Just got a YUUGE client - how to market?

by Vikinghustler

Posted: 7 years ago 32 replies

INTERNET MARKETING

Hi!

So far we´ve been doing allright, and my earnings have been about 1/2 of a decent salary. But right now with this client I see no other choice than quitting my day job. I´m a little bit uneasy about writing what it is yet, because it´s a pretty large international company - but lets say that we´re gonna provide services for their customers. Lets say its a huge hotel and we´re gonna provide a spa there. So we rent a room/space inside their hotel and do pretty much whatever we want to.

Now, earlier we´ve been doing a little bit of marketing on a very small scale. Been trying out facebook ads, instagram, email marketing etc - and its been going allright. But we really want to market the shit out of this before launch. Surely, they will market it for us also - but it´s part of a bigger "upgrade" in their hotel-chain. So obviously we will focus 100% on our spa, but they also have a lot of other things to focus on and market.

Are there any obvious things I´m forgetting? It´s going to start in september and we will probably be able to start marketing before summer. I realize that we will get a lot of "free" marketing because our customers will be exposed to us all the time at their stay at the hotel. Our customers will literally be outside our door all the time. But raising some awareness about it in forehand seems like a good idea?

Facebook ads
Instagram posts
Reaching out to bloggers and get them to write about it

Is there any rule of thumb to consider when it comes to spending? There´s already a pretty big risk and cost for us to hire the room(s) + materials etc.

#client #market #yuuge

salegurus 7 years ago

I'm guessing the whole Hotel and Spa thing is an analogy?
It's quite confusing, i don't know if you'll be getting any worthwhile answers... But that's just MO, maybe others will decrypt it....
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- Vikinghustler 7 years ago
  
  Hi
  
  No, it´s something along those lines. It could be exactly that, so it won´t make any difference if it´s not exactly that. Any suggestions that could be worthwhile with the hotel/spa will also be usable for us.
  
  Thanks
  
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agmccall 7 years ago

Why not just have the hotel provide flyers to their guests

al
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"Opportunity is missed by most people because it is dressed in overalls and looks like work." Thomas Edison
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- Vikinghustler 7 years ago
  
  Yup.
  
  We will have flyers in the area people are/commute in and out.
  They will also promote our services on their website AND they will do marketing for it. But it doesnt feel like we should sit still before it launches and just wait. Feels like we should do ALOT. But other than ads on social media and reaching out to bloggers I cant think of much ...
  
  Thanks
  
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agmccall 7 years ago

How much foot traffic, other than current hotel guests, do you want. Or for that matter how much will the hotel allow. Most hotels have restaurants in the common area, usually near the lobby, but how many non guests do they want in the area of rented rooms. I for one would not feel comfortable if a room near where I rented a room had in and out foot traffic.

al
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- Vikinghustler 7 years ago
  
  There will be absolutely zero foot traffic because it´s a restricted area.
  So all potential guest/customers are allready "hotel" guests.
  
  Thanks
  
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  agmccall 7 years ago
  
  Originally Posted by Vikinghustler
  
  There will be absolutely zero foot traffic because it´s a restricted area.
  So all potential guest/customers are allready "hotel" guests.
  
  Then really there is not much more to do then to use the hotel as your marketing. I mean your customer base is quite limited. Will your service be such that someone would stay at the hotel just because of your service or is it something that is just a nice add-on that the hotel can provide for their guests.
  
  al
  
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  "Opportunity is missed by most people because it is dressed in overalls and looks like work." Thomas Edison
  
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  Vikinghustler 7 years ago
  
  A nice ad on.
  
  But..there are about 1000-1500 unique guest every day. No one stays for more than 3-4 hours at max.
  
  Thanks
  
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  yukon Banned 7 years ago
  
  Originally Posted by Vikinghustler
  
  There will be absolutely zero foot traffic because it´s a restricted area.
  So all potential guest/customers are allready "hotel" guests.
  
  After reading this I have no idea why you would even attempt to advertise outside the hotel.
  
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  Vikinghustler 7 years ago
  
  Because everyone uses this "hotel" now and then..
  
  Thanks
  
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ryanbiddulph 7 years ago

I dig reaching out to bloggers; because I am a blogger Really though, makes total sense to me on all levels.

One note on bloggers though: if you want to land on top level blogs you will likely be buying post space via sponsored posts. $100-$500 per post as the size, scale and authority of the blog comes into place. Although you can probably snag a few free posts here and there if you whip bloggers into a frenzy.

