It’s tough out there today for small and growing practices. Not only do you have to juggle multiple hats to meet your organization’s operational needs, but you also have to do so while facing the fact that customer expectations have never been higher.
MATT COFFY: Okay. Wonderful. We have James on again. We are going to do a mid-August catch up. This is August 2020. We are looking at the results for some clients that we've been working with. We tend to do this once a month to give you an idea of, I think the market's driving... what's happening. We try and go across different subjects so you can see a different set of circumstances. James say hello.
JAMES: Hello everyone! How's everyone doing? I hope you all feeling good and healthy and healthy and safe.
MATT: Yeah. Yeah. I know. It's a... Well, you know, you figure it. It's just one person that's probably listening to this at a time. So hello listener or hello watcher.
JAMES: Hello watcher.
MATT: Yeah, that's a good show. Yes. So thank you for joining us. I think you'll find this interesting. If you like to watch under the cover stuff or behind the scenes or under the hood, however you want to call it. We will show you what's going on in our accounts.
MATT: You're going to see the real deal. The real money. The real leads. No trickery here. No false accusations, just true data. True facts. The real deal. So let's talk about our first client here. We've got, maybe you could just run through it. I know this client. Well, they have been aboard since I think 2018- ish. And they've just continued to operate as a machine. And I think that you talk a little bit about what they've got for lead costs and let's go through this quickly and show people what to expect if they're, especially in the industries that we're talking about today, which we're going to start with Aesthetica, which is a medspa. And then we do a lot of med spas. We probably pick up one or two med spas a week at this point and load them up into our systems.
MATT: And... What, tell me, what about this one you think is the unique difference. Because I'm seeing some unbelievable cost per leads here.
JAMES: Yeah. So Aesthetica and Paramus New Jersey, one of the States to go furthest, you know, down the line on lockdowns. So what I want to show you today is their CoolSculpting. A lot of people want to trim some extra fat. Ate a lot of cake, ate a lot of goodies of sugar during the lockdown. And a lot of people there is a high, high demand overall though across the nation. You know, especially all they say to them, big lockdowns for CoolSculpting, and we're not going to lie. We all ate a ton of food. So this particular campaign that we're running for the month of August. And this August it looks like there are people are getting prepared towards the end of the summer now for the fall season.
JAMES: Cause really they all got out of their house about a month ago. So it took them about a month or two to get back into the swing of things. And now they're taking care of their weight problem. This month, it's not gonna work 88 leads at $13 per lead for CoolSculpting. Now, this is a service that can cost anywhere from a thousand to $5,000. So it's extremely low for this. And like I said, it's the demand. Nothing too crazy. You know, we're using some basic imagery of people getting CoolSculpting. They're doing a 25% off which is the manufacturers. Like I said, it's not really anything spectacular that they're offering but more of the market is where it's at. So we positioned them and we've seen an actually, a decrease of costs per leads over the last couple of months. June when they kind of opened, you know, they started coming in, you saw there was some kind of interest or CoolSculpting last month that ticked up.
JAMES: And this month it's really taken off. Like when you're almost in the single digits of cost per leads or CoolSculpting, you're in a good space.
MATT: And then we have to be careful, you know. Although there's 88 leads, it doesn't mean they've had 88 procedures done. It's 88 people will put their hands up and they're working on those. But we know a percentage of those, given that...
JAMES: Yeah, about 30. They set appointments between 35% and 40% are sitting in there and almost there. This particular spot they can close, you know if you're a good closer so they're closing out of that 40%, almost 90% of them. So we're saying about 25 procedures, somewhere between 20, 25. Again, you know, you see the spend for this campaign total spend is $1,100. That's one procedure, you know, that covers that and the rest is all gravy at that point.
JAMES: So yeah.
MATT: So probably part of why it's important to not assume people are not active. And I think there's a big question mark in the market where people are sticking their hand up saying, but I don't think people are going out cause they're afraid. And I think, yes, they are afraid, but if you're advertising and they're actually interested and they make a commitment to you, the good thing is now the people who do go out are pretty much serious and they're not going to go and take their trip out of their hobble with their blankets and their helmets on and gloves and masks in the car and whatnot, just to go for leisurely drive to kick some tires. They're gonna... this is going to be part of their day.
JAMES: Yeah no we're past the... people that are out now. They're doing business. People that are still scared, still home.
JAMES: So there is no in-between at this 0.75 six months in. So you're right. You know, they put their hand up and they submitted for more information. They're interested now. I'm opposed to a few months ago where they put their hands up but they were interested for three months later. Right. So we've seen that evolution of, I want to get it, I wanted to get it before the lockdown. Now the lockdowns event did, you know, right after they put their hands up, but I'm not ready yet. So they book two months out. The people that are submitting now are booking now. So that's kind of the evolution of the market, the medspa market, as far as appointments go.
MATT: Good. Let's move on to the next topic. Let's see somebody else.
JAMES: Sure. So this is a missed beauty bar.
