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Med Spa Success Strategies
BETTER Facebook and Instagram Ads Results for Your Med Spa - Interview w/ Lauren Nettles
00:38:06
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- [00:02]
Ricky Shockley
Hey there, I'm your host, Ricky shockley, owner of MedSpa Magic Marketing. Welcome to the MedSpa Success Strategies podcast where MedSpa and Aesthetics practice owners come to discover strategies and tactics that help them better market and manage their practices so they can grow, improve profitability and have more financial freedom. Today I'm really excited again to be joined by Lauren Nettles. Lauren is our lead digital marketing specialist at Med Spa Magic Marketing. She manages and guides online advertising for med spas all over the country, from Seattle to Miami and Boston to la. Today, Lauren and I are going to show some really cool examples of how to improve your Facebook and Instagram ads performance. So many med spas, if you're, if you're listening to this, you're already advertising on these platforms to some extent. If you're not advertising and you're just sort of using them organically, I think this will still be really insightful. And we're going to give you some tips and tricks that we found to improve ads performance as we head into the end of 2024 into 2025. You know, checking the box of running ads is one thing, but optimizing for ads performance is going to dramatically impact the return on investment. If you're able to cost per lead in half and double your show up rate, you're literally quadrupling the number of people you're seeing every month from your online advertising. So we're going to go into some specific strategies and takeaways that can help you improve ads performance. In today's episode, everybody, I'm excited to have Lauren back. I really enjoyed our last episodes. I think a lot of you did as well. We're excited to do this more consistently. It's kind of a behind the scenes view into what we're doing and what we're strategizing from a marketing standpoint. For med spas we work for, for all over the country, we're going to share our best advice, the tactics, the insights, the strategy items that are working best for our clients and hopefully give you some tidbits that can help you improve your ad performance. So today specifically, we're going to talk about Facebook and Instagram ads and a handful of strategies that we've identified just through the last several months that are really improving ads performance in terms of cost per lead and cost of customer acquisition. So I think a lot of us make the mistake that we check the box, we say, hey, I've got ads up and running. That's good. Like ads are up. That's all I need needed to do that. That box is checked. But being strategic about your ads management and making decisions to improve your ads performance could mean hundreds of thousands of dollars in additional revenue. So there if there's a better way to do this that's going to make you a lot more money. I strongly suggest looking into those strategies and hopefully we're going to share some of those today. So we've got some examples and we're going to make sure that we're, we're doing this in a way that's digestible for the audio listeners here too. With that said, Lauren, do you want to jump into the first example and we'll recap at the end with kind of like a lessons learned from these?
- [02:34]
Lauren Nettles
Yeah, absolutely. Hey everybody, let's jump in. I'm going to share my screen for those of you who can see. Like Ricky said, for those of you who are listening via audio, we're going to try to talk through the graphics as best as we can and give you a visual of what they might look like or what you can expect. So I'm super excited to go into these two. Like Ricky said, these are real examples that we have seen and actively been working on as a team over the past couple of months and we've really seen how they impact businesses in terms of that revenue and growth projections from just these campaigns themselves. So really excited to jump into these with you all. The first example we're going to look at is from one of our clients who's located in South Carolina. They were having really good success with a pop up on their website of their virtual coupon book of some of their best offers that they're running right now. So we decided to try it in the meta space as well. So the first graphic that we created is a beautiful visual. There's really nothing wrong with it visually. It's something that everybody would probably like to look at. Right. But I don't think it checks all of the boxes in terms of making this what is a successful ad. And we'll talk about some of those things. We change here in a minute. So this first graphic, for those of you who can't see it, the main title at the top says Download now to receive our virtual offer vouchers. And then it says free access to our best ever discounts on and then it has a checklist of what those items are. So it's Botox and fillers, facials, virtue RF microneedling and then weight loss injections. It contains a model image looking at the specials as well as some social proof in terms of where they're located and how much or what their ratings are on Google. So that cost per lead initially was $29.62. When I first did an audit for this client, we noticed that was an incredibly high cost per lead for something that, you know, we expected should go way differently. But their conversion rate was really solid. They were hitting about a 10% conversion rate on this, which is something we would expect a little lower than our standard benchmarks, but something we would expect for something more obscure, for example. So they were hitting a solid convers conversion rate. People were booking for a couple services, but since that cost per lead was high, their lead volume for what they were spending was pretty low. So if let's say they're only getting 30 leads and they're booking 10% of those, that's only three booked appointments. So I really went to our team and we sat together and strategized. How can we make this more attractive and how can we make it something that people want to download or feel like they need to fill out the lead form to get these deals before.
