged monthly, quarterly or annually (many memberships offer a discount if an annual membership is purchased over a monthly one) and are easily customizable. You will need to be diligent in making sure your members get their monthly appointments scheduled when and with whom they prefer.
Spa Passes. A spa client fave, passes are perfect for clients who want to get the most value for a series of the same service(s) by purchasing five services for the price of four (or a BOGO – buy one, get one). Spa passes can be upgraded if the client wants a different service that is more than what the pass covers. Spa passes typically never expire, which is something to be aware of.
Whatever program you choose will depend on your ability to continually engage with your client and your unique brand and messaging. Loyalty programs will help increase your word-of-mouth referral business because satisfied clients ALWAYS share their positive skincare experiences, products, and must-haves. Take some time to research and find the loyalty program that best suits your spa business and give it a try. Watch your bookings and your bottom-line increase!