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Last year, the beauty and wellness industry started to face a noticeable slowdown in revenue growth. Whether or not you saw this trend play out at your salon or spa, every business benefits from ways to drive more revenue with every guest visit. It improves the financial health of your business, as well as your providers.
In a recent Zenoti learning session, our experts offered 5 ways to improve per-visit revenue – and we’ve summarized them below. Watch the video now.
The topic: How to optimize guest spending to boost salon and spa revenue
The experts:
AnneMarie Krainich, CEO and Founder, Ottalaus Salon. Offering a spa-like experience at three Utah locations, Ottalaus is a four-time Salon Today Top 200 winner (2020-2023).
Alyssa Venere, Salon and Spa Business Consultant. Alyssa combines a deep familiarity of the beauty and wellness industry with expert knowledge of which technology levers to pull for business growth.
In a dynamic market, static pricing models don’t always yield the highest possible revenue. With flexible strategies such as dynamic pricing and peak-day premiums, you can adjust your prices based on demand. By doing so, you’ll maximize income during high-traffic periods, like Uber does with cab fares. Taking this approach ensures that your revenue reflects the value you provide, especially when your salon or spa is busiest.
Using software to automatically adjust pricing means the increases happen behind the scenes, leading to an easy booking and checkout experience for guests and staff – with no surprises for either.
Offer customers easy ways to see – and book – recommended add-ons when they schedule appointments online. They’ll see the value in an additional service or product, and you’ll be able to increase the invoice total before the customer even walks into your shop.
Guests looking to enhance their service (adding nail art to a gel mani or aromatherapy to a massage session, for instance) can do so and book the complementary services ahead of time. Offering online add-ons is also an exceptional strategy to show guests your full range of related services, or even give visibility to something new.
AnneMarie Krainich notes that 50-60% of Ottalaus guests booking online choose an add-on service too. “The few that don’t are at least starting a conversation with their service provider: ‘I saw this service – what does it mean? Do I need it?’”
Did you know that 15% of all beauty and wellness revenue comes from in-person upsells? Unlike online purchases, in-store upsells can grow from conversations with customers. As an example, a stylist can suggest a gloss treatment as a service add-on to keep color looking salon-fresh for longer. Retail recommendations are a way for providers to offer care in between visits and encourage repeat purchases.
If your team is concerned about sounding pushy, they shouldn’t worry. Recommending products is often as simple as paying attention: If a client says they love the scent of their massage oil, the therapist can ask if they would like to purchase a small bottle. As a business owner, make upsells easy for your staff with POS software that automatically recommends products in real time.
Today’s customers want options for just about every aspect of their shopping experience, and businesses that keep up tend to benefit the most. With “buy now, pay later,” customers can purchase high-value services and packages in installments. They get the instant gratification they expect for treatments and services they desire.
Krainich says this payment model allows guests to enjoy pricier salon offerings immediately – like hair extension packages ranging from $900 to $1,500 – instead of having to save up to buy them down the road. “It will secure our bookings and the longevity of that guest,” she added.
Salon and spa owners often don’t realize the impact of gift cards on per-visit revenue. With the “free” money in a gift card, 61% of customers spend more than the card’s value. A guest might try new, more expensive services and even rebook those services, increasing the guest’s lifetime value.
Alyssa Venere thinks of online gift cards as a powerful referral tool. “In this industry, word of mouth is still the best way to get new customers,” she says. She notes that technology in the form of digital gift cards helps salon and spa owners maximize referrals, what with 25% of gift card redemptions coming from new clients.
Technology holds the key to essential and actionable revenue-boosting strategies for salons and spas, and these expert tips help you keep an eye on daily growth right alongside a wonderful customer experience.
With software-driven approaches like dynamic pricing, online and in-store upselling, flexible payment options, and digital gift cards, you can easily supplement staff efforts while boosting customer satisfaction.
These strategies highlight the importance of adaptability and innovation in today's competitive landscape, offering salon and spa owners the benefit of ongoing growth.
Watch now: 5 ways to boost per-visit revenue at your salon and spa
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