- [04:59]
Ricky Shockley
Before we get into the new one. Lauren, I like what you said about the math, so I'm just going to kind of recap what Lauren said. So when we were paying on that original example, basically $30 for a lead, for every thousand dollars this client would have spent, they would have had 30 some leads. With a 10% conversion rate, they would have only had maybe three or four booked and paid appointments per thousand dollars in ad spend. Now, as a med spa, can that still be a very successful campaign? You know, these customers can be worth, you know, two, $3,000 over the next 12 to 24 months. So if you had to pay $300 to acquire the client, which is how those numbers were playing out, basically for every $300 they put into the system, they got a new booked and paid appointment that came in from that coupon book. But Lauren's going to now go into, we thought we could do better. So going into, we didn't just check that box and say, oh, the virtual coupon book ad is up, it's running, we're getting business great. We said, how can we make this better? And how can we make it significantly better? So go ahead with that transition, Lauren.
- [05:53]
Lauren Nettles
Yeah, I love that. So we tweaked the graphic basically quite a bit. We changed almost everything about it. The main thing that we changed that we're going to go into here later too, is how we framed the offer and how we presented the information that was included within the graphic. So first of all, we changed the image. Now it's a photo of the team itself, so people that actually work at the practice rather than a model image. And the main headline on the ad at the very top, as well as their social proof right next to it is free coupon download with an arrow pointing at the offers. Then large language. We have fill out the form to instantly access your free coupon download. So I think that language is presented so clearly in terms of what you're getting when you fill out that form. That's the main thing we always like to say is we don't want to leave any questions in terms of what's going to happen next. Like, we don't want people to wonder why am I filling this out? What am I looking for? It's very clear what they need to do and what's going to happen after they do it. And then below that we have little tickets that look like little coupons. It's actually super cute. That have the name of the promo or the service that is being promoted. And then below it it says download to reveal code and offer. So it's giving a very clear statement that you need to fill out this form to get access to these offers and to learn what they are. So we kind of left it all hidden. Right. Like we. Most of our ads clearly state what the promo is because that's the attraction in this. The question or the wonder of that is what's attractive that we think. So that cost per lead dropped from $29 and 62 cents down to $6, which is absolutely amazing. So for that same thousand dollars in ad spend, now we're getting 60 leads. And if we hold that cost per lead. True. Is that right? Math? If we have a $6 cost per lead. A thousand dollars spent. Help me with the math here. Come on.
- [07:39]
Ricky Shockley
Six. $6 cost per lead. $1,000 spent would be 166 leads.
- [07:44]
Lauren Nettles
Oh, my gosh. I knew something about that was wrong. Here we are.
- [07:48]
Ricky Shockley
Good intuition. We're good at marketing to the big number that matters.
- [07:51]
Lauren Nettles
So now we have 166 leads for that same thousand dollars in ad spend if we hold that conversion rate. True. At that 10% conversion rate, we're now booking 16 to 17 new appointments, not where before we were booking three to four appointments. So that's more than tripling, quadrupling the number of new patients. We're getting through the door simply by changing the graphic. We didn't change anything else other than we change the way we frame the offer, what was included in the graphic, the image, etc. So to kind of put that into real terms for you, I wanted to show you our ROI calculator that we have built out for our clients. And what this really does in terms of projected revenue and customer acquisition costs. So the top example is that other graphic or that initial graphic we launched. Literally all we manipulated about this calculator was our cost per lead and the volume of leads we were getting from the same spend. So spending $1500, we can assume 51 leads at that $29 cost per lead that everything here holds true between. So we're still hitting that 10% conversion rate. Initial visit revenue is probably close to that $400. Again, this is probably conservative estimate since some of those promos are higher ticket items like a laser hair removal package or microneedling. But we do have some like a Botox or dysport like that in the beginning. Then that revenue per patient is estimated over the next 24 months. And then breaking that down to our customer acquisition cost, that would be $294 spent to get somebody new through the door at that $29 cost per lead. So once that all kind of plays out together, math wise, we're looking at a 24 month projected revenue from that ad spend of $154,000. Still solid, still a good amount of new patients coming in each month. But we know it can be better like Ricky said, and that's what we're always striving to do. So now looking at that same calculator, like I said, only thing manipulated is that cost per lead and lead volume where we only were going to get 51 leads. Now we're getting 245 leads for a $6 cost per lead, holding that close rate the same 10%. Now our customer acquisition cost is $61, so way, way, way cheaper. And that 24 month projected revenue is $742,000. So looking at that difference, that's basically $600,000 in difference over the next 24 months that simply changing a graphic can do to increase that lead volume, decrease that cost per lead, and decrease your customer acquisition costs. I mean, that's a pretty solid sample, right, Ricky?
