One of the axioms of marketing is that you know half of what you spend is wasted, but you never know which half. The advent of digital marketing has changed all that. In a digitally connected world, you really can track what's happening and make all of your spend count — provided you have the right analytics and reporting in place. That insight has given MedSpa Marketing Solutions a compelling business proposition.
MedSpa was set up in 2018 by two former IBMers who got together to offer marketing and advertising services to medical spas across the US. They were good at what they did, but they quickly ran into the same problem that all marketing and advertising agencies run into — lead quality. A client might get a hundred leads, but only three would convert. How could they ensure that clients were getting value for money? The answer was to track performance right through from lead acquisition to sale.
The business now offers its customers a guarantee that's highly unusual in the marketing industry, as co-founder Robert Sullivan explains:
We offer our clients a 2-to-1 ad spend guarantee. If they spend $2,000 on ads, we guarantee that they will get $4,000 back in top-line revenue.
We're able to do this because we ask the clients to follow a couple metrics, and we're able to track everything, from the lead all the way to revenue, down through the funnel.
Two crucial metrics
The two metrics that clients must abide by are crucial to delivering the guarantee. The most important is time to first contact. Following up promptly when a lead first comes in is a key determinant of whether the sale will be closed — particularly for the kind of high-value treatments MedSpa clients typically offer their customers. Best practice is to call back within the first five minutes, but that's often impractical for a small business where people may be busy checking people in at the front desk or otherwise occupied at any given moment. Rather than choosing an arbitrary time, the MedSpa team did regression analysis on the data and found that the cut-off point needed to be 30 minutes. Beyond that point, the value of deals that can be closed falls away.
The second metric measures how well clients are sticking to MedSpa's recommended workflow process for following up on outstanding leads, with a threshold of keeping fewer than 20% of those tasks overdue. Both these key metrics are constantly updated on the dashboard shared with that client, and it has completely changed the relationship, says Sullivan:
We really don't have lead quality issues anymore. It's really changed that conversation, to be more, let's make sure that your staff are getting to these leads on time, make sure that they're keeping these tasks updated.
This all works because clients all use a Zoho CRM system provided by MedSpa, and the company is therefore able to track a full set of metrics for each client — as well as being able to benchmark performance across the client base. There are over 60 different sources coming into the Zoho system, including Facebook ad accounts for more than 20 clients, Google ads and web analytics, along with various metrics from the Zoho Desk ticketing system and from the CRM and point-of-sale billing systems.
Easy to use analytics
MedSpa is a Zoho One customer, which means that it has signed up to the full portfolio of applications and now uses 35 of them. But it was several months before Sullivan first started exploring what the analytics module could do. He'd had enough experience of BI and analytics tools from other vendors to expect that it would be difficult to make progress.
I thought it was going to be really hard. So I put it off on the roadmap a little bit — let's get some of these other pieces in place and then start analytics. The actual journey was anything but hard. And it was one of those, where I'm kicking myself now, why didn't we even start earlier than we did?
Not only was it easy to connect data sources, there were also plenty of pre-built reports and dashboards available to use, he adds.
Instead of the old days, where you connected your source, and then you have all this data that you have to figure out how you want to visualize it — if you connect a Facebook ads account into Zoho Analytics and click the checkbox that says create standard reports, you get 20 great reports and probably two or three amazing dashboards that will allow you to really start using the analytics right away, right out of the box. So we really took advantage of that to get us ramped up quickly.
The key metrics dashboard that Sullivan sees with a view across all MedSpa's customers is the same one that each customer sees with their own individual data. This means that any enhancements Sullivan makes to his version of the report are instantly shared to all the company's customers. He also frequently uses the drag-and-drop report editor to produce custom reports for individual customers as needed.
MedSpa is still exploring how it can use the system — one improvement it has on the roadmap is to automatically issue alerts when a customer is about to breach one of their key metrics. It has also been analyzing customer point of sale data to see how much repeat business comes in over time from converted leads — useful data to produce in new sales conversations.
This is a great example of what I like to call the XaaS Effect - engaging with customers to deliver a service that achieves measurable outcomes. MedSpa shows how to use technology to help customers achieve demonstrable results.