The iConsult Consultation Process breaks the customer journey down into a number of key stages/processes;
At the top level there are three key objectives that need to be considered, which are common across any business:
- Customer Acquisition
- Customer Activation
- Customer Retention
This is the process of bringing a new customer into your business, and in a Medical Aesthetics sense, the process of transitioning someone through the following key stages:
Prospect > Considerer > Client
The CAC (Customer Acquisition Cost) can be determined by adding together all of a businesses sales and marketing costs (Brand, Web, Brochure, Content Creation, Social Media, Campaign, Call Handling etc) and dividing it by the number of customers over a period of time.
This can be Actual Customers or Target Customers
For example, if you have bought a new machine, or are looking to introduce a new service, the cost of this might be around £10,000.
If the ATV (Average Transactional Value) of this treatment is £500, you can expect to get your ROI (Return On Investment) in 20 treatments.
However, many businesses approach this without a plan to target customers without a plan to either upsell existing customers or generate new business, or if they have, factor this into the ROI.
A good rule of thumb for new business is 50:10:2 – for every 50 new customer conversations, you get 10 leads, and generate 2 customers.
So, you have invested another £8-£10,000 (anything less just isn’t worth it) in creating a Marketing Plan for your new service, Key Messages, Brand, a Micro Website, twice weekly Blog and Social Media content for 3 months and an email campaign to get you your 20 customers.
Your CAC = £10,000/20 = £500, this creates a breakeven (BE) cost point of £1,000 per treatment.
If this number is not realistic, then you need to either add value or you need to target more customers.
If you need to bring this number down, you or to hit that magic 20, you need to have a hot (active) database of 1,000 patients, if you want to bring the CAC cost down, you need a bigger database.
So before buying the kit, you should generate interest and increase your active database to a size where the BE point is realistic.
The way to do this is through desire