According to Unity Marketing, luxury consumer spending was down 19.7% in Q2 2008 compared with the same period the previous year.  Bad news, most definitely, for the spa industry that relies on discretionary income.  However, there is a silver lining.

A recent Luxury Institute survey states that "53% of wealthy consumers use search engines as an essential stop on their quest for luxury goods and services."

Can you use this information to your competitive advantage? Sure, you can. Follow these tips and you will find that an economic downturn may actually create opportunities for your business.

1. Don't stop advertising. According to MacTech, advertising in a recessionary market "can skillfully reposition a product to take advantage of new buying concerns, give an advertiser a stable image in a chaotic environment, and give an advertiser the chance to dominate the advertising media."
2. Spend smart. Reduce interruption marketing and instead focus on measurable relationship-based strategies such as search marketing, email marketing and online communities. People in all walks of life are sick and tired of being shouted at with the same old marketing message.
3. Focus on your in-house spa list. It cost more money to acquire a new customer than to keep an existing one. Spend more time building existing relationships with current customers. Now’s the perfect time to clean up your email list. More to come on that!
4. Build optimized landing pages for EVERY advertising campaign. Each ad on Google, Yahoo, and CitySearch should have a dedicated page to track results. At all costs, avoid sending traffic to your home page. Instead send visitors to a relevant landing page that features your special offer. This will improve conversions up to 23%.
5. Build trust. Even wealthy consumers need reassurance.  Now is the time to spruce up your website to establish trust and credibility with your online audience.
   - Make sure your online store gives consumers the chance to review and rate products.
   - Welcome feedback and opinions in online communities.
   - Post awards, achievements, and legitimate testimonials on your website.
   
6. Don’t dilute your brand.  Stay focused and don’t try to appeal to every segment of the market.  Keep your brand synonymous with luxury and don’t stretch it too thinly across market segments. You don’t need to appeal to teenagers to be profitable.
7. Give affluent customers a reason to buy. Offer new, innovative services that they can’t get elsewhere.  Emphasize quality and results with your products and services and back up your brand promise with a guarantee.

Conclusion: In tough economic times there’s a tendency to scale back marketing spending. However, research shows that a downturn creates opportunity to accelerate growth faster than your competitors. This may be the best time to step up your marketing—at least in quality if not quantity.  Get the most out of every marketing dollar spent. When the economy has stabilized, you’ll be in a stronger, more prominent position.

Is your marketing budget stretched too thin? Call Spa Marketing at 860-655-2283 for help.