After a turbulent few years around the globe, many countries are now experiencing an economic downturn. If you’re a beauty and wellness business owner, you’ve likely noticed increased product and utility costs, higher inflation, and reduced customer spending.
According to research company Facts & Factors, the global spa and beauty salon industry is set for a 6% compound annual growth rate (CAGR) in the years leading up to 2026. In other words, there are growth opportunities for your business despite the challenging outlook – if you know how to capitalize on them.
Luckily, adapting to a tougher economic climate doesn’t require lowering the quality of your offerings. Here are five steps to making your business more efficient, more resilient, and more desirable to current and prospective customers:
Strategy #1: Boost operational efficiency
We don’t need to tell you that time is money – we’re all part of an industry that favors charging by the hour. But recent advancements in technology have created new opportunities to cut down on both administrative work and dead time between appointments.
With these advances, you and your team can gain find more time in your appointment book for chargeable services, improve the customer experience, and explore new revenue streams. Here are just a few features available on Zenoti, the industry’s most complete software platform:
- Automated marketing: Scans your appointment book and sends out personalized email and SMS promotions to fill quiet days – without input from your front desk.
- Guest-specific service duration: Ensures each guest gets the right length of appointment time for their unique needs. Helps you avoid scheduling gaps and delays.
- Parallel services: Avoids wasted time in your schedule by offering complementary service bookings in parallel – for example, a manicure and a pedicure.
Strategy #2: Diversify your service offerings
Offering a variety of complementary services – like hair, beauty, and skincare – provides a great financial safety net for two reasons: First, if one service area experiences a slowdown or sharp material cost increase, your other offerings can compensate and maintain a steady revenue flow for your business.
Second, a diverse service menu gives your clients more reasons to visit and remain loyal to your business. When customers can find multiple services under one roof, from a brand they love and providers they trust, they are more likely to keep visiting regularly. You can strengthen that loyalty even more by offering guests the opportunity to gain loyalty points or membership perks across all services.
Strategy #3: Master business analytics
Steady growth is nearly impossible if you don’t know and understand your business data. By employing analytics tools, you can tap into insights on customer preferences and business performance – and be the first to notice new trends instead of staying in the dark until they become common knowledge. Here are just a few simple ways analytics can get you ahead of the competition:
- Decide which retail products to keep on your shelves by identifying your best and worst sellers.
- Stay aware of shifts in customer habits and preferences, like an increase in bookings for a certain service.
- Understand which services generate the most revenue and then focus your marketing efforts to drive more high-profit appointments.
- Identify your top-performing staff, reward them appropriately, and encourage them to share their winning strategies with lower or struggling performers.
Strategy #4: Step up your digital game
In 2023, a comprehensive online presence isn’t just a nice-to-have – it’s a must. Mobile apps, online booking, two-way text messaging... this is how your clients interact with the world and the businesses they love.
Whether you’re boosting positive online reviews or showcasing your expertise on social media, a polished online presence connects your brand to your clients in powerful ways. It helps them get to know your business and how it aligns with their preferences – an Instagram post could highlight the stylist who’s an expert in their desired haircut, for instance.
Most important for your bottom line, a full online presence also gives customers a quick, convenient path to booking online via social media, your business website, or your Google business listing.
Looking to expand your digital offerings even further? Consider virtual consultations to support busy clients, or an e-commerce shop for an additional product sales revenue stream.
Strategy #5: Update your pricing strategy
When people face economic uncertainty, they tend to become more cautious with their spending. To accommodate cost-conscious clients, consider tactics to deliver greater value and encourage repeat visits – without denting your revenue. For example:
- Dynamic pricing: Your booking system automatically determines higher service prices during your busiest times and lower prices on quiet days.
- Loyalty and membership programs: Reward regular clients with points, promotions, and discounts.
- Packages: Bundle complementary services at a lower price to encourage clients to book repeat visits or try a new service.
Conclusion
There you have it – a strategic guide to making your beauty or wellness business more recession-resistant. By tweaking your offerings and operations, you won’t just weather economic downturns – you’ll also emerge stronger. Keep your sights on technology innovations that boost efficiency and customer satisfaction, and you’ll be well on your way to success in just about any conditions.
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