Facebook Advertising For Your Cosmetic Practice - Results From A 3 Day Trial

Facebook marketing for your cosmetic practice: Is it worth advertising your clinic on Facebook?

I've advertised with facebook before and thought it to be somewhat useful.  I liked how it didn't waste paper.  I already think there's too much waste in this world.  But at the same time, these online ads don't sit around for a long time like some advertisements in physical print. This time, I decided I was going to try a 3 day experiment and see if I thought facebook ads were worth the investment.

Advertising format on facebook

The ad format I chose was one of those ads that show up on the side of the screen.  Currently, facebook has rotating ads in this area so that more ads could be shown. One downside to this method of advertising for facebook is that currently these ads don't show up on mobile devices. There are other ways of advertising on facebook which involve getting a status update to show up as sponsored notices - this does show up on mobile devices in the standard newstream (which is essentially the main page of facebook).  The reason I didn't choose this format for myself was that I couldn't customize the audience reach as much as I could if I had chosen one of the ads on the sides.  Thus I chose the side ads. Then I also chose the link to be that of my own facebook page for my practice rather than my own webpage. This means that when they click on the ad, they will be directed to my facebook page.

I made a few ads that were very similar but they would bid through the facebook system via different methods. One was a pay per click and the other was pay per view. Then I also added a few different pictures - one was our logo and the other was the picture of our plastic surgeon (my wife).

Intended audience

I narrowed my audience to women, age 20-50, located within 50 miles of my practice's city, and not associated with my facebook page.

Budget

I assigned a budget of $50 a day to be spent per on all the ads that I had created (pay per click, pay per view, picture of logo, and picture of surgeon), and the ad was to run for 3 days.  Thus I spent $150 on this brief ad campaign with facebook.

What was I advertising?

My wife normally charges $200 for breast related consultations.  She decided for the month of October to charge $25 instead, since October is Breast Cancer Awareness month.

What did I get out of this facebook advertising campaign?

I got 20 more new members on my facebook page.  Sometimes these members are called "fans."  I think these are potentially new patients in the future.

More importantly, I got 3 calls which all turned into consultations. These were 3 calls that could be tracked back to directly seeing this advertisement on facebook. There were other consultations that booked as a result of seeing free status updates on our facebook; these consultations were not counted as part of this experiment. 

Was it worth it?

It was worth it to me. $150 for 20 new facebook members and 3 consultations in 3 days.  The immediate measure of the worth of this advertising campaign would be the conversion rate of our practice. If even one of the 3 consultations turns into a surgery.  It would have covered the $150 expense of the advertisement.  I stopped the advertisement because we didn't have any other spots available in October for any more consultations.

There's so many other strategies one could employ to get more patients. The $50 limit per day x 3 days was my self imposed limit. I can imagine that others could set a $200 per day limit and run the ads for a month. Furthermore, one could advertise via the promoted (non-free) status updates which then would have a broader reach, but I would rather narrow down my audience to women only, age bracket, etc.   I'm sure that facebook would welcome more aggressive strategies. I have advertised several times with Facebook before, but it got somewhat addicting and I found myself being happy to spend more and more money as I saw the clicks roll in. In many respects it felt like tracking stocks with graphs that facebook provides. I thought I'd try a disciplined approach this time and I'm happy to share the experience here.

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Medical Spa MD Report: What Is The Total Income Of Your Clinic?

What is the total income of your laser clinic or medical spa per month?

From the Medical Spa MD Physician Report Volume 1According to the respondents to the first Medical Spa MD Physician Report, the largest number of medical spas is making somewhere between $25k and $100k per month.

Another positive note regarding our sample population; there is a nice variety of business sizes, again offering a wide range of perspectives with the highest percentage of the group falling between $10,000 and $100,000 in revenues per month. This, along with the clinic size (next question) appears to indicate that most of the clinics surveyed are operating with a single physician.

What's also interesting is that we have some very large clinics responding with 6% indicating that they're grossing more than half a million dollars a month. These clinics are probably the same ones that have a staff size of 20+.

Become a Member to receive the Medical Spa MD Physician Report. You can find the report and more freebies here.

Want to contribute to the next report? Learn more >

Have thoughts on this graph? Leave a comment and let's hug it out.

New Skin Clinic & Laser Center Products

There are a number of new product launches for physicians, skin clinics and laser centers coming.

The first three or four of these will be launched over the next two weeks or so and include a webinar on how to protect and control your online reputation, a Botox training membership site that teaches physicians how to add cosmetic Botox and fillers to their existing clinical practice, some videos on social marketing and building relationships, a course in creating additional revenue for surgeons, and quite a few others. These are being launched in conjunction with other physicians and businesses to have information and expertise that are of value to our community.

