Industry • Best Practice
The Case for Medspa Memberships
Jul.01,2021By Boulevard Staff
Medspa memberships build customer loyalty and more sales revenue
From Botox to body contouring, medical spas thrive on niche services that require repeat visits to maintain. However, for some clients, keeping up with lip fillers and laser hair removal can be a costly, time-consuming practice. At some point, they may decide the upkeep simply isn’t worth the effort.
That’s where medspa memberships come in. These memberships encourage clients to keep coming back with discounted rates or other special incentives. While that might mean a smaller profit margin in the short term, these programs pay off over time in both ROI and client loyalty.
The upkeep barrier
According to Dr. A. Jay Burns, senior partner at Dallas Plastic Surgery Institute and board member of HintMD, “You want your patients to come back, on average, 3.5 times a year.” However, his analysis shows that practices without memberships are averaging about 1.44 visits a year, less than half of the recommended number.
So what keeps clients from returning? There’s a multitude of reasons: unintuitive booking processes, poor customer service, a lack of personalization, or simply a bad first impression. Medspas need to remove every possible barrier to encourage the repeat business that makes up 70% of medspa visits. That’s exactly what membership programs do: incentivize clients to return to your establishment through easy rebooking, discounts on repeat services, and other distinct features that set your spa apart.
How medspa memberships build loyalty
Going back to Dr. Burns’ analysis, he found that when medspas institute membership programs, the number of repeat visits a year per client jumps from 1.44 to 2.9. “They spend 35% more — so it’s good for a run rate — and they come back more loyal, so it’s good for the doctor.” Additionally, as clients become more comfortable with your spa and its services, they could be open to trying new things. “I had a 33% increase rate in people using filler who had never used filler, so they get used to their subscription, and then they make an additional purchase because they’re comfortable with that level,” Dr. Burns said.
There are different types of memberships that medical spas offer, but most fall into two categories:
Static: Static memberships typically stay the same month-to-month. They might have a recurring fee or allow a certain number of services in a specified period of time. They’re simple and easy to understand.
Dynamic: Dynamic memberships can be tailored to individual clients’ preferences. This makes them more complex to manage, but adds a layer of personalization that clients appreciate.
One thing that different membership plans typically have in common is a financial incentive that offers those expensive services at a discount. This is what initially makes memberships attractive to clients, but over time, those repeat visits result in increased loyalty. That long-term retention pays off for medical spa businesses, whose initial losses from discounted services are offset by long-term ROI. If you’re struggling to bring in repeat business, a membership program could be exactly the solution you’re looking for.
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