Is your profit line flat? There are many reasons why leaders fail to achieve high profits. Many overlook one of the most important aspects of their Spa/Medical Spa business success: Team Training. In this episode of Dori Talks, you will discover four essential business strategies to improve your retail sales and increase your profits.
It’s a fact: Billions of dollars are spent on beauty and self-care products every year! Unfortunately, most spas/medical spas are not getting their share of the market. The industry is missing out on millions and millions of dollars that can be generated from home care recommendations and retail sales.
As a medspa consulting firm, we receive phone calls daily from professionals who complain about the lack of retail sales in their business. When we ask them if they have a recommending system in place, expectations, bonuses, and consequences for a low performing team, the answer is usually, “no.”
If you answered no, how do you expect your team to improve performance and achieve better results if team members are not trained and are not being held accountable for their performance?
If you want to tap into these missed revenue opportunities, you must implement the following four strategies to plump up your profit line and improve your guest experience!
- Set Performance Expectations & Measures
- Tie Compensation To Performance
- Implement A Recommending System
- Train & Coach The Team
1. Set Performance Expectations & Measures
To improve your team’s performance, you must set goals and expectations. As spa and medical spa professionals, you have certain obligations to your clients and guests. Home care recommendations must be part of the guest experience! Educating clients about home care products and how they can gain better results is part of everyone’s professional obligation. Implementing training on how to use products is a key principle to helping your clients, the team, and yourself.
Set targets for home care products and measure results regularly. Don’t wait until the end of the month to discover your team members did not hit their targets.
Just like in team sports, the goal is to get to the playoffs and ultimately win the championship. The coach tracks every statistic from each game to help get his or her team to the top of the heap. You need to do the same. Track daily performance and watch your profit line grow!
2. Tie Compensation to Performance
Compensation plays a huge role in boosting your revenues, so address this if you want to improve performance.
Team members should get paid their true worth. The more they recommend the more they should earn. Create a bonus scale based on the average revenue per guest. Reward and recognize your team members for making recommendations, and share their success stories.
Your formula to calculate home care revenue per guest or VPG:
When leaders calculate their current average revenue per guest, most have an awakening on how low it is and how much money they are losing. Decide what your targets are and pay team members their true worth!
3. Implement a Recommending System
It is much easier for your team to recommend home care products and treatment upgrades if you have a recommending system in place. Systems ensure consistency, accuracy, and growth. Without a proven, effective system, your bottom line will be flat.
Fortunately, there are systems available to help you. Many spa and medical spa owners implement the “Don’t Sell, Recommend!” technique with the P.R.I.D.E. system, a philosophy focused on delivering a complete guest experience in your facilities and at home. The system helps your team easily identify your guests’ needs and concerns so members can recommend the appropriate home care products using the P.R.I.D.E. system. You may also develop your own system. Either way, you must have a system that you can teach your team to measure effectiveness!
To plump up your bottom line, the team must role-play and know how to help guests achieve their best results.
4. Training and Coaching the Team
Performance improvement should be an integral part of your values. Training is an essential component for the success of your business. It should be conducted often and must include role-playing.
Someone must be responsible for training and coaching the team. Again, we return to team sports. The coach creates the game plan, the team listens to the coach, and team members practice what they have learned. On game day, all team members have their plays down because they practiced over and over. That is role-playing.
We often hear clients say their team members do not want to role-play. Many leaders give up and don’t force the issue. Can you imagine a basketball or soccer player telling the coach that he/she does not want to role-play or practice? How long will that player stay on a winning team? You get my point.
Similarly, your team members must role-play recommending products and treatments. The more they practice, the more comfort and confidence they will have when recommending home care products.
Their training should include knowledge of clinical information, protocols, and the recommendation process to upgrade treatments and market home care products. Set a training schedule and make learning a fun experience in your spa and medical spa.
Consequences for Poor Performance
All this should really begin with the hiring process. When you are considering hiring a new team member, you must be informed that potential hire of your structure, culture, policies, procedures, philosophies, values, and so on. Your position description must outline the importance of guest satisfaction, results they can achieve with home care recommendations, and performance expectations. This must be outlined in your employee manual along with the consequences that will result if their performance is not up to par.
Your potential new hire should be informed of these guidelines prior to accepting the position. Once they agree and understand the performance expectations, then you can start managing and implementing rewards and recognition programs.
If performance does not improve, your consequences could progress accordingly:
- For new hires, additional training, and coaching
- First verbal warning, more training
- First written warning, more training
- Second written warning, more training
- If they don’t improve, let go!
The idea is to develop and train your team. But if you invest in repeated training, and they are still not reaching their goals, it’s time for a divorce.
Focus on selecting team members who want to develop their skills and grow, who care about providing their guests with home care recommendations, and who want to fulfill their professional obligation.
Mistakes to Avoid
Many spa leaders often focus all their energy on clinical training. This is important but guest results for home are equally important. Focus on guest satisfaction, results, and business training, then invest in team development. Teach your team members the essentials skills for success – and what that could mean to them. You will be amazed at the total transformation of your team!
It is time for the spa and medical spa industry to start maximizing opportunities by making the recommending process a habit. Focus on these four strategies, set new guest experience standards for your spa, and plump up your bottom line!