Insights With Trent Munday

Instagram is experimenting with not showing the number of likes a post gets on the platform. Is this really about the good of the platform...or something more sinister? Influencer Marketing is all the rage...but is it effective? Have we instead entered a world of Amplifier Marketing as Gareth Davies suggested in a recent article posted on Linkedin... https://www.linkedin.com/pulse/we-age-amplifier-marketing-influencer-gareth-davies/   #influencermarketing #instagram #marketing #amplify  

GOP PATH stands for Gross Operating Profit Per Available Treatment Hour. This is the ultimate indicator of how efficient your spa business is operating overall. Not just in terms of generating revenue, but in terms of controlling expenses and ultimately generating profits. It is expressed as $0.00 And is calculated by Total Spa GOP (Gross Operating Profit) / Total Treatment Hours Available   nb: Total Treatment Hours Available is calculated by the number of treatment beds in your spa x number of operating hours of the spa.   #spabusiness #spametrics #hotelspa #KPI

RevPATH is Revenue Per Available Treatment Hour. This is a similar measurement to RevPAR in hotels. The key difference is that RevPATH is based on total treatment beds, rather the total treatment rooms. This metric is the ultimate indicator of how efficient your spa is in terms of generating revenue. It is expressed as $0.00 And is calculated by Total Spa Revenue / Total Treatment Hours Available nb: Total Treatment Hours Available is calculated by the number of treatment beds in your spa x number of operating hours of the spa. #hotelspa #spametrics #spabusiness #KPI

Upsells are simply a good measure of the effectiveness of your spa team to sell. This metric is expressed as % And calculated by Number of Treatment Upgrades Sold / Total Treatments Sold Upgrades can be sold any time after the initial booking is requested, right up until the time the treatment begins. They can also be made by any member of staff. It's a popular KPI to incentivise. But if you're going to do that, just make sure you're very clear on exactly when an Upsell takes place. Otherwise it can be easy to game the system.   #spabusiness #hotelspa #spametrics #KPI  

A satisfied customer can be a great endorsement for your business. A Repeat Guest can potentially be a True Evangelist for you. This metric is expressed as % And is calculated by Number of Repeat Guest / Total Spa Guests A Repeat Guest is the ultimate measure of customer satisfaction. If a guest returns to your spa for another treatment or service, chances are they are satisfied with what the received the first time. A Repeat Guest could be a Re-booking Guest (see Ep. #617) or not. #hotelspa #spabusiness #spametrics #KPI

You can do all the Customer Satisfaction Surveys you like. For me, the real answer on how well you're doing is...Are Guests Coming Back? Re-bookings are, in my mind, the best measure of real-time impact or customer satisfaction. This metric is expressed as % And is calculated by Number of Spa Guests who Re-book / Total Number of Spa Guests A re-booking is considered to a booking made immediately following the treatment.  It's worth noting that a guest who makes another booking sometime after their initial treatment would not be counted in this KPI. Rather, we would capture them in the Repeat Guest or Return Guest KPI.   #spabusiness #hotelspa #spametrics #KPI

Revenue Per m2 / ft2 is a measurement commonly used in the retail industry, but not so common in the spa industry. It is expressed as $0.00 And is calculated by Total Spa Revenue / Total Size (in m2 or ft2) of the Spa In many ways it is a reflection on an efficient design. The Total Size should include the spa’s Back of House, Public Areas and Circulation Spaces. #spabusiness #hotelspa #spametrics #KPI

Treatment Room Occupancy might be a better metric for your Spa than Spa Occupancy, especially if you have all Double Rooms. If you only have Double Rooms and you need to do a Single Treatment, you really have no option. This KPI will tell you how busy your treatment rooms are, but not necessarily how close you are to full capacity. Because this measurement is based on total treatment rooms, not necessarily the actual number of treatment beds. This metric is expressed as a % And calculated by Total Treatment Hours Sold / Total Treatment Room Hours Available. nb: Total Treatment Room Hours Available is calculated by the number of treatment rooms in your spa x number of operating hours of the spa.   #hotelspa #spabusiness #spametrics #KPI

Hotel's live and die by their Occupancy. So why don't Hotel Spas do the same? Spa Occupancy is expressed as a % And is calculated by Total Treatment Hours Sold / Total Treatment Hours Available (nb: Total Treatment Hours Available is calculated by the number of treatment beds in your spa x number of operating hours of the spa.) Your Spa Occupancy will tell you how close you are to operating at full capacity. This measurement should be based on total treatment beds, not just treatment rooms. This measure takes no account of how many therapists you have available.   #hotelspa #spabusiness #KPI #spametrics

Spa Therapist Utilisation is ALMOST the most important metric for a Hotel Spa. It is expressed as a %. And is calculated by Total Treatment Hours Performed / Total Hours Worked. This is a measure of how productive your spa therapists are in terms of performing treatments. For most spas, the treatments and services performed by your therapists are your primary source of revenue. Thus, this is a critical KPI. BUT...this metric does not take any account of the price point or profit margin of each treatment. And that's why this is not the MOST IMPORTANT metric...not quite.   #spabusiness #spametrics #hotelspa #KPI

