Med Spa Success Strategies Podcast Summary

Title: Here's Why Discounting Strategies for Med Spas WORK - Interview w/ Lauren McAtee
Host: Ricky Shockley
Guest: Lauren McAtee, Lead Digital Marketing Specialist at MedSpa Magic Marketing
Release Date: August 22, 2024

Introduction

In this insightful episode of the Med Spa Success Strategies Podcast, host Ricky Shockley engages in a comprehensive discussion with Lauren McAtee, the lead digital marketing specialist at MedSpa Magic Marketing. The focus of their conversation is on the effectiveness of discounting strategies for med spas, delving into the mathematics behind these strategies and illustrating why they can be financially advantageous for attracting new patients.

1. Debunking the "Wrong Customers" Myth

Ricky opens the discussion by addressing a common concern among med spa owners: the fear that discounting will attract only bargain hunters who are unlikely to return. He challenges this binary thinking by emphasizing that discounting strategies inevitably attract a diverse mix of clients.

Notable Quote:

Ricky Shockley [00:00]: “You're going to attract a mix of clients no matter what you do. Some people will be discount shoppers, but some of those people are going to be rock star clients.”

Lauren supports this perspective by highlighting that while some clients may seek discounts, many will become loyal patrons if they have positive experiences. She notes that the quality of clients varies, but the overall impact remains beneficial.

2. Strategic Targeting to Optimize Client Quality

Ricky and Lauren emphasize the importance of strategic ad targeting to minimize attracting only discount seekers. By focusing on individuals within a reasonable proximity to the med spa, practices can attract clients who are more likely to return for ongoing services rather than those solely interested in one-off discounts.

Lauren further explains that services requiring repeat visits, such as Botox, are particularly well-suited for discount strategies because they ensure continuous engagement with the client.

Notable Quote:

Lauren McAtee [04:18]: “The number one thing that wins over these people after getting them in from the discount is the experience they're having at your practice.”

3. Financial Trade-Offs: Discounting vs. No Discounting

The core of the episode revolves around the financial implications of implementing discounting strategies compared to not using them. Lauren presents a detailed comparison:

• No Discount Strategy:

  • Customer Acquisition Cost (CAC): $300 per new client.
  • Initial Visit Revenue: $750.
  • Total Projected Spending Over 24 Months: $2,500.
  • Return on Ad Spend (ROAS): 8x.

• With Discount Strategy (e.g., 20 Units for $189):

  • CAC: $100 per new client.
  • Initial Visit Revenue: $500.
  • Total Projected Spending Over 24 Months: $1,800.
  • ROAS: 18x.

Despite the lower initial revenue per client, the substantial increase in client volume leads to a higher overall return on investment with discounting strategies.

Notable Quote:

Lauren McAtee [07:36]: “So you're either going to take the hit on $91 in product or you're going to take the hit on your cost to acquire a customer.”

4. Long-Term Benefits and Scalability

Ricky underscores that discounting not only reduces the CAC but also significantly boosts the number of new clients. This increase in volume presents more opportunities for cross-selling, upselling, and leveraging word-of-mouth referrals, which are crucial for scalable growth.

He references the principle from "The Advertising Effect":

"Action changes attitude faster than attitude changes action." This means encouraging clients to take the initial step of visiting the med spa can lead to lasting positive relationships and long-term loyalty.

Notable Quote:

Ricky Shockley [09:44]: “Action changes attitude faster than attitude changes action.”

5. Conclusion and Strategic Recommendations

Ricky and Lauren conclude by reaffirming the efficacy of discounting strategies for med spas. They advocate for the use of new patient promotions as a strategic tool to attract a balanced mix of clients, enhance revenue streams, and facilitate sustainable business growth.

They encourage med spa owners to view discounting not as a reduction in value but as an investment in expanding their client base and improving overall profitability. By implementing well-targeted discount strategies, practices can achieve a higher return on ad spend and foster long-term client relationships.

Final Takeaway: Discounting strategies, when executed thoughtfully, can transform the financial landscape of a med spa by lowering customer acquisition costs and increasing overall client volume, ultimately leading to greater profitability and business growth.

For more insights and detailed strategies, listen to the full episode of the Med Spa Success Strategies Podcast.