VOLUME 01WWW.SPAMANTRA.IN                                                                                   ISSUE 04      ...
spaBUSINESS                                       74                     Spa Academy Snapshot                       A glim...
SPA BUSINESS         Using Spa Management         Systems to Enhance        PROFITABLITY                                  ...
date, allowing you to analyze historical    their relationship and increase future      Using this data, management can se...
SPA BUSINESS        inventory turn times and restocking                                             One of our goals in ad...
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Using Spa Management Systems to Enhance Profitability, SpaMantra India

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Using Spa Management Systems to Enhance Profitability
Spa Mantra India
Nov 2011

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Using Spa Management Systems to Enhance Profitability, SpaMantra India

  1. 1. VOLUME 01WWW.SPAMANTRA.IN ISSUE 04 India’s Spa & Wellness Magazine NOVEMBER - DECEMBER 2011 `100 Spa Planning & Design Conceptualizing Spas for Hotels What’s your LOHAS? Adam Horler talks about ‘green’ and sustainable lifestyles NURTURING LIFE Spa Paradise Pune’s 10 most indulgent spa getaways Jiva Spa
  2. 2. spaBUSINESS 74 Spa Academy Snapshot A glimpse of India’s most renowned spa academies 82 Pure Beauty Clarins, the iconic skincare brand has been in India from the last 11 years... 86 Using Spa Management Systems to Enhance Profitablity Spa Mantra | November - December | www.spamantra.in 73
  3. 3. SPA BUSINESS Using Spa Management Systems to Enhance PROFITABLITY Writer | Bill Healey T he spa industry, like all Perhaps one of the key bene ts to treatment history, retail purchases, business sectors, is continually employing advanced software is the inquiries and complaints. The system monitoring performance depth of data they’re able to collect should ensure that the spa captures to ensure they’re meeting about their guests. Utilizing software and stores data on every interaction revenue and pro t targets. Software tools, the spa is able to enhance the between the spa and the guest through tools have been available for more ways in which they interact with their all communications including email, than a decade to assist directors in guests. telephone, fax, website and personal managing and enhancing the way they visits. do business. They’re able to: • Message the data into usable, • Build and maintain an extensive The spa software market has matured, accessible management and marketing database of information on the spa’s and some developers are providing information. Ensure the data is up-to- guests. This includes pro les, contacts, leading-edge solutions that provide signi cant bene ts -- from how the spa’s services are marketed to local clients and tourists, to how staff and transactions are tracked. Some of the more recent software advances also involve signi cant reduction in up-front investment through adoption of cloud- based computing. A description of a few of the many potential bene ts follows. This is far from being a complete list. IMPROVED CUSTOMER RELATIONSHIP MANAGEMENT (CRM) “Technology in a spa provides a conduit for good customer feedback which, in turn, provides a clear synopsis of guest needs and preferences. This vital data allows you to tailor spa treatments and marketing activities to focus attention on making your spa a more pro table enterprise.” Warren Kok, Director of Marketing, China National Spa Association.86 Spa Mantra | November - December | www.spamantra.in
  4. 4. date, allowing you to analyze historical their relationship and increase future Using this data, management can setdata to identify trends. Make the business. pricing strategies to manage demanddata accessible to management and at each level. In times when demandmarketing teams on a timely basis, The spa can also send automatic is strong, prices could be increasedallowing for corrections to stay in- con rmations for upcoming to bring demand more in-line withline with preset CRM strategy. Use appointments, which provides yet supply. For times when demand isthe software to develop response another opportunity to highlight weak, enticing local guests with lowerand contact strategies that improve products and services in a message priced treatments may be an effectivecustomer relationships, team the client is more likely to open. These measure to increase demand and boostproductivity and pro tability. event-based, outbound messages pro tability. are seen as being less intrusive since• Share data across with proper they are based on recent interactions. Analyzing demand and setting pricingmanagement and marketing personnel Some have estimated that event-driven models is dif cult when maintainedto provide staff with a 360-degree marketing efforts produce response by pencil & paper, or on a standardview of the guest. This enables your rates ve times greater than traditional spreadsheet. Effective review ofteam to provide a better service to the outbound campaigns. demand, and setting pricing structures,customer, and gives them the tools to becomes a much simpler task whenidentify sales opportunities based on Consider enhancing your guest using an effective management system.the customer’s history and preferences. relationships further though the useThis access should be available at any of social media. Gartner Research EMPLOYEE PRODUCTIVITYtime, 24/7. addresses the growth in the use of Employee productivity can be positively social media to enhance customer affected by the installation of anA useful spa management system will service, forecasting that 30 percent of integrated Spa Management System.allow you to improve the frequency leading companies will increase use By electronically integrating the bookingand quality of customer contact by of this tactic by 2013. Data from social agenda with client pro les and