Med Spa Success Strategies Podcast Summary

Episode: Top Strategies to Prevent No-Shows & Reduce Customer Acquisition Costs
Host: Ricky Shockley
Guest: Lauren McAtee, Digital Marketing Specialist at MedSpa Magic Marketing
Release Date: August 14, 2024

1. Introduction

In this insightful episode of the Med Spa Success Strategies podcast, host Ricky Shockley engages in a detailed discussion with Lauren McAtee from MedSpa Magic Marketing. The primary focus revolves around effective strategies to minimize appointment no-shows and reduce customer acquisition costs for med spa and aesthetics practices. Drawing from their extensive experience managing substantial online advertising budgets across nearly 20 states, Ricky and Lauren delve into best practices developed through rigorous trial and error.

2. Should You Require a Booking Deposit?

Key Discussion Points:

• Recommendation Against Deposits: Lauren advises against mandating booking deposits for new leads. She points out that requiring a deposit can introduce significant friction, especially when potential clients have yet to establish trust with the practice.

  "We typically do not recommend requiring any form of a booking deposit or actually charging the card before somebody comes in and has an authentic interaction with you."
  — Lauren McAtee [01:33]

• Impact on New Leads: Many leads sourced from unfamiliar social media and advertisements may feel uneasy about upfront charges, leading to reduced booking rates.

  "Providing your credit card and knowing that it's going to be charged in advance... a lot of people just have a lot of friction with that and it's really scary to a lot of people."
  — Lauren McAtee [01:33]

• Anecdotal Evidence: Lauren shares an instance where a client required a $100 deposit but still experienced a 20% no-show rate, indicating that deposits do not guarantee attendance.

  "Out of her 10 booked appointments, two of those even no showed after they paid a hundred dollar booking deposit."
  — Lauren McAtee [04:19]

3. Credit Card Capture Without Deposits

Key Discussion Points:

• Alternative to Deposits: Instead of requiring a deposit, practices might consider capturing credit card information to charge no-show fees. However, this method also introduces friction.

  "Even taking the level of payment out and still saying like, hey, we're not going to charge your card unless, you know, show, there's still a point of friction there."
  — Lauren McAtee [05:15]

• Strategic Use Based on Practice Maturity:

  • Newer Practices: For businesses with ample availability, it's advisable not to require credit card information, prioritizing maximum bookings over potential no-shows.
  • Established Practices: For those nearing full booking capacity, capturing credit card details can safeguard against lost revenue from no-shows.

  "If you're a newer practice with tons of openings... we recommend generally do not take a credit card at all."
  — Lauren McAtee [05:15]

4. Implementing Effective Show-Up Sequence Drips

Key Discussion Points:

• Avoid Reconfirming Purchase Decisions: Ricky emphasizes the importance of not making clients rethink their decision to book an appointment, comparing it to Amazon's redundant purchase confirmations.

  "When you force people to make the purchase decision all over again, you're going to have drop off."
  — Ricky Shockley [06:54]

• Structured Reminder Drips: Lauren details a robust reminder system starting up to 15 days before the appointment, with multiple touchpoints (e.g., 15 days, 9 days, 5 days, 2 days, 1 day, and same day) designed to confirm without prompting cancellation.

  "Our drips are very robust... we have reminders that start up to 15 days before appointment."
  — Lauren McAtee [09:28]

• Avoiding Cancellation Prompts: The reminder messages focus solely on confirmation, avoiding options to cancel or reschedule within the messages to prevent clients from reconsidering.

  "We don't even want to welcome that option or give people the thought of doing that... We would rather it just be your appointments confirmed set in stone."
  — Lauren McAtee [09:28]

• Success Stories: Implementing comprehensive drip sequences significantly reduced no-show rates for clients, demonstrating the effectiveness of persistent yet non-intrusive reminders.

  "Their no show rate has decreased significantly from getting that drip in place because people at least let you know."
  — Lauren McAtee [11:41]

5. Trade-Offs: Customer Acquisition Costs vs. No-Show Rates

Key Discussion Points:

• Cost Analysis Without Deposits:

  • Example: Spending $5,000 on ads without deposits can yield 50 bookings. Even with a 30% no-show rate, this results in approximately 35 paid appointments, lowering the customer acquisition cost to $143.

• Cost Analysis With Deposits:

  • Example: The same $5,000 might only secure 25 paid appointments due to a higher acquisition cost of $227 per client, despite a lower no-show rate.

• Conclusion on Financial Advantage: For most clients, avoiding upfront deposits and utilizing effective show-up sequences results in more appointments and lower acquisition costs.

  "For vast majority of our clients, it usually plays out to your financial advantage to not force credit card capture to have a really good show up sequence."
  — Ricky Shockley [14:48]

6. Best Practices for Capturing Credit Cards If Required

Key Discussion Points:

• Persistent Follow-Up: If credit card capture is necessary, practices should adopt a diligent follow-up approach, including continuous phone calls or reminders to finalize booking details.

  "The number one thing that we've seen actually work to get the credit card is basically hounding the person to get the credit card."
  — Lauren McAtee [18:33]

• Optimized Booking Links: Providing specific date and time options can streamline the booking process, making it easier for clients to complete their appointments without feeling overwhelmed.

  "We recommend giving them options for dates and times to schedule. It works better to get the answer to the question, hey, does it work for you to come in on Tuesday at 2:30 rather than what time works best for you."
  — Lauren McAtee [18:33]

• Timely Follow-Up Messages: Ensuring that follow-up texts or calls occur within 24 hours of the initial booking attempt increases the likelihood of obtaining the necessary credit card information.

  "If they didn't, send them another text says, hey, I know student finished the booking. Can I help you get that done?"
  — Lauren McAtee [18:38]

7. Final Recommendations

• Understand Your Practice's Needs: Assess your booking capacity and financial goals to determine whether requiring deposits or credit card captures aligns with your business strategy.

• Implement Robust Reminder Systems: Whether or not you require deposits or credit cards, a well-structured show-up sequence is crucial in reducing no-show rates and optimizing customer acquisition costs.

• Balance Friction Points: Recognize that introducing deposits or credit card requirements can deter some potential clients. Weigh the financial benefits against the potential loss of bookings.

  "It's not necessarily a black and white answer. It’s understanding the trade-offs of the different decisions."
  — Ricky Shockley [06:54]

8. Conclusion

Ricky Shockley and Lauren McAtee provide a nuanced approach to managing no-shows and customer acquisition costs in the med spa industry. By emphasizing the importance of reducing friction in the booking process and implementing effective reminder systems, practices can enhance their appointment rates and financial performance. The episode underscores the significance of tailored strategies based on the maturity and capacity of each practice, offering valuable insights for med spa and aesthetics business owners aiming to optimize their marketing and management efforts.

Note: This summary excludes promotional segments and non-content sections to focus solely on the valuable insights shared during the episode.