- [10:24]
Ricky Shockley
Yeah. So you so you 5x your return on investment just by a strategic change in the creative. That's why we say don't overlook the impact creative can have on your ads. That's such a great example of why strategy matters and how you present information. So I think some of the key lessons from this that hopefully you all can take with you as you're planning your ad strategy is how you present information matters a ton, how you frame your offer and your promotion, your clarity you have in your call to action. When we talk about what are we asking people to do next after they see their ad, you start to pile up some strategic decisions that put you in a better place for success on all. In all of those areas. This is the type of thing that you can see happen, right? So be cognizant of how you can improve your results just by better offer framing. There's a version of this world where the version A of this ad is like, hey, do we really want to spend our ad dollars there? Maybe not, because we can get better results somewhere else. And now, just because of this change in creative, it's probably one of the best places our client is spending their ad dollars right now. So, yeah, don't overlook that. And you'll notice one other caveat I wanted to mention. As Lauren was going over those numbers, she was just ballparking. Based on this client's example, they had a 10% conversion rate from leads to booked appointments. So you can see, even with this successful example from Meta ads, Facebook and Instagram ads, they had generated 245 leads to book 25 appointments. I've addressed this in other videos, but I just wanted to take this as an opportunity. Again, so many of you running ads on Facebook and Instagram are left with the impression that leads are bad leads because you get caught up on the conversion percentage. And that's the reality of these platforms. You're going to generate a lot of leads that aren't going to convert. But on an example like this, even with only a 10% booking rate from lead to booked appointment, this client was paying $60 in customer acquisition costs. Like, literally every time they put three $20 bills through the system, Facebook and Instagram shot them out. A new booked and paid appointment, a patient they had not before seen. So these ads can be extremely powerful, but strategy matters. I think that was a great example. Hopefully there are some strategy items that you can take from that. The changes that we made there into your own business and your own ad strategy. So you want to move into example 2 and some of these other lessons. Lauren?
- [12:32]
Lauren Nettles
Yeah, absolutely. Let's jump into it. Ricky, do you want to kind of tackle this one?
- [12:37]
Ricky Shockley
Yeah, yeah. So this is one that I was a little more active on, so I'll go over this one. This one's not as dramatic of an example. This is an Example, for one of our clients in San Antonio, she's trying to get the. The esthetician side of the business kind of ramped up. So we came up with a combo service she was calling originally Facial Rejuvenation, Full Facial Rejuvenation or a Total Glow Up. And it was a combination of three platinum HydraFacial facial plus peel, Derma Radiance, Facial Pulse Peel, and a micro needling session, normally 750. The offer was for a $399 price point for new patients. So on the first version of this ad, to describe it to the audio listeners and hopefully this is helpful, we basically say full facial rejuvenation only.399, originally a $750 value and then in much smaller fonts on the ad graphic includes one microneedling session, a Derma Radiance Facial and peel, and a HydraFacial plus lymphatic drainage massage. So the cost per lead on that original version of the ad was $39.39. We're looking at the data. We know this isn't a super expensive offer. We know we don't want to pay $40 for that lead on Meta. We really want that number to be a lot lower because we don't want to pay $400 to acquire the customer. But we're going to lose money on those initial visits and we'll have to make the ROI in subsequent visits, which is okay. But this client also has cash flow consideration. So we wanted to make sure that the business we were bringing in wasn't cash flow negative, at least even on the initial visit. So how can we try to improve this? This is a more incremental example, but as we looked at the first version of the ad, we tried to come up with some ideas. How can we improve From a strategy standpoint, One of the things we noticed was, okay, the. The big parts of the ad, the things that stand out the most are the price point and the words full facial rejuvenation. Those don't mean much to a prospect that's scrolling past your ad in their feed. Doesn't really stand out. People don't know what full facial Rejuvenation means. And if they don't know what that means, they don't care about the price point. So the stuff that we were putting in this ad that was most prominent is not scroll stopper type information like the virtual coupon book is enticing. It's exciting. In that last example, this doesn't do a good job of checking that box. So when we analyze that, we said we need to get people