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Medical Spa Medspa Advertising Marketing > Do you track your medical spa marketing?  

Does anyone out there track their marketing to see how effective it is or isn't? We started keeping track of every phone call to see if those phone calls were booked or not booked. We then tracked those bookings to see if they turned into treatments. We then tracked those treatments to see the average revenue from the bookings. Our goal was to perform an evaluation of problem areas. Obviously, if the phone wasn't ringing then we had an awareness problem. If we had plenty of phone calls and no bookings then we knew we would have a receptionist problem. If our bookings were high, but they weren't turning into appointments then we had a consultation problem. If our treatments were yielding low revenue then we had a whole other problem. Until we started doing this we were basically in the dark. It seems obvious that we should of always been doing this but in fact we did not. How many of you do this? It made a drastic difference in our business. If you don't do this how do you know where your problem lies and where you can improve on your efficiency. If you don't do this how do you know your cost per lead when spending new money on marketing? I keep reading about how effective direct mail is. Not for us. Maybe we're not doing it right and I would love for someone to share their formula. If you do a direct mail for $5000/month what makes it a good investment. What if you get 25 phone calls and 15 appts and 10 bookings? Assume, your average net revenue is 30 percent (which it probably isn't). How much gross revenue do you need to generate a profit from that mailer? Remember, you only booked 10 apointments. How much revenue, per patient, do you need to make it profitable. Probably more than you thought. I know it was for me.

I have sort of gone on a rant here, but I guess my main point is that if you are not tracking these things you are probably destined to keep repeating your mistakes. We were. I'm not sure if anyone is interested in starting some dialogue about these issues, but I would love to know how sophisticated we are tracking the money we spend. Does anyone have any advice on other things we can monitor and how to monitor them? What do you guys do? I think Einstein said "insanity is doing the same thing over and over again and expecting different results". Are we as a group falling into this trap?

Dex

04.5 | Unregistered CommenterDexter
Hey Dexter,
Direct mail isn't the single solution. There isn't one.

What's the most effective form of advertising is perhaps the single most common question I'm asked. But it's a red herring.

Direct mail should be used as part of a program. I've used direct mail to great effect. I've also used TV, billboards, and about any other medium that can be named. I no longer use yellowpages and radio is ofen an underperformer. Some of these mediums I've used just because my competition is unable to. Advertising is a means to an end. Even existing clients want to see your ads. It proves to them that they made the right decision.
Jeff,

I understand your point and I think I got a little off track. We have tried them all as well, but for us direct mail has been the worst performer. My main point however, was to ascertain if anyone is actually keeping track of these marketing solutions to see which of them are better performers than others. Do you think it is important to track them? What does "used direct mail to great effect" mean to you? Does that mean it enhanced the productivity of your marketing program as a whole, or that it itself was great? If I may ask, how do you validate a good marketing concept? Thanks for the time Jeff.
04.5 | Unregistered CommenterDexter
Dexter,
We do track our marketing similarly to the way you do. One area that gets difficult to match up is our online inquiries and our phonecalls. Sometimes people that find our website will fill out an online inquiry form and call us. If people are just price checking around they might not leave a name when they call unless they bookan appointment. So we sometimes worry about double counting.

Currently our best sources of new clients are:
1. client referrals
2. website/online
3. television
4. print

While I would love to drop our yellow page ads (thinking of dropping it after this year) as Jeff has done, I hesitate because 15% of our inquiries site the yellow pages. I do suspect that I am driving these prospects to the yellow pages through my radio and tv ads, but sometimes it's difficult to capture that data.

I would definitely like to expand on this discussion as I'm sure we'd all like to spend less on advertising overall and maximize our ROI on every advertising dollar.

Thanks for sparking the discussion.
04.6 | Unregistered CommenterRichard
Richard,
You're exactly right. Yellow page sales guys love to cite stats that show that 50% of people find you in the yellow pages or such. For medical spas I found that when really interviewed, most patients who filled out 'yellow pages' on a questionnaire were just 'looking up the number'. That effectively drops the advertising effectiveness to a directory and so, while there are people who find you using yellow pages, the return doesn't end up justifying the cost.

Yellow pages used to be very effective but they're being quickly superseded by the web for search.

There's also a component of quality. Almost all of the retail medical ads I see absolutely suck. How many times do I have to see the 'Got Hair? ripoff. This is a vanity buy. Docs who say, "I tried that and it didn't work", are not getting the big picture. Advertising costs money. The "Free Ad Design" that the papers and mailers tout is some $8 an hour high school student using Times Roman. (Don't get me on a rant here.) I'll post on this over the next few days when I get a second but let me say this. You better be spending money on creating a sense of quality and care. Lame ass design and trite concepts don't do that. Quality counts.

Dexter,

First let me say that YES! you should track the effectiveness of all of your marketing. Tracking is the single most important component of long term success in marketing. Without it you can not make corrective decisions which are always required.

Unfortunately for most, the objective of a campaign is defined generally as in more appointments. The tracked value is simply a response rate and potentially a ROI however that is calculated.

A good campaign sets more granular goals structured in a sales funnel that starts with increasing web traffic to a specific page, increasing the number of email addresses on our list, (reducing the cost of the next campaign) increased phone activity, a goal for appointments and resulting sales.

Prospective clients will check out your website before they call you. Create a page specific to the campaign that you can track. Make sure that they have an opportunity to sign up for your newsletter or coupon mailer.

Magazine ads should have landing pages and unique phone numbers, both can be tracked and you will learn within a couple of months which pubs are working for you and which are not.

I agree with Jeff. Most campaigns are not thought through.
They are independant efforts that link to each other through the logo alone. You can't write off any form of marketing until you have enough objective data to prove it is not working for you.

