The terms spa membership and spa loyalty programs are often incorrectly used interchangeably with each other. So, in this article we will shed some light on what they mean, how they are different from each other, and how you implement them successfully within your spa.
Ideally you should implement both within your spa as the spa membership program provides you with a steady income, while the spa loyalty program ensures retention.
What is a spa membership program?
A spa membership program is where a client pays a specified fee on a regular basis (most usually a monthly spa membership) to receive specific services and treatments. It’s a win-win situation for both your clients and your company. They get to enjoy their treatments and products they enjoy at a discounted rate, all the while the membership keeps them coming back as well as knowing they are leading a healthy lifestyle.
A spa membership program gives you the benefit of a steady stream of income, reducing stress knowing that you won’t have to worry about when your clients will next book an appointment.
How do you create a spa membership program?
Here are the 8 essential steps you need to take to successfully create a spa membership program:
- Designing your program:
Start by deciding what type of program you want and would benefit your business the best. Don’t get stuck on a specific type of treatment, your aim is to offer something unique and beneficial for ALL your customers. We suggest combining treatments to give your clients a wide range of options to choose from.
- Set the price:
Don’t aim to be the cheapest option out there, aim to offer the most price-worthy program where you add the most value for your customers. Trying to compete only by price is a recipe for disaster.
- Managing your memberships:
Managing a great number of memberships requires the help of a membership software management system. It will help you with usage tracking, retention, attrition, and the general success of your spa membership program. We would not suggest implementing a spa program without one.
- Monitoring the monthly payments:
Set up an automatic system to keep track of the monthly payments, when they get through, and when they fail, as well as implement a collection process to avoid late payments.
- Set guidelines:
Set concrete guidelines for your spa membership program, and include a FAQ (Frequently Asked Questions) on your website to help your clients find the answers to “what happens if…”-questions related to accrual, cancellations, multiple use, payment, etc.
- Marketing and launching your program:
Before launching your spa membership program, create and sort out all your marketing materials such as posters, membership cards, website updates, membership agreements, etc.
- Conduct team training:
Implementing a spa membership program requires team effort. Educate your staff, set performance expectations, and implement rewards to ensure the success of your program
- Track member usage:
Tracking your member’s usage is essential to ensure a long, lifetime value of your spa membership program. If a member decreases their usage you need to be able to notice it, and then act upon it. The goal is to get your clients to make a habit out of using their membership on a regular basis. It’s a wise decision to send automated reminder messages to keep your client engaged.
What is a spa loyalty program?
Just as the name suggests – it is about loyalty, namely that the customer will choose your products, your services, your shop or your company above all others. A spa loyalty program refers to a system that rewards this loyalty from your customers. The reward takes on different shapes, everything from better prices to special customer events.
The spa loyalty program could be used for several different reasons. It could for example revolve around trying to hook your customers into becoming ambassadors for your brand. This means your customers like your company to the extent that they are more than willing to spread the word about you, engage with your company, or in another way help establish a good reputation for your brand.
Another way to use a spa loyalty program is for marketing purposes, for example by offering better prices on the products the specific customer often buys or would be interested in. It is a golden opportunity for upsell.
Spa loyalty programs can increase upsell
From a marketing perspective, spa loyalty programs are worth their weight in gold. Depending on their design, they can give you access to persons who already like your company and are more than likely interested in your products and services. Although this is not always the case. A person who’s frequently visiting your spa for a specific type of treatment, let’s say massage, might not be interested in a reduction in price in it for the simple reason: they know what they get for their money. Instead they might appreciate a reduction in price of other treatments, or simply a “Try-it-for-free” offer to help them experience and try out different treatments.
It’s not unusual for loyal customers to share their reasons why they like your company through social media or with friends and family. If someone you know recommends a service, a product or a company, their opinion weighs a ton more than traditional marketing. There are a lot of things you need to think about when creating a spa rewards program that fits your company and business.
How do you create a spa loyalty program?
There are several different ways to go about creating a spa loyalty program. Start by analyzing the customer. What do your customers want and why do they want it? How can you add value for your customers? Remember that it’s much easier and cheaper to retain a client than trying to attract new ones. This is one of the biggest reasons why spa rewards programs are so popular within ALL industries.
Following the research stage is time to set clear goals. What do you want to achieve with the spa loyalty program?
Then it’s time to design your spa loyalty program. A spa loyalty program needs to be simple and easy to understand. One great example of this is the programs used by airlines where you earn points for every mile you travel. Why not do the same for your spa? Offer points for every dollar your client spends. The more they spend, the more points they accumulate, and the better rewards they will receive.
Get professional help in creating spa membership and spa loyalty programs
Spa Business Education by Raison d’Etre has helped countless spa’s all around the world establishing successful value-adding spa loyalty programs and spa membership programs. Now it’s your turn.