Med Spa Success Strategies Podcast Episode Summary: "Pay-Per-Appointment Marketing for Med Spas: The Problem with Patient Guarantees" Host: Ricky Shockley Release Date: March 12, 2025

Introduction

In this insightful episode of the Med Spa Success Strategies podcast, host Ricky Shockley delves into the prevalent marketing strategy of patient guarantees within the med spa industry. Titled "Pay-Per-Appointment Marketing for Med Spas: The Problem with Patient Guarantees," Shockley critically examines why these guarantees may not be the optimal approach for practice growth and sustainability. Aimed at med spa and aesthetics practice owners, the episode offers valuable perspectives on effective marketing tactics that prioritize both patient quality and business scalability.

Understanding Patient Guarantees

Ricky begins by explaining the concept of patient guarantees commonly offered by marketing agencies to med spas. These guarantees often promise a specific number of new patients within a set timeframe—for example, "30 patients your first month or you don't pay."

Mechanics of Patient Guarantees:

• Customer Acquisition Cost (CAC): Agencies calculate the CAC based on past marketing efforts. For instance, if the CAC is $100, an ad spend of $4,000 would theoretically yield 30 new patients.
• Reverse Engineering: By understanding CAC, agencies can craft patient guarantees that appear consistent and achievable, assuming a repeatable marketing system.

"If we know, for example, that when we run a specific type of offer or promo that our customer acquisition cost is $100, then we know for every thousand dollars you spend, on average, you're gonna see 10 patients." [01:30]

Issues with Patient Guarantees

1. Misaligned Incentives

The primary concern Ricky raises is the misalignment between the agency’s goals and the med spa’s long-term success.

Case Study: Small Facial Spa in Georgia

• Expectation vs. Reality: The spa owner received the promised 30 new patients monthly. However, these patients were often low quality—coming in for promotional offers, not rebooking, and located far from the spa's target demographic.
• Impact on Business: High acquisition costs without corresponding retention led to a negative return on investment.

"The problem is patient quality kind of stinks. These people are coming in for my promo. They're not rebooking. They're really far away." [05:20]

2. Return on Investment (ROI) Concerns

Focusing solely on the number of new patients overlooks the financial sustainability of the practice.

Example of Poor ROI:

• Low-Spend Patients: Acquiring a client for $100 who only purchases a $100 service results in a break-even scenario, not accounting for the cost of goods sold, leading to losses.

"If I'm spending $100 to get a client through the door who only buys a $100 service and I never see them again, I'm losing money on that." [08:15]

Comparative Analysis:

• Offer A vs. Offer B: A Boston client ran two different promotions with varying CACs. Offer A had a lower CAC and more patients, whereas Offer B had a higher CAC but better patient retention and higher initial visit spending. The latter provided a superior ROI despite higher acquisition costs.

"When we looked at the big picture... we're going to be in a much better position financially paying a little bit more to acquire the customer whose stay is retained and spends more money with us." [10:45]

3. Scalability Issues

Patient guarantees can hinder the scalability of marketing efforts due to the controlling nature of agencies.

Challenges with Guaranteed Models:

• Ad Spend Control: Agencies may cap ad spending once the patient guarantee is met, limiting the potential for growth.
• Arbitrage Practices: Agencies may embed extra margins within their guarantees, leading to increased costs as the practice scales.

Alternative Approach: Independent Consulting Model

• Flat Retainer: Agencies acting as independent consultants charge a flat fee, allowing practices to scale ad spend without proportional increases in agency fees.
• Enhanced Scalability: This model supports aggressive ad spend growth without the added costs associated with patient guarantees.

"Agencies that are acting as independent consultants... we're not charging as a percentage of ad spend, for example. So when you start to scale your ad spend up, you're not paying any more in terms of agency retainer." [15:30]

Recommendations for Med Spa Owners

Ricky advocates for a more holistic approach to marketing that emphasizes patient quality and business sustainability over mere patient numbers. Key recommendations include:

• Focus on ROI and Retention: Prioritize marketing strategies that attract high-quality patients who are more likely to return and spend more.
• Choose the Right Agency Model: Opt for agencies that function as independent consultants rather than those offering patient guarantees, ensuring scalable and sustainable growth.
• Comprehensive Marketing Strategies: Implement marketing efforts that consider the full customer lifecycle, from acquisition to retention and repeat business.

Conclusion

In conclusion, Ricky Shockley presents a compelling case against the widespread use of patient guarantees in med spa marketing. While these guarantees may seem attractive due to their promise of risk-free patient acquisition, they often neglect crucial factors like patient quality, retention, and overall ROI. By adopting a more comprehensive and scalable marketing approach, med spa owners can achieve sustainable growth and financial freedom.

Notable Quotes

• On Misaligned Incentives:

  "The problem is patient quality kind of stinks..." [05:20]

• On ROI Concerns:

  "If I'm spending $100 to get a client through the door who only buys a $100 service and I never see them again, I'm losing money on that." [08:15]

• On Scalability:

  "Agencies that are acting as independent consultants... we're not charging as a percentage of ad spend..." [15:30]

Final Thoughts

This episode serves as an essential guide for med spa owners navigating the complex landscape of marketing strategies. By understanding the drawbacks of patient guarantees and embracing more effective, ROI-focused approaches, practices can better position themselves for long-term success and financial independence.