YIKES. We're Entering Q3 With Rampant Inflation & A Looming Recession. Here's Why Savvy Aesthetic Practices Aren't Worried - And How You Can Join Them

**Hello to new readers! Welcome to the debut issue of Adamant, my weekly LinkedIn article sharing my real-time insights on what you need to know to market your aesthetic practice effectively and build a brand that sets you apart from the average provider.**

Perhaps it’s just me – but does anyone else feel like aesthetic practices just can’t catch a break this year? Vendors raising prices. Inflation weighing heavy on the minds of patients. New competitors flooding the market every week – it goes without saying that it’s hard out there! Add in a looming recession, and it’s enough to make any aesthetic provider’s head spin!

If you’re feeling the same way – you aren’t alone. A May survey among 750 CEOs conducted by?The Conference Board?found more than 60% of CEOs say they expect a recession in their primary region of operations before the end of 2023 or earlier. Notably, this survey was conducted before the Federal Reserve upped interest rates by 75 basis points, which added to recession fears.

So, with so much uncertainty ahead and patients at all income levels feeling the squeeze, how can savvy practices plan and secure their futures now, no matter what the coming months may hold? Let’s dive in and explore just a few of the most reliable, time-tested, and recession-proof approaches.

In A Down Economy,?Patient Loyalty Reigns Supreme

If there’s a silver lining amid all the bad economic news – the data shows that in a financial slump, consumers continue to invest in vices; and that “little extra something” to look and feel good might just be the most lovely vice of all. In fact, the data shows that this year alone, consumer spending on cosmetics is up 25%, a spending increase not seen in any other consumption category. That’s wonderful news for those of us in the aesthetic industry.

The most valuable asset your practice has, along with your brand, is your patient relationships. That rings true in any economy, but amid economic uncertainty, it sets apart those practices that emerge (and even thrive) from those who struggle and shrink.

How are you fostering and building patient loyalty? The possibilities are endless, but a few places to begin are:

Consider A Membership Model – Not only do memberships translate into recurring revenue for your practice, but they also offer your patients exceptional value in exchange for their loyalty. From Netflix to the gym, to boxes for pets, beauty, and snacks…the modern consumer is trained to purchase on a subscription model. It’s an opportunity far too many practices miss.

Reward Returning Patients – So many providers use promotions to encourage new, first-time patients. Indeed, there’s a place for that. Yet, very few practices consider promotions to reward patients who return. In other industries, this practice is standard. Perhaps the “punch card” for restaurants and cafes is the most beloved example of this. What incentives, special pricing or de gratis services can you offer a patient on their second, third, or fourth visit? I can think of one of my private clients who offers patients special pricing on every third injectable visit. While not a “quick play” by any means, it’s well worthwhile to keep patients coming through your doors no matter what lies ahead for the economy.

Secure Revenue Now?

If there’s a silver lining to be found amid all the uncertainty, it’s that according to the latest research from McKinsey & Company, consumer spending has not hit a wall – yet. As the old saying goes, "make hay while the sun shines!"

My favorite approach to accomplish securing revenue from patients now, even if they aren’t yet ready for a treatment? A “gift card boost” promotion! For every $200-$250 your patients purchase in gift cards (determine the amount that makes sense for your patient), “boost” their investment with an additional $50?in credit!

Here’s How A Gift Card Boost Promotion Works - In other words, someone who purchases $500 in gift cards would have a value of $600 to spend with you ($500 out of pocket + $100 in additional credit). Someone who spends $1000 would have $1200 in credit to use towards their preferred treatments or retail purchases. It’s simple, and it works. It allows patients to get exceptional value now, and your practice to secure their business and loyalty for months to come. A true win-win.

Get Out of The Middle - And Fast?

The middle of the market is dead. For some time now, it’s been evident across sectors – with retail being the most evident example – that the middle of the market is both fading away and irrelevant. As discount retailers thrive, so too do their luxury counterparts. David Yurman and Hermes are two examples of luxury brands in the world of fashion that continue to thrive, even amid current market circumstances. Concurrently, we see discount retailers such as Dollar Tree outpacing industry growth. The “middle market” retailers, such as JC Penney and Macy’s, are those struggling to stay afloat.

What does all of this mean for your practice? Over the last 24 months, a new trend has emerged as first studied by DeBeers – affluent consumers are buying less, but buying better. Those consumers with more modest disposable income are trading down to the lowest-cost options possible across spending categories.

In either case – nobody is buying, or desires, the middle. Now, more than ever is the perfect opportunity to closely re-evaluate your practice’s procedures and pricing structure relative to competitors to ensure you remain at the top of your market. In short, get out of the middle.

Evolve to Outcome-Based Pricing

Those of you who have followed me for any length of time will know that I have said it once, twice, a million times: patients buy outcomes. I’m willing to bet the last time you took a flight, you have no idea how many liters of fuel the plane consumed, or even what type of aircraft you flew on. You simply wanted to arrive at your destination safely and efficiently.

The same rings true for aesthetic patients. More than they seek a particular procedure, brand of device/injectable, or price point, they are seeking an outcome. Charging per laser session, syringe, or unit of neurotoxin is counterproductive to this and teaches patients to shop in a completely misinformed way.

Stop charging only per syringe, unit, or treatment session - Instead, consider creating a series of “protocols”, either over one or several sessions, that provide the best possible results for a patient based on the outcome they seek. Acne scars, rosacea, sagging jowls, love handles, and dark undereye circles are just a few ideas, to begin with. Just as an airline doesn’t let you grab a parachute and deplane somewhere mid-flight, your patients deserve to arrive at their destination or desired outcome – no “halfway solutions” allowed.

Want to take this learning even further? I'd love to send you a complimentary digital edition of my book "Now The Patient Will See You".

With dozens of checklists, templates, and evaluation tools, this book will help you forge ahead more efficiently, confidently, and intelligently. You will be able to leverage the power of branding to enhance your existing marketing activity for maximum results. At the same time, it will accelerate your growth through a framework for market leadership that takes most practices years (if not decades) to understand and execute. Download your copy at?https://www.aestheticaltitude.com/social