How to Maximize Revenue with Spa Memberships

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Copyright (c) 2013 InSPAration Management

One of the fastest growing franchises in the US today is Massage Envy. What makes this franchise so successful? Two main things: Their membership program and their business compensation model.

We often get phone calls from day spa owners fearful about the new Massage Envy that is opening around the corner from them, wondering how they can compete with their $49 massage. Everyone can compete with Massage Envy, Hand & Stone, and the other chains that are following this model. Yes, including you! You just need to make some changes.

You have to implement your own membership program so you can enter the playing field and compete. The first thing you need to do is look at your compensation model. Are you still paying 40% and 50% commission? If so, you need to STOP! There is no way you can have a successful business if you are still operating under this dinosaur spa business model.

Massage Envy pays $15 per hour, only when the therapist is busy. This represents a 30% commission. Plus, they earn their gratuity.

Then, you have to develop your membership program. Developing a membership program is not that complicated. You just need a recipe. Here are 10 Tips for Developing & Launching Spa Memberships:

1. Knowing Your Numbers

At what capacity is your spa currently operating? By knowing your capacity you will be able to set a target as to how many memberships you need to sell or how many memberships you can accommodate.

2. Types of Memberships

There are all types of membership programs you can offer beyond a massage. You can offer wellness, acne, weight management, massage or facial, and many others. Don't get stuck on only massage!

3. Pricing Your Memberships

Don't compete on price. Compete on experience. If you compete on price alone, you will lose, if you don't have the lowest price. You need to make it difficult to compete on price. Stop the apple to apple comparison and make it an apple to orange comparison instead.

4. Membership Management Tools

You can't have a great membership program if you don't have the right software program to manage it. Do your homework and have a software program that will support your membership program and track the financials and the usage of the membership.

5. Membership Agreement Guidelines

Dotting your I's and crossing your T's. You must have an agreement guideline to outline your program and make it clear to your consumers.

6. Creating Your Membership Marketing Material

This is where most people drop the ball. You can have the best membership program, but if you don't market it appropriately, you won't succeed.

7. Planning and Launching Your Membership

Now that you have created your membership program, it's time to prepare a campaign to launch it properly and ensure success.

8. Sales Strategies & Goals

Getting your sales material and strategies outlined are essential to success.

9. Team Training

If you expect your membership program to be successful, you will need to train the team on how to promote and sell the memberships.

10. Measuring Your Results

Tracking membership sales and measuring results is very important. It allows you to make necessary adjustments to improve performance.

Use these tips to develop your membership program and watch your business soar!

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