Nancy Griffin

I’ve been writing about the dangers of Discount Sites more than a year. My first blog post on the subject “Groupon Gripes” featured opinions from industry experts concerned with the long-term implications of deep discounting. Since that time, the trend towards discounting has only gotten more pronounced. The 2011 Global Spa Report by Coyle Hospitality Group shows.an increasing dependence on Deal Sites like Groupon and Living Social.

The study reveals that Deal Sites were utilized by 56% of respondents to book and receive a service. When asked about their preferred means of getting information about spas, respondents rated “search engines” first, but Groupon came in second at 52%, doubling from the previous year’s 22% response. Not surprisingly, the No. 1 reason for using those websites was to “find deals.” However, it seems that price isn’t the only consideration for web-savvy spa seekers. Cited next was “viewing spa menus,” “reading feedback”, and “learning more about the spa in general.”

When Coyle asked consumers what marketing campaigns prompted their last several visits to spas and if they have returned or not, almost one third said they had a massage at a spa due to an online deal site promotion (Groupon, Living Social, etc.) or limited time deal (SpaWeek, etc.). Eighteen percent said their visit was due to a direct email ad with deals or coupons and 16% due to a direct print ad with deals or coupons.

Most spa operators are negative about deal seeking consumers, saying they are geographically unqualified and disloyal. They report horrible retention numbers from these types of clients, and that they are often flooded with more “deals” than they can’t reasonably service. Here is Coyle’s advice on how to attract deal seeking clients without breaking the bank:

“You don’t have to necessarily discount heavily to be ‘seen’ by the deal seeking consumer. A presence on sites that are being searched with promotions and added value coupled with a high quality brand name or reputation seen via word of mouth and/or online reputation could effectively produce the same result in terms of traffic—this is good too in that it does not jeopardize the business by offering deals that hit the bottom line negatively.”

What do you think of Coyle’s advice? How do you resolve the need to attract new clients without “giving away the store?” Please weigh in on this important subject!

Patti Biro

If not every day then probably several times a week, you have the opportunity to visit a highly successful retailer. By my definition, that is a retail location that maximizes the revenue per square foot on a consistent basis. No doubt you have been in a drug store, a local grocery store, or even a mall. These are all probably producing more revenue per square foot than you are.

A recent survey conducted by Natural Resources Spa Consulting Inc. indicated that day spa retail revenue per square foot lags behind other locations such as mall stores, health care locations, and airport retail, and yes, even behind hospital gift shops!  In fact, the only other similar business doing more poorly than day spas were fitness centers.

So what is the secret to success? Unfortunately, there is not one simple answer. There are however at least 7 behaviors or habits that successful retailers know and use on a daily basis. Developing or imitating these habits cannot help but increase your retail sales percentages.

1.  Retail is a normal and expected activity
Retail is a service to your guests. Stop apologizing or making excuses for selling selling retail. When was the last time your visited your hair salon and did not see products for sale?  If we want our clients to have great results in between visits, let’s provide them with the tools to do so!

2.  Educate and inform your clients about your retail products
Think about the last time you visited the wine section of your local grocery store. No doubt there were samples, reviews from leading wine magazines, product ratings and suggestions for pairing with foods. This is a good habit to imitate with shelf talkers, product reviews and samples of your retail products for clients to see, touch, smell, and experience.

3.   Consistency is a virtue
Recommending products should happen for every client every time. Better yet–put it in writing so if I cannot buy today I can have it ready when I am able to purchase products.

4.   Engage in some visual merchandising
Ever wonder why you cannot locate the English cucumbers? If they have been moved, it is probably to make way for another display or they are part of a new section. Mixing it up by creating visually appealing and changing displays keeps items fresh. Anyone who has ever worked store retail knows that sometimes simply moving the location of an item will make it sell!

5.   Keep to the Right
Most people tend to turn to the right when they enter a store.  Higher priced items will be placed on the right side. When guests walk into your retail, what do they see? Which way do they logically turn? You may consider moving your retail items to accommodate this tendency.