You can find all of the current medspa products and services here.

We are also working on integrating a number of new technologies into our systems and providing greater conductivity for our membersand will be rolling out some new systems in the (hopefully) near future.

One of the principles that we founded this site (and Freelance MD) on is the idea that there are many physicians who have information that is of value but that is siloed and unavailable outside of the confines of a medical conference or seminar.

One of our goals is to take that information, specialized knowledge and skill set and to make it much more widely available to physicians who want and need it. We're doing this by building information products and membership sites that allow very specialized information a broad reach and benefit both the author and the consumer.

We will be announcing a number of these products in the next few weeks... and besides just building in the announcements of these new products, I'll be diving into great deal of detail about how we produce this content and how physicians can benefit from it. My hope is that you'll take a look and give this new system a chance.

PS: As a side note, if you're a physician or medical service provider that has some specialized knowledge that  would benefit from a wider physician audience please contact us and let's discuss if there is a way that we get that online.

Embezzlement In Skin Clinics & Laser Centers

Did the $300 a patient handed to your receptionist to cover a photofacial go into the cash drawer... or the staffer's pocket?

American Medical News (1/17, Elliott) reported that medical office embezzlement "is common at medical practices, and experts say the risk is especially high at the beginning of the year."

This is because "patients are paying an ever-larger share of their medical expenses, and, with most deductibles resetting on the first of the year, a significant amount of cash may pass through staffers' hands."

Download the free, members-only report: Medical Spa Embezzlement & Employee Theft Scams

According to a survey released in November by the Medical Group Management Association, "nearly 45% of practice managers reported cash stolen before or after it was recorded on the books." For that reason, "prevention strategies are particularly important to minimize the risk because a business's insurance may not cover the entire loss, which can be significant."

As every physician running a clinic knows, embezzlement by staff is a problem... I'm going to put together some information on preventing embezzlement and finding embezzlers that will show you how to make sure this is not happening in your clinic and how to make sure that it never does.

Submit your own story about medical clinic embezzlement or theft here

Laser Clinic Tatoo Removal

One of Medical Spa MDs eaders sent me this story on job hunters going to tatoo removal laser clinics in an effort to make them more employable.

The multi-billion dollar business of tattoo removal is enjoying some recession-proof growth — with one LA-based clinic even planning on going public next year to help fund a national expansion plan.

“More than 40 million people have tattoos and about seven million, or 17 percent, are in the process of figuring out how to get rid of them,” said John Keefe, the CEO of Dr. Tatoff, a California tattoo removal clinic, who hopes to use the proceeds from a 2010 initial public offering to grow to a 10-location chain.

“More than 66 percent of those tattooed are between the ages of 25 and 45 and what was cool to them at 18 is an eyesore now that they are a mother with kids,” says Keefe. The executive said revenue per client is about $1,600 — which comes out to $40 per square inch, per laser treatment  with an average of 10 treatments required. The average tattoo is four square inches, he said.

“It costs 10 times more to remove a tattoo than to put one on and it takes one year for safe and effective removal,” says Keefe.

The national market is currently fragmented, with dermatologists operating on a one-off basis and usually not dedicating their entire practice to tattoos removal.

The growing unemployment rate is also helping the company ink new business as job hunters feel the need to be competitive. Of course, many look to get rid of their tattoos because of personal taste — they may have simply fallen out of love with their tattoos or out of love with the name of the person indelibly inked on their arm.

I personaly never saw the attraction of getting into laser tatoo removal, but our patient population wasn't really inked-up either.

Is anyome meeting with real success with their tatoo laser removal services? Is tatoo removal cost effective? Is it dependant upon a certain inked demographic? What cosmetic lasers are being used to remove tatoos?

Medical Spa MD: How to operate effectively in turbulent times.

If you’re involved with or own a medical spa, this question is no doubt on your mind.

In this article, I will give you several tips and tools to evaluate your laser centers culture and operations, so you can successfully navigate any economic downturn… And live to sell another day when the inevitable upturn comes around.

What is the Passion and Purpose of Your Medical Spa?

You reap what you sew. When you engage proactively and passionately in your business you will undoubtedly be successful and see your practice expand. It helps to articulate your passion for your medical spa.

At Assara Laser, our passion is to “help clients look and feel great, not fake.”

Why the Recession Drastically Affects Your Laser Clinics Bottom Line

You’ve probably noticed that generating revenue is not as easy as it once was. There are myriad reasons for this; from the decline in disposable income, to unemployment hitting record highs and tanking real estate valuations. As if these facts were not bleak enough, credit markets are virtually frozen so business owners are finding it nearly impossible to obtain small business loans and lines of credit. Refinancing current loans has become difficult for small businesses.

