“ If a spa that offers a variety of services is looking at a membership model , they need to base membership pricing on what their cost of service is .”
— CG FUNK , Senior VP of Culture and Industry Relations , Massage Heights
When viewed in that way , spa memberships become not just a way to create a largely predictable revenue stream , but a way to create what Ellie Stefano calls a “ one-stop shop ” for a spa ’ s most dedicated local guests . “[ People ] don ’ t like to be sent every which way to go get whatever it is they ’ re looking for ,” Stefano says .“ I think the enticing thing about memberships is that [ guests ] are going to pay one standard fee and get all these great things — massage , facials , body treatments — all in one place .”
In addition to a 20 percent discount on spa services and retail , membership at Palo Verde Spa & Apothecary includes complimentary access to fitness classes , a discount at the property ’ s dining options , six guest passes per year , 24-hour fitness center access and more . The robust nature of their membership reflects the resort ’ s desire to incorporate the resorts varied offerings beyond the spa . Of course , every spa may not be able to incorporate such a wide array of benefits for members , but as Stefano points out , forming partnerships with , for example , a local fitness facility , may be an option for spas hoping to create a more wide-ranging package .
BUILT TO LAST In any case , focusing on what the spa and its staff are equipped to provide is a crucial aspect of planning what , exactly , a membership package should look like . For example , another reason the Palo Verde Spa ’ s membership includes so many benefits outside the spa itself is because , as a boutique spa with a small number of treatment
rooms , there is a practical limit to their ability to accommodate a high volume of members in addition to those visiting the spa as resort guests . “ Being a boutique spa , we had to be really strategic . From a planning perspective , it ’ s great to have 1,000 ideas , but be realistic about what you ’ re able to be responsible for and manage ,” Stefano advises .“ It ’ s always easier to add on versus having to step back and take away .”
The need to be able to effectively manage the membership program and not overextend themselves is another reason why the spa has the relatively modest goal of activating only a small number of memberships .“ We didn ’ t want it to be too much — then it would affect our customer service ," says Stefano . " We want it to be a luxury experience , and we want the guests to feel like a family member . We really tried to make sure that it was exclusive , so we can have that family feel .”
This guidance is similar to that of CG Funk , who notes that creating a successful membership model at any spa is about more than just what kinds of benefits are made available to guests . It ’ s just as important , she says , to make sure the infrastructure in the spa is capable of selling and maintaining memberships effectively while also coming out ahead financially .“ If a spa that offers a variety of services is looking at a membership model , they need to base membership pricing on what their cost of service is . Of course you ’ ve got your 40 percent that goes to staffing . You ’ ve got taxes , whatever those are , but what kind of products are you using in the back ?
How much does it cost to facilitate that service ?” Funk asks .“ I ’ m thinking specifically about higher use services and products , like facials . You ’ ve got to be careful — typically membership is less expensive than if you just bought one service , so you ’ ve got to figure in that cost of service and have a cushion for that , or you could be losing money at the end of the day .”
Also key in Funk ’ s mind ? Having spa staff — ideally specially trained staff — to educate potential members and sell the benefits of membership .“ You have to have a fully vetted membership sales program and training to make it work because people aren ’ t going to come off the street and say ,‘ Hey , I saw that membership sign . What is it ?’ So , that ’ s a huge piece of all this , and it ’ s critically important to the success of a membership model ,” Funk says .
On the management front , Kelleye Martin adds that spa management software can also play an important role in making membership work at any spa .“ Our booking software allows us to have a membership in it , which definitely helps us manage it ,” she says .
As with any new spa initiative , there is clearly much to consider before taking the plunge and rolling out a membership option to spa guests . That said , the spa that approaches membership options with a strong sense of the benefits they can offer loyal local guests and a clear plan for managing the undertaking has a chance to deliver exactly the kind of regular , routine self-care that so many people seem to be seeking in a more wellness-conscious world , all while adding to their bottom line . •
APRIL 2022 • PULSE 41