Spa Sales Goals
The physician owner and his or her staff really have to shift their thinking when it comes to how best to compensate providers and staff in the spa facility.
“Medical providers are used to being paid a salary and getting benefits. What they’re not used to being held accountable to productivity goals,” Durocher says.
Durocher has mapped out four specific areas in which spa staff need to be accountable in meeting set sales goals: service packages, retail dollars, retention and pre-booking. These, he says, have been demonstrated to work in the beauty industry and others.
Before starting these programs, however, practices have to be set up with computerized spreadsheets and software so they can easily monitor these areas. They’ll also have to train staff in how to meet their goals.
1. Service Packages
It’s key to sell medspa services in packages when possible. Why? Cash flow, Durocher says.
“I sell a series and collect the money upfront. That’s good for me and good for my business. You as a patient are more likely to come back on a regular basis to maintain your services because you paid for them. Then, with all your subsequent visits, you’re going to spend more money because you’re not paying for that service (you’ve already paid),” he says.
2. Retail Dollars
While physicians in a medical practice might be hesitant to sell products, people who work in a medspa or spa have to sell products because the real margins are in retail, Durocher says.
“If I look at a new facility, I allow 20% of the square footage for building a retail store,” he says.
Owners and managers track sales as a percentage of retail service dollars. So, if in a pay period, an aesthetician sold $10,000 in services and $2000 in retail sales, his or her retail service dollar would be 20% of retail sales service.
“It’s very important that we’re recommending retail because retail is a tool for retention. If a patient leaves the practice with two products that they purchased, they are 40% more likely to come back and to see you than if they left with nothing at all,” Durocher says.
And clients want products that help them maintain their beauty.
“I guarantee if a patient is spending $3000.00 on a service plan, [he or she will] spend $700 on skincare to make sure to maintain that service plan,” he says.
3. Retention Goals
It’s not how many patients a medspa gets, but how many it keeps, Durocher says.
“Let’s say you’re new to my practice, and I have two providers. One has 40% retention; another has 80% retention. Who am I going to give the patients? The person who is twice as likely to keep them,” Durocher says. “If the 40% person doesn’t like that, I would say to work on those retention skills, and when she brings up that number, I’ll be delighted to give the new patients at the same level.”
Durocher sets the staff goal for his medspa clients at 120 days, where at least a certain percentage of patients would request to return within 120 days of their last visits.
It’s important to track and hold staff accountable for pre-booking because it helps to put the provider in control of his or her schedule, generates future business and creates consistency and stability within the medspa.
“The magic number for pre-booking is we want to get at least 75% of our patients on the books for their next appointment before they leave, so we can forecast our numbers,” Durocher says.