JAMES: They're in Vegas. Las Vegas. To this month, they've done a Botox, Lash Botox, Juvederm, Injectable campaign. What's really interesting, just some inside baseball on Facebook, when paid on payday ads, they really don't permit you to do before and after because of their community guidelines, but they've loosened that up during the COVID, believe it or not. So what's really helping this particular campaign. Cause when you can put up before and after, which is the most powerful piece of creative, they are letting us do it. If you could see here is a before and after. We had another before and after here. That wasn't the case before COVID. They were very strict with the guidelines. So in this particular client's case, and all of our clients for that matter, one of the most powerful pieces of content you can use for medspas is now being allowed to use.
JAMES: You can use it. So that's where we're getting some low price. A cost per lead $11. $9 for this ad right here. So that's right where it should be. That's pre COVID cost per leads for those, which is great. And like I said, Facebook is helping out on the creative end of things, loosening up the strings a bit.
MATT: Yeah. And if you think about a procedure of Botox, maybe you've got multiple areas. Even if they come in for one area, you're looking at 3 to $500 you know, for a sizeable area. Even if they're running a discount promotion in there, you're cash positive. Especially if these leads are converting like we expect them at 30% to 35%.
JAMES: They are.
MATT: And then you're booking like 70%, 80% of those. So you're in around that, you know, 30% plus with, you know, your lead.
MATT: So if your total lead cost in here, let's say you got 10 leads for a hundred bucks, you convert, let's say three of them for $1,200. You're about a 10 to 1 ratio from return on ad spend, which is more than doable.
JAMES: And the secret number inside those numbers is the upsell.
JAMES: When you're bringing in that many numbers, you're converting that many people, they're going to do other services: HydraFacial, CoolSculpting. So yeah, and this is a great... Botox and injectables in general are great way to get people to sit in your spot, right. It's got a high demand. And then you can, if you're not how to sell your services, it's you know, sky's the limit.
MATT: And especially when you think about the activation of their downline referral based. So if they come in they have a good time, they're going to tell all their friends. Their friends are going to now come up and then you know, one out of four of their friends will probably show up within the next week or two you know, just because they've heard or they've seen and they're starting to get a whole new referral base.
JAMES: So it's even more than that even beyond the cross sale.
MATT: Yeah. And what's really interesting. You say about referral base. Now we have another client out in Toronto and Canada. LaserBody. And they get tremendously great cost per leads, but what you're not seeing, what Facebook doesn't register in their dashboards, they're selling... each of these ads have comments right? It's like a post. They're selling a good portion of their services on the common threads which is amazing, right. So it's still the ad right. We create the nurture chain and they have a call center and it works fantastic and they make, they do wonderfully. But just their normal staff going onto the comment thread and answering questions, I would say out of every 10 comments, they're booking at least two or three appointments out of them, which is amazing on top of these numbers. You know for this month alone, they have somewhere in the range of almost 600 leads.
JAMES: I mean, they spend a good amount of money per month, but they're still getting great costs there. We're doing PRPs for $7 a lead, you know. Laser hair removal for 13. CoolSculpting even at $28. It's a highly competitive market, still a great number. They also do a Call Now campaign. So they're getting $4 for every call that comes in. And in their particular case whether they are at, I think they're at, they had 60 calls so far. And then again, over the phone, they're closing almost 30, 35, 30 to 40%, depending on the service that they're closing on. So yeah. Don't overlook the whole package of the ad. You know, the nurture is excellent. That's what we drive 95% of their sales, but that other 5% also drag draws in a good amount of money too. So it's a great revenue stream, the common threads, side note.
MATT: And that's the community management that a lot of people don't realize they have at their disposal.
MATT: I rarely see the activity with followups for any of our folks who, I mean, unless we're driving it because we're part of the management of the community. You know, it's a missing piece of... a lot of campaigns is to start to think through that journey of that customer who took the time to even engage with you whether it was positive, negative, or neutral, you know, there's an opportunity to even go and DM that person with a special. You know, that's where that's a.
JAMES: What's going on with COVID is with pre-COVID, if someone engaged on your paid ads, I would say 8 out of 10 times, they really just kicking the tires, getting some basic information. Post-COVID: They're looking to do business with you. That's why you know what I'm saying? So that's why I'm saying to 3 out of 10, 4 out of 10 are converting into appointments where that was maybe one before or two before it's like doubled. Right.
JAMES: Cause people really truthfully want to do most of their business online. And since they've got someone to engage with them, why not? Right. If they're open if they're okay. And a lot of times the messages will move to the IMs, instant message, or direct message, where they'll carry on the conversation and get to the specifics. But yeah, their team has a great job. If you have a team that can work with threads if you're not asking us to do it, which you should be, but if you don't, if you're not going to do it, you should definitely have your team. It's definitely a revenue stream and it's driven by the paid ads. It's just like I said, it's part of the whole package when we're doing our paid approach to our campaigns.
MATT: Yeah. And a lot of the strategy that we're seeing that you know is being implemented, that's been successful has been small, short videos of demonstrations of procedures.
