The past 3 years have shown us a picture of just how unpredictable the world around us can be. Change is everywhere—the pandemic, inflation, interest rate hikes and social unrest—and the examples are obvious because they are happening to all of us, all at once.
However, among all the doom and gloom in the media, it is worth looking out for the business owners who are somehow able to defy economic downturns and find out how they do it.
For example, why is it that some aesthetic practitioners are fortunate enough to have more business than they can handle right now, whilst others are struggling to fill their diaries?
Success leaves clues, and when it comes to sustainable success, a lot of lessons can be learned from the past. The business owners I know who made it through previous downturns with minimal strain (including the global pandemic) knew something key to this:
- How a business is run in the good times dictates how well they survive the bad times
- A bad economy does not create financial problems in a business—it just reveals them
- You can—and should—always plan for the unexpected, so that you can pivot when the world throws its curveballs.
» In medicine, there is a minimum effective dose, and anything less does not work. It is the same with marketing. The more times that a prospect hears and sees a practitioner's name, both online and offline, the more they will trust that they are the perfect solution for them «
The truth is that there is not much that any of us can do about economic downturns, but if I had one goal for readers, it would be to make your business as immune as possible to them. You may not be able to predict or guarantee the future, but you can create it.
Ultimately, there are three possibilities for your business during a downturn:
- Sink
- Float
- Grow.
Now, not everything is going to be within your control, although I believe you can choose which path to take. When it comes to your business, I strongly encourage you to go ‘all in’ on the third possibility. Even if you do not grow, it puts you the furthest from the first possibility, and that is exactly the approach that myself and my clients are taking.
So, instead of shrinking our ambitions and focusing on merely surviving the latest national drama, we will be accelerating our business growth plans, launching new products and services, increasing our marketing spend, increasing our prices and looking for opportunities.
Will it be easy? Probably not
Over the years, I have learned that there is no silver bullet, magic wand or shortcut to success. It requires a great deal of work, and practitioners will be facing unexpected challenges every day as they adjust to new competitors and the ever-changing forces of supply and demand.
These next few months will separate the successful from those who just sit passively by and hope that the economy or the market picks up. Even if you have already decided to take a cautious approach, there are still some simple actionable steps that you can take over the coming months to unlock the growth potential in your business, attract new patients and run your business it in the most efficient and profitable way.
Step one: throw a ‘fence’ around your patients
While customer loyalty is increasingly rare these days, that does not prevent you from ‘corralling’ patients, so they do not want to go anywhere else. In fact, if you are smart about this, you can (ethically) lock them in to you, so none of your competitors ever even appear on their radar.
This can be done with regular communication and giving them interesting, informative and useful information, rather than just showcasing the latest treatment offering. Ideally, clinicians should be sending their patients an educational or ‘nurturing’ email every week (a monthly newsletter is okay, but in today's busy world, it is rarely enough to stay on people's radars).
Did you know that the number one reason any customer leaves a business is due to ‘perceived indifference’? The customer perceived (consciously or subconsciously) that, because they did not hear from you again, you were ‘indifferent’ to their custom, which meant that, in a world of choice, they went elsewhere, where another business made them feel valued and special by keeping in touch regularly.
The truth is that current patients and prospective patients will book when they are ready to book, and not when the practitioner is ready to fill their diary. Therefore, the most effective thing that practitioners can do is keep themselves in the patient's view, so when they do decide to take the first step, they immediately think of them and not their competitors.
Step two: cut, cut, grow
Economic downturns are often the time that clinicians become very clear on their value and cut away the stuff that was not adding much. As a first step, prepare a quarterly cash flow forecast (i.e. go through all projected outgoings for the next quarter and ask what expenses could potentially be eliminated, reduced, deferred or re-negotiated). If you are a spender, always ask yourself: ‘will this grow my business and move me further towards my goals, or will it be a cost to my business?’. On the other side of the equation, include the income that can be predicted for the next 13 weeks, so any red flags can be seen in advance, and something can be done, rather than waiting until it is too late.
Then, start getting yourself and your business tightly aligned with the customers who place the highest value on you and the results you can bring them. To use an analogy, if I was running an airline right now, I would not try to add more available flights at a cheaper rate, I would have a lower number of flights with a higher level of support and service.
Remember that there are people out there who, despite the economy, are still looking to buy and still able to buy. In the coming months, you should double down on reaching and serving that group: the people who are a delight to care for, place a very high value on what you do and have the capacity to pay you. For more strategies on this hugely important subject, please read Daniel Priestley's’ book, Oversubscribed (2015).
The key point is that each individual practitioner is not supposed to be for everyone. When trying to appeal to everyone, marketing is diluted, as our message is being watered down and, ironically, it is less appealing to those whom we are truly here for.