6.   Eye level is buy level
Less expensive products should be arranged below eye level. Reserve the prime real estate in your retail area for higher priced products. It is not just a fluke that at the grocery store the generic brands are placed closer to the floor making you look harder and reach down to find them.

7.   Less is more
The more expensive a product is, the less of it you should have on display. If you have ever visited a higher end purse, luggage, or eyewear store you will notice large areas of “white space” to display a single item. Our brains tell us this item is special, more desirable, and therefore, worthy of the price. Try this trick in your retail section to add the perception of increased value to your products.

A famous quotation goes like this “Imitation is the most sincere form of flattery”. When imitating successful retailers improves your bottom line, it is flattery that pays off for you and your guests!

Want more information? Visit www.pattibiro.com

Marti Morenings

I was honored to say a few words about Universal Companies’ sustainability initiatives at the 4th Annual Green Spa Network Fall Congress. My hope is our efforts will inspire other companies to find their green path.

 My motivation for “greening” Universal was a 2007 Fast Company article where the author referred to the “Eco-Innovation Revolution.” The premise was simple: capitalism got us into this mess; therefore, capitalism is the most effective way to get us out of it. 

The author predicted that small innovative entrepreneurial businesses would find the upside to addressing global concerns, and that these companies would not only make a positive impact on our environment, but also on our economy. I began envisioning how I wanted to conduct Universal in the future.  

I was inspired by business heroes like the late Ray Anderson, founder of Interface, the world’s largest producer of contract commercial carpet. He proved beyond any doubt that what was good for the environment was also good for the financial growth of his company.  Interface’s conservation efforts resulted in a 45% reduction in use of fossil fuels. The water used in the manufacturing process was cut to 1/3 of the traditional amount. Amazingly, sales rose almost 50%!

My first initiative was to put a sergeant in charge of our program who would protect us from the possibility of green-washing. Someone so passionate about doing it right and so devoted to sustainability that there would never be a shadow of a doubt that our company would set a high standard for others to follow. That person was Lisa Sykes–an organic gardener, vegetarian cook, and long-time ‘tree-hugger’.

We then created the Green Team, a group of 15 volunteers who were assigned to “wage a war on waste.” In addition to implementing numerous effective recycling programs within our offices and educational programs for recycling at home, they provided the details regarding a cardboard baler for our warehouse, showing a Return on Investment within 12 months, and allowing us to recycle and sell thousands of pounds of waste.    

The second area of influence that we knew we had is with the over 5,000 products we sell in our catalog.  Even though Universal is not a manufacturer, its leverage with its vendors is strong.  We knew that if we could set strict criteria for our earth-friendlier products, our 300+ vendors would feel the need to apply higher environmental standards to their manufacturing practices and merchandise. 

In our 2008 catalog, we made “green” the primary theme and highlighted the products and manufacturers that held up to Lisa’s scrutiny. 

Finally, the third and largest area of influence we had, was to reach the 28,000 spa professionals who purchase regularly from Universal Companies. As always, our most successful campaigns were when we helped our customers with a business solution.  Education was our focus, showing our customers that the LOHAS demographic was exactly the same as the spa-goer, and to reach and retain this market segment,   establishing eco-friendlier standards was not just the right thing to do, but the necessary thing to do to grow their businesses.    

Throughout the past 4 years, even in spite of the recession, the brands that have experienced the most growth at Universal Companies (many with double digit growth), have been our green, natural brands.  The vendors who stepped up to the challenge, and the spas that made sustainability part of their business plan, are making money – even in a tough economy. 

Sometimes inspiration begins with a bright, quick spark. But I’ve learned that the subsequent changes it encourages do not happen instantly. They require careful calculated steps over time to produce strong, steady results.  

If any of you are uncertain about whether or not one person can truly make a difference, just find your inspiration, look for your heroes and emulate what they have done.  And then use your network and area of influence.  You just might be surprised to see what happens!