MATT: And you don't need to post your staff, you know. Jumping up and down or a dog or silliness cause it never cuts across. But when you start to do procedures, cause that's what people are there for. You have to think about their journey and what they're doing. You know, the journey isn't necessarily to know that you have a nice front desk or you have a picture of a dog. But I think people if they treat the social media like it's a demonstration tool, you end up with that commentary. Cause that's when people start to be curious and not that you need to make your entire thread demonstrations, but you know, we always encourage the small short video overview. So people who have gotten an interest level can start to at least get a piece of the inside of what it is and almost a shorter video or maybe not necessarily a shorter video, but a video that goes a little bit into it and then gets them interested to start to think and continue the story on maybe the next video.
MATT: There's a lot of sort of strategy that you can build into your models.
JAMES: Well that's why when I said before, it was so huge. Facebook kind of letting people put now before and afters in med spas. They want to see it before and after. Real before and after. If they want to see treatment videos and they want to. If you can get real testimonials, video testimonials. Those are the top three that drive the best performing ad campaigns. By far hands down, don't ever look backwards. It is. It's proven we've been doing this now. How many years Matt?
MATT: A lot!
JAMES: A lot, right. And we, you know and it took a couple of years to get to that conclusion, but it was based off data and yeah. And now that they have the before and afters, forget about it, it's a monster!
JAMES: And the beautiful thing about Facebook and engagement and why this is so important. The more people engage on your ad, the cheaper the cost per lead. That is the key here. That's why you want engagement because Facebook says, " Oh people like this kind of content." " Hey let's reward them with a cheap cost per leads or they keep putting up this type of content." So it's very vital that you put up something that is engaged. That engagement and it affects. The organic engagement affects your paid return. Your paid cost per leads. So yes. Very very important.
MATT: Look at this. You got 288 CoolSculpting leads for $4,000. A $20 average cost per lead. I mean you know, one procedure alone could be $8,000 for CoolSculpting, and here's almost 300 leads that turn on. This must be astronomical from our return.
JAMES: Well, let's put it this way.
JAMES: These 288 leads are funding, are being distributed to eight different locations, right. That's how we had LaserBody has eight locations throughout the Toronto area. So, and they have a call center. If you're lucky enough to have call center, which you could, which we have also if you want to use. But they do have and their closing rate is more up in the 50% range. So yeah, this is nothing. There's look like a big number, maybe for a smaller business, but it really isn't. And that's the other secret about Facebook. If you hire a company like us that knows what they're doing, you can feel secure and putting a ton of money behind it because they will reward you. You know, as long as you know what you're doing, they'll give you this: 288 leads for 28 bucks each.
MATT: So usually August is a slow month for us. But I've found that this month has been our most active month so far.
MATT: And I think that's because we had the delay in May, June, and July. Or actually April, May, June, and July.
JAMES: Yeah, exactly. This is what I'm saying. We're at that point now where basically what we're looking at right now and here in August would be a normal start of the summer. Far as market wise. You know what I'm saying? So this is actually June during a normal year when people are actually, "Oh we're ready" you know and they're starting to move forward. So you're absolutely right. You know, just a little bit. And going through this from the beginning, from March until now, you know, our company has been able to see... customers be able to see that evolution. That's why I'm saying right now, typically August is a slow month, but it's not a typical year. It's 2020, right. And in 2020 August is a good month apparently.
JAMES: And so because of the timing. People are coming out of their caves. So it's working great.
MATT: Yeah And I wonder if September will be an extension of that. You know, meaning that usually September is the month where things get picked up and maybe we would just sort of skip the summer doldrums. And we just go straight into September, which picks up in September, October a really good months, usually.
JAMES: Well from the medspa space Matt, and you got to remember this, also comes the schooling, right? A lot of these are mothers that go to these medspas. A lot of them are going to be home now, right. Or working from home or teaching from home. So what that brings to the market: more accessibility to go do stuff, take a lunch break with the kids, and get some Botox when you couldn't do that.
JAMES: Same time last year, because you were in an office and they were in a school, the classroom. So there's a lot of potential for the market opening up for even more than it would normally on the end of September. Absolutely.
MATT: I think that's a very indicative point of other practices beyond med spas. I mean, we're seeing across the boards where there's just seems to be now. It depends on the age. It almost seems like that the older population is the challenged ones right now because they're afraid of the obviously the outcomes of potential of infection, but the younger, I guess you could call it sort of fatigue is in, the fatigue for getting out. And maybe this is another sign that you know, we have some sort of positive light ahead of us where, you know, some things are starting to become.
MATT: And we obviously know, you know, because we service so many medical companies across the country and across the world that we can see some of the echelons of beginning to start to see some normalcy in some respect. So hopefully this is an indicator that, you know, September will be just as good. And we'll come back in September and do this again. James, thank you so much. And I'm excited to show people this and I hope everybody got something out of this. And again, certainly, contact us if you need help. We're here to support you in your growth and certainly make you successful moving forward. Thanks, James. We'll see you in September.