As a spa manager or director, you probably spent months trying to convince your hotel general manager, financial controller and/ or owners to get the capex for a spa management software system. You probably also spent some more months trying to get your IT team to liaise with the software company’s technical team and organising a thorough training for your team. After using the system for a few months, you now have to generate enough additional revenue to justify this capital expenditure.
Many spa managers and directors mistakenly believe that by implementing a spa management software their revenue will automatically increase noticeably. While spa management software undoubtedly enhances productivity, like any other tool, the person using it must know how to use it effectively. Many spa managers only make partial use of the valuable information spa management softwares provide. In this article, we walk you through what you need to do to make the most of this valuable tool.
Here are 5 things you need to consider when using a spa management software to drive more business to your spa:
1. Explore. Are you exploring the full potential of all the available tools? Do you know which features of the software help you manage your business more effectively – from bookings, staff scheduling, managing stock and cost of sale, to yield management and communicating with your clients? What marketing tools are available? Is your spa software integrated with your social media platform? For example, is the online booking app connected to your spa’s Facebook page? Knowing what tools are available, what you can do with them and actually using these tools will help you optimise your spa management software.
2. Understand. Understand what reports give you the information you need to manage your business effectively. It is also important to understand where the data on the reports comes from. For example, do the reports on therapist and treatment room occupancies include the allocated time for pre-treatment preparation and post-treatment cleaning up? If your therapist and spa productivity calculations don’t include treatment turnaround time, you would need to configure your software reporting accordingly. Running the right reports that will provide you the key information you need about your business will help you understand the reasons behind your spa’s performance.
3. Monitor. Measure the right Key Performance Indicators (KPIs) to see how your business is performing. What are your spa’s demand patterns? When are your peak periods? What are your therapist productivity patterns? Are you having to turn down business due to lack of available therapists or treatment rooms? Are your clients happy with the quality of treatment? Are you experiencing too many no shows? Which treatments are your clients buying and when? What treatments have retail sales linked to them? Which promotions are working and which client segments are buying them? Monitor the KPIs of your spa, for example, guest satisfaction, hourly RevPATH, therapist occupancy, treatment room occupancy, retail sales, and any other KPIs you think relevant for your business.
4. Analyse. Once you are monitoring the right KPIs, it is important to analyse this information. Running several reports and not acting on the information given will not help you drive your business forward. If you are finding that you are turning down a number of guests, look into the reasons behind it. Is it because not enough therapists are scheduled at a particular time? Are too many therapists scheduled during low traffic times and too few during the peak period? Or are you turning down guests due to lack of available treatment rooms? If that is the case, is it because of delays in the time taken to finish treatments? Or is it because too much time is being set aside for preparation and cleaning up? These are just a few ways you can analyse your KPIs.
5. Respond. Act on the real-time information your spa software is providing you. Adjust and adapt your business to market realities; evaluate whether long-term adjustments need to be made to existing systems. Does your pricing policy need tweaking? For example, do you need to implement a dynamic pricing policy to divert traffic from your peak period to your off-peak period? Are majority of your therapists working when your clients are demanding treatments? Do more freelance or part-time therapists need to be hired? Or do you need to implement a dynamic staffing schedule with split shifts? What impact are the above responses having on your top and bottom lines? If it is costing your business proportionally more money to bring in the additional revenue, investigate opportunities to optimise productivity and streamline your business. These are just a few ways you can respond effectively to get your business back on track.
A spa management software is a valuable tool that helps you manage your business more effectively: your staff, operations and clients. How much value you get out of it will depend on how smartly you utilise it.