Beauty - Expert Panel . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . “
How beneficial to salons and Spas are
Audrey Heffernan
OPI Trainer, Hennessy Hair & Beauty
"Inmy opinion, I think daily discount websites are very beneficial to salons and Spas."
"It is great for advertising alone, it gets your salon name out there and lets people know about your salon and the treatments you have to offer.
"It is great to run an offer on these daily discount sites through quiet months in your salon. But putting an expiry date on it can get you through the quieter times and generate income at the same time.
"Also for new products launched in your salon it is a great idea to run a deal on one of these websites. It will help you get the product off the ground and let people know about the product.
"Always include your website on these deals, you would be surprised at how many people would go and have a look at it, even if they don't buy the deal, it lets them know you're there."
Celia Rose
Dermalogica Sales Manager
daily discount websites? ”
Liz McKeon
Beauty Business Expert
"In the current climate, businesses are evenmore receptive and keen to look atways to attract newclients. The daily discountwebsites can be tempting to use, hooking clients in with appealing discounts for treatment services."
"However, with increasing overhead costs themargin available within treatments needs to be protected in order to build a profitable and long-termbusiness. The demands ofmany of these web-based businesses are that the offer has a perceived discount value to the customer of around 50-70%.
"There are consumers who are professional deal hunters, who will only go where they can get the best deals and will show no long-termloyalty to the skin centre. Is this really the type of client we want to attract to our skin centres?
If you have
any questions you would
like to put to our panel, email us at
melissa@aitireland.com 44
"If business is going to utilise this type of marketing, then there are elements to consider in order to protect the brand image and profitability of the business. Ask yourself what aspect of your business do you wish to attract new clients for? Is it for a particular service, or to fill the column of a new staffmember?
"Before choosing to embark on this route ofmarketing, skin centres should carefully consider several elements to ensure their business sees a result in the process. Consider limiting the number of deals that can be taken in line with availability within the business. Also take into consideration slow hours of the day youmay wish to fill, verses peak hours where you already have waiting lists for clients. In addition, restricting the days to book up your quietest periodsmay be appropriate. Brief your reception staff to ensure bookings are accepted for the correct time and the correct staffmember."
"While the concept is good, the current daily dealmodel for local offers is imperfect. It is unprofitable formany salons and Spas and unsuitable long term."
"Daily deals have shifted business from traditional advertising to blanket discounts, aimed at driving first-time client acquisition en masse to local salons. However, it hasn't yet proved to improve the salon's bottom lines.
"In fact, a large number of beauty businesses that have partnered with daily deal sites have lost money - in such cases the client must spend over a certain threshold for a merchant to be profitable. By cutting prices to make offers attractive to deal site customers, the salons and Spas can realise significant losses during promotions.
"Another serious flaw with the current daily deal model is that it does not encourage clients to spend more than an offer's discounted value when in-store. Daily deal sites operate under a strategy historically recognised as a 'loss leader approach', which attracts clients to a salon by offering steep discounts on particular services. As such, the approach involves selling services at a loss and only benefits the salon when first-time clients buy add-on products or services, as well as in return visits to the salon.
"Also troubling is the fact that daily deal clients rarely become a repeat client or spends beyond the offer's value. It looks like the daily deal sites are here to stay, but the key to succeeding will be a site's ability to meet the varying needs of the salons and Spas, while simultaneously benefiting the client."
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