During the Great Recession of 2008, Acara Partners successfully doubled the sales of 12 practices as part of our Business Booster program. Our services proved profitable again in 2020 when, despite the sharp economic decline caused by the coronavirus pandemic, our clients saw significant month-over-month sales growth.
Back in 2008, part of our clients’ success was due to the “Lipstick Effect.” According to Psychology Today, the lipstick effect reasons that while spending impulses for most things decrease during hard economic times, consumers’ desire for products and procedures that enhance their appearance actually increases. Investopedia states that indulging in “smaller” luxuries helps distract them from bigger financial problems.
In 2020, the “Zoom Effect” emerged. When COVID-19 turned the world virtual, people began spending most days on video call after video call. The aesthetic industry saw a considerable increase in demand for aesthetic procedures within the working professional demographic mainly affected by this. Despite the impacts of the pandemic that tightened most wallets, people prioritized addressing their skin in order to feel confident and beautiful. Medspas and aesthetic practices across the country saw a significant jump in sales once they were able to reopen.
Although the above were the results of economic crises, the phenomena undoubtedly impacted the success of the aesthetic medical industry during the past two recessions. Acara Partners’ role was to ensure that despite the phenomena that emerged, our clients’ businesses would survive and prosper during these hard times. Most significantly, we developed and implemented comprehensive promotional plans unique to each practice. It’s essential to plan marketing activities and advertising plans tied to sales goals. By preparing these months in advance of when they run, we ensure that clients’ marketing stays strong in the event that things slow down.
Too often, we see marketing budgets cut during times of economic uncertainty. This should never be the case, though, as cutting marketing budgets only harms businesses. When sales slow down, you need to infuse cash back into your business to build demand and new patient leads. As observed in the lipstick and Zoom effects, demand for aesthetic treatments remains high throughout recessions. It’s your job to ensure that you are drawing new leads and clients to your practice.
Additional measures to prepare for recessionary periods include setting up marketing automation in your practice management software (if you haven’t done so already) and analyzing client and sales data to identify areas of opportunity.
Marketing automation in practice management software:
Analyzing client and sales data to identify areas of opportunity and growth:
Don’t wait until it’s too late to try to save your business. Acara’s Business Booster program can more than triple your current sales and make your practice resilient in future recessions. Fill out this form to receive a complimentary consultation with our team.