Congrats on landing that huge client

Ryan
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djgav 7 years ago

Why are you worried about sharing the exact makeup of what you're offering? Without the hotel brand, you're not going to reveal yourself!

So assuming it's a spa, you need to split your clientele:

1: Hotel clients. These will be much harder to "market" to, but as you say they will be on site - so it's important you on site branding is good.

I assume your contract allows you to promote your service with a price list in each room? Can you offer a discount for those who book at least 3 days before their stay? If so, let the hotel know about that discount and see if they can promote it in their booking confirmation email to each guest.

2: Local clients. These should form the backbone of your business. Get local clients in, and they will form your repeat business. Generally, in-hotel spa services are more expensive, so find a way of offering good loyalty discounts for local clients. That way they'll keep coming back. For this, Facebook ads will work really well. Get them on a mailing list, and you can email them with discounts for quiet days.

The hardest aspect of this is getting people to book in advance. You'll likely find most bookings are made "on the day" as guests check in, so your late afternoons/evenings will be busiest.

Out of interest, does the hotel mainly have business travel (1 night stay), or vacation travel (eg, 7 nights) on average?
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- djgav 7 years ago
  
  Just seen the line about it being in a restricted area.
  
  To try and market to people is going to be very hard.
  
  You are going to be relying on using the existing hotel's marketing. Your offering should be presented as being part of the hotel.
  
  I hope you have a great contract, because otherwise, you've got a business that you have no control over...
  
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  Vikinghustler 7 years ago
  
  Luckily we only sign for 6 months. If it bums out we dont risk losing too much. If its a success, well its a success..
  
  Thanks
  
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Kay King 7 years ago

If the area is restricted - I don't see how blogging or advertising to local traffic would be of help except to get the name out there. If they can't access the "spa" - what's the point of the ads? Maybe promoting the name would help - don't know.

I'm going to answer exactly the scenario you used - I've seen an upscale spa business added to a hotel....in a casino.

It wasn't as restricted but there was no walk by traffic as it was on an upper floor of the hotel. Everything to do with the ads linked the spa area to the hotel/casino brand and to the region where it was located.

I have no idea where you are located but you might check some casino websites and major upscale hotel chains to see how they present their addon services. The one I was familiar with had a name that sounded "luxurious" and was easy to remember/recognize/associate and ads focused on associating the name WITH the well known casino brand.

The "restricted" part would bother me. Is there enough business to keep you afloat? If you cannot advertise to bring in local patrons - how do you grow your business or maintain it if the 'hotel' is seasonal or underbooked?
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Gambino

7 years ago

There is a huge lack of information that prevents anyone from giving helpful answers here. In my opinion, there's a big difference between a hotel on the side of the highway and some resort destination hotel where people are going to get away and relax.

Does this international chain have a history of success with promoting spas? If they're so successful, why are they leasing the space instead of hiring their own employees?

It sounds like you've hitched your wagon to the hotel and can only be as successful as they make you. If you can't sell to people that aren't at the hotel location you are, I think it's a huge waste of money to advertise to people who likely will never have the chance to go to your location and/or will forget about you before they get there.

But like I said, all that could be wrong if I misunderstood the information provided.

Thanks
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Vikinghustler

7 years ago

Hi

No, they donÂ´t have any experience with spas. But other "hotels" have done it successfully. This is more like an experiment for them.

Note; It is NOT a hotel - but itÂ´s in sort of the same genre in a way. (Im sorry but I dont wanna say what it is)

The thing is that there will be a huge amount of people passing through this "hotel". Up to 1500 people per day - in a small area (about 9000 sq ft)

All sorts of people stays at this "hotel" so I would think its reasonable to market it to all kinds of people..

Thanks
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agmccall

7 years ago

Originally Posted by Vikinghustler

But, like you said. It is not in the area where all these people will be walking by. You said it is in a restricted area so how will these walk-by's get to your business. If the hotel or whatever the hell this place is is just going to let them in then it is not too restricted. and like I said before if the "hotel" is going to let just anyone into and area that I paid to be in I would be a bit ticked off.

Maybe you should advertise your "Spa" in the personals section of backpage and craigslist,

al

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Vikinghustler 7 years ago

IÂ´m sorry about the secrecy.. I know it sounds confusing when you dont know what it is. But a little big exiting too right!?

There wont be any walk byÂ´s in this place..people are there basically waiting, eating, relaxing. Then theyÂ´re gone. WeÂ´re talking 1000-1500 people every day. ItÂ´s not restricted in the usual meaning of the word. But itÂ´s not people from the street just popping in.

Why would you be ticked off to pay to have your business/service in a place where people hang out?