Marti Morenings

On my recent adventure to Peru, I had the opportunity to visit a traditional weaving community in an ancient Andean village. Chincero is one of several small communities located throughout Southern Peru supported by the Center for Traditional Textiles of Cusco. The center is a hub for cultural and technical interchange among weavers, and promotes community textiles and economic development. The non-profit program is self-sustainable and has become so successful it is now a model for other countries to follow. National Geographic featured the program in 2002.

The center was founded by a true visionary, Nilda Callañaupa Alvarez.  Recognizing early on that women in this area were discriminated against, she saw an opportunity to market the intricate pieces handcrafted by the Incan women using centuries-old traditional techniques.  An expert weaver and college graduate, she was the first person in her village of Chincero to go to a university. Nilda viewed her education as an obligation to return and help her community. In 1996, she founded the Center for Traditional Textiles of Cusco, a non-profit organization to study and preserve weaving traditions in the southern Andes.

I was fortunate to speak with Nilda the day I visited Chincero.  She told me she always felt good about supporting women because she could be sure the money would go back into the families.  The 650+ women weavers associated with the center retain 80% of the proceeds from their work. They earn three times the minimum wage and are highly respected in their communities. What great role models for the young girls!  

If you are a sustainable textile enthusiast, I recommend Nilda’s book Weaving in the Peruvian Highlands. The book features traditional Andean designs and detailed descriptions of how the textiles are woven and dyed. The all-natural dyes are derived from flowers, leaves, nuts, roots, fruits, and even insects!

Rianna Riego

Once a year, a very special group of spa professionals choose to convene and collaborate towards raising the awareness of sustainability in our industry.  This year, against a majestic backdrop of fall foliage and a snow-capped mountain range, Robert Redford’s Sundance Resort hosted the annual congress of the Green Spa Network with almost 70 people in attendance from as far as Ireland and South Africa.  A magical rainbow greeted the GSN Board at their first morning hike to Stewart Falls, and the full harvest moon provided the perfect setting for chairlift rides to the top of the mountain. No surprise that by the end of the conference, everyone left with a feeling of renewal and a sense of greater purpose.

Sundance Resort GM Chad Linebaugh welcomed delegates with the story of Sundance and their sustainability efforts.  The 3^rd oldest ski resort in the country recycles 84 tons (168K lbs) of waste a year, purchases 90% of their food items from locally grown sources within 50 miles of the resort, and founded the glass recycling program for the entire area.  Artisan glass blowers from Mexico handcraft plates, bowls, and glassware for the resort… all made from the recycled materials.

David Oakey of David Oakey Designs, whose client is Interface, GSN’s newest Sustainability Circle Sponsor and the world’s largest producer of contract commercial carpet, challenged everyone with hard facts: 100 acres of forests destroyed, 70 million tons of toxic chemicals released into the air, 86 million barrels of oil wasted, 25K people died of starvation (17K of them children) in the last 24 hours (www.poodwaddle.com).  His mantra: Reject, Reduce, Recycle, Renew, Redesign.  As a designer and a strong proponent of Biomimicry, he emphasizes the importance of nature’s design principles & efficiencies: after all, 16 billion worth of energy escapes thru holes or cracks from poor design; 17 million gallons of fuel is spilt during lawn care (almost 3X the 6.2 million for the Exxon Valdez).   Lawns cover 20 million acres of land, twice the size of Pennsylvania.

Green Spa Members also shared some of their sustainability efforts.  The Westin Riverfront uses Ozone Infusion and Gray Water Reclamation. Vygenhoek Spa in South Africa practices the 4 Rs: Reduce, Reuse, Repair, Recycle, and says NO to disposables.  Portico/Under the Canopy enlightened delegates about conventional cotton, the leading cause of agricultural air pollution.  Although it only makes up 3% of the world’s agriculture, it uses more than 25% of the world’s pesticides. 

