Retention Series Part 1: Understanding Retention

Retention Series Part 1: Understanding Retention

This blog series will focus on how to create a solid retention of clients in the spa. After some research I conducted, I discovered an interesting tidbit of information. Very successful spas and salons, retain 30% of new clients, and about 75% of existing customers. WOW! Wouldn’t it be wonderful if one out of every three new customers booked a follow up appointment?

Let’s take this a step further, wouldn’t it be awesome if the incredibly expensive marketing campaigns that brought folks to your door, weren’t in vain? This is probably the point that will get most of my spa directors/owners attention. I know that many of the spa directors I work with hold a measureable amount of resentment towards the money that has to be spent on marketing. And, although it still remains a necessary and integral part of running a successful business, wouldn’t it be nice to reduce those costs by keeping a higher percentage of those customers coming back?

Everybody likes to talk about developing grass roots marketing, so let’s take some time to look into what is keeping them coming back and even more importantly, telling their friends about their time with you.

This first part in the series is meant to help my readers understand what retention really means and to give a clear meaning of what affects the retention in a spa. My next few blogs will focus on how each topic below directly affects your success at keeping the retention up and stable.

Let’s start by defining retention as a statistic.

Retention is a measurement of just how efficiently your spa runs and how adept your business is as meeting the needs of each client that walks through your door. This is a powerful statement. I’ll ask you to take a minute to contemplate this concept. Think of each and every strength and weakness of your business, and consider how it relates to every single client’s experience. Each individual client has a very specific set of parameters that they consider making a business worth coming back to. And therein hides the secret of good retention: the client’s perception.

I want to zoom in on the idea of a client's perception. It can be a tricky and fickle thing. The great news is that clients are not afraid to offer their opinion without hesitation or fear. This is a marvelous insight, as business owners don't have to shoot in the dark. It also means that these same business owners must learn to listen and adapt to the true needs of the client. Business models must change constantly, and a spa directors ability to adjust will define their ability to create true retention. Owners must let go of what they think the client wants and embrace what the feedback suggests.

Retention is a collective success or failure. It is the sum of all parts of your spa, so for good retention, it’s important to find the weak links and strengthen the chain. For those who are struggling with retention, the following areas are crucial for you to examine and revamp:

·       The Receptionist: The behavior and language of the person who answers the phone and checks in/out clients.

·       The Therapist: The skill, confidence, and attitude of the person who performs the services.

·       The Look: The cleanliness and esthetics of your spa.

·       The Quality: The quality of your products and services, when compared to the price.

·       The Convenience: The ease in which clients can find your spa, book appointments, park their car, or are served once they arrive.

·       The Reputation: How you handle your public image and negative press.

For those of you who have steady retention, but want to boost or increase your average, here are the areas to look into:

·       Promotions: Do you offer competitive and market targeted promotions to bring in excitement?

·       Referral/Reward Programs: Do you have a comprehensive reward program for clients you help grow your business by referring others and coming back?

·       Internal Marketing: Do you promote all of your services inside the spa through print and staff word-of-mouth?

·       Staff Incentives: Is the staff rewarded for growing retention and cross-promoting?

For those of you just starting out, you can see how retention is a very multi-layered concept. My next blog will focus on the receptionist, as this person is ultimately the first person a client encounters. For my single estheticians out there, this means you too!

Stay tuned for my posting!