salesautomating and personalize customer communities can be used to enhance data, spa managers can receive dailycommunications. Use personal dates customer pro les, improving service and monthly statistical reports at thethat are important to your clients. and guest satisfaction. press of a button.There are important dates in everyperson’s life, such as his or her MAXIMIZE YIELD PER Of particular value is the ability to knowbirthday, anniversary, child’s birth, TREATMENT when therapists may have down-time,graduation or job promotion. Each of A signi cant bene t of maintaining or time not booked into treatments.these events provide an opportunity historical data within the system is the These staff can then be assignedto promote the spa’s services and ability to use statistics to maximize to other tasks, such training for newproducts at a meaningful time to the yield per customer. Most spa directors treatments or cleaning and maintainingclient. will recognize that the demand for another part of the spa. Analytic tools treatments greatly exceeds the supply will inform management that theA personalized email wishing the client during certain parts of the week, or scheduled staff are working towarda happy birthday, or a special his even certain parts of the day. Using making the spa a better place to be.and her service on their anniversary historical transaction data the managerprovides a much greater return on can recognize when demand is strong, REDUCE INVENTORY COSTS ANDmarketing initiatives. Since these when it is moderate and when it isevents are signi cant to the client, the OUT-OF-STOCKS weak.spa has an opportunity to strengthen Knowing more about the historical sales pattern at the spa’s retail shop, and keeping track of minimum stock levels will assist in lowering the cost of Technology in a spa provides a conduit for good both retail and professional stock. customer feedback which, in turn, provides a clear synopsis of guest needs and preferences. This When inventory and sales records vital data allows you to tailor spa treatments and were kept manually, the only way a spa marketing activities to focus attention on making would be able to keep retail items in the your spa a more profitable enterprise. boutique and professional items in the treatment rooms would be to maintain - Warren Kok, Director of Marketing, a very high level of stock. Managing China National Spa Association. Spa Mantra | November - December | www.spamantra.in 87
  5. 5. SPA BUSINESS inventory turn times and restocking One of our goals in adopting a times is a very dif cult task when corporate standard IT solution is to manually maintained. keep up-front costs as low as possible, With a properly implemented retail and to reduce our carbon footprint while and point-of-sale system, lower levels saving on power costs. of inventory can be stored in both Christine Hays, Vice President, Spa Operations, the boutique and treatment rooms. Oberoi Group. Each item is given a value that alerts management when these low-inventory Economic factors have been pushing computing is the ease of access to the levels are met. Further, the system spas and small businesses toward spa’s vital data -- anywhere, anytime. provides re-stock levels to ensure spa cloud computing, an alternative to the Spa Directors are a very mobile group. management places an appropriate costly client-server model. In broad One day they’re at the Indian Spa order with suppliers. terms cloud computing is the use of & Wellness Association’s Summit in software, platforms or infrastructure Mumbai, another day in Delhi and then REDUCING THE COST OF offered by web-based service off to Shanghai, Bali, Phuket, New York TECHNOLOGY providers. By eliminating the need for or elsewhere. ”One of our goals in adopting a costly servers, locally hosted software corporate standard IT solution is to and extensive training, a site can Placing spa data on the cloud allows keep up-front costs as low as possible, realize a signi cant cost-savings. managers to access corporate data and to reduce our carbon footprint while from their iPhone, iPad or other mobile saving on power costs,” Cloud computing service providers device. The manager may be in Paris, Christine Hays, Vice President, Spa focus their operational expenses on but have a need (or simple curiosity) to Operations, Oberoi Group. IT at a higher level than a business see how the spa in Delhi is performing. with a dedicated IT department. Cloud computing allows them the Historically, spas implementing Because of a sharing of infrastructure, simple ability to query spa performance management software required an up- cloud providers can achieve better from anywhere. An interesting bit about front purchase of hardware, software economies of scale, particularly as their the cloud solutions – it can make initial and training to the tune of US$ 30,000 client base grows. These savings are investment much lower while providing to US$ 50,000 or more. This would passed on to the end-users ...the spa. easier access to data from anywhere, be for each spa -- a very pricy option 24/7. for both startups and multi-property An added bene t to adopting cloud organizations. After a decade or more of various spa software options, the industry has matured and now provides a very robust and reliable set of tools to make a spa more pro table. Following general market advancements, utilization of spa software has also allowed broader access to vital data allowing the spa to enhance customer service, increase revenues and minimize up-front investment. BILL HEALEY Is a 30 year veteran of the leisure software industry, with a history of market development in Asia, the Americas, Africa and Australia. He is working with India-based IDS Softwares, managing the firm’s position in the global Spa & Wellness sector. Email: healeywe@gmail.com B: http://leisuresystems.blogspot.com/88 Spa Mantra | November - December | www.spamantra.in

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