Closer to home, Marti Morenings, Founder of Universal Companies (one of GSN’s Sustainability Circle Sponsors) shared her path towards the cause.  Like any great leader, she read up on corporate America’s efforts towards environmental responsibility and found so many cases: Nike’s elimination of PVCs and its reduction of the use of 95% of its chemical solvents; Visa’s Green Card, which pays off the planet in the form of carbon offsets. If you charge a $300 airline ticket that generates 2,000 pounds of CO2, Visa will make sure that 46 trees are planted to offset your carbon footprint.  Turns out that Green Card holders use it 3X more than their other CC’s because they feel good about using it.

Fascinated with business heroes like the late Ray Anderson, visionary and founder of Interface who changed his business model to become one of the first companies to recycle carpet waste, Ray proved beyond any doubt that what was good for the environment was also good for the financial growth of his company. He was able to cut the company’s use of fossil fuels by 45%, its contribution to landfills by 80%, and the company now uses 1/3 the amount of water in its manufacturing process, yet sales are up 49%. ‘Sustainability’, Ray would often say, “doesn’t cost – it pays in the form of customer loyalty, employee spirit and hard cash.”

Hence, Universal’s path towards sustainability began…  A distributor of over 5000 products with a customer base of over 28K spa professionals, it made sense for them to lead the charge and set the bar for earth-friendly products.  Soon enough, suppliers stepped up to the challenge and in the last 4 years, those that did experienced the most growth.

Another by-product of Marti’s inspiration is Eco-Logical Energy Systems, which to date has installed a dozen wind turbines, several solar PV systems, and one geothermal system.  Even more important, is their social responsibility and the outreach to the community by creating awareness thru education and assistance.

Armed with all this information barely 24 hours into the conference, attendees were filled with a sense of purpose – to create a vital planet with vital people.  This year’s theme, “Taking Root: Making a Difference for the Planet and your Bottom Line”, set the intention for the planting of a young black spruce tree on the grounds of Sundance on the last morning of the Congress.  The tree planting ceremony was followed by the release of a Great Horned Owl from the local wildlife refuge symbolizing hope and the infinite potential of such a worthy cause.  I was humbled and grateful to be part of this unique gathering.  And I look forward to experiencing many more with my friends at the Green Spa Network.

GSN Board on their hike to Stewart Falls

Wasatch Mountain Range

Congress attendees getting ready for a full moon lift ride

Literally taking root! Ceremonial tree planting at Sundance Resort

Release of a great horned owl from the local wildlife refuge, symbolizing hope and the infinite potential of such a worthy cause

Stewart Falls

Leslie Lyon

I was speaking with a close friend the other day about my passion for writing, and during our conversation she informed me that I am a “technical writer”.  I know my work doesn’t always attract an audience looking for “light” reading, but I didn’t know my style of writing actually had a name.  I have always loved structured pieces, whether they are articles or business manuals; that show the reader how to do something, and why.  And I guess this article is a mini example of that.  To me, although marketing needs to always remain dynamic; in its origin, it must also be carefully structured.

I believe that each year you should develop a newly revised Marketing Plan. Your plan should be multi-dimensional, allowing you to reach your clients 7 times, through 7 different mediums.

And your marketing plan should always be viewed as a long-term project.  Your repetitive and diverse messaging will remind clients that you are the solution to their problems, and you will soon see that steady growth is far more profitable in the long run, than the spontaneous, rapid rewards that discounting and some price-based promos will be.

At the end of each year, survey results: Are you in a better position? Have you gained market share? Has your client base increased? Are you attracting new staff candidates? Have you boosted awareness? Improved your image? Seen a better bottom line?

Visual: Everything that your clients read, observe and experience in their “viewfinders” about you and your business must be expertly tied into each other. As Walt Disney once said, “There should never be an intrusion to the illusion”. Colors, fonts, pictures, textures, patterns, materials, and the feelings that each of them evoke through our visual perceptions must be definitive and unmistakable. They must represent you and what you deliver, period.

