President and Founder, Rejuv Medical Aesthetic Clinic
Ask most medspa owners about their critical numbers and you hear the usual suspects: total revenue, total retail, occasionally retail to service and productivity. While I won’t argue these numbers aren’t important – they are – in my opinion – a result. The numbers I want to know are the “vitals” of the company. These are the numbers that indicate if systems are in place; if leadership is holding the team accountable to following these systems; and also predicts the future growth of the medspa.
One of the most powerful critical numbers is the frequency of visit. This measures the number of times per year that patients visit the medspa. For example, if patients are receiving only Botox, and they keep a regular schedule (due to great rebooking – your other critical number!) of every three months, their frequency of visit will be four.
Let’s assume the average ticket per Botox visit is $500. That means that a FOV of 4 = $2000 for that individual patient. Now – what is that patient fails to rebook – and is closer to the 4-month interval for Botox. FOV now decreases by one – and instead of $2000, this particular patient now has a value of $1500 per year. By increasing the FOV by just one visit – we are able to ad $500 per patient annually; multiply that by a patient base of only 1000 – and we have increased our revenue by $500,000 simply by ensuring our Botox patients receive 4 visits per year rather than 3.
The beauty of this scenario – adding one visit per year to existing patients costs – well – absolutely nothing. There is no new patient acquisition cost. We are simply taking our existing patient base and ensuring they get the best results possible by proactively managing their intervals of treatment.
Now, let’s take it one step further. The previous scenario assumed that the patient was receiving only Botox; we all know the optimum results for our patients occur when they receive skin care treatments as well. Let’s assume the above patient maintains a regular schedule of a monthly facial – valued at $100 per treatment. At 12 visits, this adds another $1200 annually in value for this patient. Multiply this by a patient base of 1000 – we have now added another $1.2 million dollars in revenue.
1000 patients receiving monthly treatment? If you feel this is impossible – look for our next blog post – on building a robust membership program. At Rejuv, our membership program has just shy of 2000 members, and our frequency of visit is just above seven.
Having a software program that is able to calculate the frequency of visit is a non-negotiable for running a successful, profitable medspa. If you are unsure if your current system has this ability – place a call to support. If they can’t do it – insist they add this. It is too powerful a number not to neglect.
Let us know if you found this information useful – and make sure to send us topics for future blogs posts you would like to see. Our mission is to share what we’ve learned in our 15 years of successful business to help other owners grow thriving, profitable medspas!