excited about what's in the package because that's what's going to get them excited. The names in the. And the products they're going to recognize, the services they're going to recognize. So of those, which one is probably the most attractive in this case, we thought it was the platinum HydraFacial. So why would that have been third in our list? Went back to the drawing board, move that up to the top of the bullet list. So now in a bigger font, more prominent font, and bold writing with a big pink check mark next to it, which is the client's brand color, it says Total Glow up includes Platinum HydraFacial and then our Derma Radiance facial peel, which we thought was the second most attractive service there, and then the micro needling session. So now the services that we're promoting as part of the package stand out much more prominently in the newsfeed. As you're going to scroll past, this stands out a little bit more. So that's one box checked. Also, the model photo that we used in version A of the ad, that was just kind of boring and plain. It wasn't exciting. It didn't catch your eye as you're scrolling past it in the feedback. In version two of this ad, we have actually an AI generated photo, which for those of you listening, you'd be shocked. You would never know. I don't think, Lauren, that this is an AI generated photo, which is very much, I agree, a real photo of a real person. She's got short blonde hair, she's wearing like a white crop top, white jeans, and she's like pumping her fist with a big smile on her face. Right. It's like, it's a little more exciting. It's more likely to stand out in the feed. And then the third thing here was the offer box. In the original version of the ad, we had a black offer box. Looked kind of plain and boring. And this one, we don't love this. This specific example, I think the team doesn't like this burst that we used on this graphic, but it at least checks the box of it stands out. It's a little bit more poppy in the newsfeed. So I think some of the lessons learned here, and that took the cost per lead down to $27. So a $12 difference in cost per lead doesn't sound like a ton. But Lauren, can you pull up the next screen, which is the ROI, but over 24 months, that's the difference in $60,000 in revenue. And that's only spending $2,000 a month on ads. So even, even something that didn't have a major impact, that only had an incremental impact, is still creating tens of thousands of dollars minimum in additional revenue. This episode is brought to you by MedSpa Magic Marketing, my agency. We help med spas and aesthetics practices grow with more effective marketing strategies. And I know that's a vague phrase, right? That's a vague claim. So I have an offer for you. I offer this to any new prospects. If you're interested in exploring any of another marketing option, a new agency, or just getting into Facebook, Instagram, Google Ads for the first time, I'd love to show you why we're different, what we're doing for clients. And we can do that via a one and a half hour planning session where I'll outline a specific marketing plan and I'll give you all of the blueprints that we would implement if we were to do business together. Now, you can take that, use that on your own, hire someone else to help you execute it or work with us. We really don't hold anything back on that strategy call. And I think you'll have a lot of confidence in how you manage your marketing investment moving forward, understanding some of the nuances that can help you implement more effective marketing strategies for your business. So if you want to do that, you can go to medspa magicmarketing.com so I think lessons to learn from this example in terms of your graphics and what you're doing with your ad builds would be that visuals matter. Like, how do we make these things bold and stand out in the newsfeed? How do we get them to pop in the newsfeed? And then back to how do we present information? Let's make sure the most exciting part of the marketing message is most prominent. I think those are two checklist items we learned from this ad and that we implemented to improve performance. Any thoughts on that one?
- [18:18]
Lauren Nettles
Yeah, I love the title swap too. Like, I think Glow up package also resonates more with a current audience. Right. Like everybody's saying, I need the glow up or the holiday glow up with the time of year coming up that's really popular, people know what that means. Like it's going to change the way you look or it's going to impact, you know, your radiance, your glow, things like that, full facial rejuvenation, you don't really know. And sometimes too, like the younger audience, like me looking at that ad, I'm like, I Don't really need a full facial rejuvenation right now. Like, I don't really have much going on, but when I look at the Total Glow Up, I would love a Hydrafacial. I'd love a microneedling session. Like, it applies more to everybody, right. So it's not like for that audience that just needs a full facial filler, full facial balancing in that term. So I think that title swap really made a clear answer on, like, what is this going to actually do and why would I want it?
