When I saw the list of illustrious, experienced industry professionals that would be attending, I was immediately reminded of The Wisdom of Crowds, the James Surowiecki published in 2004 that extolls the power of group knowledge. My thought was, rather than creating yet another power point presentation (as interesting as that might be!), why not get the group engaged in discussing some of the issues we are currently facing as our industry morphs from facials and massages to wellness lifestyles? Maybe we could all learn something from each other.
So I came up with a list of 8 timely questions, and engaged the group of both buyers and suppliers in an exercise where they had to gather information on these questions from each other, and then coalesce into small groups around a specific topic and discuss not only their own opinions, but what they had learned from others.
We’ll be sharing the informative and wide-ranging results with you over the next few weeks, beginning here with a topic everyone can relate to:
What do you see as the biggest challenge to our industry in the next five years?
No surprise, issue #1 was Staffing. Followed by the caveat of talented staffing. Of the 80 industry professionals in the room, from both buyers representing large resort spas to suppliers of niche products, NONE said they were fully staffed with qualified workers.
Further to the “qualified” note, the #2 issue was Education. This is clearly a multi-layered topic; all employees need some manner of education in order to do a great job, whether it is a professional license for a service provider, or an in-house training program for a front desk or sales associate. And the fact is that for our technical employees, having a license or certificate to practice their craft is not a measure of talent or quality. Our 50-states, 50-sets of regulations model does not serve us well, but it’s what we have in the U.S. When it comes to supplying training for onboarding and to ensure successful fulfillment of one’s job, whether in sales or support, most beauty- and spa-related companies are not also experienced at the basics of effective educational practices. And why would we be? We’re in the industry because we’re passionate about products, treatments, helping clients to feel and look their best, not because we are talented at teaching other people! And yet, in order to be successful over the long-term, we are only as strong as our teams.
#3, Oversaturation of Products, Spas & Social Media, likely needs no explanation. How this industry has grown in the 30+ years I’ve been in it! It used to be that when you attended a trade show, you saw the same 30 or 40 skincare suppliers; now they number well into the hundreds, with new entrants all the time. Technologies have enabled new and exciting products, equipment, delivery systems and tools, and continue to do so at an alarming rate. As an industry professional, it is difficult to keep up. But through the consumer lense, it also makes it difficult for each individual business to stand out and differentiate. Spas used to be “special,” but with 26k (and growing) facilities in the US, and even more related businesses that fall outside categorization, consumers are increasingly just confused.
While spas have made an effort to expand their service menus and treatment options, Affordable Services was still the #4 issue on the list. Identified as a trend as early as 2017 by the Global Wellness Institute, we still have work to do when it comes to making wellness accessible to everyone.
Related, I think, to the explosion in products and suppliers, was issue #5, Efficacious Treatments & Trends. At the end of the day, consumers still want to feel better, look better, achieve some release of stress and tension that lasts beyond the precious few minutes they can spend in the spa in a month. Of course not all products or treatments work the same way for every body, but consumers would rather put their discretionary income into options that provide a true and tested result.
A follow-up to many of these preceding challenges, Retention came in at #6 on the list. Once we have hired a new staff member or acquired a new client, it is now harder than ever to keep them. The advent of the gig economy has created so many employment options that less people are seeking full-time employment in the spa world, and clients have so many options they are bombarded with daily in terms of products and experiences that it is difficult to keep them loyal to one business.
So, no big surprises on this list; every industry has it’s challenges, and like these many are beyond the control of individuals. But if we each, individually and as businesses, try to do our parts to address even 1 or 2 of them, perhaps we can make some progress moving the needle, as a crowd.
About the Author
Lisa Starr is the Principal of Wynne Business Consulting & Education, which specializes in spa, wellness & salon businesses. Lisa has over 30 years of experience in the beauty industry, in all aspects from technician to regional manager. She has spent the last 18 years as a consultant and educator, helping companies maximize spa operations performance in both front and back of the house, and consults on a variety of topics including operations issues, finances & compensation, marketing, inventory management, retailing, human resource development, and business process improvement. Lisa is leading the Grow Well, professional development for We Work Well.
Follow Lisa on Twitter@StarrTalk, on Instagram@WynneBusiness, or email lstarr@wynnebusiness.com
