Dayspa....

NESBIT--VIRGINIA'S COMPLETE BODY SALON

In 1995, Nesbit Hatch and Michael Wood pooled their resources and created a small hair salon on Main Street in Richmond, Virginia. They ended that partial year with five employees and about $100,000 in revenue. Today, thanks to wide-ranging innovation and expansion, their Main Street dayspa has grown to more than 60 employees and low seven-figure annual revenues.

From the first time a new client walks through Nesbit’s door, the creativity shows--and keeps showing long after that first visit. Hatch and Wood have taken customer service and marketing to new levels, with continuously expanding facilities and services to match innovative marketing that draws new and repeat business.

The facilities are certainly unmatched in the central Virginia area. Nesbit now features more than 10,000 square feet of space, which is located in two connected two-story homes in Richmond’s historic Fan District. In keeping with their focus on customer service, they’re open seven days a week until 8pm. They’ve also attached warehouse space in the back for storage (and a unique separate ‘call and webmaster center’ that eliminates commotion in the reception areas).

Customers enter a modern reception and retail center, where check-in at one of several computers is typically quick--and accompanied by an offer of wine, tea, or something else to drink. The large open spaces behind the reception area feature more than a dozen hair stations, but that’s just the beginning of what has grown into a complete body salon.

The rest of the downstairs portion of Nesbit offers another small reception and waiting area for those with pedicure and manicure appointments. The large pedicure area features four European Touch ‘thrones’ that have proven extremely popular, while the separate manicure room in the rear has four tables staffed by a bevy of experienced technicians who have loyal followings.

But it’s the new upstairs area that has taken the dayspa to new levels. This most recent expansion ranged the width and length of both houses, with the connected space now housing seven body treatment rooms for massages, facials, and more, men’s and women’s locker rooms and showers, an aroma steam shower, a mineral bath room, and yet another quiet waiting room. “Our new space is winning rave reviews,” says Hatch, who notes spa packages have become even more popular, thanks to the renovations and additions.

The menu of services has definitely grown with the facilities. Their sleekly designed brochure describes the various options, while a separate list provides prices. The options include: standard salon offering like cuts, styling, coloring, perms, relaxers, and make-up; manicures and pedicures; a variety of facials; paraffin treatments; waxes; wraps; body polishes; many massage options; reflexology; and Shirodhara, an Ayurveda technique using touch and the subtle flow of warmed sesame oil drizzled on the client’s forehead. This last treatment is typically done in the new ‘couples’ massage room, which is also used for varied couples, including mother/daughter duos, female friends, and more.

The individual dayspa treatments have definitely been popular, but Hatch and Wood say the packages have really made a big difference in their bottom-line. The two-hour ‘Replenish’ offers a 30-minute massage, express facial, and pedicure, while the ‘Revive’ features a customized facial and one-hour massage in the same total time. The ‘Rejuvenate’ is a three-hour Ayurvedic package including aroma steam, custom body wrap, a 30-minute massage, and Shirodhara therapy.

The four-hour ‘Renew’ offers a customized facial, one-hour massage, reflexology pedicure, and a manicure. The popular six-hour ‘Revitalize’ includes aroma steam, body polish or wrap, one-hour massage, custom facial, manicure, hairstyling, and lunch, as well as a spa pedicure and make-up application or a reflexology pedicure.

Individual services, as well as packages, are also popular with the ‘groups’ they’ve successfully targeted. This has mainly been bridal parties, where the a variety of services are offered in a convivial atmosphere. Nesbit has also targeted and attracted corporate groups and individuals, where dayspa services were offered as incentives, rewards, or unique meetings. These ‘office parties’ have been very popular with both small and large Richmond companies and corporate divisions.

Another market Wood and Hatch have successfully targeted is the Richmond-area male. Almost 20% of their business now comes from males, who generally start out getting haircuts and move on to a variety of dayspa services. “Massages are definitely popular, but we also have a strong male following for facials, pedicures, and manicures,” says Hatch.

Along with the complete dayspa menu of offerings, Nesbit has drawn a very loyal clientele with a staff that simply seems to ‘get’ customer service. This is thanks to an ongoing training program that puts the client first from the time they walk through the door for the first (or 50th) time. Some of the dayspa’s staff members get their start at the Central Virginia College of Cosmetology, owned by Hatch and Wood, but it’s the hiring of good people and ‘on-the-job’ customer service training that’s made the difference. Several staff members have been with the dayspa more than five years.