- [19:04]
Ricky Shockley
It feels a little bit more lighthearted and not so much of a serious commitment too, right? Like, oh, like, Total Glow up seems like a fun thing. Like, I should get it. I should do that. Full facial rejuvenation sounds like, whoa, what am I getting myself into? So even maybe, like, we didn't test that in isolation, but I think that's a good case that potentially that one decision alone could have impacted performance. So, yeah. Again, another example of thinking strategically. Don't assume your ads are in the best place they could be. And don't, as we're going through this, don't harass. If you're working with a marketing agency to go down an unlimited rabbit hole of testing, because you could do this at an infinite amount. Right? Like, what if we did this? What if we did this? But at least don't just set it and forget it. Right? This is a reminder to at least think strategically. So I think those were some good lessons and takeaways, hopefully you all can use with your ad strategy. And I know we're talking about Facebook, Instagram ads, but I think these things also apply potentially some of these principles to how you present information on social media in general, what your email subject lines look like and what your email newsletters look like, how you're presenting your offers to your existing clients. So regardless, most of you are doing some form of advertising. Hope these principles apply.
- [20:07]
Lauren Nettles
Yeah, even in office flyers, too. Like, what flyer is sitting at your desk that catches somebody when they walk to the treatment room? You know? Cool. Okay, so we have two more examples to go through. The next two are ones that I'm, like, so pumped about because these are newer. Well, one of them is a newer client of ours. Um, they're a newer practice too. So their goal with us was I really want butts in seats. Like, I want as many people to come in as frequently as possible. So as you look at these two graphics, for those of you who can see them, for those of you who can't, we'll go into some more detail. They're both really pretty, right? And not much is different other than simply a few color swaps and the image itself. So for this client, we launched our standard Botox template on this left side here. Basically, on the left side of the ad, for those of you can't see it, it says botox flash sale, um, in a blue offer box that says, your first 20 units, only $179. And then it states what that can be used for. And then it has a photo of a model looking at the camera, smiling. The second version of the ad is a blue background Botox special offer, Basically the same way the offer is framed. Your first 20 units, 179. Not much difference other than a few color swaps. But the picture is of the actual provider owner and lead esthetician, or lead injector. I'm sorry. At the practice. So mostly here, all that's changed is that simple image swap in terms of who presented the offer. So when we first launched this graphic, it had a $26 cost per lead. We weren't super excited about that from off the bat, so we gave it a couple of days to run, see if it kind of regulated itself. And once it didn't, we knew we needed to go back to the drawing board and see what we can do to decrease that cost per lead. The reason we initially didn't have her photos included in the ads were because we didn't have them yet, but we wanted to get something up and running. So we went back, we were like, hey, we really need a picture. Just take one with your iPhone. You know, this is even a newer one now, but we threw an iPhone picture in there, and almost immediately, that cost per lead decreased to $13.60. So cut that cost per lead in half, basically, and really made an impact in terms of lead volume and booking volume. So even when we were sitting at that $26 cost per lead, the client was excited because we were booking about 20% of the leads. So we were really happy with people coming in, but since they were newer, they have a lot of open slots, so it felt like, okay, we have a couple people coming in now, but not as many as we could. Right. So let's look at the ROI calculator real quick, and I'll give you kind of a better picture of what that looks like. So for every $2,500 they were spending in ads, they're getting 95 leads. At that $26 cost per lead, that's 14 new patients throughout the course of A month. So maybe one every other day doesn't really feel like a whole lot to a practice that doesn't have a lot of, you know, volume already happening. Once we decrease that cost per lead to $13 for that same monthly investment, now we're getting 27 new patients booked. So almost one new one every single day, probably even a couple a day. Then that client really feels that difference. For a client who also is cash strapped a little bit because they're a brand new practice, spending $200 or almost $200 to get somebody in the door, while that's solid, still, it's not a bad number. Like Ricky said, they're going to spend maybe 1500, 200 or maybe 1500 to $2000 over the course of a year. It's not bad to spend 200 to get them in, but we were able to drop that down to $92 and less to now book that same quality more consistently and get that schedule filled. So looking at the 24 month projection, it literally doubled from 431k over 24 months now to $822,000 over the course of 24 months, which, to a small new business, that's a huge, huge, huge impact. And this was just a really exciting one for us because not only did we see the numbers, the client felt the numbers like as soon as that cost per lead dropped and they started getting more messages through high level, more people to communicate with, more appointments booked. Now she's pumped and she's like, I'm feeling this, I'm excited. Like things are growing and we're going in a good direction together. So that one was a really exciting one. Any thoughts, Ricky?
