What to Do When Revenue Growth Seems Impossible … Develop!


We tend to measure success by our degree of growth in revenues and profits or, in the case of a public corporation, stock value. Can we experience success when revenues are flat or shrinking? In our current environment it may be helpful to redefine our measures of success and include internal quality development, personal satisfaction and profit goals.

The achievement of Olympian Michael Phelps has resulted in the addition of word “phelpsian” to our language. It refers to an amazing feat. A feat of discipline, will, love of sport, belief, persistence and balance. Michael and every Olympian reminds us of our human capacity to aspire, to live, and to celebrate our efforts. We too have the capacity to stand out, to shine and to thrive in the current environment. It is interesting and relevant to our spa businesses that the 8th gold medal, the stunning phelpsianteam effort. moment, came through a

Backcasting is one method to strategically move towards a new goal. The definition of backcasting in Wikepedia states: ” a method in which the future desired conditions are envisioned and steps are then defined to attain those conditions, rather than taking steps that are merely a continuation of present methods extrapolated into the future” http://en.wikipedia.org/wiki/Backcasting

Use the Backcasting method to determine how to arrive at a phelpsian feat of your own choosing.

Example: The massage/spa numbers may be down due to a low cost provider opening down the street and, or due to the fact that clients have lowered the priority of spa treatments in their personal wellness plans.

Desired outcome: Day Spa Extraordinaire is experienced and perceived as a superior value in terms of overall treatment and therapeutic value to the spa client – every time, all the time, exceeding expectations. This results in customer loyalty and commitment to their personal care, reliable bookings for the staff, and revenue levels that meet our budget requirements.

Backcast steps to deliver this outcome:
Gather the team for a revisioning process.
Benchmark – Find out what value and experience the competition is providing.
Do an internal quality check – review each provider against the benchmark and your ideal.
Test market value added service improvements to your top clientele to measure response and perceived value. (Offer at your current price or slightly lower if margins allow.)
Once you have designed this new service product, train it, promote it, and deliver it flawlessly.
Do the numbers. Know, set and share your goals with the team: cost containment, green business  practices, product and service contribution margins, and sales volume.
Assist massage therapists in doing their own numbers and meet with them individually. What do they need to be making monthly? What will it require in work days and treatments to achieve that?

This process with enthusiastic and disciplined implementation will contribute to achieving your new measures of success!

By: Rhana Pytell


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