Fitness activity at MindBody’s BOLD Conference

Recently Mindbody hosted the BOLD Conference, an inspiring educational and networking event for leaders in the world of wellness, beauty, and fitness. The event gives business owners the opportunity to learn about the latest industry trends, innovations, and practices, along with the newest offerings from Mindbody.

We had the chance to chat with some of the headlining speakers from BOLD to get their insight on the biggest issues facing the beauty and wellness industry as we head into 2022. From adapting to pandemic setbacks and staffing shortages, to the best tools and tips to help businesses succeed, here’s what top experts shared:

Read more: Behind the Brand: Mindbody

Josh McCarter, Mindbody CEO

What are the top wellness industry trends that we should watch out for?

The pandemic has brought to light the importance of wellness for a majority of consumers and businesses should be prepared to serve this expected influx of clients Our data shows that 40% of consumers are getting more salon/spa treatments now than they did prior to the pandemic and over the next 6 months, 49% plan to treat themselves to more indulgent salon/spa services and treatments. When planning for this influx, it's important to note that the most popular beauty and wellness services are hair cutting, body hair removal, hair color, eyebrow waxing or threading, barber services and facials. For businesses not currently providing these services, there is an opportunity to broaden their offerings to bring in new clients as we see this increase in consumer wellness spending.

What are the most crucial ways that wellness/beauty industry businesses need to adapt to achieve success while recovering from pandemic setbacks?

To adapt for survival, wellness and beauty companies need to embrace technology and be willing to switch up their business model as needed. Through technology, it can be relatively easy for businesses to adapt and meet consumer desires.

Additionally, the beauty industry is facing a lack of proper staffing amid this wellness revolution.To recruit and retain staff, spas and salons should be focused on highlighting culture and offering schedule flexibility. It is important for staff to know that their new or current employer stands by them. That, rather than signing bonuses, is likely to bring in long-term quality staff.

As wellness businesses search for new talent, technology such as our Messenger[ai] offering can help fill those gaps without hindering the consumer experience. Messenger[ai] takes the place of a receptionist by answering phone calls and text messages 24/7. As businesses limbo in uncertainty, this AI receptionist allows for consumer inquiries to be taken care of without the pressure of adding staff to the payroll. With these more transactional client interactions taken care of, your staff is free to dedicate their time to what they love most – spending time with customers in person. In return, your staff is more likely to feel fulfilled in their career and clients, feeling taken care of, are more likely to become loyal repeat customers.

Anything we should watch out for next from Mindbody?

Mindbody has quite a few projects coming down the pipeline with the focus of supporting our customers in driving more business through their doors, both physically and virtually. The project I am most excited about is Mindbody Capital, which we debuted at BOLD this year. Small businesses are often overlooked and denied traditional financing options. After watching owners run into this issue time and time again as they fought through the pandemic, we knew we had to provide a solution.

Launching in the coming months, Mindbody Capital’s first product is a cash advance, not a loan, and is designed to provide owners with the funds to expand and be well positioned to serve as many clients as possible during the wellness boom. Additionally, our customers pay back based on how much profit they bring in. So, if a business is forced to close its doors for a period due to restrictions – no payments are required until that business begins bringing in revenue again.

Lisa Starr, Mindbody Consultant and Principal, Wynne Business

What are some of the biggest challenges that spas and salons are currently facing?

Without a doubt, the biggest challenge spas and salons are currently facing is being able to staff to meet the service demands we are currently seeing. As our recent Mindbody Online consumer survey showed, 78% of consumers said that wellness is more important in their lives than ever before, and they are realizing that spa & beauty treatments are an important component of self-care. And yet, most spas and salons are operating at 50-60% of their capacity, due to their inability to hire and train qualified staff. We envision that more of our employees will come back to work with the onset of fall, but the long-term prognosis remains a challenge.

What are the most crucial ways that wellness/beauty industry businesses need to adapt to achieve success while recovering from pandemic setbacks?

Business in spas and salons was going extremely well at the dawn of 2020, with steady upward growth, before our model was upended. The fact remains that some aspects of our service delivery model are outdated, and owners and managers should be looking at their business with a fresh perspective. Think about other ways you could bring in revenue, aside from one-to-one appointments between service technicians and clients, so that your revenue stream is diversified. Beefing up retail and e-commerce is one important way, but we have to think more outside the box.

What advice do you have for spas and salons struggling to build their brand?

With approximately 25k spas and 75k hair salons just in the US, the most important consideration is that you are able to make a distinct impression on prospective clients, amidst all of the competition. Sometimes what happens is that the spa or salon itself is not clear on their individual brand promise, and so the message to the consumer is lost in translation.

Give some serious thought to the work culture and clientele that you want to attract, and make sure you are sending clear signals about the environment and experience they will receive when they join your community. Identify a demographic that is a good fit for you, and then ALL of your marketing collateral should speak to that market. Don’t worry that you will not attract all of the clients out there; you never would anyway, and by focusing on your segment, you will be able to attract and, more importantly, retain them, and build your brand and community.