- [24:13]
Ricky Shockley
Yeah, I think the two key takeaways there. First, again, seemingly small changes can make a massive impact. We're talking about $400,000 in additional revenue over 24 months just by improving that cost per lead from $26 down to $13. And in this case, like Lauren said, there's really two small changes. One is I think that we leaned into the blue brand color that makes the graphic just a little more prominent in the newsfeed. Again, the old marketing acronym aida. Attention, interest, desire, action. The first thing we want people to do, we need to grab their attention. We have to get them to pause long enough to care what it is we're talking about. So bold imagery and bold colors tend to do that. So they had a blue in their color palette that I think stands out a little bit more. So that was the first layer and then really mainly Using authentic staff photos. Great tip. I would say. I don't know, Lauren, if you had to ballpark this, it almost seems like 100% of the time to me that when we use authentic staff photos, we get a better result and a lower cost per lead than any form of the stock photo. Does that seem to be your inclination too?
- [25:12]
Lauren Nettles
Yes. Pretty close to 100.
- [25:13]
Ricky Shockley
Yeah, it's got to be pretty darn close to. I can't remember a specific example off the top of my mind where we've tested that. And the stock photos consistently outperform. So use authentic images if you have them and if you don't, go get them because it makes a difference. Right. If the only thing that holding you back from cutting your cost per lead in half is getting somebody with a digital camera to snap a couple pictures, it's worth the investment and the time, I promise. I think this, this makes sen too because people buy from people at the end of the day and how cool is it that they see the face of the person that's going to be either performing the service or owns the business. To connect at a more personal level, we want to also quickly communicate that we're a small local business. A stock photo doesn't check that box. A staff photo does. So I think those are two of the key takeaways from that version or from that ad test.
- [25:58]
Lauren Nettles
Yeah, absolutely. Ready to jump to the next one?
- [26:01]
Ricky Shockley
Yeah, this one's a little bit different. So this is strategic change in terms of how offer is presented. I love this one. I use this all the time in conversations. I think it's. It's a great example of how the offer is framed and how a service is promoted and how much of a difference that can make in your ads performance.
- [26:19]
Lauren Nettles
Yeah, absolutely. So this too was a newer client at the time that we've started working with them. A newer business and she was very set on wanting to sell bigger packages. So multiple area dysport packages to perform on the face that included the forehead, the 11s and the cross feet. So the initial price point was $599, normally 780 in order to treat those three areas. So it was a package price that was called the classic package. For those of you who can't see, the two graphics are pretty much the same. Not much changed in terms of just flipping where a green color was versus a tan color. The title on both was Dysport Classic package. On the first only 5.99. Classic package includes forehead, 11 scrubs, feet and we're using A provider image with her title as well. So with that we saw a very high cost per lead. So it was a 37, 95, $37.95 cost per lead. So the lead volume was very low. That 599 price point is also a very high barrier to entry for new patients coming into a new practice. Especially if you haven't gotten injectables before, you're looking at a 600 price point. You don't know the practice, you don't know the person maybe, and you've never got injections. That's a lot to kind of get over that hurdle and be willing to go in and know that that's what you're spending. Right. So we had a conversation with the client and we said, listen, we have a framework that we know works very well. You're a brand new business looking for people in your chair, looking to book appointments, and we're struggling to do that at this price point. So let's test what we know works well and then we can make a decision. You can decide after a month or so what you would rather run and how you feel about what's going on. So the next graphic, we change that price point. Instead of doing the classic package of 5.99 total, we said only $4.50 per unit of Dysport. So going by the Galderma pricing there for your first 40 units, and we said it can be used for your forehead, crow's feet or your frown lines as well. Those are just a couple examples we like to add into the graphic. That dropped our cost per lead immediately down to $11. Now she has booked I don't even know how many appointments at this point. We're upwards of 50, 60, maybe even 70. Now she is seeing that she's feeling those amount of patients coming in, people asking questions, having that great interaction with patients that's going to keep filling her schedule for months and years to come, too. So the main takeaway here is offer change. So for some practices, you can get away with running higher ticket services, but you have to understand that your cost of customer acquisition is going to be much more expensive, your patient volume is going to be much lower and your growth path is going to be slower. When we discount services, we know our customer acquisition costs are going to be way cheaper, our patient volume is going to grow pretty quickly and we're going to get butts and seeds almost immediately. So this is a great example of offer makes a huge, huge impact here. Ricky, I'll pull up the ROI calculator if you want to kind of talk through.
