What's The Acquisition Cost for Massage Day Spas in Singapore?

Assessing Customer Acquisition of Massage Day Spas in Singapore

In the recent past, massage day spas in Singapore are flourishing each endowed with several treatment packages. The trend is as a result of the increasing number of men and women willing to be pampered. Similarly, a high record of tourists’ arrivals is greatly influencing the thriving business in Singapore

It’s imperative for every business to review its cost of customer acquisition at least twice a year and at the tail-end of a campaign. But more often, business owners fail to determine these costs. As a result, they fall short of their return on investment (ROI). When analyzing your return on investment, try to scrutinize several effects of having the right approach of action.

So, when assessing the customer acquisition costs here are some of the indicators:


Client Paid Revenue

The beauty and wellness industry in Singapore has transformed radically in recent years. Where the moment a client visits a massage spa, they have several choices to select from. These options range from hydrotherapy, skin care, body scrubs to meditation and cleansing.

By establishing a well-structured business model which clearly outlines pricing, incorporate your idea into reality. Within your business structure, you’ll be able to determine the client paid revenue per day. For a sole proprietor, the process is easily manageable due to size unlike for a well-established enterprise.

Now, the client paid revenue provides you with an exact measurement of massage spa revenue and rate potential. It further assists you to understand what clients are inclined to spend.

What's The Acquisition Cost for Massage Day Spas in Singapore?


Other Variables

The average cash that each client spends per visit is one of the variables that massage owners in Singapore need to understand. If for instance, within a year the number of visits is 10 times and spend SG$ 200 per each visit (average), retained the customers for the next 10 years; and over 95 percent of clients remained loyal and frequent the spas.

This means that the frequency = (10), spend = $200, lifespan = 10 years, and retention = 95 percent

Now, the average number of clients will either be daily, weekly or monthly depending on your situation. Retention rate is one variable that massage owners grapple with as its never easy to manage.

Customer lifespan value is determined by taking the frequency and multiplying with the spend which gives us SG$2,000. We subsequently multiply the lifespan value by Lifespan which gives us SG$20,000. By multiplying the percentage retention (95 percent) by SG$20,000 which gives you SG$19,000 determines the value of each client on average.

There are two classes of Massage Establishment (ME) licenses in Singapore — Class I and Class II. Each class has its conditions that one must follow. Most massage spas in Singapore opt for category I due to its flexibility. The operating hours are not restrictive; clients can be served alcohol, permit clients regardless of age and hire foreign therapists. If you’re planning to launch your massage spa, check out for more details on the guide to start a business in Singapore.