Wouldnt you want to have a bookstore or a convinience store at lets say a trainstation or an airport? edit..maybe not a convinence store at an airport...but a liqour store or cellphone store whatever

regards, the riddle
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Steve B

7 years ago

Originally Posted by Vikinghustler

we´ve been doing a little bit of marketing on a very small scale

If the only marketing experience you've had is with Facebook ads, Instagram, and email marketing, as you've said, . . . you need to hire some professional marketing experience in line with what you're going to be doing because from what you've said so far, your little bit of non-relevant marketing experience isn't worth a dime in this situation.

Originally Posted by Vikinghustler

Are there any obvious things I´m forgetting?

Your problem is not forgetting obvious things . . . it's not knowing in the first place what kind of marketing will be cost effective and efficient in this non-typical situation. You need professional help, not suggestions from a public forum where, most likely, no one has done the kind of marketing it's going to take for you to be successful.

Originally Posted by Vikinghustler

Is there any rule of thumb to consider when it comes to spending? There´s already a pretty big risk and cost for us to hire the room(s) + materials etc.

Another big red flag that you are over your head here. No offense is meant when I say that . . . but if this is really a "big risk" and big expense to you like you say . . . you'd better consult with some professionals that can put you on the right path to profitability or you're going to regret the day you accepted this client.

The best to you on this project.

Steve

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Vikinghustler

7 years ago

Thanks!

Yes, we´re definitly in over our heads. The investment is not really a big problem..I dont know exactly why I wrote that. Its big ENOUGH, but we have the money - and even if it doesnt work out great we shoulde break even. We´re talking 25-30k a year. Our profit should be something between 6-8k a month conservative estimate.
We know how to do this kind of stuff - we have 8 clients allready, some pretty big and serious..but nothing on this kind of scale. This is like going from level 5 to level 20. We don´t have the financial power to spend big bucks on professional marketing. With spending I was talking about marketing. We have calculated everything and its profitable even at 20% coverage. 40 is even conservative.

I havent gotten all the info from our client yet, but since it´s a huge company and this is something they are going to offer for their customers - I would suspect they will also market it? Doesnt that make sense? The thing is that I dont think the person in charge/our contact is that professional - and we have yet to recieve good info on stuff like marketing etc.

Even though..I mean, the "spa" is going to be right there where all the customers are. They will see it and get info about it when they are accomodated in that restricted area. We´re talking probably 1000-1500 people every day. We can be open from 8 in the morning to 9 in the evening.

But sure enough, it would be nice to get bookings from people who heard about it etc, and not entirely relying on on site spontaneous customers.

I understand that hiring a professional marketing team probably would be better. But what exactly do they do? And the price, omg, the price. We couldnt afford it.

I can´t see how any marketing team here would know how to market it better - because it´s sort of a new businessmodel at least in our country. We were one of the first going "corporate" with this, and is the second largest (and definitly most professional). Our best competitor has been doing it with almost zero competition for 15 years. We´ve been in it for 5 and we see how he copies most of our stuff.

But you´ve got a point on the marketing aspect. I´m self thought, but I´ve been running facebook ads and know how to do it. I also know how to do instagram, twitter etc and got a nice legit following. And when it comes to the big guns I really hope that our client pulls them out. It´s one of the largest and well known companies in scandinavia. I understand that a little fizzling around with facebook ads for 100 bucks doesnt get us anywhere marketingwise.

Thanks
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Oziboomer

7 years ago

Originally Posted by Vikinghustler

I havent gotten all the info from our client yet, but since it´s a huge company and this is something they are going to offer for their customers - I would suspect they will also market it? Doesnt that make sense? The thing is that I dont think the person in charge/our contact is that professional - and we have yet to recieve good info on stuff like marketing etc.

We´re talking probably 1000-1500 people every day.

So you're renting some space right?

You've taken out a six month lease?

It sounds like from your experience with the "person in charge" that you have signed up and the rest might be up to you.

People who are leasing space to you will tell you all sorts of things because they are acting on behalf of the lessor not the lessee.

1000-1500 people passing a day is not very many regardless of whether they are guests or in a restricted area or not.

How many people require your service out of the 1000-1500?

What other options are available to them?

You say you will make $6-8K profit per month. What sort of percentage is that? Are we talking making 10 to 20% net profit of sales?

If you are optimistically looking at 20% net profit then you need $1K sales per day to get your $200 a day and if you are trading 7 days then that would get you your $6K a month.

If what you are selling sells for $100 each then you need 10 sales a day. $50 then 20 sales a day etc.

