Membership programs have historically been considered the territory of gyms and fitness centers. But lately the model has been catching on in spas as well. Leaders are gaining a better understanding of the benefits of spa membership programs, which serve to diversify revenue streams, generate predictable income, improve customer acquisition and retention, and promote brand loyalty. In a spa, a membership generally means customers pay a regular fee, usually monthly, for a certain number of treatments and/or services, and/or unlimited use of your facilities, like wet areas, saunas, and salt chambers.
Here are some of the benefits of spa membership programs and some insight on how they increase revenue.
Diversifying revenue streams
Having only one or two revenue streams puts your business in a precarious situation, because if you lose one stream, you lose them all. This is what happened during the height of the COVID-19 pandemic. Suddenly, spas couldn’t provide in-person treatments anymore, which is all many of them did. Who expected that? Those that quickly adapted by diversifying streams fared better. Membership programs are one way to add another revenue stream.
Generating steady, predictable income
Speaking of revenue streams, another benefit of memberships is that they create steady ones. Fees come in regularly whether the membership is used or not. This regular income is a big benefit during slow seasons and downtimes. This also allows you to predict at least part of your revenue for the foreseeable future and plan accordingly, which can help with business forecasting.
(Note that it’s best not to think of memberships as “free money,” however. You should encourage people to use their memberships. If they spend money and don’t get the benefits, they may wind up creating negative associations with your spa – even though it’s not your fault – and you don’t want that. If you haven’t seen a member in a while, reach out and remind them that it’s time to come in).
Improve customer acquisition & retention
Memberships for using facilities can attract people who wouldn’t otherwise come into a spa for a massage or body treatment. They can also encourage people to refer new customers, for example, if you allow them to bring a certain number of people per month (this should be limited to once a month or even every few months, or you may have a bit of a free for all and the idea can backfire, because why join when you can just go with your friend for free whenever you want?). They will also increase retention, because many people may come in for one massage or body treatment and never return. Memberships drive these people to return again and again.
Promote brand loyalty
People may come into your spa for a massage or body treatment and, even if it’s a great experience, go elsewhere next time. Membership programs encourage them to stick with you rather than trying out another spa. Membership programs allow you to create strong, lasting relationships with your customers. Get to know them and utilize your spa software’s CRM functionalities, like a note taking function, to create hyper personalized experiences. This makes your guests feel appreciated and valued, which goes a long way when it comes to brand loyalty.
All of these benefits serve to directly or indirectly increase revenue in your spa, which is what we all want to do. Talk to a Book4Time representative about how memberships can work for you.
