BUSINESS
PATIENT RETENTION : GETTING OFF THE HAMSTER WHEEL
Lisa Kelly discusses how winning new patients is only half the battle – keeping them is where real growth begins
While a discipline focused on generating new patients is a key element of a thriving aesthetic clinic, it is worth pausing to consider why this is the case.
Numerous surveys indicate that the annual patient churn rate for a typical independent clinic can be as high as 50%.
It is widely established that increasing retention by just 5% can lead to a profit boost of 25% or more. Not pursuing a comprehensive retention strategy in parallel to your marketing strategy means that you will always be on the hamster wheel, running hard to stand still.
CALCULATING YOUR CUSTOMER RETENTION RATE
The first step is to calculate your customer retention rate (CRR). Customer retention rate = (number of returning patients / total number of patients) × 100.
Changing your patient’s perception of your clinic from a purely transactional engagement to a transformational journey, built on a relationship, lies at the core of building relationship where both parties gain ongoing value.
Most treatments require a clinical assessment and consultation. This meeting can determine the longer-term goals which can be used to create a 12-month personalised plan. This is a powerful tool for moving your relationship from tactical to strategic. Presenting a tangible plan is a great foundation for a meaningful relationship.
Then you will be in a better position to offer one of the many types of financial inducements to encourage them to start and continue this journey. Loyalty is about presenting incentives to return.
TREATMENT FINANCE
The cost of treatments can deter many potential patients from making an appointment and returning for additional treatments. Offering treatment finance can help spread the cost of a series of treatments into instalments, making them more affordable and accessible.
ATTENDANCE RECOGNITION
The goal of this approach is to recognise the patient with points that are linked to spending or attendance. The rewards should be a mix of preferential services like early booking, as well as discounted treatments.
The consistency approach rewards the patient for reaching treatment milestones
The tier-driven approach recognises spend and attendance with points that achieve different tiers attracting benefits
These approaches are effective if the patient has access to a dashboard or app to monitor the benefits they have earned.
SUBSCRIPTIONS AND MEMBERSHIPS
How you use this approach is linked to the style and treatment types your clinic offers.
Subscriptions: Automatically making a monthly payment for a repeatable service. Their function is to spread the cost into regular, more manageable payments. This ties the patient into your clinic and provides you with positive cash flow and a more consistent booking calendar while offering the patient, in return, potential discounts and priority service.
Memberships: These are about exclusivity, where the patient gains access to early or priority booking, discounted treatments and private areas. Memberships can be used in conjunction with attendance recognition, where certain tiers unlock better and more significant membership benefits.
REFLECT AND REVIEW
If your ‘re-booking rate’ from last month’s patients is below 70%, you are likely overspending on marketing to fill those gaps. Start with a quick-wins strategy with the following suggestions:
1. Implement a “next step” talk at the end of every consultation.
2. Identify patients who have not attended your clinic in the last three months and generate an SMS or email broadcast with a promotion.
3. Identify your loyal patients and recognise them with an incentive.
4. Consider the technical options available to you for introducing a scheme through your booking system or a third-party solution.
If your regular patients are not your VIPs, then it’s only a matter of time before they are someone else’s.
LISA KELLY
Lisa Kelly is the founder of Websites for Clinics by Salon Solutions, industry experts helping aesthetic clinics, doctors, dentists and nurses attract new clients and generate new bookings to grow their clinic business.