Have you seen more companies around offering memberships for their products and services? There is a reason why? No one would be doing it if it wasn’t working. I remember years ago bringing up this idea to my spa business partner and it was shot down at first. How would that work? Wouldn’t we loose money? Would giving members a discount cheapen our services? The answer is no. It made our business more successful and consistent. Our clients come in monthly and we are working with them to reach their skin care goals. Our estheticians love it because results can be seen each month. We also don’t have to be pushy salespeople trying to get them to purchase everything in one sitting. We have time to develop a relationship where we can build trust and little by little, they can purchase all the items they need. It is a win-win situation.
Benefits of spa or salon memberships?
- Create loyal customer base
- Boost income
- Recurring Revenue
- Helps clients become consistent and reach skin care goals
- Sell more product and services
- Maintain client engagement
- Better client retention
How do you setup a spa or salon membership?
First thing, look at businesses around you and make sure your prices are updated. What is worth your time? See if there are businesses in your area offering memberships and see what they are charging. Now, don’t get too caught up with what they charge. You don’t know what another business pays in advertising, overhead etc. What would you want to charge for this membership? It should be valuable so depending on your signature facial you want it to be less than that. Consider the cost of labor, products used and other costs of doing treatments when determining the membership price. There should be a sweet spot. Not too high or too low. In some areas I have seen $59-$175. That just depends what kinds of treatments you offer. I have seen some do several levels. The higher end treatments are in the higher level. Personally, I think that can be confusing.
Next, look at your menu? Create a core of what you would like to offer that is included in the monthly fee? See what items would need an upcharge? Not everything needs to be included in the flat fee, But there has to be value. Value is key! If the spa membership is not valuable there is no reason to stick to a monthly membership. It is a good idea to have a couple of items that would total up to two months of credit if they have to skip a month. That way if they miss a month they can catch up quickly. Also, not everything has to be included. Let’s say you offer microblading and you don’t want to include it. Maybe you can just offer a special price for members.
How to charge clients monthly and keep track of the spa membership?
You can do this with software or a good app. Square, Vagaro and Mind and Body are ones I have used. I personally really like Vagaro. It is very complete, and you can take care of everything no matter how small or large your business is. Check with your merchant service provider also. They usually can setup recurring payments easily.
Other membership perks
You can offer membership perks like product discounts. I have seen some offer 10-15% off products. I have noticed more product is sold over the year with the membership. Clients can spread the cost easier over a year. You can have member appreciation sales or events. They can receive discounts on other services not included in the membership. Be creative and see what you can offer to make your membership valuable.
Policies & Contracts
So this was the tricky part. Should we be a strict membership? Should it be a 12-month contract? I heard from many colleagues of some memberships being really hard to cancel. Where clients have to prove they moved, or they are locked in for a year or certain amount of time. I understand this does make sense, but many people are nervous to sign up with contracts. What worked for us is to offer a membership that can be cancelled with a 30-day notice. They can call or email. What ever is easier. Our motto is “We want you to want to come and see us”. If you are forced by a contract that will not feel good for the client or service provider. So far it has not been an issue. I do believe when you have a good team and you have a business that provides value, clients will want to come.
Another tricky question, do you let credit roll over or do they lose the credit if they miss a month? Well, I believe in treating people the way I want to be treated. If I had an emergency or had a physician tell me I can’t get a facial for a month I would hate to lose that money. So, you can decide what works for your business. Do you have a cap, do you let it roll over unlimited times or do they lose the fees? We allow it to roll over. We notice some people will pause it typically if they have something going on. I think keeping a good relationship will go further and keep more clients on your membership.
I see the spa membership as a partnership with clients. There is no one set way of offering a membership. You can be creative and innovative. Your clients may value other services or products more. This is the beauty of having a small business. We can be creative and pivot faster and easier than a larger one. Feel free to reach out and let us know what questions or ideas you want to share. We would love to hear them.