In short, we're operating in the perfect storm.

Accepting Reality and Responsibility Today

The easy way out is to close up shop and blame the recession. This will not help you going forward, it will not pay your devoted employees their wages, and most of all, it will not help your clients “look and feel great, not fake.”

So, accept responsibility. 

The hardships of the recession create a fact-pattern, problem to be solved; not a reason for failure. To paraphrase Michael Jackson, start, first, with the man in the mirror. Think about the following questions. And pay attention - there will be homework at the end of this article!

Finding Your Medspas Winning Competitive Difference?

Let’s be honest. The quality of your laser clinc's treatments are probably not drastically better than that of your competitors. The proprietary equipment and IPL or laser systems (Thermage, Fraxel, Titan) that you use are, for the most part, available to the competitive skin clinic market at large.

You may believe (and tell clients) that your microdermabrasion treatments are better because you use a diamond-tipped wand or aluminum oxide crystals. You may think that your IPLs or laser hair removal treatments are better because you use cryo-cooling or because you use chilled air cooling, or because you use a diode laser or because you use alexandrite lasers . . .

BUT . . .

Step in to your clients' shoes. To them, the bells and whistles of your Thermage or Fraxel device don't matter. Your clients already expect expert advice and cutting edge cosmetic lasers, IPLs and skin tighening equipment, so merely meeting this fundamental requirement is not a winning competitive difference.

What does matter to your clients are presentation, client interaction, customer service, reliability and consistency. Consider this carefully.

What is each of your medspas clients worth? 

At Assara Laser, one of the most popular packages is our $449 per month Unlimited Laser Hair Removal Program. On average, a client that signs up for this program will remain a member of the Program for 7 months, depending on the results they wish to achieve. How much is a single unlimited client worth to us?  A client in the program for 7 months, making a monthly payment of $449 is worth $3,143. For many laser clinic owners, a single laser hair removal client is worth more than a home mortgage payment!

Do you treat every single potential laser treatment client that contacts your laser clinic as if they’re worth $3,000?

What is your time and effort worth?

Before my partners and I built Assara Laser, I was an attorney. I still practice corporate law as a labor of love, when a friend or business contact has an exciting deal. I normally discount my rate to about $400 per hour, as law isn’t my primary source of income. 

Assume an hour of your time is worth $400.  Assume further that, every time your customers complain, you are willing to give a discount, or a free treatment and that, collectively, free and discounted treatments account for a 20% loss in your revenue. To make up for this lost revenue, how much more work do you have to do? 

Well, let’s add 20% to your 10 hour day, which now makes it a 12 hour day. If your annual sales are say $1,000,000 per year, you’ve lost $200,000. This translates into 500 hours more of work you must do to bring your revenue back to status quo!

Is there a big difference between a day that starts at 9:00 a.m. and ends at 7:00 p.m. versus ending at 9:00 p.m.  You betcha there is!  Is there a big difference between a loss of $200,000 and a loss of zero. You betcha there is!  And these differences drastically affect your quality of life.

How Do You Avoid Mistakes?

Mistakes are costly. A happy client is worth more than $3,000, and will likely refer business, the best and cheapest form of marketing. A single angry client will result in you working 2 hours more per day for the following seven work days, and will possibly diminish your reputation by badmouthing your medspa. 

A lot of people think excellent customer service means free treatments. It doesn’t. Excellent customer service means delivering what you promise. You know the limitations and effectiveness of your treatments so promise only what you can deliver and do it consistently, with a smile on your face!

Your Homework

Write an email to one close friend or business partner (or to me, if you would like to engage in this project with me: wshuman@assaralaser.com), in which you answer the following questions.  Cut and paste the text below into your email, and fill in the blanks with no more than three sentences: 

I wanted to pick your brain for a moment. I’m working on a plan to really blast my medical spa practice off the ground, and I wanted you to use your intuition to judge the quality my sentences below.  What do you think? 

The best way to succeed in business while I make clients feel great is:

The recession has made it harder for my medical spa to operate because:

My medical spa’s winning competitive difference is:

Each of my laser center's potential clients is worth:

I will earn every cent paid to me from a client’s hard earned money by:

The biggest recurring (or systemic failure) affecting my customer service is:

Please let me know your thoughts.

Note: The above is a guest post from Will S. of Assara Laser Centers.  You can find Assara on the web at the following links: Assara Homepage and Assara Blog.

If you would like to write or guest post for Medical Spa MD please contact Medical Spa MD here.

Botax: Taxes on Botox and plastic surgery?

