In this episode, Cameron discusses essential strategies for MedSpa owners to elevate their practices in 2025. He emphasizes the importance of effective marketing, proper budgeting, and building a strong tech stack to enhance patient acquisition and retention. The conversation covers key metrics for success, including patient lifetime value and utilization rates, while providing actionable insights for practice owners to thrive in a competitive landscape.

Transcript

Hey everybody, Cameron Hemphill here, your host for Medical Millionaire. Thank you for taking the time to tune into the podcast. Our goal is to give incredible value and insight for practice owners. Whether you own a med spa or are thinking about getting into this amazing industry, this podcast is 100% designed for you and to help take your practice to the next level.

My team and I have consulted with some of the most respected practice owners in this industry. We’ve seen practices perform extremely well, and unfortunately, we’ve also seen others close their doors. What I want to help you with today is elevating your business sense on how to effectively run your practice like a business.

What the Data Shows Us

Let me hit you with some data points here. The most successful practices in this specialty – I’m talking about cash pay, med spa, elective wellness – are the best marketers. That’s not my opinion; that’s based on specific surveys. I’ve dissected Skytail’s white paper, AmSpa’s state of the industry report, and Terry Ross’s conversion metrics. I’ve even compiled all of this into an AI tool that gives us the playbook on how to appropriately market a practice.

Here’s what we’re seeing: Most practices are spending less than 1% of their revenue on marketing. Guys, you should be at 8-12% of top line revenue. I used to say 5-7% back in 2022, but as competition has increased, you need to invest more to capture the demand that’s out there.

Let me share a quick story. We recently worked with a practice that has three locations. They came to us after trying various agencies without finding the sweet spot. First thing we did was look at their tech stack – their website, their booking system, their attribution tracking. Once we got them set up correctly, they saw a 7x return on their marketing spend. That means for every dollar they put in, they got seven dollars back. When you’re getting that kind of return, why wouldn’t you want to invest more?

The Patient Lifetime Value Reality

Here’s something that should really get your attention: The data shows that when you get a new patient, they typically stay with you for about three years. They’ll see you 3-4 times per year. Let’s do the math:

• Average ticket: $550 per visit
• Four visits per year = $2,200 annually
• Over three years = $6,600
• Add two referrals per year = potential $18,000+ in value

So when you’re hesitant about spending $20,000 on marketing, remember – that’s equivalent to just one patient’s total value to your practice. And right now, the demand is exceeding the supply in virtually every market I look at.

Your Tech Stack Matters

Let’s talk about what a proper tech stack looks like, because this is critical. You need:

1. A WordPress website (not Wix, not Squarespace) that’s built for the aesthetics industry
2. Online booking that ties into Google Analytics 4
3. A robust CRM system for lead management and automation
4. An EMR system that integrates booking, membership plans, and financials

I see practices all the time with disconnected systems – maybe they’ve got Square for booking but a different EMR for patient records, and they’re wondering why they can’t track their marketing ROI. You can’t run a modern practice like that anymore.

The Numbers You Need to Know

Let me give you some benchmarks to aim for:

• Cost per lead: National average is $132. You want to be under $100.
• Patient acquisition cost: National average is $500. Target under $300.
• First visit revenue: National average is $527
• Patient lifetime value: National average is $3,250. You should be targeting $6,000+
• Utilization rate: National average is 50%. You need to be above 75%

The utilization rate one really blows my mind. Think about it – if you’re running at 50% capacity and 50% of your costs are fixed, but you’re only spending 1% on marketing, you’ve got a serious revenue-to-marketing ratio problem.

What You Need to Do for 2025

As you close your books for 2024 and gear up for 2025, here’s what I want you to do:

1. Look at your marketing spend as a percentage of revenue
2. Audit your tech stack – make sure everything integrates and tracks properly
3. Check your utilization rates
4. Review your patient lifetime value calculations
5. Invest in proper staff training for consultations and follow-up

I’m incredibly bullish on this industry going into 2025, 2026, and beyond. But the practices that will succeed are the ones that get serious about their marketing investment and really dial in their systems and processes.

If you found this episode valuable, I’d love for you to share it with your colleagues. This industry has incredible potential, and I want to see all of you succeed. Until next time, keep elevating your practice and happy injecting!