An Entrepreneur Harnesses the Power of Technology

Opening Le Petit Spa was the realization of a lifelong dream for Nancy Mudford. Only 9 years ago, Nancy left the public sector in search of a new outlet for her drive and creativity. "Entrepreneurship had always appealed to me because owning a business would allow me to tap into my creative side," Nancy says.

So when she spotted a niche in the spa industry, Nancy didn't let a lack of industry experience deter her. After researching the market in-depth, Nancy created a business plan, secured funding - and dove into the exciting world of entrepreneurship. And Nancy hasn't looked back since.

Since Le Petit Spa opened its doors eight years ago, it has won multiple awards, including Georgia Strait's "Best Spa in Vancouver (Independent)" – and business is booming! Over 30,000 clients have enjoyed relaxing facials, massages, and a variety of esthetic services in the spa's soothing environment.

Nancy has since expanded her retail space, developed a fierce online presence, and created an online distribution channel for beauty products that is quickly developing into its own brand. Like most small business owners, Nancy knows first-hand that wearing many hats is part of the entrepreneur's "job description".

By effectively leveraging multiple technologies Nancy has been able to:
• automate tasks to save time
• find new customers and build relationships with existing ones
• communicate across multiple channels
• gather information to find out what her customers really want

And for Nancy, those all translate into one important principle: meeting the needs of her clients. Here are some of the technologies Nancy has used to accomplish just that.

Tracking customer actions is critical to learning what your business is doing well, where it can be improved, and what products or services are most in demand. Nancy's Customer Relationship Management Spaware allows her to do that and more.

This CRM software tailored to the spa business enables appointment booking across all channels, scheduling, point-of-sale payment processing and the organization of all customer records, into one central hub. “It's like an online filing system," Nancy says. "It allows us to keep customer information: what they've bought from us; what kind of service they've come in for." This information can be used to provide customized service and targeted promotional offers.

"If a customer calls in and says 'I can't remember who I had my last manicure with, but I want them again' that information is easily accessed through our system."

Nancy’s website, LePetitSpa.ca, allows her to share important information around the clock. "The website is critical," Nancy says. "Customers want to learn about what we do. We even have some people who come in and get a brochure; they go home and surf; and then they call. They don't want to talk to us before then."

LePetitSpa.ca provides extensive information about each available spa service, the estheticians on staff, as well as some of the products sold at the spa. All of the spa's contact information, store location and map, and toll-free number are easily accessed through the website to ensure that clients get the information they need to make their purchasing decisions effortless.

In the spa, Telus Business Service connects four computers to the Internet allowing Nancy and her staff to connect to the website at all times. The software powering the website, like most of the technologies adopted by Le Petit Spa, has evolved.

Recently Nancy changed over to Drupal, an open-source content management system, which allows Nancy and her staff to change the web content manually with a WYSIWYG (What you see is what you get) editor rather than phone up the webmaster to do it for them. "It enabled us to take control," Nancy says.

Though the increased control came at an upfront cost, to Nancy it was an investment well spent. "I've spent $40K on creating my website over six years," says Nancy. If that number makes you balk, consider this: just a small portion of the website's function – selling online gift certificates – brings in over $30,000 per year. “Has it paid for itself?" Nancy asks rhetorically, "absolutely!"

LePetitSpa.ca is also home to an online booking system. Powered by Spaware, the tool allows customers to book appointments by type of service, time of day, and even select particular estheticians – all from the comfort of their home. Implementing the tool cost an initial investment of $1,000 – an amount Nancy realizes can seem like a lot to the small business owner. "You have to think long term," says Nancy. "Over a year that's less than $100 per month – and paying the resource at the front desk costs money."

After Le Pettit Spa and LePetitSpa.ca were both operating as successful business models, a second distribution channel came into its own. Four years ago, Nancy thought it would be nice to sell product over the Internet – and Spa Boutique (spaboutique.ca) was born. The online store gives customers a way to order the beauty products sold in her spa, plus a whole lot more.

Busy growing Le Petit Spa, it wasn't until two years later that Nancy began to invest more time and money and take a more strategic approach with the online store. She had a plan from the outset, but through interactivity, customers are helping define its direction.
Spa Boutique is powered by MIVA Merchant, an out-of-the-box online shopping cart. For a monthly fee, MIVA hosts the web store, tracks inventory, sends emails and even allows Nancy to set up promotion codes for coupons and value-adds.

Initially, Spaboutique.ca only accepted payments made through PayPal, a low-barrier technology that allows you to sign up and start accepting payments right away. But customer feedback revealed that not everyone wanted the extra hassle of signing into their PayPal account every time they wanted to make a purchase.

By upgrading their MIVA store, they were able to automatically able to accept credit cards – with one-click payment processing. In Nancy’s entrepreneurial walk, she’s discovered that there’s more to running a successful online store than finding a great shopping cart. "There is a misconception that running an online store is easy. Slap up the JPEGS, put up content, and start making money. Uh, no!" Nancy jokes.

