Essential Steps to Launching Spa/Medi Spa Memberships and Loyalty Programs. Want to Learn How to Make Money While You’re Sleeping? Read This Article
Memberships and Loyalty Programs have been in existence for years by companies such as Sam’s, Costco, AAA, churches, country clubs, and airlines. They have utilized them over and over successfully.
Yes, even the spa industry is now on the band wagon. In 2009, Massage Envy opened their first location offering massage memberships and now they have over 1,000 locations. It proves that the U.S. population loves to belong to clubs and be members of an organization. Now, there are several other brands launching similar membership programs. As a consulting firm, we often get asked “How can I compete with those types of businesses?”
You can by creating unique membership and loyalty programs. There are many benefits to offering a membership and loyalty programs. First, let’s identify the difference between the two.
A Membership Program is where a person agrees to pay the spa a certain amount per month to receive a treatment. The monthly fee is charged automatically.
A Loyalty Program is where you give your clients rewards for doing business with you over and over.
Ideally, you should have both! The membership insures a steady cash flow and the loyalty program insures retention.
Here are 8 Essential Steps to Launch a Unique Membership Program:
- Design Your Program: Decide on the type of membership program you want to offer. Don’t get stuck on offering a massage only membership. Remember you want to be unique. You can offer a *De-stress Program – massage & other spa treatments. *Acne – adult/teen or both. *Wellness and Nutrition * Anti-Aging, etc. There are several options you can offer.
- The Right Price: Don’t worry about being the least expensive. Focus on the type of experience you offer and introduce added value benefits. You won’t win if you compete on price alone.
- Membership Management System: Having a membership management software system is a must. Don’t attempt to launch a program without it. This will assist you with member usage tracking, retention, attrition and overall success.
- Monthly Payment: Automated payment processing capabilities are a very important management step. Be aware of failed payment. Have a collection process in place to avoid member late payment or delinquency.
- Membership Guidelines: Have FAQs (Frequently Asked Questions) and answers to all the “What if” questions, such as: Accruals, Cancellations, Multiple Use, Payments, etc.
- Marketing and Launching your Membership: Create all your marketing material, posters, flyers, membership card, update website, agreement, brochure, etc.
- Team Training: Selling the membership program requires a team effort. Make sure you train your team. Set performance expectations and rewards to insure your success.
- Track Member Usage: To insure a long lifetime value, make sure you track usage. You don’t want members to miss their usage. If they do, the likelihood of canceling is greater. You want them to get into the habit of using their membership on regular basis. It’s wise to have automated reminder messages to keep members engaged.
Spa Loyalty Program
The best loyalty programs are simple and easy to understand. The Airlines model where clients earn a point for every mile traveled is an excellent practice. You can do the same and offer one point for every dollar your guest spends. The more they spend, the more points they accumulate.
To redeem points earned, you can create a brochure with items they can purchase with their points. For example, you can have branded items such as: Spa Robes, Neck Wraps, Water Bottles, Wellness Books, fun things that are rare and can’t be found in stores.
If you are not offering a spa/medi spa membership and or a loyalty program, I encourage you to do both. Tap into this great revenue stream to increase your spa’s retention and profits!
Need help creating your membership and loyalty programs? Call us or contact us.
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