Med Spa Marketing Math Explained: ROI, Discounting & Budget Prioritization (2026)

Podcast: Med Spa Success Strategies
Host: Ricky Shockley
Release Date: January 28, 2026

Episode Overview

In this episode, Ricky Shockley offers foundational insights into understanding marketing investment for med spa and aesthetics practice owners. He breaks down the core math and trade-offs around discounting, ROI (Return on Investment), and how to prioritize budget allocations for sustainable growth. Ricky guides listeners through practical frameworks and real-world examples aimed at empowering owners to make data-driven marketing decisions with confidence.

Key Discussion Points & Insights

Importance of Marketing Math & Context Behind Discounting

• Ricky sets the stage: This episode delivers conceptual knowledge vital for understanding how to derive meaningful ROI from marketing investments.
• He addresses the “debate around discounting,” challenging the common narrative that discounts always attract low-quality clients or diminish brand value.
  • “That’s an incomplete analysis of what’s going on here... As you up the ante on your offer attractiveness, you lower your customer acquisition cost.” (02:02)
• Discounting as a tool isn’t inherently negative; it’s about leveraging promotions as an entry point to prove your service quality and foster customer loyalty.
• Cites a favorite marketing quote: “Action changes attitude faster than attitude changes action.” (04:16)

Memorable Moment

“If I were to ask you your favorite restaurant, you’re inevitably going to name a restaurant you’ve actually been to, and that’s because engagement and interaction impacts favorability more than anything in your marketing message.” (04:46)

Four Correlation Principles for Marketing Investment

1. Offer Attractiveness and Customer Acquisition Cost

• As offer attractiveness increases, customer acquisition cost decreases. (07:09)
• Example:
  • Simple consultation CTA may cost $300+ per new client; attractive intro offers can drop this to $10-$30.

2. Deal Size and Client Quality

• Bigger deals often lower average client quality, but higher volume can balance out value. (10:58)
• “If I spend $1,000 to get 10 clients and only 5 are good quality... my effective customer acquisition cost for good clients is $200.” (12:15)

3. Repeat Visit Volume vs. Initial Profitability

• Services yielding frequent repeat visits (e.g., Botox) tend to offer lower initial profits, but better long-term revenue. High-ticket, one-off services (e.g., Emsculpt) show strong upfront profit but weaker long-term retention. (14:35)

4. Law of Demand: Price and Response Rate

• Lower-priced offers drive more volume; higher-priced services yield fewer leads despite larger individual profits. (17:14)
• “For short-term profitability, focus on high-ticket sales. For long-term growth, prioritize recurring revenue services.” (19:53)

Measuring ROI: What Really Matters

• ROI must be seen as an investment, not an expense. The aim is measurable, tangible returns, not short-term vanity metrics.
• Warns against over-focusing on “butts in seats” (number of bookings) as the sole measure of success:
  • “It might steer us in the wrong direction by over-optimizing for a leading indicator data point.” (23:58)

Two Illustrative Client Scenarios (26:34):

• Scenario 1: $5,000 ad spend, 100 bookings via discount ($50 CAC), 10% retention.
  • $10,000 initial revenue, $20,000 lifetime revenue (4x ROAS)
• Scenario 2: $5,000 ad spend, 20 bookings via premium offer ($250 CAC), 50% retention.
  • $20,000 initial revenue, $35,000 lifetime revenue (7x ROAS)
• Conclusion: Don’t optimize for patient bookings alone; full-funnel value and retention matter most.

Notable Quote

“The real magic happens because there’s going to be a percentage of those clients...that are coming back for recurring service. And that builds on the lifetime value.” (36:10)

• For services dependent on retention (injectables, esthetician services), never use only initial visit revenue or only lifetime value as your ROI metric—both can mislead.
  • Rule of thumb: Break even on acquisition + service costs for initial visit, then build profit through retention. (39:42)

Using the Med Spa ROI Calculator (42:11)

• Ricky introduces an ROI calculator for planning ad spend, client acquisition, retention, and revenue over time.
• Shows how consistent retention snowballs into exponential revenue growth:
  • “By month six, we’re doing $40,000 per month in additional revenue. By month 12, $63,000.” (44:00)
• Visualizes the growing gap (“hockey stick effect”) between ad spend and cumulative revenue.

Practical Budget Prioritization Framework (56:43)

Key Guidance:

• Focus ad spend on the highest-performing channel before diversifying.

  • “If you’re under $100,000 a month in your med spa right now, there’s no reason you should be doing more than one thing... and right now, for us in 2026, that’s Meta ads.” (57:28)

• Only after pushing Meta ads to their potential should you add Google Ads (post-$1M or $2M in revenue), then consider ongoing SEO investment after multimillion-dollar status.

  • “Do the one thing that’s working best with maximum investment before diversifying.” (58:02)

• Budget allocation should always consider opportunity cost: put every dollar where it drives the best, fastest ROI.

Notable Quote

“Every decision you make, there’s an equal and opposite reaction happening to another data point... If you can understand the interplay between these data points, you can make much smarter decisions to guide the ship in the right direction.” (01:05:14)

Key Takeaways

• Customer Acquisition Cost (CAC): Optimize first, but always weigh against client retention.
• Offer Attractiveness: Lower CAC with better offers, but monitor client quality and retention.
• ROI Measurement: Don’t judge by bookings or first visits only; always evaluate through the lens of long-term retention and cash flow.
• Budget Prioritization: Focus investment on the single best-performing channel before expanding efforts.
• Math & Retention: Sustainable growth relies on blending initial profitability with service excellence that drives repeat business.
• Product/Service Quality: “Great marketing only makes a bad product fail faster.” (01:02:24)

Notable Quotes with Timestamps

• “That’s an incomplete analysis of what’s going on here... As you up the ante on your offer attractiveness, you lower your customer acquisition cost.” —Ricky Shockley (02:02)
• “Action changes attitude faster than attitude changes action.” —Citing ‘The Advertising Effect’ (04:16)
• “The real magic happens because there’s going to be a percentage of those clients...that are coming back for recurring service. And that builds on the lifetime value.” —Ricky Shockley (36:10)
• “If you’re under $100,000 a month in your med spa right now, there’s no reason you should be doing more than one thing... and right now, for us in 2026, that’s Meta ads.” (57:28)
• “Every decision you make, there’s an equal and opposite reaction happening to another data point...” (01:05:14)

Timestamps for Important Segments

• 00:00 – Discounting: Myths & Realities
• 07:09 – Correlation Principles of Marketing Investment
• 23:58 – Pitfalls in Measuring ROI (“Butts in Seats” Trap)
• 26:34 – Revenue Scenarios: Discount vs. Premium Clients
• 36:10 – Why Retention Drives True ROI
• 42:11 – Leveraging the Med Spa ROI Calculator
• 56:43 – Budget Prioritization Blueprint for Med Spas
• 01:02:24 – Product/Service Quality & Marketing Effectiveness
• 01:05:14 – Understanding Opportunity Cost & Data Interplay

Summary Prepared For:
Med Spa & Aesthetic Practice Owners seeking proven frameworks and actionable strategies to maximize the impact—and certainty—of their marketing investment.