The online boutique is now run by a four-person team in a separate office space, which will soon double in size. What started as a second distribution channel for products sold in her day spa has become its own entity and brand – powerful and successful on its own.

"It's no longer the little baby on the side," says Nancy. "Now it's more about how we can develop a synergistic relationship between the two." One way that Nancy is bridging the gap is by using cross-channel communication technologies.

As customer service is paramount in retail, it's important to Nancy that her clients never have to wait to reach a member of her staff. Providing multiple ways to communicate is one way this is achieved. "You need to be comfortable in all different avenues of communication," Nancy explains. "Customers may tweet rather than call; you need to be responsive.”

For those clients who find it easier and more convenient to call to book an appointment, the staff at Le Petit Spa are happy to book over the telephone. "This is a busy little spa and the phone rings often," Nancy says. The spa's four-line telephone system ensures that customers don't have to wait to get through. Calls are automatically directed to a second, third, and fourth line if the main line is busy.

Le Petit Spa also boasts a toll-free number so clients don't have to pay for long-distance calls. Provider Telus tracks and reports on caller statistics such as caller area codes, calling times, and even whether calls have been missed – all information which can be used to improve service to Nancy’s clients.

Two monthly email newsletters and select micro-campaigns give Nancy another way to reach out to her customers on a regular basis. Newsletter sign-ups are collected through web forms and in-store via the new-client form, and so far the two newsletters have a subscriber base of 15,000.

The email marketing software powering the newsletter is evolving. While Nancy uses Constant Contact for the spa's newsletter, she's planning to switch over to Spa Boutique's software, MailChimp. As with Constant Contact, the software allows Nancy to manage and segment her lists, as well as design, track, and analyze her campaigns. But it allows for an additional functionality: the ability to choose specific newsletters.

Recently Nancy set up a marketing module in Spaware that automatically sends out up to 10 different emails in various scenarios "If a customer hasn't been here in 90 days, an email goes out. Or it's your birthday? 'Hi!' Nancy says. "You don't have to go into Constant Contact or MailChimp and figure it out. It just does it. You don't have to pay anyone."

Unlike static websites, blogs and social media sites allow visitors to leave comments, participate in discussions, form groups, and easily share information with their friends. Nancy now actively communicates with her customers through several social platforms: blogs, Facebook, Twitter, and YouTube.

Many people are new to the idea of ‘social marketing’ – a term that is used so often that it may make you’re eyes glaze over and flip the page. But Nancy started from the beginning, learning as she went and determining that her market is responsive to these new mediums. She began her journey into the world of social media with blogging. "Blogger," Google's free blogging software, offered an easy way to get going. As her comfort level – and business – grew, Nancy switched to WordPress for greater customization and functionality.

Both Le Petit Spa and Spa Boutique have Facebook profiles attracting almost 700 fans. Providing key information, skin-care tips, and the occasional promotion, the two profiles act as mini-websites – with a difference. Fans can participate in discussions, ask questions, get quick answers, and even review products and services.

Nancy uses video to help people understand what particular services are, then posts them on YouTube and on her online properties. This innovative entrepreneur finds the most effective videos are no longer than two minutes long and feature "how-to" information. "If you do a video to sell what you're doing, good luck! It's not going to be as popular," Nancy says. "How to do smoky eyes? Now that you're going to watch."

Nancy's staff also use Twitter to post one-line updates and links of interest known as “tweets.” Nancy has been tweeting for a year-and-a-half now, and she has carefully built up a list of over 2,000 followers. “The key is to target the customers who want to be part of your audience.”

Spa boutique has a dedicated social media persona. And though social media is more challenging in the busy day spa, the staff makes time to participate, tweeting up to five times per day and creating videos. "The key here is not to sell," warns Nancy. "We're here to offer great information, answer questions, listen and engage. Once in a while we offer great promotions."

Although Nancy says that social media participants might not buy right away, it's the start of building a relationship. "First trust me" she says, "then one day you'll buy from me."

Technology plays a key role in any successful business. But if the thought of implementing a CRM or starting an email marketing campaign has you running for the door, take heart and start small. The tech veteran suggests starting with the simplest technology that meets your customers' needs.

"I recommend outsourcing at first. As your business grows, start looking at how you can make it work in-house. Then keep updating and upgrading." When looking for new communication channels in your industry, Nancy suggests you "find out how your customers want to be reached... You need to offer as many choices as possible – especially anything that is easy and convenient."

And finally, this tech-savvy entrepreneur suggests we keep our eyes open, and always be on the lookout for time-saving technologies. “Ask yourself, what administrative tasks can be automated, so that I can turn my focus to my customer?"

For Nancy, meeting the needs of her clients is what technology is all about.

Written by: Theresa Borsman