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Cosmetic Practice Growth Funnel

Times have changed when looking at the cosmetic rejuvenation industry so building a cosmetic practice growth funnel helps.

To make sense of it, it also helps to understand the structure and stages of an industry so you can then adapt to it.

The Life Cycle of the Cosmetic Surgery Industry

Every industry goes through stages of introduction, growth, maturity, and decline.

Cosmetic Practice Growth Funnel

Why? For lots of reasons, but the biggest one is because society and its consumers accept products and services at different rates. As society begins to adapt and accept an innovation, the demand for new services grows and eventually reaches maturity.

But a lot happens between these stages.

The Introduction Stage

Just one generation ago growing a cosmetic practice was straight forward. At that time, cosmetic surgery was still a taboo topic and only for celebrities and consumers of high-worth value. Because demand for cosmetic surgery was limited, so are the number of service providers. Most of whom were plastic surgeons who performed reconstructive surgery and wanted to spread their wings to the cash side of medicine.

Advertising was minimal and consisted of a few surgeons investing in mass advertising via TV, radio, and print ads.

Prospective patients looked up to surgeons and, most often, went with the surgeons’ recommendations since they were regarded as the experts.

When prospective patients called the office, it was to book a consultation with the surgeon. More often than not, patients showed up for their appointments and conversions were fairly straight forward.

This old cosmetic practice growth funnel worked well. There were few plastic surgeons to choose from and they enjoyed regal status.

Cosmetic Practice Growth Funnel

Growth Stage

As society accepted cosmetic surgery more (thanks to the media who report on it and the Kardashians who partake in it… a lot), consumer demand increased dramatically.

The growth in demand for cosmetic surgery, coupled with exciting technological advancements, not only opened up the industry to an increase in consumers, but also to an increase of service providers.

No longer was cash-based cosmetic medicine limited to board-certified plastic surgeons. Any MD could open a medspa and provide convenience and service for cash-based, non-surgical procedures that filled the need for consumers not ready for surgery.

Then, as government regulations deterred medical providers from practicing insurance-based medicine due to low reimbursement and high cost and hassle of reimbursement, that supply of cash-based service providers increased even more.

Once there was proven consumer demand for cosmetic surgery, big business and pharma also jumped in and created more solutions for service providers to offer to consumers.

And, all of that increased the competition dramatically.

Today, consumer demand continues to increase even more and includes new types of consumers (men and the younger population), as well as geographic opportunities, so the future looks promising.

But all of this leads to commoditization within the aesthetic industry.

As the competition enters the market, they frequently offer aesthetic services at lower prices. They almost have to since they don’t enjoy status and need to enter the marketplace to attract new cosmetic patients somehow.

Surviving in a Maturing Marketplace

The trick to staying in the game is to adapt. Leverage existing assets to get more value from costs already occurred and to become more efficient, thereby generating more revenue using fewer resources.

The practices that do this best win. The weakest practices don’t because they cannot afford to operate profitably and compete on price at the same time.

How would you rate your own practice?

If you’re not sure, start here:

  • Rather than compete on price, compete on friendly customer service, efficient processes and relationship-building.
  • Invest in the best staff you can afford and train them on customer service. Quality of work, great attitude, and excellent converting skills will make you money.
  • Increase the value of every patient by developing a relationship with them so they return, refer, and give you great reviews.
  • Turn your current patients into unpaid sales ambassadors. They will grow your practice organically by sharing you with their friends and followers on social media.

  

Your #1 Asset

All of your leverage is with your number one asset—your patient list. You have already spent the time, money, and effort in attracting them to you. They will grow your practice for you if you let them.
But it’s not enough to just have the list. Focus on your relationship with your patient list.

They chose you once and, if you focus, they will choose you again and bring their friends with them. This means you redirect some of your advertising costs to training your staff and nurturing your current patients.

So, now, you are growing a cosmetic practice internally and externally. That’s how you survive and thrive in today’s marketplace.

If you are looking for clarity and a more structured plan, Click Here for Catherine’s Practice Growth Booster Kit

Looking for more clarity? Consult with Catherine to gain clarity and a plan to up-level your practice.

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Catherine Maley

Catherine is a business/marketing consultant to plastic surgeons. She speaks at medical conferences all over the world on practice building, marketing and the business side of plastic surgery. Get a Free Copy of her popular book, Your Aesthetic Practice: What Your Patients Are Saying View Author Profile.

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