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Analyzing Your Market

How to use market research to skyrocket your business

Being nosy can be a good thing, especially if it means learning how to improve your business. 

In the spa industry, competitive analysis and market analysis help retailers learn business tactics from regional competitors as well as understand their market positioning and competitors’ strengths and weaknesses. With that knowledge, retailers can pick the best ways to grow. 

The targeted technique can provide a leg-up on the competition, but not many retailers make it a regular habit. For some, finding the time can be hard, and for others, it’s more of an ego issue, says Don Riling, president of Olympic Hot Tub.

“I don’t think it’s done as often as it should be by our peers in our market,” says Riling, who helps run one of Washington state’s largest hot tub dealerships. “We probably don’t do it as often as we should either in terms of looking at them and what they do. You get into this mindset that what you’re doing is better than everybody else, so there’s no reason to look at their stuff.”

Still, the industry’s crème de la crème need to know what they’re up against, he admits. In their market, around 40 storefront competitors give Riling and his staff plentiful research avenues. 

Even if they have a different business model or if their approach to business is different than yours, that doesn’t mean you can’t learn something from them.”

Don Riling, Olympic Hot Tub

“Even if they have a different business model or if their approach to business is different than yours, that doesn’t mean you can’t learn something from them,” he says. 

Be curious 

“You never get a second chance to make a first impression,” says Steve Ruscigno, CEO of Hot Spring Spas of Music City. “When a customer walks in the showroom, that’s the magic moment.” 

That magic moment fell flat for Ruscigno during a recent visit to a competitor. 

During the visit, Ruscigno offered a spa salesperson “all this gold” in terms of what he needed for a hot tub. Yet, the salesperson didn’t ask a single question during the hour spent with him.

For many retailers, not asking for the sale happens far too often, Ruscigno says. 

That’s why he scopes out local competition at least once a year to see what they’re doing and apply that knowledge to his business.

Shawna Mesher, director of sales and marketing of Evosus, says zoning in on business holes is easier after looking closely at the competition — whether through an online search or an in-person experience.

“If we can simplify it, we’re in the green,” she says. “Where are those revenue opportunities of the low-hanging fruit? Start to create processes for that low-hanging fruit.”  

Mesher says looking at a basic sales area like offering monthly or weekly water maintenance plans is one retailers often overlook. Customers should automatically be in a sales loop for products they’ll regularly need, she says. 

A simple way to see what other retailers offer is to visit home shows, Mesher says. “Take your branded gear off and just walk around and see what your experience is like in the booth,” she suggests. 

The same logic applies to showrooms, too. 

“Drive around and drive past other showrooms,” she says. “What did it look like on the exterior? Would I go into a store like that? If I would, why? Do the same thing for your showroom. Is your open sign visible? Is there trash outside? You have to be intentional and look at your business from an unbiased standpoint.” 

Keep marketing tabs

For retailers, watching competitors’ marketing techniques is a simple way to gather data. 

“You want to know what their game is,” Ruscigno says. “Are they advertising? How are they advertising? How often are they advertising?” 

Looking at social media ads, mailers and TV spots can give spa retailers an idea of how dollars are spent. The appearance of a billboard in a new area of town may indicate a potential competitor territory expansion.

Keeping tabs on how competition is advertising can give retailers a sense of where they may need to up their marketing budget, Ruscigno says.

Olympic Hot Tub vice president Rob Anderson says marketing is one area not to be ignored. “If they’re putting themselves out there more, they’re capturing more market share,” he says. 

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Leverage the top tech and tools

For retailers who don’t have time to physically shop locations, other tools can provide insights. 

Olympic Hot Tub uses Placer.ai, a location intelligence and foot traffic data software. It helps retailers analyze store performance to promote brick-and-mortar growth. Companies like SeaWorld, Sony, BJ’s and J.P. Morgan use it, too. 

The detailed insights have “shocked” Anderson.

“There’s some fascinating information in there that can tell you where people are coming to your store from and where people are going when they leave your store,” he says. “We’re in the home of Costco, and we’ve got a pretty high crossover between our customer base and Costco’s.” 

The software provides information on demographics, making it easier to refine marketing messages. An example, Anderson says, is a lower-income area will need messaging that leans into financing options, but higher-income mailers would focus on wellness and luxury features. 

Staying on top of the latest artificial intelligence, software and other research tools is important when it comes to successfully analyzing competition, Mesher says. 

For businesses used to paper trails of invoices, spreadsheets and the like, an all-in-one cloud software can be a time-saver. For an industry that’s often slow to adapt, using software can put a retailer light-years ahead of the competition. 

Viewing customer purchase history and customer trends is helpful, Mesher says. Evosus, in particular, shows data for customers who haven’t purchased in a certain amount of time to help retailers discover when the customer “fell off,” offering a better follow-up directive. 

Send a mystery shopper

One of the best ways to get competition insights is to hire a secret shopper. 

Ruscigno plans to use more secret shoppers in 2025 because it’s brought him “real, honest data” in the past, he says.

“If I hire them to shop one of my competitors, I hire them to shop me at the same time,” he says. “They don’t know who is paying them to shop.” 

Usually, three phases are covered: phone, email and in-person shopping. Retailers can learn how financing is presented, how follow-up procedures work and if a showroom looks polished or disorganized, among other details. 

Ruscigno also loves to send new employees to look at showrooms in the area. It’s an excellent training tool, he says. They can learn what sales techniques work and “they’re not tainted yet,” Ruscigno jokes. 

So how important is it to do secret shopping? 

Mesher says it’s worth budgeting for on a monthly or quarterly basis.

Even having family and friends shop the competition and report back on product offerings, value and customer service can be helpful and more affordable, she says.

Stay consistent

Retailers agree that most industry folks don’t do competitive analysis enough. It’s easy to get into a business groove and focus solely on the daily operations. 

But sometimes, even just a walk into someone else’s showroom can offer a fresh perspective. It may come in the form of a useful business conversation or simply a reminder to refresh product displays in a brick-and-mortar store. 

The key is boots on the ground and getting into other locations. Brand-new employees and senior employees alike — sales and management — can all benefit from walking around someone else’s showroom. 

You’re in a niche market. Competitors can quickly gain market share. How often does your business change? If you’re doing things right, look at your competition monthly. … Do a deep dive into your business once a year. You have to know where you’re starting to know where you want to go.”

Shawna Mesher, Evosus

“You’re in a niche market,” Mesher says. “Competitors can quickly gain market share. How often does your business change? If you’re doing things right, look at your competition monthly.”  

Aside from gaining fresh perspectives with competitive analysis, Mesher encourages business owners to step away annually. Doing so at a conference, retreat or even a C-suite workshop can offer time for reflection on business practices. 

“You find yourself so entrenched in the weeds,” she says of daily operations. “Do a deep dive into your business once a year. You have to know where you’re starting to know where you want to go.”