How spa membership programs boost revenue and customer engagement

Membership programs can help boost revenue and customer engagement for your hospitality company.

Traditionally, membership programs have been more commonly implemented at gyms and fitness centers, but lately the model has been catching on in spas and for other ancillary revenue areas in hospitality, like classes and activities. An example of a spa membership program would be one for which customers pay a regular fee for a certain number of treatments and/or services, and/or unlimited use of your facilities, like wet areas, saunas, and salt chambers.

Membership programs can help diversify revenue streams, generate steady income, improve customer acquisition and retention, and promote brand loyalty. 

Peoplevine is a Membership Experience & CRM platform for the hospitality industry. The Peoplevine platform allows clubs to create digital experiences for members with self-service tools, including a web portal and app, and utilize member data to deliver personalized hospitality and drive growth.

Mo Akintunde is Peoplevine’s Head of Global Revenue and has a lot of valuable insight to provide on the benefits of membership programs in spa and hospitality. 

We teamed with Akintunde to create this guide on how membership programs can help build customer relationships and increase revenue, and the other benefits they bring to your business. 

How do membership programs help build customer relationships?

Membership programs create a sense of community and loyalty, leading to increased customer retention and repeat business. By offering exclusive perks and rewards to members, businesses can create a sense of exclusivity and special treatment. This leads to true customer loyalty, as members feel valued and appreciated.

Providing exclusive perks can also foster a sense of community. Businesses can host members-only events or unique experiences, or offer special discounts or promotions to members. This creates a sense of belonging and camaraderie, further solidifying member loyalty.

Members are more likely to continue doing business with a company they feel connected to and that values them, and more likely to return to the business and make additional purchases.

How do membership programs help businesses capture revenue?

Membership programs provide a steady stream of recurring income through subscription dues, as well as upselling and cross-selling opportunities to members. They can also help businesses recapture revenue by encouraging customers to return more frequently and spend more money.

Some upselling and cross-selling (add-on) opportunities for spa and wellness facilities looking to leverage memberships are: 

  1. Spa treatments (massage, facial, body nail/hair services)
  2. Personal training and fitness classes (yoga, Pilates)
  3. Special events (bridal parties, couples retreats, and group spa days)
  4. Retail products (skincare, beauty, and wellness products and apparel)
  5. Gift cards

What are some business pain points a membership model could help with?

Pain points where a membership model may make sense for a business include:

High customer acquisition costs: Offering memberships can be an effective way to reduce customer acquisition costs by encouraging repeat business. Customers who have paid for a membership are more likely to return to the spa regularly, which can help to offset the costs of acquiring new customers.

Low customer retention: Memberships can help to increase customer retention by creating a sense of loyalty. Customers who have paid for a membership may feel more invested in the spa and be more likely to return. Offering perks such as exclusive access to certain treatments or discounts on services can create an incentive for customers to continue their membership.

Difficulty upselling or cross-selling: Memberships can be an effective way to upsell or cross-sell to customers by offering additional services at a discounted rate. A spa may offer a membership that includes a certain number of massages per month at a discounted rate, and then offer additional massages at an even deeper discount. Memberships can also be used to promote other services such as personal training or retail products. Customers who have already invested in a membership may be more likely to take advantage of these additional services.

Seasonality: Spas and wellness centers often have a high season and a low season. During the low season, a membership model can help to keep revenue steady by providing a stable base of members who will continue to visit and pay for services during these low seasons.

Price sensitivity: Many customers are price sensitive when it comes to spa services. A membership model can help to overcome this by providing a sense of value for customers.

Limited customer demographics: A membership model can help to broaden a spa’s customer demographics by providing a way to attract new customers. A spa that primarily attracts women can offer a membership that includes services such as personal training to attract men, for instance.

More advantages of membership programs

Membership programs also can provide valuable customer data and insights. Tracking which services and products are most in demand among members makes it easier to make informed decisions about how to allocate resources, while tracking customer behavior over time offers insights that can be used to improve customer service and create a more personalized experience.

They also offer the ability to test new products or services with a dedicated customer base. Offering a special promotion or package to members that includes a new service or product provides an opportunity to test the service or product and gain valuable feedback before making a larger investment. Offering exclusive deals or discounts on new services or products can incentivize members to try them out.

Membership models are catching on in spa, wellness, and hospitality businesses over traditional loyalty programs

In recent years, spa, wellness, and hospitality businesses have increasingly adopted membership programs over traditional loyalty programs as a way to drive revenue and increase customer loyalty and return.

Membership programs typically offer a wider range of benefits and perks compared to traditional loyalty programs. A membership program for a spa may include a certain number of services per month at a discounted rate, exclusive access to certain treatments, and discounts on additional services or products. In contrast, a traditional loyalty program may simply offer a free service after a certain number of visits. This means that membership programs can be more appealing to customers and provide a greater sense of value.

Memberships provide a high-value, low-cost ROI experience that is accessible and convenient for customers. We see a huge shift in customer preferences, with today’s generation wanting access to experiences now, as convenience and immediacy have become important factors in customer decision-making.

In addition to providing a great experience, spas should also focus on building trust and emotional connection with their customers. This can be done by being transparent and consistent in their communication, and by going above and beyond to meet the needs of the customer. Spas should also consider how to use technology to make the customer experience more seamless and personalized.

How can Peoplevine help?

The Peoplevine platform allows clubs to create digital experiences for members with self-service tools and utilize member data to deliver personalized hospitality and drive growth.

Peoplevine’s integration with Book4Time benefits members by providing a more seamless and convenient experience for spa reservations and payments. With this integration, members can book appointments directly from the member portal or mobile app, eliminating the need for members to call the property, navigate multiple platforms or remember login information for multiple websites.

Additionally, the integration allows for more efficient communication between the spa and its members. Members can receive automated reminders for upcoming appointments and notifications about special offers or promotions. The spa can also communicate with members through targeted marketing campaigns and personalized communication. The integration also allows for more accurate tracking of member’s usage and spending, enabling the spa to offer tailored and targeted offers and promotions to members.

Overall, the integration of Peoplevine and Book4Time provides a more streamlined and personalized experience for members.


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