The medical spa and plastic surgery community is in an uproar over some proposed legislation that could make a trip to the plastic surgeon or a Botox injection at the medical spa more expensive.

People are calling it the Botax. It's a 5 percent tax on elective procedures such as Botox, Juvederm, Restylane, laser hair removal, facelifts, breast augmentation and other nips and tucks that lawmakers are hoping will help fund the nearly $1 trillion health care plan.

The bill says the tax would not apply to surgeries to fix a deformity either from birth, accident, or disease. It would apply to procedures like face lifts, liposuction, cosmetic implants and teeth whitening.

But as Dr. Paula Hicks points out sometimes cosmetic surgeries have very medical purposes.

"Certainly breast reduction surgery is a very good surgery for a lot of women and a lot of them will get denied by the insurance company as cosmetic surgery," said Dr. Hicks of the Ave Medical Laser Spa and Laser Clinic.

Under the proposal, Dr. Hicks says an eyelid tuck, which can help with vision, would cost an extra $100 in taxes on top of the $2,000 price tag for the procedure.

She says that could be a big hit to her business since most of her clients are not wealthy.

"Most of these procedures are not done on people that are rich and have endless amounts of money, it's middle class working women that would be targeted with this tax and it's really not fair."

According to the American Society of Plastic Surgeons 86 percent of cosmetic surgery patients are women. Sixty percent of them have annual incomes between $30,000 and $90,000.

The tax, if approved, would raise $6 billion over 10 years.

Allergan, which sells Botox, took a civil rights angle: The tax “discriminates against women,” the company said in a statement. Some 86% of cosmetic surgery patients are working women ages 35-50, with an average annual income of $55,000 per year, according to Allergan.

“What’s next? Are we going to tax people who color their hair?” the CEO of Medicis, a drug company that sells fillers, told Dow Jones Newswires.

The American Academy of Cosmetic Surgery, which is fighting the provision, says “a large portion of those being taxed would be the baby-boomer generation. And as this age group continues to age, the more interest will be generated in cosmetic procedures.”

A spokesman for the 2,500-member group said they were surprised to see the provision in the Senate bill this week, because it had already surfaced and sank in July. The tax is not in the House bill.

The tax is on elective procedures, and would not apply to any procedure to correct birth defects or issues arising from disease, accidents or trauma. The CBO says it would raise about $5 billion over the next decade.

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Do it yourself laser hair removal... Unhappy medical spas?

The're are a growing number of 'home laser hair removal' devices appearing on the market. This article on do it yourself laser hair removal supposes that medical spas and laser clinics are feeling the heat.

Want to get rid of some unsightly hair, but don’t want to spend the big bucks for electrolysis or a laser clinic? Now, you can buy your own laser and do it yourself.

And people are.

The growth of the at-home cosmetic-device market, which includes personal lasers, has some professionals buzzing. At an annual conference hosted by the American Society of Plastic Surgeons, Barry DiBernardo, a New Jersey surgeon, delivered a talk in Seattle about the pros and cons of the DIY market on the ASPS’s “Hot Topics” panel.

“We have to make sure that the patients are getting good, safe treatments. If they are getting good, safe treatments, then whether they are doing it at home or not, I’m not as worried,” DiBernardo told Wired.com by phone. “What I’m worried about is that they are seeing things in the Skymall on the airplane and spending hundreds of dollars, thousands of dollars on something that is not going to work or is unproven.”

New cosmetic medical devices including DIY lasers are expected to explode into a $1.3 billion market 2013, up from just $296 million in 2008, according to the analyst group Medical Insights. The growth in the market appears to be coming from light-based products that claim to either remove or grow hair on the human body. The Silk’n Hair was the first at-home laser device to be approved by the FDA, in 2006, although it didn’t come on the market until early 2008.

The laser hair removers damage the hair follicles that are in their growth phase, generally leading to some permanent reductions of body hair. DiBernardo questioned whether the lasers used in the home devices were powerful enough to get the kind of results that clinics achieve.

“In general, these devices are low-powered versions of the doctor versions. We’ve been doing hair removal since 1998, so we know that they work and how well they do,” he said. “I think these home devices have some effect, but they legally can’t have the power of what we fire at people.”

From nother nice post from Wired:

My own experience is that people looking to do it yourself home laser hair removal (or skin tightening or complexion light-based photo-therapies) are really looking to save money and are buying a device in the hope that it will work. Patients who are actually interested in laser hair removal or skin tightening are put off by these types of home remedies. I've never heard that a laser clinc or medical spa is suffering from this, but I may be wrong.

Does anyone running a medical spa or laser hair removal clinc feel differently? Is laser hair removal at a medspa moving to home laser hair remvoal that a do it yourself laser treatment?