Technology is rapidly rising in the health and spa industry,
creating tremendous potential for operations management and marketing
Now is the time for game-changing technology to revolutionize the spa industry, especially during these challenging times. When the pandemic hit, hotels and spas faced massive layoffs and closures across the board. But thanks to technology, they quickly bounced back and reopened their doors once it was safe to do so, welcoming back guests and therapists with open arms.
Software-as-a-Service (SaaS)
There is a type of software known as Software-as-a-Service or SaaS, which is a subscription-based software provided through centralized hosting. For example, Spa Space is a SaaS platform that can help save costs, optimize revenue, and even enhance customer satisfaction if used effectively. With its patented algorithm, customers can be perfectly matched with professional therapists at their preferred locations. For certain spas, implementing Spa Space’s integrated spa management solutions, including payment processing, scheduling, local marketing, and therapist management, the customized key performance indicator (KPI) reports and dynamic yield management provided can contribute to smooth operations and maximized management effectiveness.
Contactless booking
With contactless booking, guests can safely and efficiently complete the entire booking process, check-in, check-out, and even purchase products remotely. Beyond the obvious safety benefits during the pandemic, contactless booking empowers guests to have full control over their spa experience from start to finish. From an operational standpoint, relying on a central reservation system and eliminating a traditional reception desk has freed up valuable human resources. With a good SaaS, it is possible to successfully reopen all spas with significantly reduced costs, implementing intelligent staffing solutions, and personalized spa services to cater to guest preferences. Of course, it is important to set up all the content and details from the beginning. Don’t fantasize that a software engineer, even one with spa experience, can arrange all the details for spa services.
Dynamic yield management
Traditionally, spas have not been sensitive or flexible in terms of revenue management, often resorting to excessive discounts on certain services, which not only lowers their revenue but also damages their brand value. With SaaS solutions, spas can utilize demand and purchase volume reports to analyze the performance of their business and dynamically price their treatment offerings. Looking ahead, we envision dynamic pricing that incorporates sophisticated algorithms, taking into account factors such as demand, supply, guest preferences, therapist skills, preferred dates, and locations. For instance, Spa Space offers customized key performance indicator reports and dynamic yield management, effectively driving revenue growth while reducing costs. It should also be noted that airlines, hotels and resorts are utilizing similar software and algorithms to adjust their pricing structures.
Smart technology aids in recruiting and retention
The use of smart technology in spas not only enhances efficiency but also empowers individuals to excel in their roles. For example, through the Spa Space platform, spa service providers, which are the therapists, can fully understand and flexibly manage their work schedules, creating a sense of ownership and autonomy. They can compare their performance over time to gauge their progress and gradually develop their own career path.
This flexible “work where you want, when you want, and how you want” approach differs from the strict work regulations typically associated with adhering to brand standards. It is particularly suitable for city spas or chain spas with multiple locations and also caters to independent therapists focused on personal growth. After experiencing this software management, most therapists express their preference for the flexibility of working hours, real-time compensation, and the feeling of empowerment. They appreciate being able to plan their own work schedules, nurture their unique talents and areas of expertise, and enhance job satisfaction.
Precision marketing through CRM
Technology allows for highly targeted marketing strategies, moving away from a broad approach to a more precise one. By delivering the right message to the right guests or prospects, capture rates, repeat business, guest loyalty, and engagement can significantly improve. Spa management software or CRM programs enable market segmentation, dividing the audience into smaller, well-defined categories based on shared characteristics.
CRM stands for Customer Relationship Management. It refers to a technology-driven strategy that businesses use to manage interactions and relationships with their customers. CRM systems and software are designed to streamline and optimize customer-related processes. By centralizing customer data and providing tools for tracking interactions, CRM enables businesses to better understand their customers, personalize communication, and improve customer satisfaction. CRM helps businesses build long-term relationships with customers, enhance customer loyalty, and ultimately drive growth and profitability.
The more guests and prospects are segmented based on demographics, psychographics, behavior, geography, and lifecycle, the more effective the messaging becomes. For resort hotel spas, utilizing the marketing functionality of their CRM presents an opportunity to directly target and engage with guests before their arrival. Hotel spas can focus on locals for memberships, staycation packages, and encouraging return visits.