- [29:22]
Ricky Shockley
Yeah, yeah, I always. I like using that example because I think from what I remember of the specifics, when they were a newer client, we were just working with them at first. They had spent their first $750 in ads. And I think I for some reason specifically remember this number, 18 leads. So I miss. Was that correct? 750 divided by 18. Now I'm just going to double check my math. 750, because I feel like I always use that. That was about 41, so it might have been. Might have been 19 or so for the first 750.
- [29:46]
Lauren Nettles
That's crazy.
- [29:47]
Ricky Shockley
Yeah. So they. Because I know they'd spent that first 750 and Lauren was looking at the data and she's like, this cost per lead is too high. We know this other strategy tends to work better. We hadn't booked any of those 18 people to that point. Probably would have booked one or two if we look back at the data. One or two, but still, you're talking three, $500 cost of customer acquisition. On that first version of the ad, you're paying several hundred dollars plus to get a booked and paid appointments. When we changed the way we presented the offer, the offer pricing and the promo in general, we were still advertising Dysport, the same service. We just changed the way that we. Our offer. Her cost of customer acquisition went down by almost a fourth. Right. Like it went from. It went from several hundred dollars down to under $80. Like that's a crazy differential. And like Lauren's got the screen up right now at a $2,500 a month price point or investment threshold. So you're putting $2,500 a month in ad spend. That campaign originally was projected to generate $336,000 over 24 months. It's now projected to do close to a million dollars. You're almost tripling the amount of revenue generated from that campaign by lowering that customer acquisition cost so significantly. So I think that's a great example of offer selection. Right? So like don't, don't go. I tried to advertise dysport. It didn't work. It's like, well, how did you present the information? What was the offer? How is it framed? I'll add one more recent one to this example. We had a client in Vegas that was doing a $399 price point on their new patient Botox special. And their cost to acquire a customer was like $85. So for every $85 they put into the system On Meta, Facebook and Instagram would give them a booked and paid appointment for every 85 bucks. They tried to bump the initial Visit promo to 499, and their cost of customer acquisition went to almost $450. And you look at that, and those people are generally spending close to the same amount, actually, once they get a consult on the first visit. And the increased customer acquisition cost meant so many fewer butts in the seats that even if that patient was on average a better quality and spending more money, nowhere near enough to offset the difference that you saw from version A of that ad. So again, offer selection in the way that you present your promo makes a major difference. Like in this case, we went from a sticker price of 599 to a sticker price of under 200. But the initial visit revenue once, if someone comes in for a consult, is typically still 400 plus. So I think that does. Another great lesson from that, added to me, Lauren, is with your ads on Facebook and Instagram, your goal is to start a conversation and to maximize your. We talk about at bats. I want to maximize my at bats. How can I get as many people in my lead pipeline as possible? Because I know that's going to be a direct reflection of how many appointments I'm going to have to book to an extent or I'm going to end up booking. So, yeah, I just, I thought that was a great, great example of how much offer selection matters. Any other thoughts on that one, Lauren?
- [32:39]
Lauren Nettles
No, absolutely. I mean, it was just cool to watch, you know, because then, then the client, like I said at the last example, they feel it like their business is now impacted substantially. Like she had actually, her quote to me after that first week of running the new ad and getting people actually in was, I'm so happy that I get to do what I love again. Like, I hadn't had anybody in here getting to inject, and now I had like five new patients this week, and I got to do what I loved all week, and I was thrilled. So it impacts everything, you know, in terms of what's happening throughout the day.
