We’ve reached the end of 2022 and we know your business is gearing up to knock 2023 out of the park. Our team of experts have pulled together industry data from the past year and distilled down the spa and wellness industry’s top predictions into actionable insights that you can take advantage of to set your business up for success in 2023. Here are our top three spa predictions for 2023 and what you can do about them:
Take advantage of the experience economy.
The wellness industry as a whole was hit hard by the pandemic, as in-person treatments and experiences were essentially non-existent due to lockdowns and social distancing measures. According to the Global Wellness Institute (GWI), spa revenues were growing annually by 8.7% prior to 2020, but revenue shrank by 38.6% due to the pandemic. While our industry suffered under the pandemic, the good news is that the GWI projects that spa revenues will rise back up to pre-pandemic levels and will reach $151 billion in 2025.
So, what does this mean for the spa industry and how can you ride the revenue wave to keep your business on the right financial track? While the pandemic brought about many opportunities to optimize the digital patient and customer experiences, it left individuals craving authentic connection and in-person experiences. We quickly discovered that virtual offerings are a poor substitute for a physical presence and full immersion in these experiences.
This is good news for the spa and wellness industries, as we specialize in crafting peaceful and restorative environments for our customers and work on patients in-person so their bodies and minds can reap the benefits. Heading into 2023, your spa should focus on cultivating the best possible customer experience. Put yourself in the customer’s shoes and encourage your team members to follow the gold rule; ask yourself how you would want to be treated if you were booking a spa experience for yourself.
Throughout the next year, we will continue to discover just how valuable a good customer experience is, but rest assured it should be a top priority heading into 2023. According to a recent study, 86% of consumers will pay more for a great customer experience. Furthermore, clients may be willing to pay a premium anywhere between 13% and 18% for luxury and indulgence services. From social media to phone bookings, to the in-spa treatment, refine your client journey and allow customer experience to become a key differentiator for your business.
Prioritize high-quality products.
Throughout this year we saw the fallout from numerous product recalls, especially in the personal care item space. Most recently, Unilever was forced to issue a mass recall of numerous dry shampoo products due to the potential presence of Benzene, a chemical known to cause cancer; it is a carcinogen and make cause disruptions to our endocrine systems even in small doses.
This is just the tip of the iceberg. Consumers are paying closer attention to what is in their personal care products and how it could affect their overall health, both positively and negatively. We’ve seen a bigger focus on clean beauty and personal care products over the last few years, and we predict that trend will continue to grow in 2023.
Prioritize high quality personal care items for your team to use during treatments and to sell to customers in your spa. Do your due diligence in researching just what exactly goes into the products you provide to clients. Support locally sourced manufacturers and brands that prioritize transparency and promote environmentally sound products.
One of our personal favorite brands is Privai. The company focused on product innovation as a core focus, developing results-driven, botanically inspired items. The brand purposefully pairs products from like-minded lifestyle brands to meet your clients’ needs. Privai’s products meet rigorous, high standards and are always:
- Cruelty-free and never test on animals
- Handcrafted & hand-poured in the USA
Cultivate a positive company culture.
According to a recent Mindbody report, company culture may be more important heading into 2023 than it has been in years past. As our teams return to our spas full time, they want to know that the space they’re in, and the team they’re working with is in a healthy and happy environment.
The pandemic gave employees the opportunity to define what they want out of work and allowed workers to dictate the environments they want to be a part of each day. We spend too much time at work to be chronically unhappy and navigate toxic cultures and behaviors.
Heading into 2023, demand for skilled and unskilled workers will still be high, meaning that employees will continue to control the job market. According to a recent study by FRANdata and IFA, nearly 90% of respondents noted that business owners are having trouble finding individuals to fill vacant positions on their teams.
Connect with your team members and express a curiosity around what you can do to make the workspace as welcoming and collaborative as possible. Be open to the ways that you can improve your business. Focusing on what you can do to retain good employees will ultimately be to your benefit. In a survey by the Association for Trade Development (ATD), businesses may spend upwards of $1,200 to train new team members.
No matter the direction you choose to take your spa business over the next year, consider taking advantage of these trends to deliver the best experience possible for your team and for your customers. We wish you an abundance of health heading into the new year and hope that 2023 brings success to your business!