One other huge factor has been the decision by Hatch and Wood to restructure their compensation plan for their staff from commission-based pay to salary back in 1999. This has led to a much more stable work force, with full-time employees enjoying paid vacations, 401(k) retirement plans, and a medical savings plan. “We are retaining top people thanks to this switch,” says Hatch.

Though individual and packaged dayspa services, as well as expanded facilities and a salaried staff, have all led to phenomenal growth, it’s the various creative marketing programs designed by Hatch and Wood that have taken the dayspa to new levels. From an innovative Internet presence and daily emails to frequent buyer programs, their marketing programs present a case study in dayspa success.

“Our Internet presence is a big reason for our growth in the 21st century,” Wood says. Their simple-to-maneuver website (www.nesbitsalon.net) allows visitors to review the variety of services offered, daily specials, news and announcements (e.g., renovations or gift certificates), job openings, and more. Wood and Hatch decided against setting up the site for real-time appointment scheduling, correctly judging that people wanted to speak to a person to get the right treatment, time, and, perhaps, specific therapist.

But the website is just the beginning of Nesbit’s Internet creativity. One of the most interesting ongoing marketing campaigns involves sending daily (and sometimes twice-daily) emails to an ever-growing list of Richmond-area Nesbit fans. These emails market same-day and next-day specials that have become a bit of a cult hit for those in the know.

The specials provide a 25% discount on salon and dayspa services to those on the email list who call in quickly enough to snag an appointment opening . Those not on the email list who learn about the daily specials on the website get a 20% discount when they print out the web page and bring it to the appointment. In addition, Nesbit donates 5% of the weekly email campaign proceeds to a favorite local charitable or humanitarian organization (ideas for appropriate recipients are solicited from their clients). More than $10,000 has been donated since the program’s inception.

The idea has been a huge hit for all concerned. Clients become more loyal and see the Nesbit name every day, employees are busier and receive more tips, Nesbit creates additional revenue, and appropriate organizations receive exposure and financial aid averaging several hundred dollars a week. “It’s been a really nice program on all fronts,” says Wood, who came up with the general concept for the successful program.

The mailing list is also occasionally used for other marketing campaigns or exposure opportunities. For instance, subscribers have learned about ‘office party’ ideas through an email, as well as product specials, Nesbit’s holiday ornaments, trade opportunities (where local businesses ‘trade’ services with Nesbit), and an email soliciting help in naming and branding a new line of cosmetics Nesbit is launching in 2003.

Wood and Hatch recognized that their present and potential clients were Internet savvy and designed a website and marketing strategy to reach them on a regular basis. But they’ve also come up with many other ways (beside great customer service) to keep clients coming regularly.

One innovation is the ongoing ‘Experience True Beauty -- The Game,’ which Wood designed as a way to enhance loyalty and sell more products. Game cards are given to clients for hair care, nail care, and body treatments. When clients buy various products, a game card is marked. It takes five or six purchases to complete a card, which lead to free experiences like facials, reflexology, and other choices. Four completed cards lead to pedicures, massages, and more. Wood says the program has definitely led to more product sales, as well as increased client education (and more regular appointment scheduling).

Another ongoing program that new and existing clients often mention is the company’s advertising campaign. They frequently use cable television, with hip ‘MTV-like’ spots running on E!, HGTV, MSNBC, OXY, MTV, VH1, and other cable networks. In addition, they run print ads in unusual places like theater and ballet programs.

The success of Hatch, Wood, and their staff has led to many accolades, including consistent top ranking by Richmond Magazine as the area’s top spa, as well as being listed three times on the Richmond Times-Dispatch ‘Rising 25,’, an annual list of the area’s fastest-growing private companies. On the national level, they’re a consistent ‘top 200’ company on the annual list of Salon Today.

But it’s the accolades they receive from clients that lead to continued success and creativity. Hatch and Wood know their small hair salon became a big-time dayspa thanks to putting the customer first and they intend to keep growing with that philosophy (and maybe an email or two).