Industry Experts Weigh In To Help Answer, “How Much Should I Spend on Med Spa Marketing?”

Figuring out the right marketing budget for a med spa can feel pretty overwhelming with all the different factors to consider. 

Some practices might set aside just a tiny budget, while others go all out with spending on med spa digital marketing or social media. But in the end, everyone shares the same goal: attracting the right patients and keeping them coming back for more.  

So, you’re probably asking yourself, “how much should I spend on med spa marketing?” This question pops up often. It’s time to explore the top industry best practices and find out what works best for the specific practice.  

Industry Benchmarks: Getting to Know Them Better

AmSpa’s 2024 Medical Spa State of the Industry Report reveals that, on average, a medical spa invests about 7% of its revenue in marketing. But here’s the interesting part: marketing budgets vary significantly across the aesthetic industry, ranging from 2% to 15%! This marketing spend really depends on factors like the size of the business, the level of market competition, and the desire for growth. 

<< LEARN MORE ABOUT MED SPA MARKETING BENCHMARKS: GET THE REPORT >>

It’s fascinating to see how different med spas approach their marketing, all based on their unique circumstances!

Variations in med spa marketing budgets raise some critical questions to consider:

• What’s the ideal marketing budget for my specific med spa?
• How can marketing funds be allocated effectively so I get the best return on investment?
• Am I investing enough to stay competitive in my local market?
• Overall, how much should I spend on med spa marketing?

A Data-Driven Approach to Your Marketing Budget

Instead of guessing how much you should invest in your marketing, a structured approach will help determine your ideal marketing investment. Consider these three key factors:

1. Average Spend per Patient: What is your patients’ average spend per visit?
2. Patient Retention: What percentage of new patients return within six months for further treatment?
3. Utilization: What percentage of your practice’s treatment room and provider capacity is utilized weekly?

Optimizing Your Marketing Spend for Success

When allocating your marketing budget efficiently, ensure that every dollar works hard to deliver results. Successful marketers know how to turn their investments into meaningful outcomes.

Here are some good rules of thumb that top marketers follow: 

• Invest at least 7 to 10% of revenue in marketing to maintain steady growth.
• Focus on high-converting channels like SEO, paid advertising, and email campaigns.
• Track ROI consistently to adjust spend and maximize profitability.

At Growth99, med spas gain insights into how much to invest in marketing while developing data-backed strategies that drive patient acquisition and boost practice growth. 

Unsure about investing the right amount, or in the best places? We’ve created a customized budgeting exercise, free and available to help you determine the ideal budget for your practice. 

Step-by-Step: Setting Your Med Spa Marketing Budget

Identifying the right metrics for your business is critical in determining an optimal marketing budget. By assessing three key metrics mentioned above, you can determine the appropriate marketing budget that aligns with your practice’s goals and provides a solid return on investment (ROI).

This exercise is designed to help you set a budget that works for the unique budget in your business. Let’s walk through it. 

Step 1: Evaluate Your Practice’s Performance

Assess your practice on the following:

1. Average Spend per Patient: What is your patients’ average spend per visit?
2. Patient Retention: What percentage of new patients return within three to six months for further treatment?
3. Utilization: What percentage of your practice’s treatment room and provider capacity is utilized weekly?

Step 2: Assign Points Based on Performance

Use the table below to determine your points for each metric:

Step 3: Calculate Your Total Points

Add up your points. Your final number will be within the range of 0 to 15!

Step 4: Determine Your Recommended Marketing Spend

Use your total points to identify a recommended marketing spend percentage:

A general rule of thumb: larger practices should aim for the lower end of the range due to the advantages of increased business sizes.

<< LEARN MORE ABOUT MED SPA MARKETING BENCHMARKS: GET THE REPORT >>

Case Study #1

Meet a vibrant med spa that’s just two years young! 

This practice has built a loyal community of patients, and their spending habits show just how effective the treatments are. On average: 

• Patients spend about $475 (5 points) per visit
• 80% of new patients choose to come back within six months (5 points). 

Plus, a solid utilization rate of 60% (3 points) reflects the engaging experience here! 

With thirteen points in total, it’s clear that every patient brings significant long-term value to the practice through their loyalty and spending habits. Plus, there’s plenty of room to welcome even more patients! 

A smart approach would be to set aside 8 to 12% of revenue for marketing efforts aimed at attracting new patients. Let’s say the med spa is generating about $60,000 each month. 

That means a marketing budget ranging from $4,000 to $7,000 is a good idea. The focus should be on a mix of digital and traditional marketing to effectively bring in new faces. 

Imagine a marketing budget that sets aside $2,000 for some savvy digital advertising on platforms like Meta and Google. With this investment, you could attract around 65 new patient leads, potentially turning 6 to 8 into new clients. 

Just seven new clients could quickly recoup the ad spend, bringing in over $2,800 in treatment fees right off the bat. Plus, many of these clients are likely to return for more treatments, making it a win-win!

Marketing Breakdown:

• Average Patient Spend: $475 (5 points)
• Patient Retention: 80% (5 points)
• Utilization: 60% (3 points)

Total Points: 13
Recommendation: Spend 8 to 12% of revenue on marketing.

Case Study #2

This med spa is a vibrant four-year-old practice known for its popular treatments that attract a steady stream of patients, thanks to enticing promotions and competitive pricing. 

On average: 

• Patients spend about $175
• 50% of new patients find their way back within six months

With a solid utilization rate of 70%, this practice manages to keep its schedule fairly full. 

While price promotions do fill the calendar, it’s clear that patient retention could use some work, and treatment spending is lower than desired. Currently, this practice generates around $70,000 in revenue each month, suggesting a marketing budget in the ballpark of $2,800 to $4,200 could be beneficial for future growth. 

To build a more sustainable marketing program, it’s time to shift the focus!

• Targeting High-Value Patients. Introduce loyalty programs or treatment bundles to encourage repeat visits.
• Emphasizing Value Over Price. Highlight the outcomes and benefits of treatments rather than discounts.
• Improving Retention. Invest in patient satisfaction initiatives to foster long-term loyalty.

By attracting higher-value patients and boosting retention rates, it’s possible to double revenue without significantly increasing marketing spend!

Marketing Data Breakdown:

• Average Patient Spend: $175 (0 points)
• Patient Retention: 50% (3 points)
• Utilization: 70% (3 points)

Total Points: 6
Recommendation: Spend 4% to 6% of revenue on marketing.

Make More Informed Marketing Decisions

Applying this exercise to your practice helps answer the question, “How much should I spend on med spa marketing?” This approach enables data-driven decisions about your marketing budget that fit your practice’s strengths and growth potential. 

Whether just starting out or refining a marketing strategy, evaluating your marketing spend in relation to your practice’s current profile becomes easier. Remember to adjust your approach based on your size, goals, and unique circumstances, setting up for sustainable success!