Spa Retail Average Check is expressed as a $0.00 - or whatever the prevailing currency is where you are. And it's calculated by Total Retail Revenue / Total Spa Retail Guests The retail products in your spa will most likely have a wide range of prices based on size, ingredients and quality of the various products on your shelves. So your goal here should be to either sell higher priced SKUs OR multiple smaller priced items per sale. Sometimes selling more lower priced units is the better strategy if you're looking to increase this metric. Remember, this is not a measure of either efficiency of stock or profitability. For that, you also need to consider the profit margins you have an each SKU.   #spametrics #spabusiness #hotelspa #Retail

Spas sometimes can try to read more into this KPI than there really is. Average Check for Treatment is... Expressed as a $0.00 And is calculated by taking Total Treatment Revenue / Total Spa Guests The pricing of the treatments on your spa menu is the key variable in this KPI. BE careful. This is not necessarily a measure of efficiency. A 1 hour treatment that sells for $100 is more efficient than a 2 hour treatment that sells for $185. If you book more of the 2 hour treatments, your Average Check will be higher, but you are actually being less efficient with your resources. As cost of treatment is not factored in here, this is also not a profitability measure. #hotelspa #spabusiness #KPI #spametrics

Retail in Spa, for many, is a bit of an enigma. But Spa Retail Capture Rate is definitely a metric I reckon you should be tracking. It is expressed as a % And is calculated by Total Retail Guests / Total Spa Guests What we are measuring here is how many of the guests who came to the spa and had a treatment or service, also bought some retail product to take with them. It can also be considered a measure of relevance. It measures how relevant your retail offering was to your spa guests. There can be many reasons why your retail is not resonating - price, selection, merchandising, etc.    #sparetail #hotelspa #spabusiness #KPI

Capture Rate for Treatments is one of the most common metrics tracked in Hotel Spas. It is expressed as a % Calculated by Total Spa Guests / Total Hotel Guests in-house And to me, this is really a measure of relevance. It tells you how many of the guests in the hotel saw the value in coming to the spa. These hotel guests committed to taking an hour or three out of their day and come to your spa to spend money for a treatment. The higher this number, the more relevant your spa is to the hotel. #hotelspa #spametrics #kpi

UK pharmacy giant Boots has announced plans for a Wellness Concept store. According to an article in Well To Do, the Covent Garden store... "...will house 36 new brands and over 300 new lines, ranging from eco-friendly sanitary care and CBD products to groundbreaking fitness tech and natural skincare." They're even planning a refill station to refill your water bottles AND you're empty jars and bottles of Beauty Kitchen products. All in all, it's a great initiative from Boots. Looking forward to seeing how it all plays out.   #wellnessretail #wellness #retail  

FOMO - Fear Of Missing Out - is a term that, for many, captures the essence of the Millennial Generation. Always on. Always Connected. Instant Gratification. Instagram Influencers. Facebook Famous. Now, to contrast that, we have JOMO - Joy Of Missing Out. The idea that you don't need to worry about missing out on something that probably doesn't really mean much in the overall scheme of things. Consciously choosing not to engage. To digitally disconnect. It's been called a movement. There's even a book about it - https://www.experiencejomo.com/ #FOMO #JOMO #disconnect #digitaldetox

The Global Wellness Institute (GWI) has announced the launch of the Wellness Retail Initiative. According to GWI... The purpose of the GWI Wellness Retail Initiative is to explore how the concept of wellness is creating new opportunities in the rapidly evolving retail sector. The Wellness Retail Initiative will be instrumental in: Defining the building blocks of “wellness retail” in terms of products, services and places. Exploring the value and opportunity of creating wellness experiences in both digital and physical retail spaces. Researching consumer motivation and drivers for owning or experiencing wellness-related products or services. Anticipating future wellness retail consumer needs and desires to support business marketing and operations. Personally, I can't help but think there is a real opportunity for this particular Initiative to become almost an incubator of sorts for Wellness Retail opportunities. Hmmm? Interesting. Here's a link to the Initiative - https://globalwellnessinstitute.org

Wellness Tourism is valued at $639 billion according to the Global Wellness Economy Monitor 2018. And it's growing. Over 6% growth over the past couple of years. And at double the growth rate of regular tourism. But what does today's Wellness traveller really want? Well, the folks at the Wellness Tourism Initiative are conducting a survey right now to find out. Here's a link to the survey - https://www.wellnesstourismsummit.com.au/wellness-survey PLUS If you fill out the form at the bottom of that page, you can win a FREE ticket to the Wellness Tourism Summit in Noose, Queensland, Australia in May 2020. #wellness #wellnesstravel #wellnesstourism

Hotel Spas often have Steams, Saunas, Jacuzzi's, etc as part of their facilities. The costs of operating these facilities can often be considerable. But should these expenses necessarily be charged to the Spa P&L. Maybe. Sometimes. But in my opinion, usually not. I like to apply the Reasonable Man Test and also consider the core purpose of those facilities. Unless they are an integral part of the overall Spa experience, charging these expenses to the Spa P&L might actually skew your Spa profitability unreasonably.  

CAC (Cost of Acquiring a Customer) & LTV (Life Time Value) are metrics I spoke about back in Ep. 590. Referral Programs make sense for Spa businesses, but I don't see such programs in place very often. But what happens when you view your Referral Program through the lens of CAC & LTV Well, you might just decide to double-down on your Referral Program and make it a major part of your marketing strategy.   #customeracquisition #lifetimevalue #LTV #CAC