A new era

Alan S Adams on evolving pricing structures, marketing, and processes to boost growth in the ‘self-care’ era

Alan S Adams is an award-winning business coach, professional speaker, and bestselling author. His third book, The Beautiful Business: Secrets to Sculpting Your Ultimate Clinic, focuses on the medical, cosmetic, and aesthetic clinic sectors. He was a finalist in The Association of Professional Coaches, Trainers and Consultants’ Coach of the Year Awards and has been recognised by Enterprise Nation three times as a UK Top 50 Advisor, most recently in 2020 and 2021 (Sales Category).

In recent years we’ve seen a rise in people taking a greater interest in their health and wellbeing, with a revised awakening of the ‘self-care’ culture.

There has never been a better time for the aesthetic industry to take stock and for clinic owners to re-evaluate their businesses to tap into the growing demand for self-care. You should be asking yourself these three vital questions:

1 Does your pricing structure accurately reflect your true value? Now is the perfect time to re-evaluate, as consumers place significant value on self-care.

2 Are your sales and marketing campaigns up-to-scratch? These should be performing for you and bringing in those eager to spend money on looking and feeling great.

3 Are your processes delivering what they need to? Are you capturing details and using them effectively? Your processes and data should not only be used to maximise new business opportunities, but also to nurture and love your existing clients to keep them coming back for more.

DOES YOUR PRICING STRUCTURE ACCURATELY REFLECT YOUR TRUE VALUE?

At an absolute minimum, clinic owners should increase their prices once a year. You may think upping your pricing will make a few customers leave, but just increasing prices by 5% can hugely impact the bottom line. And, remember, those loyal to you will accept the changes, and the increase they’re paying will often cover any revenue you might lose.

There is a lot of research on the subject, but introducing a three-tier system works especially well. This does not mean only offering three treatments, but instead narrowing each type of treatment you offer into three pricing levels. The key to this is that customers have a choice, and three is an ideal number to offer.

This is because, psychologically, the middle option, more often than not, seems the most attractive to a potential patient.

To stand out from your competitors, you need to have a premium treatment or offering, something new and exciting. You might not get many who go for this option, but it’s there to provide customers with the choice and to act as a price anchor for your other packages.

What you mustn’t do is try to compensate for any new pricing structure by offering money off for no good reason. While taking 10% off for a returning customer might not seem like a big deal to them, if you make a 20% profit overall, then you’re halving what you actually earn. Instead, you could offer something of greater perceived value. Say you’re happy to discount 10%, which on the treatment would be £30. What do you have that costs you £30 but is worth £100 to the client? For example, a product or treatment. You’ll get much greater engagement which leads to more loyal clients.

Consider your own worth in relation to the specific tasks you are doing, too. Are you regularly carrying out administrative tasks, such as answering the phones or booking appointments? Ensure you delegate and use your staff effectively, and if you’re not the highest earning person in your business, taking into account the hours you work, something needs to change.

Outsourcing is a great way to ensure you only do what you’re best and most profitable at. Of course, there is a cost associated with outsourcing, and it might seem counter-intuitive, but you’re currently paying yourself or a team member to complete these actions anyway. You could be paying an expert to do so much more – more efficiently and effectively. You can also earn more money if you spend more time doing the most profitable treatments you offer.

ARE YOUR SALES AND MARKETING CAMPAIGNS UP-TO-SCRATCH?

Your sales and marketing campaigns should be performing for you and bringing in those eager to spend money on looking and feeling great.

When it comes to marketing, it’s all about building trust. Customers engage better when they feel connected with the people behind the business. Share news about your company and services by all means, but also be personable and credible – shout about yourself and your team! Show photos of you all in uniform on your website. Give potential customers a glimpse into you and your business by showing them around the treatment rooms or reception area, or by providing a video walk around the clinic at the click of a button.

Add value to your existing customer database by providing plenty of support and guidance in the form of practical ‘how to’ guides or advice on getting the most from their treatment. Concentrate on nurturing customers that matter, and don’t waste time on those who aren’t the right type of customers anyway – stay focused on who you ultimately want to attract.

ARE YOUR PROCESSES DELIVERING WHAT THEY NEED TO?

A CRM system is a sound investment if you don’t already have one and will enable you to store customer and prospect data and track interactions. But once you have this data, ensure you use it.

What could you do to make one-time customers become regular customers? What could you do to ensure those regular customers are nurtured, so they buy more from you?

Another highly effective way of nurturing regular customers is to consider implementing a premium service, such as a ‘VIP Club’ or ‘Platinum’ membership. An exclusive offer for your very best clients, where they pay to be part of something premium.

If your clinic will allow you to transfer your customers onto a retainer, then it’s also well worth considering this as a solution to easing and having more control over your cash flow.

There is a huge growth opportunity for the aesthetic industry at present, so now is the perfect time to take stock and ensure your business works for you.