Zenoti President Elaborates on Data About Membership Programs 

Businesses that prioritized memberships saw their revenue grow 5% year-over-year in 2024, more than double the industry average, according to new data released by spa software provider Zenoti. The company said membership sales for spas and salons increased by 24%, while average ticket sizes of these businesses rose 23%. 

Zenoti president and COO Neal Singh spoke with Modern Aesthetics about how this model is evolving from a revenue strategy into a relationship strategy, helping businesses thrive in a competitive, experience-driven market. 

WHAT WERE SOME OF THE MOST NOTABLE RESULTS THAT YOU SAW IN THE REPORT ABOUT MEMBERSHIP MODELS? 

We are seeing a rise in membership models, even in the economic situation that we are in today. We saw a 24% increase in membership models across our medspa population. Customers who are in membership programs tend to visit 30% to 40% more often, so that has been fueling the growth. 

HOW DOES A MED SPA EFFECTIVELY IMPLEMENT A MEMBERSHIP PROGRAM?  

We always recommend that they start with simple programs first before they go down the complex path. You can incorporate service discounts, product discounts, tiered discounts, or some combination of those. You can control the level of franchises or how redemptions work. You can do redemptions within certain centers. You can control a lot of complex business rules in them. We recommend that businesses start with simple programs first, test them, and basically try to curate VIP experiences. We find customers react better the more we can hyper-personalize the programs. 

IF PATIENTS TEND TO VISIT MORE WHEN THEY'RE PART OF THE MEMBERSHIP PROGRAM TO GET THEIR MONEY'S WORTH, HOW EFFECTIVE IS THIS MONETARILY TO THE PRACTICE’S BOTTOM LINE? 

From a practice owner perspective, one significant area that drives a business forward is recurring revenue. We have seen that 42% of customers drive approximately 80% of revenue. Retention of patients is so important, and membership programs help accomplish that while ensuring that that 42% comes back more frequently. The other aspect is that we see average ticket sizes go up as well. Membership programs also can be combined with gift card programs, and we find that about 24% of gift cards bring in new customers. Additionally, especially when you have these economic waves of ups and downs, it creates a more consistent pattern of revenue because you're not depending purely on traffic coming in and out. With a lot of consolidation and private equity acquisitions also happening, these recurring business models increase the value of your practice overall as well. 

IN ADDITION TO THE FINANCIAL SIDE, HOW CAN THE RELATIONSHIP ASPECT OF IT BE BENEFICIAL FOR THE PRACTICE? 

When you create these experiences that are hyper-personalized, the members themselves utilize more of your services, but you also can create membership programs that are family-oriented or friends-oriented. You can have co-members and then you can exchange. Those create long-term loyalty with the customer. The other aspect is that we are applying artificial intelligence in a pretty significant way to enhance that overall customer experience. We have a suite of products under this umbrella that creates this notion of an omnichannel experience control across customers. When a customer calls the office, beyond just caller ID, you basically get the full customer record of who they are, what they like, what their preferences are, and what their memberships are. So, you don't have to ask the basic questions. You can ask, “Would you like to book the same thing you did last time with the same provider and the same set of services?” 

WHETHER IT'S MEMBERSHIP PROGRAMS OR SOME OF THESE BROADER OFFERINGS YOU'RE TALKING ABOUT, ARE THEY PARTICULARLY APPROPRIATE FOR ANY SPECIFIC TYPE OF PRACTICE? 

I think it applies to all. The level of application can vary. If you have multiple sectors, for example, then the offering becomes much more sophisticated and automation helps a lot more. If you're starting a small practice with two providers, certain elements might be overkill. Our first goal is to make sure a practice starts small and they have the right elements in place to make sure that their experience is very good.  

IS THERE ANYTHING ELSE YOU WANT TO ADD? 

One of the fundamental goals that we have in this beauty and wellness space is to make sure that two things happen: We want the customer's customers—and, of course, our customers—to fall in love, and we want to ensure that you're able to manage the experience for your employees in a very tight manner.