Print Materials: Your print materials are an integral part of your visual imaging template and include everything from in-house signage, to your social comments.  Be ingenious about every decision, or you’ll just get lost in the quagmire.  People always say they love the Spas2b business card and turquoise pen.  They aren’t considered throwaways, and are recognized year over year because they are the only ones of their kind in the pile.  So don’t be afraid to get creative and think outside the bottle!

Become an Industry Expert: Can you speak publicly…are you willing to try? Or does writing suit you better? You MUST choose one, or ideally, both! In order to grow your business, you must be viewed as an authority in the industry. Gaining this kind of credibility puts you miles ahead of the competition.  Know what media your target market is using and respond accordingly.  Once you have established yourself in your community; go international. Local markets saturate quickly; international markets are always hungry.

Trade Shows; Consumer Events & Association Expos: Develop your strategy and attract an audience with your unique offerings.  Use self-care education; new trends; and solution-driven approaches to capture attention.  Cross network with the other booths (they are your target market!) to get even wider exposure and gain clients. Consider becoming a show sponsor. Encourage subsequent visits to your spa with bounce-back coupons; special pricing offers; free mini services; samples, and the like.

One on One Communication & Networking: Wherever it is that you can find exposure to your target market, you need to aggressively pursue it. If there are special events in your area (or internationally) that your target clients attend, go to them.  Piggy back on local businesses where possible and “share” business opportunities.  Engage your staff in your networking efforts as part of their job descriptions. Ask for referrals and encourage everyone you speak with to spread word of mouth advertising for you. You need to be bold to get heard!

Internet Marketing: Developing your website into a social platform is a key component to your multi-dimensional marketing system. Incorporate a blog; a media room; translation button; eCommerce with a currency converter; newsletter sign up; full social sharing and following, and anything else that will capture the widest audience.  And don’t forget to get your spa listed on as many Spa Directory websites as possible. These sites will help connect you with both locals and out of town visitors.

Media & Publicity Campaigns: Know who the media moguls are in your industry. Get to know these individuals on a first name basis and keep the list constantly updated.  Get your product in front of them just before an event so that it is fresh in their minds. The media must be your friend! And what’s really great, is that they are always receptive, excited, and hungry people too!  Never be intimidated by them, they would hate that.

And don’t forget to become familiar to your clients by showing your face in all of your marketing initiatives!

Marti Morenings

I just returned from the 4^th Annual Green Spa Network Fall Congress at Sundance Resort. It was wonderful to spend time with such passionate and inspirational spa and sustainability professionals. Universal Companies was a sponsor of the event and has supported the organization from the beginning.

One of the many fascinating people I met was author and educator Shelley Lotz, who was at the Congress to perform research for her new book Green Spas and Salons: How to Make Your Business Truly Sustainable. Published by Universal Companies’ long-term partner Milady, the book fills Shelley’s life-long passion for sustainability within the spa industry. In her words, “There is an exciting opportunity to make a difference in the way the beauty industry does business.”

Shelley understands first-hand the challenges of operating a green spa. She is a co-author of Milady’s Standard Esthetics: Fundamentals and the former owner of an esthetics institute. She is looking for owners and managers of spas and salons to share their stories on sustainability and green business practices.

I encourage you to share your words of wisdom on making your business more green and sustainable. Please submit a few inspiring sentences, your name, company, and contact information in the comment field for possible inclusion in the book. “Words of wisdom” statements from contributors will be included throughout the book as space allows. The deadline for submissions is October 30th.

View of the Wasatch Mountain Range from Sundance Resort

Peggy Wynne Borgman

For years, we had a department at Preston Wynne we called “housekeeping.” I don’t know why or how this name was chosen, because I remember that at first we called the folks who did this job “spa attendants.”

It was difficult to find Housekeepers, thought we did have one person who was with us in this position for almost ten years. She was, remarkably, the only one who really “stuck.” I’ll call her Jackie. Every time I saw Jackie and asked her how she was, she answered me exactly the same way, “Working hard,” she’d groan, sometimes with a rueful little smile.

