Cosmetic Practice Growth Funnel. To say that times have changed would be a huge understatement in terms of the evolving cosmetic practices in today’s market.
It helps to understand the structure and phases of the industry so that you can adjust accordingly.
ANIMAL CYCLE OF COSMETIC SURGERY INDUSTRY
Every industry goes through phases of adoption, growth, maturity, and decline.
Why? For many reasons, but the biggest one is that society and its consumers accept and accept the product
Services at different prices. As society begins to adapt and innovate, the demand for new services grows and eventually reaches maturity.But a lot happens between these phases.
A generation ago, it was easy to set up a cosmetic practice. Back then, cosmetic surgery was still a taboo subject and only for celebrities and high-quality consumers. As the demand for cosmetic surgery is limited, the number of healthcare providers, mostly plastic surgeons, who perform a lot of reconstructive surgery and wish to expand into the financial side of medicine, is increasing.
The advertising was minimal and consisted of a few surgeons investing in television, radio, and print ads in mass advertising focused on surgeon status.
Potential patients turn to surgeons and most follow the surgeon’s recommendations because they are seen as experts.
When prospective patients call the practice, they should make an appointment with a surgeon. Patients come to their sessions more often and the sales are quite significant.
The growth funnel of this old cosmetic practice is working well. There are several plastic surgeons to choose from, and they enjoy royal status.
As cosmetic surgery became more accepted by society (thanks to the media that covered it and the Kardashians in attendance… a lot), consumer demand increased dramatically.
The growing demand for cosmetic surgery, combined with exciting technological advances, has opened the industry not only to an increase in consumers but also to an increase in service providers.
Money-based cosmetic medicine is no longer limited to licensed plastic surgeons. Any doctor can open a medspa and offer convenience and services for cashier operations, a non-surgical procedure that caters to the needs of users who are not ready for surgery.
When government regulations prevent health care providers from practicing insurance-based doctors due to low-cost and high-cost recovery and cost-recovery disputes, the reach of these cash-based providers is further expanded.
After establishing consumer demand for cosmetic surgery, major companies and pharmacies are also getting involved and creating more solutions that service providers can offer to consumers.
And all this has increased competition significantly.
Today, consumer demand continues to grow, encompassing new types of consumers (men and young people) and geographic opportunities, so the future looks bright.But all this leads to commodification in the aesthetics industry.
When competition comes, they often offer aesthetic services at lower prices. They are almost a must-have because they do not enjoy status and must enter the market to attract new cosmetic patients.
This creates a downward demand curve, which reflects the consumer’s desire to buy more of the product at a lower price.
Consumers now have many solutions to choose from at different prices. This scenario forces cosmetic surgeons to either lower their prices to compete or to add more value to justify higher prices.
Adding value involves creating an image and brand to position the practice in a crowded market as a high-end service provider, better results, excellent customer service, excellent experience, etc.
With so many service providers and more manufacturers offering countless solutions to cosmetic problems for consumers, it becomes competitive to attract new cosmetic patients. Profits peak at the beginning and end of the maturity phase as competition intensifies, so total sales continue to grow during the first part of the maturity phase.
During the remainder of the maturity phase, profits decline as more consumers buy but buy more often at price than value.
Here’s the bottom line: even ineffective practices are profitable in the growth phase, but the best practices are those that persist in the maturity phase.
Less effective practices struggle to generate positive cash flow in a competitive environment because they cannot spend enough money to attract the number of patients required for positive cash flow and are therefore eradicated.
The structure of cosmetic practice is now different. Today’s funnel for the growth of cosmetic practice is more complex. Cosmetic practices must be able to balance advertising costs and overheads to maintain a constant flow of patients who come to them without interruption.
SURVIVE IN THE ADULT MARKET
The trick to staying in the game is to leverage existing assets to get more value out of your costs and become more efficient thereby generating more revenue with less resources.
The practice that does this wins. The weakest practices do not do so because they are unable to operate profitably while competing on price.
How to win:
Instead of competing for price, you compete with friendly customer service, efficient processes, technology and relationships that save time.
Invest in the best people you can afford and train them in customer service and conversions. Quality work, good attitude and excellent implementation skills will earn you money.
Add value to each patient by developing a relationship with them so they can return for other services, take photos, recommend their friends, and give you a 5-star rating to let other potential patients see you as the best Choice.
Turn your current patients into your unpaid sales ambassadors who will organically grow your practice by sharing them with their friends and followers on social media.
All your levers have your most important asset – your patient list. You have spent time, money and effort to attract them. They develop your workout for you when you leave it for free.
They voted for you once, and if you focus on them, they will choose you again and bring their friends. This means that you transfer some of your advertising costs to current staff training and patient training.
So now you are building a cosmetic practice internally and externally and surviving and thriving in today’s market.