Ms. Segerberg

Spas, Health & Fitness

Simplify Your Spa Operations - Throw Out the Bathwater, Not the Baby

By Jane Segerberg, Founder & President, Segerberg Spa Consulting, LLC

Remaining focused on our core business is difficult with the distractions of the media's hysteria regarding consumer frugality and its effects on all of our businesses. The Hartman group, Inc. recently released a voice-of-reason overview of the new consumer frugality. Having studied the issue with a trending, ethnographic and cultural longitudinal analysis filter, Hartman brings reason to the hype. Are consumers going to quit buying or simply buy less? Will consumers shop differently and how? Will consumers modify their habits and will any of these changes be permanent as the economy recovers?

There is no doubt that in the short term our guests will spend less, but spending less doesn't represent a change of intent. Our guests will still take vacations and spa visits, and in doing so they will look for better value and promotions, even from their favorite brands.

The bottom line advice is not to jump to conclusions and make regrettable mistakes, but instead, listen to our own consumers and listen to them through direct communication, not through what others tell us. Learn first-hand what is important to current consumers so simplifying operations is prudent and the 'baby' is not thrown out with the 'bathwater'. The very essence of the reason spa goers seek spas, to feel nurtured, rested and renewed will not be lost in the process.

The pressure is on to keep business levels as optimized as possible and therefore, it is important to keep our loyal guests as well as attract new guests. We want our spa guest return again and say "I got my money's worth".

Simplification Selection Strategy

The core business of spas ('the baby') is the business of nurturing. Whether the guest comes to the spa for a massage to work out the kinks from a round of golf or to have a skin smoothing facial and a pedicure, the underlying fundamental expectation is to be nurtured with a targeted and meaningful spa service experience, not just a spa service. Guests value the entire service experience that they receive, not the service (treatment) alone that they receive.

It is also during these times of stress at every turn of the road in the business of life and business itself that our guests need the nurturing spa experience. Guests are looking for the service experience that delivers The Value where it counts and not for the most exotic treatment on the list. We can expect that our guests will demand more in exchange for what they pay. Guests won't necessarily look for the bargain, but they don't want to overpay for what they consider is rightfully theirs.

Our mission is clear; simplify but not where it touches the Spa Guest Experience. Be efficient but not chintzy. Make changes that make sense for the long haul and most of all make it a team effort - get all employees involved. After all, they want to see their guests returning too.

10 Simple Strategies

1) Compensation

Let's take the most obvious and yet the most complicated expense that spas incur first - - salaries and wages. A typical blanket % pay reduction or personnel reduction won't work in the spa arena without losing the essence of the spa experience. What will work is the more efficient use of employee time, and an adjustment in how they are paid, scheduled and trained.The guest that enters the spa changing/locker and lounge spaces during a slow time of the day should expect to have and attendant available to assist them with their needs just as they would if it were a busier time period. A guest calling the spa to make an appointment shouldn't be subjected to eternal hold or tossed immediately into voicemail and have to await a call-back in order to make an appointment to 'reduce stress'

The answer to cutting back salaries and wages without losing the expected level of service is to cross train, approach scheduling with keen prediction, and consider a different approach to compensation.Cross training involves not just the line staff, but also the supervisory and management levels. Managers and supervisors can step in easily during lunches or at gaps in employee scheduling. Be aware that although management understands the service ethic, management often does not understand the details of performing the position. The bottom line is that if management intends to step in, management needs to know the service steps to be performed in the locker room as well as how to book an appointment, check in a guest, sell retail and check out a guest. When training the reservations, front desk and spa attendant positions, be sure to include management.

The spa service staff members that have the aptitude for spa reservations, attendant and front desk can be trained to step in, as well. With a cross-trained pool of personnel, less staff is required to maintain the expected level of service.Therapist schedules should be managed on not only a weekly but also a 'day of' basis. Since a shift in the weather can dramatically change the level of business within a four hour period, a constant check on service staff levels is necessary. When the schedule does not meet the demand, two extremes develop: either too many staff receiving an hourly wage but not performing treatments for the spa or unhappy guests unable to schedule a treatment because rooms are available but there is no service staff to perform the treatment.

In addition, consider pay adjustments that focus on rewarding the staff when the spa makes more money. For service providers, place the pay emphasis on the flat-rate commission per service rather than the hourly. Commissions for service staff who can perform more services and/or are trained to deliver more modalities can be higher since these staff members are more valuable. A staff of multiple modality service providers requires less staff on the payroll.

Salaries can be kept in check by including bonuses in the compensation package. An incentive bonus for supervisors and managers placed on a sliding scale basis that correlates with the amount of business produced is a win-win solution for everyone.

2) Treatment Product Controls

As a team, lead estheticians and therapists along with supervisors and management should review all back bar product procurement procedures and make refinements to more tightly control the use of product. The goal is to ensure that the amount of product used correlates with the number of treatments sold and performed. Tighter controls in dispensing back bar product will result in product cost savings. Unfortunately, product will slip out the door to support the service providers' supplementary businesses as well as usage to perform non-reported upgrades to services to gain and extra tip or guest loyalty.