- [33:09]
Ricky Shockley
Yeah. And that dysport pricing, like Lauren said, this works in certain markets in our experience. I wanted to add this disclaimer in markets where people are used to seeing Botox unit pricing, right. 10, 11, $12 a unit, and then all of a sudden they see an ad for something that's the $4 a unit. And that stands out. Right. We talk about standing out on the newsfeed and grabbing their attention. That offer framing is going to do that in markets where people are not used to seeing that price point. I know certain people listening to this, you're going to be in a market where people reformulate dysport as kind of a standard to match the Botox unit pricing. This is where that type of offer strategy, specifically for the Dysport example works. If you're in a California or there's cities even scattered throughout the United States where people are used to seeing the Galderma price point on Dysport, that offer strategy doesn't work quite the same. It's more of like the same as we see on the Botox example we showed previously. But yeah, that offer selection makes so much of a difference. And this inescapable trade off you have as the attractiveness of your offer increases, and let's say marketing message too, in these examples, as the attractiveness of your offer and your marketing message increases, your customer acquisition cost decreases. And that's an inescapable trade off. I think so many of us want to have it both ways. You can't though, to an extent. Right. That's the trade off that you're managing when it comes to ad strategy. And we know as we're going through this, we're only looking at, you know, customer acquisition cost as kind of a main metric. But the reason we brought it back to these 24 month ROI projections is because we know roughly how much these patients spend on a recurring basis. So you do need to track the customer acquisition cost. Isn't the end all be all? You do want to track retention, Right. If you're discounting services and you're not retaining those clients, then that's not going to be an effective strategy. You would be paying, willing to pay more to acquire the customer if they were going to be sticky clients. So that's an extra caveat. But today we just wanted to go over some creative decisions in terms of your ad graphics and your offer framing, the images you use with your ad and how information is presented to help you improve your ad performance. To kind of summarize those key takeaways, Lauren, you want to roll through that.
- [35:08]
Lauren Nettles
Yeah. So some of the key takeaways that we just talked about with these ads specifically are, number one, how you present your information matters 100%. You want to make sure the exciting part of your message is prominent, that you're getting people excited about whatever it is that you're offering and that you're framing the offer, the promotion, to maximize success. So that framing of the offer needs to be clear. It needs to make sense and it needs to be something that is attractive to people that they want and is an offer that's worth it. The next one is that our visuals matter a thousand percent. Staff photos versus stock photos. We talked about the big difference that it can make actually building those aspects of know like and trust. From the second you launch an ad having somebody at the practice actually on it and that bold, creative and bold colors really pop in the newsfeed. It stands out from what people are scrolling through long enough for them to stop and wonder what it is in order to fill out that lead form. The next one is clarity and your call to action or clarity and what's going to happen next. So that virtual coupon book was a great example of that one. And then like Ricky said, the inexplainable or, you know, unbeatable argument is that better offers lower your customer acquisition cost. We always say too that's a good way to put it into perspective is you're either going to pay for it in product cost or in customer acquisition costs. So if you're not willing to discount your Botox $20 more, you might pay $200 more to get a client through the door. So get that discount where it should be. Especially when we're talking through these kind of things. If we want those butts and seats at the max volume for the lowest customer acquisition cost possible.
- [36:40]
Ricky Shockley
Yeah. And track retention and make sure that you're, you are. You need to get the right kind of customers in and there's, there's all sorts of other things that branch off from this. So I don't want this to be seen as like the end all be also social media ad strategy. We just wanted to give you some key takeaways in terms of creative changes that you can make to your ads to improve performance. I hope you all enjoyed this episode. We're going to be doing a lot more of these and I'll be honest, we learn as much from our clients as they learn from us at times. So we've got all sorts of things that Lauren and I are going to be sharing in terms of best practices and things that we've learned from doing this all across the country for years. In terms of what do we do about credit card capture, how do we maximize rebooking rates? What does cohesion have to look like in terms of the ads experience to the lead follow up to the post appointment follow up Drip. We're, we're coming together with a list of best practices and these are things that other businesses charge for. We're going to be peeling back the curtain and sharing our best strategies, tips, tactics offer framings for free here as we move into the end of 2024 and 2025, so stay tuned for additional episodes and we'll see you on the next one. Thanks everyone for tuning in. This podcast is a production of Med Spa Medicine Marketing. If your med spa or aesthetic practice is in need of digital marketing services, help with advertising on Facebook, Instagram, Google lead Generation and booking more appointments, please visit Medspamagicmarketing.com.