SpaBooker Tips for an Effective Spa Discounting Strategy

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The recent economic difficulties spurred the creation of discount sites and encouraged even luxury businesses to discount their valuable products and services in order to attract customers. Discounted pricing became a common marketing tool to attract and retain clients who, as a result, now come to expect it. Inevitably, those discounts eat away at already slim profits and can even negatively affect cash flow overall.

Why should you consider discounting in your spa's marketing strategy at all? "With the Groupon fad, the goal seemed to revolve around getting people in your doors," says Lisa Starr, consultant for Wynne Business Spa Consulting. "This shortsighted view of discounting led many spas into dangerous territory. They could only sustain business on one time customers for so long."

Group discount sites revolved around increasing the number of people coming through a spa’s doors. But for long term success, it is important to determine who your ideal client is and to create a marketing strategy to retain them, rather than simply attracting a high quantity of new clients. When using the group discount model, you focus your marketing efforts strictly on price and therefore tend to attract clients who are interested in price before all else, including quality, ambiance, experience, and the overall value of the spa services provided.

However, if your discount strategy focuses on a clear end goal, discounting will be much more likely to help your spa in the long run. "Effective discounts can be a great way to bring in new clients and spark up relationships with old clients who haven't been in in a while," says Starr. "The important piece is that you structure your strategy around turning these discount clients into loyal customers."

For more information, join us for SpaBooker's webinar, “The Dos and Don’ts of Discounting,” on Monday, September 9 at 1:00 pm EST. A group of spa owners, consultants, and the team at SpaBooker will discuss how you can turn discounting into an effective marketing strategy for your spa. Click here to register and we look forward to having you join us!