Marketing is like loosing weight, it takes time to see all of the results.

sorry for rambling on!

04.17 | Unregistered Commenterbkelley
I am about a month late on this topic so I apologize.

First, yes, we track extensively. Every phone call, does it result in a consult, does the consult become a treatment, does the patient become repeat business. Because of our tracking we were big in the yellow pages with several ads, some in color, and about a $3,000 per month bill. But, according to our tracking we were getting about a third of our new business from the yellow pages so it was a great source for new business. I thought.

I created a new tracking form that required the receptionist to ask more detailed questions when the caller said they were "referred" by the yellow pages. The truth finally came out. Many callers just looked up our phone number in the phone book (the actual referral was something else) and other callers just said "yellow pages" without thinking.

I canceled all yellow pages ads except for the free listing that comes with your business phone service. The results? No noticeable decrease in business and the same percent of callers say they saw us in the yellow pages even though we have no ad there! Plus, we save $3,000 per month. If you track, did deep into those yellow page callers.

I agree with Jeff's comments above.
05.22 | Unregistered CommenterPro Docs

Direct mail works -- every time -- but only if you know how to write good direct response marketing copy. We need to know our target market well enough to write to their emotional triggers, for all buying decisions are emotional.

One must also write directly to one person -- so all who get the piece think you're hitting them personally where it hurts most. That kind of writing gets response.

Metrics are a must -- know what works and what doesn't.

How much to spend depends a lot on the lifetime value of your average client and the purpose of your marketing piece -- email or direct mail or ad.

The initial transaction is irrelevant if you know how to keep a client and contact them frequently, all the time providing outstanding service. It's the lifetime value that makes your initial sale irrelevant.

Jeff,

I agree on quality of ads but if you're referring to got hair ad with the brunette with the mustache, I created that ad and it's been used around the country. Yes it was a 'rip off" of got milk with a twist but it worked very well. In today's market for me at least the Internet has proved to be the most important of all our advertising. Super optimizing your own site every month as well as a good pay per click campaign is what brings me in 30 new patients a month even in this down economy. In fact the 4th qtr. last year was our best qtr ever and December was our best month ever. January slowed down a bit but if not for my marketing plan I'd be out of business. Now is not the time to cut back. I increased my budget by 25% last August and that's why we are doing as well as we are.

02.23 | Unregistered CommenterFYmedspa

FYmedspa,

What are you doing for your pay per click?

LH

02.23 | Unregistered CommenterLH

Direct mail works if you know your niche market well and speak to "one" -- not all. Newsletters are your best direct mail for relationship building. They don't have to be fancy -- it's the "touch" that counts.

Yellow Pages blows.

As Dexter said, track everything -- including where your new clients come from as well as marketing ROI. But my take on costs of marketing do not base the return on initial transactions, but on the lifetime value of your client. That means you must know that number.

Tracking clients means you must have database manager software with the ability to query the database, segmenting your list according to procedures, interests, age, gender, etc. for promotions, client reactivation, and the like.

Outsource your ppc (make it regional) but don't neglect "Web 2.0" -- and refresh the content on your website regularly, submit articles to article sites and have incoming links to your site from congruent sites and from the social media.

Jim

There are some really good call tracking services out there that:
1. Give you seperate #'s for each medium you are advertising on.
2. Give you realtime reporting that you can look at onlie to see how many calls came in to which #.
3. Record the phone calls, so you can play them back and monitor how you receptionist/sales team are doing on the phones.

Tracking is critical for every large campaign you are investing in. If you are not tracking, you will never really know what worked, what didnt and what your ROI was. In todays day and age, tracking numbers are affordable and provide a nice and neat report with call totals, length of calls, caller ID information as well as a recording feature should you turn that on.

We pride ourselves on trying to provide the medical community the tools they need to market locally, track everything and optimize around the results.

Cheers!

Alan Moore

06.19 | Registered CommenterAlan Moore

I am adding to James comment on March 02nd, James is right on about using PPC and outsourcing PPC marketing. PPC is extremely effective in getting new customers because it is highly targeted because consumers are interested in what they are searching for. With PPC you can target your local region that you cater to so your advertising budget is not wasted. PPC can get expensive if you don't know what you doing, so it's better to outsource to the expert. When measuring cost per sale, don't focus on ROI per transaction instead measure the lifetime value of your customers.

For example it might cost you $50 to get a new customer and assuming that customer spend $40 on your service. Initially it might look you are at a lost, but if that customer comes back 10 time and spend $40 each time the value of this customer is now $400 and not $40. Your are actually profiting $360 or more from this customer if he/she continue to do business with you.

Travis

06.30 | Unregistered CommenterTravis Liu

First and foremost, if you're looking to generate new clients, start with pay-per-click. You'll typically see about a 10:1 return on investment when done correctly.

You want to create landing pages for EVERY one of your services. Try Unbounce. Do not try sending paid traffic to your main website - you will waste a lot of money - your website is more than likely not designed for conversions - landing pages are.

If you're looking to track everything, you need to do two things:

1) Install Google Analytics on your website. This allows you to determine where your traffic and leads are coming from, whether than be from organic traffic, pay-per-click tracking, or social media. You can even setup Google Analytics to track the source of your phone calls as well, but a bit more on that below.

2) Call Tracking. This is a MUST. I recommend Call Tracking Metrics

This allows you to a) assign unique tracking numbers to each of your marketing campaigns. You can use a call tracking number for your radio, direct mail, and PPC campaigns. This allows you to run call reports that will show you EXACTLY how many calls each of those campaigns generated. It is not as costly or as complicated as you might imagine, and will prevent you from throwing money at advertising that you're not sure provides an ROI.

This can be setup in a day and will provide you with an enormous amount of insight into your advertising.

Good luck!

Ryan

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