It is one of the questions I am asked most often by medical spa owners during my initial SEO consultation. This question highlights a major problem for many medical spas: they are often unsure of how much to spend on acquiring new clients.
When you consider the wild variations between markets and your medical spa’s growth stage, it is impossible to use the common rule that 10% of revenue should be allocated for your marketing.
To get started, a new medical spa might spend up to 20-40% of its revenue on Google Ads or paid social. An established medical spa would only have to spend 2-5% of their revenue. In many cases, relying on a “10% average”, would be a bad piece of advice.
There are also some simple questions you can answer to help you determine the amount of money you should spend on marketing and where you should advertise.
Table of Contents
First, Your Marketing Strategy Must Align With Your Growth Stage
You are a brand new medical spa hoping to attract your first clients. You may be an established medical center that wants to maintain the current size of your business and cash flow. You may be able to invest money in the future to gain new customers, but do you require a return on your ad spending from day one?
All of these are important strategic questions you need to answer prior to establishing your budget for marketing.
A medical spa that is already established will not have to spend the same amount as a new clinic in order to gain new clients and market share. In order to gain market share, new medical spas are often forced to spend more money than existing medical spas. This can even mean that they make a loss in the short term.
Need Customers Now? Google Ads, Paid Social Media, and Google Ads Are the Way to Go
Google Ads and Paid Social are the best options for medical spas that need to generate revenue quickly. These paid strategies deliver quick, short-term revenue and results, but at a higher price per acquisition.
You should expect calls from your medical spa within the first seven days of launching a Google Ads campaign or a Facebook/Instagram one.
If you want to succeed, you need to spend at least $1,000 on your campaign.
Search Engine Optimization and Your Organic Social Media Strategy Are the Cheaper, Long-Term Channels
Organic search and organic social media are similar to planting an apple orchard in your yard.
Leads from organic sources such as Google or Facebook are cheaper over time, but they take longer to obtain.
SEO and organic social media are channels that you should use if you want to see long-term growth for your medspa and don’t need new customers right now.
These costs will vary based on the market you are in. For example, ranking high on Google in Manhattan is more difficult than ranking high in Cincinnati. However, you can invest as little as $1,000/month.
Once you achieve high rankings, you don’t lose them when you stop investing in SEO.
Second, Determine Your Customer’s Lifetime Value
What are you prepared to spend in order to gain a new client?
You can’t respond to this question if you don’t have an idea of how much your customer is worth.
Most small and medium-sized medical spas do not keep detailed spreadsheets or track their customer lifetime values to the penny. Few can tell me their average customer lifetime values when I ask about their customer life value.
Customer lifetime value (CLV) is the present value of average profits over the lifetime of a customer, which includes any referrals that could be generated. This post will explain how to calculate CLV.
You can then calculate how much you are willing to spend on new customers once you have determined your customer’s lifetime value.
This is an important number in your marketing strategy and for future growth.
Keep in mind, however, that your growth strategy must be aligned with this. You may want to earn cash in order to gain market share, with the hopes of making money once you have dominated the market. You may also find yourself in a position where you have to make profits right away.
In the End, It’s All About Cash Flow and When Your Med Spa Needs It
You can then determine the amount you are willing to spend on acquiring a new customer.
Next, you have to decide if they are needed now or in the future.
Calculate your customer’s lifetime value using a spreadsheet. Choose a growth strategy. SEO and organic social media are long-term (6-12 months) strategies. Google Ads are a short-term solution.
Last but not least, set a budget. Then start your testing.
This post was written by a professional at 8Limbs Creative. 8Limbs Creative is a dynamic marketing agency located in Central Florida, specializing in the best marketing near you, content marketing, and social media marketing. They serve a diverse clientele across the Tampa, Clearwater, and St. Petersburg areas, focusing on industries such as real estate, plastic surgery, and medspas. With a passion for visual storytelling, 8Limbs Creative crafts compelling brand narratives and eye-catching designs. Their strategic approach to social media campaigns ensures that businesses stand out and achieve their goals in today’s competitive market. Contact 8 Limbs today to get the best marketing service in Tampa Bay area!