reduce a guest’s price sensitivity on the other services
listed.
faction will improve. The project of creating and
enhancing a menu should be fun. it is, however, vitally
important to make updates and enhancements with a
clear purpose in mind. and then, you can track your
results. The impact your spa menu has on your business
is priceless. n
A clear Purpose
as spas become more savvy with the development and
refinement of their menus, revenues and guest satis-
KNOW
yOUr
NUmBErS
To optimize your revenues and guest satisfaction scores, it is
important to continually track your actual booking data. you must
know what services are being performed and what each service is
contributing in revenue to your top line.
Revenue Contribution: To determine the revenue contribution of
each service you simply subtract the fixed costs to perform the
service from the service price. (costs do not include labor, or any
other costs associated with running the spa like laundry, and
marketing.) The result gives you the revenue contribution
value of each service. This helps you know what services to
promote to generate the most amount of top line revenue.
Service Popularity: Tracking how many of each service
within a category is being performed over a given period
gives you the service popularity or service demand. But
please note, there may be inaccuracies in the actual
demand of a service. For example, a service might have a
low booking rate not because it isn’t being demanded, but
because of a lack or a staff or resources. Be aware of this
data.
Once you have this data, don’t be afraid to remove the services
that are continually underperforming. Eliminating extra
inventory and training time reduces overhead and allows
you to focus on the services which are most popular and
contributing the most revenue. also, tweaking services
that are popular but not high revenue contributors can
prove beneficial.
also, make sure you don’t discount your top
performers. It’s better to add additional service value
and avoid discounting.
also, I don’t recommend
discounting your Signature Services—that’s your brand,
and that’s not negotiable.
KATE MEARNS is a former ISPa Board member and chairman with more than 25 years of experience in
the wellness industry. In 2016, she started 5 Spa consulting to help spas overcome operational
challenges; in 2017, she joined LIVunLtd as Director of Spa and Wellness.
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