BW Confidential - Issue #9 - March/April 2012 - (Page 46)

Wellness Spas & online marketing Crash course The majority of spa-goers look to the internet to find a spa, learn about treatments and book their appointments, so why do spas still lag behind in the digital space? by Alissa Demorest S ome 93% of spa-goers now turn to the internet to find information on spas, according to a study by US-based spa and wellness company SpaFinder. The report states that the number of consumers who book spa appointments online has doubled each year for the past two years, while 45% of consumers polled say they have booked a massage online. Yet in terms of overall marketing spend, spas trail other industries. Some 41% of respondents in SpaFinder’s study spend just 1 to 3% of their annual budget on marketing and only 27% spend between 4 to 6%. (However, it should be noted that hotel and resort spas’ marketing spend is often rolled into the hotel’s marketing budget; 29% of respondents in the study were hotel and resort spa operators). In addition to low marketing spend, spa operators’ feeble digital initiatives contrast starkly with today’s tech-savvy consumer. Spa operators’ online initiatives 2011-2012* Online initiatives Facebook presence Sell gift certificates online Online reputation management Twitter presence Online video Online deal sites Blog Web-based management systems/live appt. booking Online contests/sweepstakes Sell retail products online Mobile marketing Source: SpaFinder credit: stock.xchng Use 91% 71% 65% 57% 41% 41% 39% 21% 35% 31% 23% Plan to adopt 4% 16% 10% 13% 24% 7% 18% 38% 16% 27% 23% This is thought to be because spas have traditionally been more expert in face-to-face communication with customers, and so are having trouble making the leap into the digital space. However, the need to adapt to digital is becoming clear. “The importance of CRM won’t ever go away, because it is inherent in the spa relationship and is a key form of marketing and retention, but now operators are coming to find that online marketing channels are critical to attract new customers. You have to go where your customers are and everyone is online now,” SpaFinder corporate development and industry relations executive vice president Sallie Frankael tells BW Confidential. An oft-cited stumbling block for spas is where to focus online presence given the number of platforms available: blogs, Facebook, Twitter, Google+, Linked In and consumer review sites like Trip Advisor and Yelp. “Spas need to make sure they are in “ There is a perception that [online marketing] is free, so instead of building a comprehensive strategy, spa operators start slapping stuff online and unfortunately it’s usually promotional Spa operators marketing budget forecasts 2012* Online medium Social media Traditional internet channels Public relations Events Search marketing Traditional advertising Increase spend 72% 67% 58% 55% 41% 10% Decrease spend 4% 2% 8% 7% 13% 46% Contento Marketing Group principal Nancy Griffin *SpaFinder’s State of Spa Marketing 2011/2012 report polled 442 global day, hotel, destination and medical-spa operators. The breakdown was: 56% day spas, 29% hotel/resort spas, 9% medical spas and 6% destination spas Source: SpaFinder *estimated the right places online; on websites where spa and wellness consumers go. They also need to optimize their website for mobile, as if they are using social media it’s all about messaging and engaging your consumer— being interactive with the right content and the right frequency and not having a one-way conversation,”explains SpaFinder’s Frankael. California-based consultancy Contento March-April 2012 - N°9 - BW Confidential ” 46

Table of Contents for the Digital Edition of BW Confidential - Issue #9 - March/April 2012

Cover
Comment
Update - Brand & retail news recap
- Companies on the move
Take note - Market facts, figures & trends
Best of BW - Highlights from our e-publication
Launches - The latest in fragrance, skincare & make-up
Interview - HSN gm of beauty & merchandising strategy Betsy Olum
Insight: Make-up - Category overview
- Nails
- Retailing
- The latest trends
Wellness - Online marketing
- Spa case studies
Retail - Pos technologies
- Store concepts
Digital - Social media strategies
Market watch: Brazil fragrance - Country overview
- Fragrance industry roundtable
- Prestige fragrance retailing
Strategy spotlight - Case studies to inspire
Travel retail - Americas regional overview
- Brazilian travelers
- Interview: Nuance Group North America...... Andrew Rattner
Radar - Six up-and-coming beauty brands
Packaging - Electronics in beauty packs
- Latest innovations
Last word - Crépuscule ceo Christophe Lerouge & creative director Olivier Boré

BW Confidential - Issue #9 - March/April 2012