When it comes to boosting revenue in the New Year, make sure that retail is a significant component and not an afterthought. Retail can significantly contribute to the bottom line and attract new prospects as well as satisfy the needs of current ones. A study conducted a few years ago found that only about 20 percent of spas were completely satisfied with their retail sales volumes and inventory “turn rates” and 55 percent agreed that they could use improvement.[1]
If you are among those spas or massage practices that recognizes your retail component could use a boost, consider the following ways to move the retail needle.
Keep up with client needs
Talk to clients about the types of retail products they would like you to carry that complement your treatments. Once you find out, make sure to have enough merchandise on hand to meet demand.
Manage inventory
Ensure you have popular items on hand by deploying a software inventory program. It can keep a record of amount purchased and maintain an updated vendor list. It also can help with planning and forecasting.
Prepare your team
Your staff should be enthusiastic about retail sales. If they are shy about selling, provide training, which can include role playing so that staff knows how to approach clients keep the exchange natural. Training should include reviewing products you carry. Supplement talks with vendor sales material, so your staff becomes knowledgeable about product ingredients, competitive value, and proper application.
Boost e-commerce
If you sell via your website, consider adding chat and make sure that the purchase process is easy to use. If you have a newsletter include information about retail specials along with information on your spa or massage practice services.
Become skillful at cross selling and upselling
Cross selling involves selling clients a product or service that is related to what they already have purchased or requested. Upselling involves selling a higher priced service or product, by providing good, better, best types of options so customers can choose. Cross selling and upselling provide opportunities for additional revenue.
Master Merchandising
Your retail display needs to be attention getting. At this time of year, create a holiday theme around retail offerings. Change themes with the various seasons. In addition:
- Every good display needs a focal point or main item or feature you want the customer to see.
- Good lighting makes products stand out and enhances colors.
- Use bright colors as focal points.
- Create a retail space near the entrance with additional retail display areas in treatment rooms and even along highly trafficked hallways areas.
- Routinely change displays to maintain shopper interest.
Marketing matters
If you maintain a blog, make sure to include information about your latest products, discussing ingredients, use and expected results. Get more mileage out of blogs by posting links to social sites. Also reach out in email or text with updates on new products. Just make sure you have client permission to email or text and provide an unsubscribe option.
To ensure retail success, develop a retail sales plan for each employee and provide concise goals. Monitor performance and provide feedback.
[1] Griffin, Nancy, “Spa Retail,” Spa Business, Spa Business 2017 issue 3. https://www.spabusiness.com/spa-business-magazine/Research-Spa-Retail/32081