Regina Wallace-Jones, Mindbody Senior VP of Insight and Innovation

What are the most important steps for wellness businesses to consider to broaden access and better serve customers?

One of the most important steps that any business can take to broaden access and better serve customers is to listen to the customers themselves. Business owners and operators are processing so many transactions in a day. And at times, our heads become so overwhelmed that we forget that customers are the lifeline for our businesses.

At Mindbody, we have learned through our listening that no one likes feeling like they are the only one. We’ve also learned that there is a relationship between culture and wellness that if understood can widen the arc of accessibility for more people. We frequently say that we are not well until we are all well. We should be adjusting our practices routinely by asking ourselves….how do we include more?

What is EDI and how should businesses open EDI conversations in the workplace to better serve clients? In what ways can Mindbody help with this?

EDI stands for Equity, Diversity and Inclusion. The industry moves the words around, but ultimately the practice exists to help us see our blind spots and biases and to better ensure that our organizations, people, systems and practices are designed to include and be experienced in equitable ways. And the best way to open conversations in this arena is with care, curiosity, humility and a growth mindset.

As communities that you are trying to access share their stories and vision for being included, they are often reliving what feels like traumatic experiences for them. These should be handled with care and empathy. As you respond, a healthy dose of curiosity, humility and growth mindset help widen the canvas for creative problem solving.

Mindbody is a partner to our customers in this journey. We are both navigating it as a business ourselves and deeply committed to making wellness more diverse and inclusive across the industry. You’ll even see evidence of this in our products as we internally find our resolve around reflecting our core values in the products that we sell every day. We consider ourselves a trailblazer in this arena and hope to show the way for many more to follow.

Katherine Wernet, Mindbody Senior Spa and Salon Marketing Manager

What are the top spa and salon trends that we should watch out for?

There’s an appetite for the new. Consumers are open to adding new services and treatments to their routines. More than half of consumers (53%) say they’re more open to trying new types of beauty services and treatments compared to pre-pandemic times. Among those who are currently getting services or treatments, 24% say it’s something they’ve added since the start of the pandemic.

It’s time to indulge. We’ve all been cooped up too long, and now consumers are looking to spend on beauty and wellness services to feel better physically and mentally. About half of consumers (49%) say they’re planning on treating themselves more with indulgent salon and/or spa services and treatments in the next six months.

Consumers are looking to make drastic changes to their appearances. Nearly half (49%) have made or plan on making a drastic change to their appearance to signify coming out of the pandemic. The top services and treatments to make the change? Body hair removal (32% have done it or plan on it), hair color (26%), hair cutting (24%), advanced skincare (21%), and barber services (20%).

How has the pandemic affected consumer behavior and what steps can salons/spas take to better address these changes?

Many are going to the salon and spa more now. Forty percent say they’re getting more salon or spa treatments now than they did prior to the pandemic. Salons and spas can capitalize on this with an increased focus on rebooking. Make sure the front desk isn’t missing opportunities to get clients back in the door with tools like automated email reminders and an AI receptionist that make it that much easier for clients to rebook.

Consumers are looking to spend more on self-care. Over the next 6 months, 49% plan to spend more money on self-care activities, services, and treatments. Consumers are looking to invest in their health and wellness and are open to book “indulgent” salon and spa services and treatments. It’s important for salons and spas to highlight those higher-price point services (even those that might not have previously attracted new clients). There’s increased appetite for these now. Offering add-ons and home care products that can help to extend or amplify the benefits of a given service or treatment will especially resonate with consumers—while also increasing the average ticket.
Position services and treatments as a way to mark the start of a new chapter. Consumers are looking to mark the end of one chapter and the start of another. With about half of consumers looking to make a drastic change (or having already sought one out), this is a marketing message that speaks to consumers. It’s not just a facial; it’s an opportunity to leave behind clogged pores and reset.

What can salons and spas do to confront the current struggle with staffing?

Showcase culture when recruiting. Job seekers are more culture focused than they were pre pandemic. They’re looking for a place that feels like home to them. Highlight what your brand stands for, talk about your awesome team, and what the culture at your salon or spa is. If you’re looking for stylists or practitioners, bring in potential candidates with culture-focused Instagram ads. Brands are seeing that candidates are more open to relocating for the right fit. Consider advertising outside your immediate region.

Leverage AI. Let your staff focus on creating an amazing in-person experience for clients. Mindbody’s AI receptionist, Messenger[ai], picks up the slack. If the phone rings when your team is busy with a client, Messenger[ai] automatically sends a text to the caller, turning missed calls into bookings. AI can help support your team.

Salons and spas should automate what they can. Salons and spas can spare the overstretched employees they have by using tools like Mindbody’s Marketing Suite, which can automate retention efforts. These marketing efforts are crucial to business health but can take staff away from their other duties. With Marketing Suite, businesses can automatically send texts and emails to motivate first-time customers to return, and encourage clients who haven’t been in for a while to rebook.

[Images courtesy of Mindbody]

Experts Share Top Beauty and Wellness Industry Trends, Tips, and Challenges for 2022