5 ways the spa industry can tap Millennials as their ideal target customer

‘Millennials’ is a phenomenon so powerful that it gave a name to an entire generation. According to the Wall Street Journal, in addition to selfies and Social Networks, Millennials revolutionized the beauty business, imposing their needs and setting new trends in the cosmetic and the wellness world.

Research indicates that the young people in this cohort will be the principal spa consumers of the future. They’re the largest generation on earth and have a whopping $200 billion in buying power in the U.S., and $2.4 trillion’s worth globally. And a recent report from the International Spa Association (IPSA), based in Lexington, KY, indicates that 60% of them are invested in their personal well-being, and 56% are already spa-goers. Similarly, 70% say that, if they had some extra time or money, they’d spend it on health and fitness.

“Years ago, most private club spas focused solely on mas- sage because that’s what members wanted,” recalls Caldabaugh, who’s also the fitness director for the John’s Island Club, in Vero Beach, FL. But now, he says, members are interested in a host of other services, including facials, body scrubs, manicures and pedicures, salt rooms, cosmetic care, and, even, noninvasive body contouring.

A 2016 Gallup study found that millennials are more apt to shop for the fun of it and to make impulse purchases than members of other generations. At the same time, they are, by and large, conservative spenders. The main reason for this is that newer generations with the most buying power in the world today, such as the Millennials and soon to emerge Generation Z, are more holistically focused on wellness than any other generation of our time.

In its most recent Consumer Snapshot (Volume VII), The International Spa Association (ISPA) published an accumulation of research it found on the soon-to-be largest demographic of spa-goers—millennials. Many spas around the country are researching or revising their menu to cater more toward this demographic, but how do you find out what they want?

Millennials stress on being natural and nature based products - Differently from their predecessors, Millennials are less interested in tomorrow’s skin problems, and prefer to focus on brightness and a natural look. They take a “green” approach to cosmetics by making conscious choices and being very careful so as to respect environmental and social sustainability. Their “musts” are:

• Eco-friendly packaging

• Cruelty-free formulas

• Organic products

• NO to silicones, parabens, preservatives and synthetic dyes.

Just as big food brands have been made to pivot towards today’s “new” conscious consumer, big beauty brands are beginning to wake up to the fact that they need to catch up with consumers that care deeply about the ingredients and ethos of the products they choose to put on or in their bodies – or slowly fade into obsolescence. Food-inspired beauty remedies are from the likes of kale, kombucha, chia, nuts, turmeric, seaweed, blueberry, bearberry, and probiotics. Along with the natural “beauty foods,” has come a rise in nutraceuticals (pills and supplements that aid health) and “nutricosmetics” (ingestible supplements specifically designed for beauty) that promise – and, in some cases, clinically proven – to provide miracles with your hormones, immune system, skin and hair.

“Young adults tend to be more aware of what’s in the products they use, and about the long-term effects certain chemicals can have on their health,” explains Santangelo. “A decade ago, it was all about tanning beds and acrylic nails.” Now, she says—not so much. If they want tanning services, they’ll opt for the organic air- brush spray tan, and, if they want their nails done, they’ll request natural, light-activated nail applications that don’t contain parabens or polymers.

Millennials visit spas primarily to relieve or reduce stress – Millennials are employed, educated and stressed out — potentially from a mountain of student loan debt. The Future: Due to increasing levels of stress as well as a greater understanding of brain science, the proper relationship between mind/ body is getting clearer. Due to the mental wellness crisis(spiking depression, anxiety, etc.) which has reached alarming levels, various wellness retreats, spas, fitness studios, schools, workplaces, and governments have decided to pump up the “healthy mind” programming, in 2020 and beyond.

Millennials dislike gender-related labels - While women make use of spa facilities more frequently overall, men visit them more often than one would think. According to ISPA, 52% of millennial men have had a manicure and pedicure, and well over half (59%) have had a facial. While both men and women utilize the spa to relieve stress, women seem to value this benefit more, with 36% reporting it was the primary reason for their most recent visit—that vs. 27% for men. Likewise, “treating or indulging yourself” motivates more women (nearly 25%) than men (16%) to head to the spa. Recovery from illness and soothing sore joints is the No. 1 reason that young men frequent a spa, which explains why a significantly higher proportion of men patronize them when the site is located in a fitness or athletic facility. The figures strongly suggest that breaking down barriers to spa access for men could tap a large reservoir of revenue for club spas.

Create offering for all income groups - It’s millennials, and they’re ideal spa-goers. It’s a generation that’s technology-driven, mobile-ready, trying to find immediate gratification, and eager to feel valued, to savor authentic experiences and adventures. Younger generations are being exposed to spa, meaning we’ll have to create atmospheres to draw in families, and develop therapies and experiences for all stages of life. The ‘mainstreamification’ of spa culture means it’s not just an upscale woman—it looks more just like the average person on the street… and may be a desperately stressed client.

Millennials are focused on the ease of web purchasing – Millennials appreciate how online interactions saves time with their busy lives. Many spas pride themselves on being ‘high touch’ instead of ‘high tech,’ but we have to interact with our guests using social media and online booking capabilities or we’ll lose relevance. Eight out of ten consumers check online reviews before scheduling an appointment or purchase, so it’s important to consider the budget for a sales and marketing associate who can post on social media, monitor and answer reviews, update your website and handle e-blasts. Now that everything’s moving so fast, day spas are using mobile marketing apps to locate people and send deals in real time. Online booking and mobile apps mean guests will leave digital footprints, affording spas enhanced data for targeted promotions and individualized messaging. Social media takes time, but it helps us determine what clients want to ascertain, keeps them connected to us and allows us to beat our competition! It’s crucial to focus on various demographics—Facebook for the 35-65 set and Instagram for younger people. But you have got to send an email blast or a direct-mail postcard once a while, put up signage and invest in some traditional advertising too; studies have shown that consumers need to see a message in three spaces before it even registers.