Winning with Data in the SPA sector

In the spa sector, loyal clients account for between 50 & 80% of a SPA’s total revenue. Highly engaged clients purchase 90% more than those who are not. Today we discuss how you can use your CRM system to collect the data you need to turn your loyal clients into opinion leaders.

Firstly, brands need to spend more time in open dialogue with their clients. Too many use marketing platforms that suit their proposed route to market, as opposed to really listening and understanding the platform their clients use. There is nothing more frustrating for clients to purchase a product from your spa to then receive a discounted promotion for the same item through a remarketing program you have in place on google or facebook.

Understanding your clients through the collection and interpretation of data should be your primary goal.

Achieving true personalisation.
Interestingly, research from SalesForce suggested that 57% of consumers are willing to share personal data in exchange for personalised offers or discounts. Similarly, 52% of consumers would share personal data in exchange for product recommendations, and 53% would do the same for personalised experiences.

In a previous blog, we discussed about how, currently, true personalisation is still difficult to achieve for most. Turning up at the right time, in the right place, with the right communication is just not possible for many within the SPA sector. However, that is not to say that by working closely with your CRM system, you can increase your chances of meeting your goals.

Take product sale for instance. If you create a field in your clients notes showing what massage oil they preferred following their latest treatment, you can communicate with them directly once this product is available to buy, or more importantly, provide an email with a promotional code offering a discount on purchasing the product for use at home.

In addition, simply exporting a list of your clients last few booking days and times, you can get a good indication of when they are likely to book again. Thus, making sure you don�t miss out on their business by dropping your communication in at exactly the right time.

Creating customer loyalty.
Often, the relationship in the SPA industry comes with the therapist, and not necessarily the business (or brand). Personal relationships between your therapists and clients are critical to your success. Add loyalty programs, referral bonuses, product freebies, birthday clubs and other promotions aimed at existing customers to create repeat business. Personalise your communication from your therapist, not from your computer and achieve the appearance of regular human contact with each client to make sure they are happy. In addition, make sure you collect exactly

Understanding customer lifetime value (CLV).
At the heart of understanding CLV lies the recognition that a customer does not represent a single transaction but a relationship that is far more valuable than any one-time exchange.

There is a myriad of ways to calculate customer lifetime value, but the simplest one involves just three components: the average order value, the purchase frequency, and the customer lifetime length. Understanding your customer lifetime value can support you in understanding those who have the potential to be your promoters. Those who advocate your business and help drive the referrals you need to grow your business.

Identifying and understanding promoters.
We all love the customers who are our raving fans. When working with our clients, we help them determine a plan to effectively leverage their Promoters. By leveraging I mean making it easier for Promoters to refer your company to others. Think about your Promoters as a consequential sales channel: a referral from a loyal customer (Promoter) has a 92% retention rate versus 68% for a customer acquired from advertising.

In summary, you need to look at the data your CRM can export. Once this is understood you can ensure your entire team from marketing to therapists embrace data-driven decisions allowing you to quickly adapt to changing consumer needs and perceptions.

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