Step three: maximise referrals
Most businesses rely on ‘hope’ referrals: the ones that happen by accident, simply because they are not being proactive when asking for referrals. A system needs to be in place, along with a referral culture that ensures everyone understands that referrals are a core part of how a business grows and how much they are valued. Imagine if every patient brought one new person into a business each week; practitioners would never have to do any marketing again.
To maximise referrals, clinicians should have a formal written referral process in place to equip happy patients in making referrals easily and simply. Create cards and flyers, get it out there and talk to patients about it—make it part of the checkout process. Do not just assume they will tell others, as most patients will simply forget.
Make the referral programme as compelling as possible for both the patient who refers and the patient who is referred but be very careful about what incentive is being offered. Draw up a list of terms and conditions (for example, a minimum spend applies or selected treatments only).
Step four: increase the value of what is offered to patients
Something that I repeat often, because it is absolutely true, is that it is not about price; it is about value. If a current or prospective patient objects to a clinic's prices, it is not necessarily because they cannot afford what is being offered, it is because they are struggling to reconcile the value that is offered with the price that is asked.
Many business owners cut their prices because this objection arises more and more often. However, that is not the answer. Rather, the answer is to add things into the equation that increase the perceived value to the patient and explain to them the reasoning behind the price (for example, the amount of training that clinicians undertake).
While a small percentage will only ever be interested in the cheapest treatment that they can get, most are looking for value for money and, ultimately, the best they can afford.
Step five: spend some quality time with your followers
In medicine, there is a minimum effective dose, and anything less does not work. It is the same with marketing. The more times that a prospect hears and sees a practitioner's name, both online and offline, the more they will trust that they are the perfect solution for them. As my own business coach says: ‘the more you connect, the more you collect.’
If you have been putting all your energy into creating and publishing short social media posts (for example, Instagram reels), it may not be meeting the minimum effective dose required to get people to care about what you do. This problem is compounded by the ever-changing social media algorithms that make it harder to get posts seen by an account's followers. The social media landscape has changed, so if you want new patients, you are going to have to be brave, get creative and try new things
Think about all the possible ways that your target audience can be reached and keep their attention long enough to deliver your minimum effective dose. Live in-clinic events, educational webinars and online Q&A sessions are great ways to achieve this, as are online polls and surveys to ask people's opinions, check their preferences and get some valuable insights into their wants and needs.
So, how do you turn a stranger into a patient and ethically draw them towards your business with marketing and content that builds liking and trust, educates and separates you from the crowd? Use the 7-11-4 formula (Priestley, 2015). The 7-11-4 formula is about building bonds with people and potential customers. It relates to you having 7 hours’ worth of interesting content available: blogs, videos, articles, interviews and books, etc, so people can spend time with you. The number 11 is about the number of interactions you have with those people. It is based on some research that people who had about 11 interactions with a brand are considerably more likely to buy from them. Finally, 4 relates to locations and suggests that you connect in at least four different places (face-to-face in a clinic, at an educational event, an online blog or being referred by a friend) before levels of trust increase.
Step six: become the go-to expert in your area
Right now, people are uncertain, nervous and apprehensive about the future. This includes current and prospective patients (and a clinic's team). At times like this, they want reassurance, strong and confident leadership and someone they can believe in and trust. If you can position yourself in that role, you will have patients for life. Let your competitors join the fearful throng and lose their businesses. You can take this opportunity to establish yourself as a business leader and thus practically guarantee your status as the go-to practitioner in your area.
First, get yourself some free PR. Press releases are the fastest, easiest, cheapest and best way to do this. Remember that media professionals are crying out for good material to fill their papers and magazines, as well as radio and TV shows.
Second, consider writing a free guide to educate prospective patients on how to choose the right practitioner, or at least get yourself a regular engagement writing editorial content for a local publication. They are always hungry for quality content, even more so in times of economic downturn when their advertising revenues are down and their costs remain high.
Step seven: do not lose your head
In times of economic downturn, the Serenity Prayer seems more pertinent than ever:
Grant me the serenity
to accept the things I cannot change;
courage to change the things I can;
and wisdom to know the difference
When the economy is falling apart and the whole world is losing its head, we must focus on changing the things that are within our power. For example, the economy cannot be controlled, but you can empower yourself to control your finances. Build the life and business you want, not one dictated by outside forces, or that you have settled for.
Many believe that this is a time of doom and gloom. There is no choice then: it is time to get focused, make opportunities and grow. More than ever, your mindset and habits matter. How you show up in your personal and professional relationships matters. How you gain an edge and make real progress matters.
Staying stale and failing to grow is not good. We must be on our A game now. I wish you all the very best of success in 2023.