Jackie systematically hazed every new housekeeper we hired. Invariably, the newbie would come crying to a member of management, describing her cruel treatment. Jackie was afraid that the energetic newcomer might show her up and prove to us that she wasn’t actually “working hard” after all.

Invariably, Jackie would be written up and disciplined. Over and over again. She was often successful in getting others to quit, and drove away virtually everyone we hired. Especially the energetic, upbeat ones. They were punished soundly.

When a new manager marveled that we tolerated her bad attitude and poor work, I explained, “It’s hard to find housekeepers!” Of the constant skirmishes with coworkers on the Housekeeping team, we’d say “they’re like children.” With this team, forget best practices–our management style was parental. “That’s just how they are,” we told ourselves.

Meanwhile, Jackie played up her victim status to our therapists. She also did special favors for the therapists she learned would give her tips. They were convinced that she was the hardest working, most underappreciated human being on the planet. Meanwhile, her personnel file grew fatter and fatter with the notes on meetings, coachings and interventions. It was ludicrous.

We wracked our brains wondering why Housekeeping had never risen to the level of the rest of the team. “No one has ever stayed except Jackie,” we marveled. “And look at her!”

But something happened.  One of my dear friends and trusted vendor Mariah Giunta of AcquaCures, a brilliant marketer and “namer,” suggested that we rebrand the Housekeeping Team.

“Why don’t you call them the Hospitality Team?” she suggested. “They can be your Spa Hosts.”

At the time, the suggestion sounded more poetic than practical. It was true, they did much more than washing towels, cleaning restrooms and vacuuming. They were responsible for our spa refreshments, an area of the spa experience that is fraught with Moments of Truth. They worked hand in glove with our Spa Concierges to ensure that our guests had a great spa experience. At least, they should have.

Mariah had seen something that we had failed to notice for many years. By calling them Housekeepers, we were relegating potentially talented customer service professionals to a menial, behind-the-scenes role. The job title also turned off men, who by and large do not apply for Housekeeping positions. And by accepting Jackie as the “standard” of the team, we had scared off good people who knew darned well she was not a role model and had no interest in following in her footsteps.

Getting uniforms for our Spa Hosts was one of the first actions. Not surprisingly, this threw Jackie into a tizzy. She fussed over the shirt we asked her to wear to the point where we had to call in our HR rep, and he actually went to Macy’s and bought some alternatives for Jackie’s approval.

Around about this time Jackie had to take a medical leave. And in her absence, the team suddenly flourished. A sense of pride emerged among the Spa Hosts. They looked for more ways to add value to the customer experience. They were eager to learn. I only had to show Yajaira how to trim roses once; after that, she prepared our spa bouquets with a conscientiousness that I never could have dreamed of in the “Housekeeping” days.

Our first ever “World Class Customer Service” training for Spa Hosts (I know, shame on me!) took place a couple of months ago. I was stunned to find out how smart, motivated and happy this team was, and how appreciative they were of the time spent. Suddenly I had a connection with the team that had never been there when I thought of them simply as the folks who cleaned the spa and handled the laundry.

A couple of weeks back, we took staff photographs and I took a portrait of the Hospitality Team. Their esprit de corps is visible in this shot, which I wasted no time in posting on our Facebook fan page.

This week, Esteban, the youngest team member, brought in a cake he’d baked for Nandita’s birthday. She’s our director of operations. As I enjoyed a piece of his delicious red velvet and chocolate cake at the staff break table, I realized that I was witnessing something I never thought possible: our Spa Hosts were real members of our team, not second class citizens.

What’s in a name? Quite possibly, everything.

Marti Morenings

I just returned from a trip to Peru, where I had the opportunity to spend several days at Willka T’ika, an eco-retreat in the Sacred Valley of the Inca. The rooms and yoga studios are built around “Chakra Gardens”–seven gardens that correspond to the chakras of the energetic body. The gardens provide a bounty of fruits, vegetables, herbs and botanicals used in the cuisine, beverages and healing therapies.