The evolution of spa menus
The era of the “one size fits all” spa model is long gone. As guest needs become increasingly individualized and personalized, technology plays a crucial role in meeting these demands. Embracing the direction of “hyper-personalization” further changes the business model of attracting, satisfying, and retaining guests. It’s time for us to abandon the traditional static spa menu and embrace new challenges. One of the alternative approaches is to offer customized massage and facial treatments tailored to each guest’s unique wellness needs. The software’s data feedback reveals a remarkable 25% increase in guest satisfaction. This self-selected online customization approach allows us to save more time for our spa managers and supervisors to focus on delivering detailed services and continuously improving service quality, as they are no longer bound by tedious administrative tasks and reports.
Cutting-edge touchless treatments
As spa-goers seek a safe and seamless experience, luxury resorts are introducing high-tech touchless treatments that address wellness concerns without physical contact. These scientifically validated treatments, offered at resorts like Carillon Miami, utilize advanced technology to target common issues such as sleep, stress, pain, and immunity. The Gharieni Spa Wave, a computer-controlled acoustic and vibrational therapy, The Prism Light Pod, which employs red light photobiomodulation therapy, The Rasha Body-Mind-Spirit, a vibrational frequency technology, and The VEMI all-in-one system, combining VibroAcoustic, ElectroMagnetic, and Infrared technologies, are just a few examples of these innovative offerings.
Fostering a culture of care
If used effectively, Software-as-a-Service (SaaS) can also become the core of a company’s caring culture. By liberating our spa managers and supervisors from mundane administrative tasks such as inventory management, scheduling, and payroll calculations, technology empowers them to become experience creators and leaders instead of administrative workers. We all know that many managers who started as therapists are not adept at administrative work, and long-term tedious administrative tasks can leave them overwhelmed.
Why is a caring culture important? Because it impacts a company’s economic performance: culture influences employee engagement, which in turn affects absenteeism, employee retention, and productivity. Culture also influences the customer experience: a positive corporate culture brings about happy employees who can genuinely provide attentive service, ensuring the satisfaction of spa guests.
Wellbeing-as-a-Service and WellTech
The rise of technology in the wellness industry has led to a significant expansion in the market potential for Wellbeing-as-a-Service (WaaS). With people becoming increasingly conscious of their health and well-being, there is a growing demand for personalized solutions that cater to individual needs. This shift has created a trillion-dollar market opportunity for businesses that can offer comprehensive well-being services through technology-driven platforms.
Wellbeing-as-a-Service encompasses a wide range of offerings, including fitness apps, mental health platforms, virtual wellness programs, telemedicine services, wearable devices, and more. These services leverage technology to deliver personalized experiences, empowering individuals to take control of their well-being conveniently and efficiently.
One of the key drivers behind the growth of WaaS is the accessibility and convenience it provides. Through mobile applications and online platforms, individuals can access a variety of wellness services anytime and anywhere. This allows for greater flexibility and customization, as users can choose the services that best suit their needs and preferences.
Furthermore, technology plays a crucial role in collecting and analyzing data related to individuals’ health and well-being. Wearable devices and health monitoring tools provide real-time data on various metrics such as heart rate, sleep patterns, activity levels, and stress levels. This data can be used to offer personalized recommendations and insights, enabling individuals to make informed decisions about their well-being.
The market potential for WaaS extends beyond individual consumers. Employers, insurance companies, and healthcare providers are also recognizing the value of incorporating well-being services into their offerings. By investing in WaaS solutions, they can enhance employee productivity, reduce healthcare costs, and improve overall population health.
In addition to the financial potential, WaaS has the ability to make a significant impact on individuals’ lives. By promoting proactive health management and preventive care, these services have the potential to improve overall well-being, reduce healthcare disparities, and empower individuals to lead healthier and happier lives.
As the world becomes more digitally connected and people prioritize their well-being, the Wellbeing-as-a-Service market is poised for substantial growth. Businesses that can leverage technology to provide personalized and accessible well-being solutions stand to benefit from this trillion-dollar market opportunity while making a positive impact on the lives of individuals worldwide.
