Med Spa Success Strategies Podcast Summary

Episode: Wednesday Thoughts: Does Groupon for Med Spas Still Work in 2025?
Host: Ricky Shockley
Release Date: April 9, 2025

In this insightful episode of the Med Spa Success Strategies Podcast, host Ricky Shockley delves into the effectiveness of using Groupon as a marketing strategy for med spas in 2025. He provides a comprehensive analysis of Groupon's current standing, its impact on client acquisition and retention, and explores alternative marketing avenues that med spa owners might consider.

Understanding Groupon's Landscape

Ricky begins by outlining the primary avenues through which potential clients encounter Groupon offers:

1. Direct Access via Groupon: Clients actively seeking deals on Groupon.
2. Google SERP Ads: Groupon-related advertisements appearing in Google search results when users look for specific services (e.g., "Botox in Miami").

He emphasizes the importance of recognizing these two distinct client segments:

"If clients are proactively going to Groupon, searching these offers, they're a Groupon user... They tend to be less sticky patients because they're always looking for the next deal."
— Ricky Shockley [04:30]

Pros and Cons of Using Groupon

Pros:

• Client Acquisition: Groupon can still serve as a tool to attract new clients, especially those who might not have discovered the med spa otherwise.
• Top Spenders: Ricky references Sarah Schickman’s experience, where auditing revealed that "80% of the top 20% of spenders had originally come from Groupon." This suggests that, contrary to common belief, Groupon-acquired clients can become valuable long-term patrons.

Cons:

• Discount Shoppers: A significant portion of Groupon users are trained discount seekers who may not remain loyal, often hopping between different med spas in search of the best deals.
• Retention Challenges: The key metric for success with Groupon is not just acquisition but retention. Ricky advises that med spas must have robust tracking systems to monitor:
  • Effective Customer Acquisition Cost (ECAC): Understanding the true cost of acquiring a customer through Groupon.
  • Retention Rates: Assessing what percentage of Groupon customers continue to patronize the med spa at regular prices after their initial discounted visit.

"If you're running a Groupon to get someone through the door for $174 for 20 units of Botox... you need to understand the catch rate, the effective customer acquisition cost, and the retention rate."
— Ricky Shockley [09:15]

Quality of Traffic

Ricky distinguishes between the quality of clients acquired directly through Groupon versus those who encounter Groupon offers via Google searches:

• Direct Groupon Traffic: Typically involves discount-driven clients who might be less loyal.
• Google-Driven Groupon Traffic: These clients are initially searching for services on Google and may encounter Groupon offers incidentally, potentially indicating a higher intent to purchase beyond just the discount.

However, Ricky notes the challenge in differentiating the source of Groupon traffic and suggests that overall, Google-driven traffic tends to be of better quality.

Declining Organic Presence of Groupon

Highlighting the shift in digital marketing dynamics, Ricky observes that Groupon's prominence in organic search results has diminished significantly:

"In the early days... Groupon seemed to rank really prominently in the organic search results. But that's really not the case for a wide variety of searches anymore."
— Ricky Shockley [12:40]

He illustrates this with examples, showing that in recent searches for services like "Botox in Bel Air, Maryland," Groupon barely appears in the organic listings, often relegated to lower-ranked positions with minimal visibility.

Economic Viability and Strategic Considerations

Ricky stresses that the decision to continue using Groupon should be grounded in thorough data analysis:

• Financial Impact: Often, the initial revenue from Groupon deals at discounted prices may result in break-even or even losses.
• Customer Experience: Prepaid Groupon deals can lead to disconnects between expected and actual service levels, potentially affecting patient satisfaction.
• Review Management: Running promotions through Groupon can expose the med spa to reviews from less committed clients, increasing the risk of negative feedback.

"Action changes attitude faster than attitude changes action... We can shape perception through experience."
— Ricky Shockley [23:10]

He quotes the book "The Advertising Effect" to emphasize that real experiences with the med spa can more effectively build positive perceptions than prior attitudes influenced by discounts.

Alternative Marketing Strategies

As an alternative to Groupon, Ricky recommends leveraging platforms like Facebook and Instagram for targeted advertising:

• Better Quality Leads: Unlike Groupon, these platforms allow med spas to present attractive offers to users who aren't solely discount-driven.
• Control Over Messaging: Clients are more likely to engage based on the service's value rather than a discounted price alone.
• Cost Considerations: While acquisition costs may be higher (e.g., $100-$150 per customer), the quality and retention rates can justify the investment.

Final Recommendations

Conclusively, Ricky advises med spa owners to approach Groupon with caution in 2025:

• Test and Measure: Implement Groupon offers on a trial basis, meticulously tracking acquisition costs and retention rates to determine profitability.
• Align with Business Objectives: Ensure that running Groupon promotions aligns with the overall goals and capacities of the practice.
• Consider Alternatives: Explore other marketing avenues that may offer better long-term value and client loyalty.

"If you are knocking it out of the park and you're converting a satisfactory rate of Groupon customers into returned and retained clients, then the strategy still might be worth it for your practice."
— Ricky Shockley [19:50]

Ricky concludes that while Groupon can still play a role in a med spa's marketing mix, reliance on it should be balanced with other, potentially more effective strategies to ensure sustained growth and client loyalty.

This episode provides a nuanced perspective on using Groupon for med spas, urging practitioners to base their marketing decisions on concrete data and to remain adaptable in a rapidly evolving digital landscape.