My time at Willka T’ika was truly remarkable.  As I look back to what made the experience so special, I realize that there are many ways spas can be amazing and “Wow” their guests. Whether you operate a small day spa or an exotic destination spa in a faraway land, you have the opportunity to provide an authentic and transformational spa experience.  Here are some takeaways from my stay:

Behind Every Great Spa is a Visionary

When I spoke with Willka T’ika’s founder Carol Cumes, I was surprised to find out that she never visited other spas and retreats for inspiration. Carol had a vision.  She and her original staff members have worked together over the past 17 years to bring her vision to life. Her love of gardens, yoga and Incan art and culture are reflected in every detail of the property.

Harness the Healing Power of Nature

Upon arrival at Willka T’ika, you are greeted with an assortment of fresh herbs from the gardens. There are rosemary and muña (andean mint) plants, slices of fresh lime, and the infamous coca leaves. Signature “Solar Baths” incorporate the Inkan herbs grown throughout the grounds. Staff members are well versed in the healing properties of the Inkan medicinal plants growing in the gardens, and can provide herbal remedies for anything from altitude sickness to a cold.

Support Your Local Community

Carol is an active member of her community. Proceeds from her book, Chakra Gardens support the The Willka T’ika Children’s Fund. The fund supported the construction of two school buildings and a library, and provides school materials and over 300 hot lunches daily to the Andean children in remote areas of the Peruvian Andes.  

The subject of giving back is one near and dear to my heart, as you can see from my latest Pink Glove posts. Is your spa involved in charitable efforts?  Please share details in the comment field below. Your stories will inspire others to make a difference!

Carol Cumes, Wendy Bosalavage, Tara Grodjesk, Nancy Griffin, and Beth Caplan

Peggy Wynne Borgman

Well, we’ve decided to dance with the devil and start a paid listing for our 27 year old Bay Area day spa on Yelp.

After our first month, the preliminary results are…uh…in. My representative, a very affable and informed young woman named Ali, forwarded the stats to me today. Views of Preston Wynne Spa’s listing are up by 25 this month, she reported. Good news, right?

Well, I paid $300 for my listing this month. That’s $12 an impression.

Yelp is facing a serious challenge–Google has decided to move from being an aggregator of reviews from other sites such as Yahoo, Yelp, and Citysearch to fielding a review site of their own. If anyone can give Yelp a run for its money, it’s Google.

On Google’s list of “Things Not to Do Like Yelp,” I would include the ridiculous practice of deep-sixing users’ one-off reviews. Yelp is so enamored with the idea of its community of “yelpers” that it forgets that not everyone has the time and bandwidth to write frequent reviews. But occasionally, something really extraordinary gets to us (good or bad) and we have to say something about it. Is that person’s opinion necessarily any less valid than the self-styled amateur reviewer who fancies themselves an authority on everything? Google, having a more democratic and straightforward business model (and probably, more mad scientists working on algorithms that will accurately sniff out fake reviews) doesn’t need to create a cult around their review site. They just need to be what they are. Omnipresent and convenient.

The bigger the sample, the more accurate and fair the ratings will be.

We use a product called DemandForce that helps us with CRM. It’s a bolt-on product that works in tandem with our Millenium software. Among other things, DemandForce sends an e mail to everyone who visits the spa for an appointment and asks them for a review. Because DemandForce is tied into Millenium, we know that these are legitimate, real customers who have visited the spa.

The ratings on DemandForce and the ratings on Yelp are different. DemandForce uses a percentage rating, and Yelp uses stars. So five Yelp stars is the equivalent of a 100% approval rating in DemandForce.

We currently have a four star rating on Yelp (80% approval) and a 95% rating on DemandForce. That 15% disparity is huge. It is the difference between being an “A” spa and a “B” spa. And that’s simply the result of the type of person who reviews on Yelp–or more accurately, the type of person that Yelp wants to write its reviews.

Yelp, you’re going to have to do a lot better if you’re going to create a value proposition for both businesses and users.