Corporate America has entered the spa/salon market. No matter the background, it seems everybody wants to own a spa. Some say this is a good thing for the industry while others complain these novices don't understand the culture and how to treat clients and manage technicians. Like it or not, the industry is changing.

"Day spas are entering the world of big business and becoming more sophisticated in their offerings, both in treatment options and retail products," says Hannelore Leavy, executive director of the Day Spa Association and The International Medical Spa Association. "Owners and mangers from other industries bring expertise and knowledge that have benefited other retail and service businesses and can influence and teach us how to make the day spa industry even more vital …and that will attract happy and prosperous employees." Day Spa Magazine, May 2007.

Some day spa owners who were once estheticians tend to disagree. Debra Felske from Remedies Wellness Spa in Allen, Texas opened her spa two years ago after working as an independent contractor in a spa owned by an industry newcomer and has concerns about their ability to interact with and understand clients. "Coming from an engineering background, the owner I worked for wasn't exactly a 'people' person and I felt that it was all up to me to establish the protocol for handling customers," says Felske in Day Spa Magazine May 2007.

Professionals who have walked the walk for so many years saw corporate America coming and are combining industry knowledge with more advanced automation techniques to improve their business and not be left behind.

Never before has the Beauty Industry been more aware of what automation can do for their business. Trade magazines carry articles several times a year. Trade shows are sponsoring IT panels and the savvy owner is paying attention and choosing software from the 45 vendors out there to improve their business. All software vendors have the same basic functionality; client cards, point of sale, appointment scheduling, and inventory management. Functionality dictates the market segment for each of the software companies. Software targets range from small, medium, large and chain spa/salons. When choosing software for the first time or making a change, narrow your search to vendors that target what you need in functionality to grow the business.

Technology Today: Web-based Software Touch Screen Technology Hand Held PDA’s A Paperless Environment Client Centric Self Service Kiosk Increased Retail by 30-40% On Line Booking Automated Appointment Confirmations Advanced Email and Automated Voice Marketing Campaigns Just-In-Time Inventory Management System e-Commerce (selling on the Internet) Gift Cards and Loyalty Programs Wireless Access for Clients When in the Salon Multiple Locations Connect in Real Time

Do You Have a Client Convenience Package in Your Spa and Salon Software?

Sixteen Questions and Answers When Evaluating Software with the Client’s Convenience in Mind:

1. What is the difference in software that is web-based versus web-enabled?
Web based means the software is written in a web language and the platform will never become obsolete since the web is the standard today and in the future. Web enabled packages rely on external packages to access the web but may not enable spas and salons the ability to actually run the software fully. Software written in a web language is truly web-based with full ability to run from any place in the world at any time through a URL (web address) and a secure password. Ask if the software is written in a web based language.
2. Why paperless software?
Paper is not reliable, not convenient and kills trees. Paperless opens communication. Some software vendors incorporate an electronic communication system among staff that is always up to the minute. Paperless eliminates technician visits to the front desk leaving that space free to check-in, check-out and sell retail. Paperless requires workstations on the floor, walk around tablets or PDA's (hand held computers). With software that can support these devices, the technician staff is armed with information to better serve the clients. When evaluating software, ask the software company how the client's information flows while in the spa and salon. If it is not smooth, it probably is not paperless.
3. How can you boost retail sales with software?
It takes a paperless environment so ask the software company you are evaluating if there is an ability to add product to a floating sales ticket. That way, once the service is complete, the product used on the client is added to the ticket as a recommendation on a PDA or workstation on the floor and the front desk closes the recommendation at check out. Some software products allow the ability to add the recommendation with a '0' price to the ticket and scan the product at checkout if the client accepts the recommendation. History is kept on both the purchases and the recommendations not purchased. Split incentives or team based bonuses can be tracked in the software. This is a sure way to boost retail sales and preserve the client/technician relationship because the technicians don't have to do a hard sell on their favorite clients. The front desk is trained to do that easily based on the technician recommendations. The clients like it because now they know how to maintain their look. Don't settle for paper prescriptions.
4. Why should I offer on-line booking?
It’s convenient to the client and a growing trend. A client who books on line is more likely to book 1-2 more appointments per year. If 20% of your clients book on line after a couple of years, think of how much money will fall to the bottom line. Nothing is more irritating than being kept on hold to a busy client. If clients can book on line from anywhere at anytime, this puts you ahead of most of the competition, relieves the phone, reduces labor, and most of all, is convenient to the client.
5. What if the client books wrong on the Internet or I only want certain technicians and services to be booked on line?
A good on-line booking system lets you know when an internet booking comes through on your books in real time. You want to be able to run a report at the end of the day to examine your on line bookings and make any necessary corrections. Ask if the software allows you to pick the services and technicians to be booked on line. Ask if you can advertise your policies to your clients such as no cancellations on line or if you do, only within 48 hours as an example. Ask if you can match the spa/salon colors on your web site and use your own logo. A web-based product provides more flexibility in the appearance of screens because they can be changed as easily as a web site under certain conditions. Ask how much the software can do with pictures and profiles of staff to further personalize the client's experience. It should be as if they never left your web site. The right software does not compromise your business but offers great convenience to the client while increasing the number of appointments.
6. Automated appointment confirmations sound so impersonal, why is it a good idea?
It’s convenient to the client who has no time to chat and it works with almost everybody. You want your software to be able to identify those who prefer to receive a personal call or no call at all. Automated confirmations are relatively inexpensive to set up. Labor is reduced and your staff will thank you for taking away the job they dread the most. Through technology, we are a connected society and your clients appreciate the consistency and the reminders. Use an actor's voice who speaks clearly and politely. Just think, chipper, never gets sick and always makes the calls while at the same time freeing your staff to pay more attention to the client.
7. Isn’t an automated marketing call or email irritating to most people?
Not if it is from someone the client knows and not if it is relevant. If you are marketing something the client is very interested in, the response is immediate and the cost to market is pennies. For instance, send a reactivation message with a free gift for returning. With the right software, you pull a list of clients who have not been in for 6 months and the message invites them back with a reason to return. If you reactivate 2% of the list, think of the opportunity. The right software tracks how many of the reactivations came in for the gift and how many were actually retained. The right software will let you compose your own messages and it's done within minutes. Use the response to clean the database of clients who are not coming back. The right software can track samples or gift with purchase so you can measure your success with manufacturer supported promotions as well. It is convenient to the client to receive relevant information about their salon and spa. As in appointment confirmations, ask the software vendor if there is a no call list for those who do not want to be called again.
8. What is Just In Time Inventory Management?
That means never having too much in stock or too little. Both cost money. With the right software, there is an automatic order amount based on minimum/maximum. Minimum is what you keep on the shelf at all times and maximum is what you order and is a higher number to allow for shipping time. Minimum/maximum numbers are subjective and can sometimes be faulty. With a good software system, you want to compare the 'automatic order amount' to a report that provides you with a computerized 'suggested order' based on sales. If sales are low, change your min/max. Pretty soon, the suggested order report will be close to the min/max amount. A dedicated employee who is trained on managing inventory is worth the investment because you always order the right amount at the right time. Inventory is expensive and the right software provides the information to make good decisions. Examples include eliminating product lines that are not moving and always ordering enough of the fast moving items. The convenience to the client is having what she wants when she needs it.
9. How would a self-service kiosk work in our industry? It seems too impersonal.
