Are We in for Economic Turmoil or The Sky’s the Limit: Part 1

Posted November 22, 2024 in Uncategorized | 4 minute read

FOUR PART BLOG SERIES  Blog #1

The goal of this series is to explore the future of the aesthetic industry, covering market trends, competitive shifts, staffing changes, and new procedures like regenerative therapies in 2025. Despite concerns about economic uncertainty and geopolitical upheaval, some practices are thriving, while others are struggling.

At a recent professional meeting, I heard conflicting reports about the state of the industry. Some practices reported revenue declines of 20-60%, with some surgeons retiring early, laying off staff, or cutting marketing. Others saw no decline in 2024, and some even grew. The mood among surgeons seemed to lean towards a crisis mentality, with positive revenue practices hesitant to share their successes.

After the recent election, many in the aesthetic industry, like other sectors, were hesitant to spend, holding onto their money. But in one practice on the West Coast, after the election, surgery scheduling surged to record levels. This highlighted the importance of consumer confidence in driving bookings, not just economic or political factors. Despite a booming stock market, many patients waited to book surgeries until after the election results were clear.

Even during downturns, luxury goods often retain strong sales due to their status and quality appeal. However, if even high-end consumers are feeling uncertain about spending, this could signal broader economic anxiety.

The big question is whether the aesthetic industry underestimated how sensitive it is to consumer confidence. After COVID, there was a boom in plastic surgery as people emerged from lockdowns. Many practices took this growth for granted, assuming it would continue without scrutiny or adjustments to operations. But complacency set in. Practices that were busy enough to stay afloat didn’t critically assess their scheduling, customer service, or point-of-sale communication, which might have contributed to stagnation.

What’s needed now is a return to the basics—the fundamental practices that ensure long-term growth. Over 30 years of practice management and marketing experience have shown me that, despite changing technology, the fundamentals of customer service, effective communication, and efficient management remain unchanged.

This series will break down the key areas to focus on to future-proof your practice in 2025.

We’ll cover:

1. SWOT Analysis (Strengths, Weaknesses, Opportunities, Threats): Honest self-evaluation is essential. Start by assessing your practice’s strengths, identifying weaknesses, and exploring opportunities for growth. Threats are often out of your control, like increased competition, but can be managed by improving internal operations. The SWOT process should be collaborative, involving everyone in the practice for a full perspective.
2. Lead Management: Properly handling leads is crucial. Practices should be proactive in nurturing leads through the consultation process, ensuring they follow through and book surgeries.
3. Understanding Retail Medicine: Aesthetic procedures are a form of retail medicine, meaning customer service, product presentation, and client relations are essential to success. The way you manage and interact with patients can directly impact revenue.
4. Customer Service: Great customer service should be at the core of your practice. It doesn’t just end with a smile; it extends to every part of the patient experience, from initial contact to follow-up care.
5. Consultation Strategy: The consultation process should be strategically designed to engage the patient from start to finish, building trust and addressing concerns. This can significantly increase conversion rates and patient satisfaction.
6. The Psychology of the Sale: Understanding the psychological factors that influence purchasing decisions is key in the aesthetic industry. Patients make decisions based on emotions, desires, and trust, so tailoring your approach to these factors is crucial.
7. Measuring Success: It’s important to have clear metrics for success. These could be related to conversion rates, patient satisfaction, or financial goals. Regular evaluations of these metrics will help identify areas for improvement.
8. Incentives and Culture: Should you offer incentives? Consider how incentives can motivate your team and patients, but ensure they align with your practice culture and long-term goals.
9. Growth Strategy: A solid growth strategy is essential. With increasing competition, you need to be proactive in identifying and capitalizing on opportunities that drive growth.
10. Incorporating Regenerative Therapies: Adding new services like regenerative therapies could be a game-changer, but only if they align with your patient base’s interests and needs.

The practices that succeed in 2025 will be those that don’t rest on their laurels, even when times are good. A return to basics will help practices stay competitive and weather economic uncertainties. The next blog in this series will dive deeper into the next set of fundamentals for growth.

In conclusion, the aesthetic industry is in a period of change, but by returning to core practices and embracing self-evaluation and strategic growth, practices can continue to thrive. Whether you’re facing economic downturns or experiencing growth, focusing on customer service, efficient operations, and understanding the psychology of your patients will keep your practice on track for success.