Published: 29 April 2021
The Science Behind Your Spa’s Retail Sales
Do you have measurable Key Performance Indicators in place?
Without them, it can be difficult to effectively analyse your business’s successes or shortcomings. And if you don’t know, how can you improve?
The team at Mosaic will help you establish meaningful KPIs that we will use to measure your business’s progress in a number of important areas to make sure you’re on the right path to meet your goals.
Treat your business goals like football goals…
I’m a big football fan. I’ve been a lifelong Ipswich Town fan to be honest. I’ve watched them play all over Europe against the likes of Inter Milan and Barcelona, but right now they are languishing in the depths of League One, the third tier of English football.
They are as bad as they’ve ever been in my lifetime!
How bad in terms of KPI’s? Let’s look at shots on target.
If you are going to score a goal, you need shots that are on target. Ipswich recently played 225 minutes of football over four games without having one shot on target. Not good at all. But by measuring it, you have a starting block. A way forward. An opportunity to improve.
No matter what business, or sport, you are in, KPI’s are vital in enabling you to analyse your business so that you can improve it.
Here at Mosaic, we are no different and, in our spas, we have six KPI’s that we monitor and focus all our teams on.
One main one is retail sales.
It’s vital to ensure we maximise the profit that the spa department can contribute to the overall financial success of the hotel where they are based.
What that means for your retail sales and how you can improve them!
We measure the success of our retail sales by looking at the % of the total sales they make up in the total spa turnover.
Now, don’t tell the product houses I said this, but retail should always be the secondary priority in the spa compared to treatment and day spa revenue.
You should always make far more profit out of the treatments you perform than the bottles of product that you sell. However, selling products enables us to increase the yield from each spa guest and can be helpful in generating additional profit without requiring more people through the door.
Plus, if your guests love your products, they are more likely to come back and visit you again. There is nothing better for profitability than getting repeat business.
So, measuring your retail sales as a percentage of your turnover tells you how well your team are driving secondary spend and upselling.
To find out more about how to increase your profitability, and the other KPI’s we monitor and improve, get in touch here today.
Here’s to the success of your spa and hotel!
Published: 29 April 2021