Everybody said that about bank teller machines and now look. Who goes inside anymore? Grocery stores, home depot, and airline check in are examples of the trend toward self-service for the busy consumer. Your clients will not think less but more of you because you are providing a service the competitors may not offer. Good kiosk software will let clients check themselves in and at the same time book the next appointment and even add their favorite product to today’s sales ticket. This is not only convenient to the client, it is great for the owner who reduces labor, increases pre-booking, and increases today’s sales ticket. Make sure your software has the capability because even if it is not an initial purchase, it could certainly be one in the future.
10. Most manufacturers won’t let spas and salons sell their lines on the Internet, why should I consider e-commerce?
It is true that many manufacturers won’t let you sell their lines on the Internet, but that trend is changing. It might make sense to investigate those manufacturers who do allow purchasing on line. Many spas and salons are solving that problem with a private label. Once a client gets into a regimen, they don't have to wait until they come back to the spa and salon to purchase. This convenience to the client is a growing trend and web purchases currently number in the billions. Ask your software POS vendor if their product will track selling products on the Internet.
11. We sell beautiful paper gift certificates on a nice paper stock. Why should I switch to a plastic gift card?
Many reasons. Gift cards are advertisements in your client’s wallet and are not as likely to get lost. Gift cards can also be beautiful and you can design your own with a lovely envelope and insertion for the card. The right software lets you add money to a gift card and keep the convenience going. The right software will keep up with the purchaser, the recipient and the balance and the cards are totally secure. Use the same card in a different color for promotions to your VIP’s or a direct mail to a strong zip code in your area. The possibilities are endless. Make sure the software will track how many guest you retain. Some software vendors provide gift card software that resides on your local server eliminating expensive bankcard transaction fees and allow redemption from location to location. People love to receive gift cards; it's a trend.
12. What’s the benefit to providing wireless access to my clients?
Have you been to Starbucks lately or even Chick-Fil-A and seen how many people are working on their laptops? We are a country of connection. We are on our cells, accessing our emails on a blackberry, or preparing that proposal due the next day so who has time to get spa/salon services done. But, if there is a wireless connection, we can actually escape to the spa/salon to have services and get work done at the same time. Convenience, it's the trend. Ask your IT solutions provider to hook you up.
13. If I am a single location and want to be web based, do I have to run over the Internet?
No. Web based software can run on a browser such as Internet Explorer 7.0 on your local computers. Alternatively, you can also run the software in a hosted environment on the Web.
14. What is a hosted environment?
It is an IT company external to your spa/salon that hosts your server where all your software and information are stored. It is like having the server in your location but without all the hassles of backing up, security, firewalls, software upgrades and more. It is like having an IT department but without the large salaries associated with that kind of expertise. With web-based software you have Internet devices at your location connected to the hosted environment. Internet devices are like PC’s but less expensive and are more secure because they prevent your staff from walking out with client information. Some software companies along with a hosting company will charge a subscription fee and that means renting the software. Other software companies sell you the software outright and the hosting company provides a monthly service fee to take care of your server and service your automation needs. Hosting is a good idea if you do not have an IT person on staff. The monthly fee is considerably less than hiring an entry level IT person.
15. If I want to connect more than one spa/salon together, how do I find out about the connectivity needed?
If you choose a web based software you can connect over fast telephone lines and a web address. If it is not web based, it becomes more complicated and expensive but doable. Software required for this kind of sophistication will be at the high end of the software spectrum. Your phone company and hardware IT solutions provider can design a plan that provides the speed to fit your requirements and budget. The bandwidth determines the price and the speed. The higher the bandwidth, the more money you pay but the higher the band width the faster your software will run. This kind of secure virtual private network (VPN) and web based software will allow you to work from home, set up a central booking operation in a less expensive part of town, or connect and run management reports for a strategy meeting in Europe; all possible with the right platform. Ask your telephone company about voice and data. You may be able to reduce your costs by combining the two.
16. What if the Internet goes down or the hosted server crashes?
The Internet is never down but you could lose access to the Internet because your phone lines are down. Discuss this with your hardware IT solutions provider and your telephone company. Make sure the hosted provider has a co-location so if one server goes down, the second one in a separate location kicks in immediately. If you demand 100% up time with telephone lines, choose a second media as a back up. If your budget allows, choose the faster, more reliable T-1 as your active phone line, choose DSL or Cable as your back up line in the unlikely event something should happen to the T-1. If you are on a tighter budget, some software will run on an ISDN line or a POTS line (plain old telephone line) until the main line is back up. Slow but a very inexpensive back up plan. The likelihood of both lines being down at the same time is minute. Get good advice from all three vendors, software, hardware and telephone vendors and make sure they all talk to each other.
Think out of the box when evaluating software and automation and don't be left behind.

Catherine Renaud
President
Software Creations, Inc.
404.832.4140 Direct
404.832.4145 x223
crenaud@virtualspaandsalon.com
www.virtualspaandsalon.com

About the author: Catherine Renaud has been the President of Software Creations for over 20 years. She is a frequent writer and speaker in the industry and focuses her attention on education. She is the first software member of Intercoiffure; and will sponsor a panel of owners on the main stage in October 2007 at the Waldorf in New York discussing how software benefits their large spas and salons. These owners stay ahead of the curve and refuse to be left behind.