Do the MATHS

With 22 years of experience in beauty and aesthetics under my belt in varying roles from business development manager to sales director, I recently made a change to become a full-time business consultant working with clinics.

One of the areas I’m often asked to look at in a business is attracting new patients. But really, we all know how to do this – via social media, referrals, working with local businesses, etc. – so what surprises me is that so few ask about the retention and lifetime value of their existing client base. In my opinion, focusing on this area is the easiest way to grow revenue, create loyalty and increase social media activity, therefore gaining new customers in return as a result.

On the whole, revenue from injectables contributes up to 70% of a clinic’s turnover, it’s no surprise this is the number one source of cash. But is it the most profitable and the best thing to focus on to create a sustainable business, particularly in this recent economic downturn? In short, no. First, let’s talk about the ethical side of things, or what your patients really need when it comes to getting optimum results.

I always hear customers calling clinics for the first time and being booked in for an injectable treatment without so much as a mention of a full, comprehensive aesthetic consultation prior to being injected. What I mean by that is a 60-minute discussion to establish exactly what it is the client wants to achieve and more importantly, how they want to feel at the end of the treatment, therefore establishing what they really need versus what they think they need. It is also imperative to remember that you sell solutions, not treatments, and so an in-depth consultation enables you to establish exactly what the patient’s needs are and create a six to 12-month journey as a minimum, rather than just performing a one-off treatment.

Consider the revenue that can be generated with this approach to treating patients versus a one-off injectable treatment. Think profitability; one thing that is rarely considered when operating an aesthetics practice. Take the cost of the filler for example, add on all the consumables, the cost of the rent for that treatment time, salaries, bonuses and everything else that is required to run a bricks-and-mortar business. What are you actually left with? Not much, and in addition to that, how often is the client likely to come back for a repeat treatment of the same kind? Twice a year, if you’re lucky?

“Think profitability; one thing that is rarely considered when operating an aesthetics practice”

VALUE FOR MONEY

Now assume you instead carried out a complete aesthetic consultation with skin analysis and have mapped out a 12-month journey for the patient according to their skin goals, what could that look like? Bear in mind that the cost for you to perform a skin peel is around £5 with an RRP of roughly £150 and the patient is required to come back once or twice a month. In addition, they will likely purchase homecare products from you, and extra services as their skin starts to improve. That’s the other thing; will their skin quality actually change if injected? There is no amount of anti-wrinkle injections that will change the appearance of the overall skin long-term.

I’m not advising you to stop injecting, in fact, if neccesary, you should likely still inject once all of the above has taken place. You may even choose to inject initially if the patient needs volume first, as you’ll need the foundations in place in order for the rest of the treatment plan to follow suit. But I think it’s important to look at both a client’s needs and the needs of the business as the initial approach to any treatment, in order to ensure efficacy, profitability and client loyalty.

So, before searching for new customers, look at the ones you already have, get them booked in for a full consultation, and set out a “skin goal” journey with them. This could require additional changes to the way you do business and the way you consult, but in return you’ll get loyalty, referrals and patients with skin to die for. Plus, your bottom line will thank you for it.

LOUISA WEBB

Louisa has over a decade of executive-level experience in the aesthetic, beauty and medical fields. Her mission is to enable clinics and service providers in the industry overcome business challenges and deliver outstanding measurable and sustainable results, both commercially and in the delivery of services.