Treatwell, founded in 2008, operates as a digital marketplace connecting customers with beauty and wellness service providers. With a presence in 11 European countries, the platform has partnered with over 25,000 salons, offering a 24/7 booking service for a wide range of beauty treatments.
Treatwell’s business model centers on creating a seamless marketplace for customers to book hair, nails, and massage services while helping salons grow their client base.
This article delves into the key components of Treatwell’s business model, early growth strategies, and the role of its customer relationship management (CRM) in driving rapid expansion across Europe.
business model components
marketplace dynamics
Treatwell’s business model functions primarily as a brokerage, facilitating the interaction between service providers and customers. The platform generates revenue by charging transaction fees to salons, which vary based on the type of booking.
For instance, Treatwell applies a 35% commission on new client bookings, while charging lower fees for repeat customers. This flexible pricing model helps salons attract new clients without being overly burdened by high commissions on recurring bookings.
The platform’s ability to offer competitive pricing ensures that consumers have access to affordable services while maintaining strong relationships with salon owners.
By acting as a marketplace, Treatwell eliminates the need for salons to independently manage their booking systems, providing them with an integrated solution.
This also simplifies the customer experience, as users can browse various services, compare prices, and book appointments without needing to directly contact multiple salons.
customer relationship management
Treatwell’s CRM program is one of its most powerful tools for growth. The company adopts a continuous testing and optimization approach to enhance its customer engagement and retention.
By collecting and analyzing data on customer behavior, Treatwell tailors its marketing strategies to individual users. This data-driven approach enables the company to offer personalized communications, promotions, and services that improve conversion rates and customer satisfaction.
The CRM system has also enabled Treatwell to streamline communication with salon partners. The platform provides salons with performance insights and booking trends, allowing them to optimize their operations and offer better services to clients.
early growth strategies
market expansion
In its early stages, Treatwell capitalized on its first-mover advantage in the online beauty booking market. By entering various European markets ahead of potential competitors, Treatwell quickly established a dominant presence.
This proactive market expansion strategy helped the company attract a large number of salons and customers, creating a network effect that facilitated further growth.
With its strong initial presence, the company was able to expand into new countries more easily, leveraging the brand recognition and trust it had built in other regions.
b2b relationships
Building robust B2B relationships with salons was central to Treatwell’s early growth. The company invested heavily in understanding the needs and preferences of salon owners, using extensive market research to tailor its offerings.
By developing a strong relationship with its business partners, Treatwell ensured that the platform met the unique challenges faced by salons in managing bookings, attracting clients, and maximizing revenue.
This collaborative approach fostered loyalty among service providers, making them more likely to continue using the platform and recommend it to others.
In addition, Treatwell’s marketing communication efforts focused on showcasing the platform as a valuable partner to salons, rather than merely a service. This positioning helped strengthen its B2B relationships, encouraging more salons to join the platform.
performance marketing
Treatwell’s in-house marketing team plays a critical role in driving growth. By leveraging advanced data analytics and attribution models, the company has optimized its advertising spend to reduce user acquisition costs and increase repeat customer revenue.
Performance marketing strategies allowed Treatwell to target specific customer segments more effectively, resulting in higher conversion rates and improved ROI.
The company’s marketing team continuously tracks the performance of various campaigns, making data-driven adjustments to maximize their effectiveness.
This emphasis on optimization has been crucial in maintaining Treatwell’s competitiveness, particularly as the market has become more crowded with new entrants offering similar services.
CRM strategy and growth
Treatwell’s CRM strategy is one of the primary drivers behind its rapid growth over the past decade. The company has successfully leveraged its CRM system to enhance customer engagement, retention, and lifetime value. Several components of its CRM approach have contributed significantly to Treatwell’s success.
sophisticated segmentation and targeting
One of the strengths of Treatwell’s CRM strategy is its sophisticated segmentation and targeting capabilities. The company uses a combination of demographic, behavioral, and transactional data to create precise customer segments.