3) Menu of Services

Review your Menu of Services for simplification. Unpopular or seldom performed services aren't just place holders on your printed piece, they require product to support them. By ridding your menu of less popular services, you are reducing your backbar inventory at the same time. In addition, consider treatments that may attract new and current guests with a value of time as well as money. Offer shorter, more targeted services such as Specific Area massage and Express Peel facials. Get the guest in the door for the first time for a shorter treatment, give them good service, and you will see them return for more.

4) Retail Sales

Review retail sales for those items that are very seldom sold. If not many SKU's of a product has been sold during the year, consider getting rid of it. Some suppliers will take the product back as credit for higher volume sellers. Otherwise, sell it at a featured discount.

Review your retail for those items are popular, can be received quickly from suppliers and therefore enjoy the highest number of turns and focus on them.Continue to incentivize retail sales - and a sliding scale incentive works very well here.

5) Spa Amenities

Review storage and ordering procedures. Are you ordering in amounts that offer the best pricing? Are you storing in secure areas to avoid staff and guest theft? (A sad but true, phenomenon). Are you dispensing amenities in a thrifty yet service-oriented procedure? If you remove an item from guest available areas, be sure that the staff is trained and available to offer the items.

6) Staff Service/Hospitality Training

In this economy, value is king and therefore, the manner in which a guest is treated during their spa experience is king. Clearly, hospitality training is the keystone of delivering a delightful guest experience and therefore, the added value that creates the desire to return and/or recommend your spa.

When business is slower, it is the perfect opportunity to review hospitality training to pare it back to the pieces of hospitality that really work (leave out the tedious hype) and then re-train the staff.

Afford the additional costs of training by reducing training wages. After all, training is also a gift to the staff. It adds to resumes and it helps staff do their job better and become an indispensable staff member.

7) Hours of Operation

Review the hours of operation for trimming opportunities. When reviewing, have a keen eye as to the domino effect of shortening operating hours. Sometimes trimming just 1/2 hour off of opening and closing makes sense and saves staff wages, but watch for the effect on deliveries, other activities such as fitness that may require the front desk to be open, etc. Also consider 1/2 day or full day closing on slower days (days that are typically departure days); your numbers will give you a good picture of the possibilities.Keep in mind that it may be that some closures or shorter hours are seasonal, and always keep in mind that demand from a large group can extend the hours and also be a great deal closer for group sales.

8) Plants, Flowers, Decorations

Fresh flowers are wonderful and expensive. Consider live plants or a more permanent and warm/intriguing piece of art such as a meaningful icon or artifact in place of fresh cut. When you do the math, the cost of the purchase will easily be paid for by the savings in fresh cut.

9) Printing Costs

Spa information and references to the spa throughout the hotel/resort and its outlets are extremely important. With spa menu information readily available on line and in in-room materials, the need for printed materials is reduced.

In addition, several bound copies of the menu placed at the spa desk and spa lounges reduces the need for the extensive use of menus at the spa.

Keep the menu simple, tell the guests what the treatment is, the results and the benefit in short, quick descriptions. The colorful, descriptive piece that mirrors the online menu is for mailed correspondence and group sales.

10) "Recession Attitude"

Not really a simplification, but a reality check - - Staff are responsible for pointing out options to heighten the guest's pleasure and results in treatments and take home products and regimens as well as offering an invitation to return to the spa. Staff cannot assume what a guest will or will not be willing to afford. If anything, this is the time to refine and improve the front desk service and sales tactics, not allowing them to fall prey to 'doom, gloom and assume'. Be sure that guests are apprised of their options and opportunities.

In Conclusion

Simplify your spa but save the guest experience. Look beyond the initial impulse to do a blanket staff cut and you will find other areas to do smart and efficient business while maintaining and growing loyal guests.

After all, maintaining guest loyalty now, in these tumultuous times gains a loyal guest for a lifetime.

Last, but not least, - - don't simplify the praise and encouragement. Everyone needs it, especially now. It doesn't take money to keep your staff pumped; it takes time and a listening ear. When your property receives awards or various departments achieve or exceed goals, don't forget to praise and thank employees. Seems like the obvious, but oops! It is sometimes forgotten and many properties, even the most top ranked, are often guilty of the omission. This is the time to let employees know that we are all in this together and will work hard together as well as celebrate together.

Jane Segerberg is founder and president of Segerberg Spa Consulting, LLC., a multi-faceted spa consulting and management company with an industry reputation for creating spas that work –they are compelling for the property’s market, attain recognition, engage guests in memorable experiences and achieve bottom line success. Over Jane’s thirty-year history in the wellness, hospitality and spa industry, she has become recognized for providing outstanding service and keen attention to detail. For company information please view http://www.segerbergspa.com. Ms. Segerberg can be contacted at 912-222-1518 or janesegerberg@yahoo.com Extended Bio...

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