Why is conducting your own spa competitive analysis important? There are numerous reasons that having an understanding of your immediate competitive landscape is important. It provides you insight, understanding, and an upper hand in providing your clients the best in service and products for your market. Business owners are frequently surprised that their new beautiful spa is under performing, that they are losing staff to a competitor, or that their repeat rates are low. Sometimes, owners need to take a good hard look at what is going on around them, within a 15 mile radius. Knowing your competitive market keeps your business prepared, on target and ready for anything.
Conducting a spa competitive analysis is easy. First, select 3-5 competitors that you perceive to be your competition and one that you may not. Do not feel guilty or dishonest by looking into your competitors, it’s part of the business. Everyone should know where they stand relative to their competitors. You are trying to determine how you can differentiate your business and set yourself apart.
Here is a key list of items to analyze in your marketplace to conduct a spa competitive analysis:
All of this information can be found online, through spas’ websites, social media channels, Yelp reviews, and Google; it is public knowledge. You can also make telephone inquiries and/or visit the spa to experience their service. Approach your research as a consumer, and be selective. View everything as a client would. Organize all your research in one place where you can compare and rank your competitive market. Do they have great marketing and branding? Products/Services? Top brands? Beautiful facility and location?
Questions to ask yourself:
How do you stack up against your competitors?
What does your business do better or worse than your competitors?
How can you differentiate your business?
Sit down with your spa manager/director and conduct a mini SWOT analysis on your own spa- Strengths, Opportunities, Weakness, Threats. How do you compare? Use the data that you have collected to make improvements and set your spa on a path for success. Never copy or mirror another spa, use your own insight, vision and passions to correct and improve your location. The final step is to apply your competitive findings to improve your business. Never blame your weakness on your competition, it is your job as a business owner/manager to make your spa the best it can be. Every business has limitations, how you overcome them is what can differentiate your spa.
Always keep a pulse on what is happening in your marketplace as it will keep your business ahead of the curve. As we all know, consumers have choices – many choices – on where and how they spend their money. Never let shifts in business derail your goals, keep your eye on the ball and watch your business soar.