If 1000 people are passing the "spa" you need 1-2% to come in and spend the $100.

Is that sort of what you are thinking?

If you are committed to paying RENT then what is the incentive for the HOTEL to pay for marketing?

If they are getting their $2500 rent every month what incentive is there for them to promote your business?

If they promote do they get more than the $2500?

Maybe they charge a booking fee so they get something off the top. . .

. . . you still pay the rent.

My maths may be a bit simplistic but how are you going to make a profit?

Are you getting paid by the hotel or are you paying the hotel?

Please share some more.

Best regards,

Ozi

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Vikinghustler 7 years ago

Thanks for very useful thoughts.

Your math is pretty much correct. Except one thing! It´s not a 2500$ monthly rent! Its 1000$ a month. Hour price is about 130$ , but more expensive the shorter the treatment is. But cost is a bit more here than in US, so youre pretty much spot on.

I would need about 6-8 sales per day (12 hours) 3-4 per shift (6 hours)

so 2-3% must visit us. Considering 18% of the population spend money on massage/spa treatments regularly it could make sense.

People in this "hotel" are usually a bit tired and on the go. Money is quite loose. It´s the sort of place where people treat themselves a little extra.

I´m getting paid by the percentage I take from my employees. I take about 30%.

So they pull in lets say 700$ per day. I pull in 200$.

Times 30 days = 6000$ month for me. My employees are already paid.

Then rake off 1000$ in rent and another 500 for misc and my net profit is about 4500$ month.

This is of course if theres a market for it (and no marketing expenses) That exactly I dont know, because no one has ever done this in scandinavia before. But people run it pretty successful in other countries I believe.

WHY exactly should they market it if they pull in money? Well, turn it around. Their market cap is 10 billion. (Big company in Scandinavia - not by american standards of course) Why would they care about a measly 1000 bucks a month?

It´s a part of a new venue for them, or they have expanded their venue. I think they wanna market that. Hopefully they will mention our service..I would suspect it?
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djgav 7 years ago

Is there any rule of thumb to consider when it comes to spending? There´s already a pretty big risk and cost for us to hire the room(s) + materials etc.

Any marketer would want to know all the specifics before advising on budgets and recommendations.

Without you giving us very specific information, the answers here are going to be very vague - way too vague to be of any use to you.

We have no idea what the level of spend is per visit or even the venue these people are visiting - so we can't advise on how to reach these people.
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- Vikinghustler 7 years ago
  
  I understand. People spend a whole lot of money in this place. Money is loose, and they´re in the mood of spending.
  
  I got ahead of myself with this thread..I should have waited until I didnt feel like keeping it a secret.
  
  I will share everything once i get the go ahead. Hope theres still some interest then
  
  Thank you so much everyone!
  
  Thanks
  
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  cynthiaSEL 7 years ago
  
  Originally Posted by Vikinghustler
  
  I understand. People spend a whole lot of money in this place. Money is loose, and they´re in the mood of spending.
  
  You're going to be new, untested - and exciting. If people are in the mood of spending and they're not alone, offer a buy two get one free today only message on the bill of where they're spending. That way, you can keep doing that until you fill up. As in: experiment!! Use the printouts your "hotel" keeps putting out every day to every paying customer. First week you might also throw in a bonus coupon from the "hotel" for one of whatever they might be willing to part with on week one as a giveaway.
  
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JohnVianny 7 years ago

Dont put all your eggs in one basket, no matter how large is it
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squeebo 7 years ago

Well my first thought is eggs in one basket. By the balls. Leverage. It's all honeymoon now, but if they're smart they'll start demanding more and giving less until you're hanging on by your fingernails.

If it's that great I'd go for it and aggressively try to outgrow my reliance on them.
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Emily Cooper 7 years ago

Your analogy is indeed very vague but from what I gather, the first thing you need is an effective online marketing plan written for you. You could do the execution yourself but to be able to have a detailed guide. My company used the 90 day online marketing plan by SME.Consulting (Google it), it was the best 1st step we ever made and we have been growing because of it ever since. Hope that helps
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Regional Warrior 7 years ago

So you are trying to sell your spa services in a Brothel ! hence the sparse info you provided
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- Vikinghustler 7 years ago
  
  haha. Not really. I will of course explain later!
  
  Thanks
  
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unifiedac 7 years ago

You could reach local residents and hotel guests with local offers:

Living Social
https://merchant.livingsocial.com/welcome

Facebook Offer
https://www.facebook.com/help/410451192330456

Groupon Campaign
https://www.groupon.com/merchant
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