These segments are then targeted with personalized communications, ensuring that each customer receives relevant offers and recommendations. For example, customers who frequently book hair appointments may receive tailored promotions for related services, such as hair coloring or treatments, based on their booking history.
continuous testing and optimization
Treatwell adopts a culture of continuous testing and optimization to ensure that its marketing efforts are as effective as possible. The company uses A/B testing and statistical analysis to evaluate different campaign strategies, making data-driven adjustments where needed.
This approach allows Treatwell to continuously improve its messaging, promotions, and user experience, leading to higher customer satisfaction and retention rates.
leveraging customer data
Treatwell collects and analyzes vast amounts of customer data from multiple touchpoints, providing valuable insights into customer behavior, preferences, and pain points. This data informs the company’s overall strategy, allowing Treatwell to fine-tune its offerings and marketing initiatives.
For instance, the company may identify a trend where customers prefer booking appointments during specific times of the day, and tailor its email marketing campaigns to highlight those availability windows.
automated workflows and personalization
Automation is another key component of Treatwell’s CRM strategy. The company has implemented automated workflows that trigger personalized communications based on customer behavior.
For example, customers who book a gel manicure may receive a reminder to book a follow-up appointment two weeks later, ensuring a seamless experience while driving repeat business.
Treatwell’s automated email workflows are designed to provide real value to customers, ensuring that communications are helpful rather than intrusive. This approach has helped Treatwell establish a high level of trust with its customers, leading to increased loyalty and long-term engagement.
measuring the right metrics
While many companies focus exclusively on return on investment (ROI) when evaluating CRM success, Treatwell takes a broader approach. The company measures a range of metrics, including customer lifetime value (CLV), adoption rates, and engagement levels.
By focusing on these long-term metrics, Treatwell can make strategic decisions that maximize value over time, rather than optimizing for short-term gains.
rapid growth results
Treatwell’s CRM-driven approach has led to impressive growth metrics, demonstrating the effectiveness of its strategy. Key highlights include:
- Doubling the number of salon affiliates in 2014
- Signing up 700 new salons per month
- Reducing user acquisition costs by 33%
- Increasing repeat customer revenue by 50%
- Improving the ROI of user acquisition by 30%
These results reflect Treatwell’s commitment to optimizing every stage of the customer journey and providing both salons and customers with a valuable, easy-to-use platform.
key comparisons in CRM strategy
personalization and segmentation
Treatwell’s level of personalization and segmentation is more advanced than what is typically seen in the beauty and wellness industry. By employing data-driven techniques such as RFM (Recency, Frequency, Monetary) analysis, the company is able to create highly tailored experiences for its customers.
In contrast, many competitors still rely on generic, one-size-fits-all marketing strategies that fail to engage users on a deeper level.
agility and continuous improvement
Treatwell’s focus on continuous improvement through testing and iteration sets it apart from many industry peers. While other companies may be slower to adapt to market trends and customer feedback, Treatwell has built a culture of agility, ensuring that the platform stays ahead of customer expectations.
use of technology
The adoption of cloud-based CRM systems like Salesforce has given Treatwell a competitive edge, allowing the company to scale quickly and respond to changing business needs. This contrasts with the slower, less flexible systems used by some competitors, which may struggle to keep up with fast-paced growth and evolving customer demands.
focus on customer lifecycle
Treatwell’s CRM strategy spans the entire customer lifecycle, from acquisition to reactivation. This comprehensive approach helps Treatwell engage customers at every stage, ensuring that they remain loyal to the platform for the long term. Many competitors, on the other hand, tend to focus more heavily on acquisition, without dedicating as much attention to retention and re-engagement.
data-driven decision making
Treatwell’s commitment to data-driven decision making ensures that the company is constantly optimizing for the best possible outcomes. By tracking a variety of metrics, including customer lifetime value and adoption rates, Treatwell can make more informed strategic decisions that support sustained growth.
conclusion
Treatwell’s success as a leading beauty and wellness marketplace is built on a foundation of strong B2B relationships, data-driven marketing, and a highly effective CRM strategy.
By continuously optimizing its operations, personalizing customer experiences, and leveraging advanced segmentation techniques, the company has managed to scale rapidly across multiple European markets.
As Treatwell continues to evolve, its commitment to agility and customer-centricity will likely remain at the core of its growth strategy.