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Med Spa Success Strategies
Wednesday Thoughts: How Much Should a Med Spa Spend on Ads? (Supercharge Your Growth!)
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We talk a lot about efficiency on this podcast, right? Reducing lead cost, improving close rate, optimizing for customer acquisition cost, incremental improvements in initial visit revenue, incremental improvements in retention. And although these wins are important, they're worth focusing on. The reality is, for you as business owners, as long as your numbers are good, the key catalyst that's going to spur your growth and new patient acquisition the fastest and is simply doing more. I just got done listening to an Alex Hormozy podcast this morning, and he talks about this obsession with efficiency and optimization. And the reality being that the fastest way to grow aggressively is to do more of what's already working adequately. So as long as you're tracking your numbers associated with your advertising campaigns and you know the numbers are working right, it it's efficient in terms of the cost of customer acquisition relative to the revenue generated, you have kind of a full picture of the cash flow analysis and roi. And as long as those numbers are good, the primary lever that you can pull to generate faster and more substantial results is to simply do more of it. And so as an agency, we focus a lot on the, the optimization. We talk about diminishing returns. I think this is probably a place we air a little bit in our conversations. We, we are scared of diminishing returns. We're looking out for it, we're worried about it. And I do think that it's important to understand the impact of diminishing returns. And for those of you not familiar, diminishing returns would be something like you start to put more money into the system, and Instead of spending $150 to get a new Botox client, you're now spending $200 to get a new Botox client. But you're still seeing more clients. And sometimes efficiency and quantity are moving in opposite directions. They're pulling in opposite directions. So there's a tension there. But the reality is, as long as your numbers are still good and they're adequate, then the answer to faster and more substantial success really is more. And that's not just with effort and energy and things we do in our businesses, but it also relates directly to ad spend. Quantity has a quality all of its own. And so when I look at our case studies and I look at the examples of clients that have generated the best, most impressive results, there's one core component to those case studies, and it's aggressiveness of ad spend. They might have different customer acquisition costs, different revenue numbers, different retention rates. The number one most common variable in the most substantial case studies the direct, the correlating factor is ad spend. So I'm looking like at our website right now, I've got a client that generated 2,561 new patients and $1.9 million in additional directly traceable revenue just from ads in less than a year and a half. Right. And then on the other side, I have a client that was, that's been with us for two years and running that generated a total of $400,000 from their ads, so a fraction of the other in 295 patients. So the client there that generated 10 times more patients, only they didn't, they didn't generate 10 times the revenue. Right. If it was 10 times the revenue, this would have been something, what, like $4 million? But the results were so more substantial. Even with less a less of a gap between acquisition cost and revenue spend, the results were so much more substantial because of the dollar amount going in. So for so many of you, yes, we want to focus on efficiency, we want to look at optimization, we want to improve our processes. But the fastest answer in terms of how do we grow your business as aggressively as possible and achieve your growth goals and your ambitions? The simplest answer is as long as your numbers are good and satisfactory to be as aggressive with your ad spend as possible. So we've talked about that a little bit, but I just wanted to add that to the conversation today because we do talk a lot about diminishing returns. I think sometimes that we're looking for that and we worry about diminishing returns, but diminishing returns don't matter. I he says in this podcast, they don't matter to an extent. Right. Just, just to simplify this, he said, if I could put $100,000 in a, in a machine to make a million verse putting a million in to make 2 million. On the first example, I have a 10x return. On the second example, I only have a 2x return, but I still made more money on the second example, right. I have a million dollars in gain instead of $900,000. And so that is something to keep in mind when we talk about advertising planning, we talk about financial planning, and we talk about growth projections. Know that quant quantity is equality all of its own. And sometimes the answer to faster, more substantial success is to be more aggressive with that ad spend. And for other things in your business, massive action in all areas is the thing that's going to make the biggest impact. So hopefully that was a helpful reminder. If you're not achieving your growth goals and you know your numbers. The simple answer might be to be more aggressive with the lever that is your ad spend and your marketing investment. This episode is brought to you by Med Spa Magic Marketing, my agency. We help Med spas and aesthetics practices grow with more effective marketing strategies. And I know that's a vague phrase, right? That's a vague claim. So I have an offer for you. I offer this to any new prospects. If you're interested in exploring any of another marketing option, a new agency, or just getting into Facebook, Instagram, Google Ads for the first time, I'd love to show you why we're different, what we're doing for clients. And we can do that via a one and a half hour planning session where I'll outline a specific marketing plan and I'll give you all of the blueprints that we would implement if we were to do business together. Now you can take that, use that on your own, hire someone else to help you execute it or work with us. We really don't hold anything back on that strategy call. And I think you'll have a lot of confidence in how you manage your marketing investment moving forward, understanding some of the nuances that can help you implement more effective marketing strategies for your business. So if you want to do that, you can go to medspamagicmarketing.com.