Customer acquisition vs. Customer retention in hotel spas

Date posted 28th February 2014, by Ray Payne

Spa marketing: “Look after the customers you’ve got!”

It sounds a simple idea doesn’t it and one that many businesses claim they implement as a matter of course. But do they?

Our experiences of talking to different operators is that they ponder over and calculate how much they are going to attract new customers and how much they need to invest to achieve this, without looking at the customers right under their nose.

No more new customers in the spa please!

It could be argued that a strategy based around repeat business and good word of mouth will reap far greater rewards for a spa or hospitality business than speculative forays into client acquisitions.

The majority of the tools and information for this strategic activity are readily accessible within the business in the form of databases of previous or existing customers. A compelling message to an audience who, it can be assumed, are already pre-disposed toward your products and services is likely to be extremely (cost) effective.

We have recently assisted a hotel spa in putting together a campaign to do just this - i.e. monitoring repeat visits, client spend, and identifying top clients, targeting campaigns to previous buying patterns.

All of which was extremely low cost - just the time for the analysis of the data - yet brought about tremendous results and through the resulting client recommendations, new customers came to the spa.

As with all campaigns, the activity needs to be timely and targeted and as indicated above requires some initial research but it will yield positive results and a welcome bi-product is likely to be improved service levels.

Statistically we read that it costs ten times more to acquire a new customer than to keep a existing customer.

Makes you think doesn’t it….?

 

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