Are you cutting your marketing budget due to the current recession?

Let me tell you what this will mean for your clinic.

When you cut your marketing budget, you will reach less potential customers, resulting in less leads ,which will result in less turnover, which will inevitably result in less profit. This will cause you to cut your marketing budget again sending you in a negative spiral. The negative spiral will diminish your profits and decrease your company as a whole.

So, what should you do in times like these? You should check your current marketing strategy and see if it is still applicable in these times.

Remember, marketing and advertising are just investments you make that will generate a return. If the returns are not there, you should focus on other marketing strategies that will lead to the desired returns.

How can you check if the marketing campaigns you currently apply are any good?

Let’s see some variables which are important:

• Lifetime Customer Value = average turnover per customer
• Average profit per customer = percentage profit of turnover
• Conversion Rate = number of sales leads* you need to obtain one new customer

* A sales lead is a potential customer that fits your ideal customer profile.

Lifetime Customer Value x Average Profit x Conversion Rate = Maximum cost per lead

Let's see Clinic ABC as an example:

Lifetime Customer Value = € 10.000

Average profit per customer = 40%

Conversion rate = 0,10

In our formula it will look like this:

€ 10.000 * 0,4 * 0,1 = € 400,-

The maximum cost per lead should not exceed € 400,-.

Keep in mind that the lowest cost per lead will result in the highest profit for your company.

Checking up on your marketing strategies is always a good thing to do, but in these times it is a necessity.

Please note that not all marketing channels will provide you with the same quality of leads.

Some channels will bring you customers with a higher average turnover, resulting in a higher profit margin. It is your job to look for these channels, or hire the right company to do this for you.

If you have any questions about marketing or sales, put them in the comment section and I will answer them in future articles.

If you want to learn more about marketing and sales for aesthetic physician for free, add me on Linkedin or press the follow button.

Stay healthy, safe and keep a positive attitude!

What goes down, must go up again.