It is hard to express in words what Cool Marketing has done for our CoolSculpting practice. So,…read moreI'll let the numbers do the talking:
2014 Utilization [BEFORE Cool Marketing]: 8 to 15 treatments per month
2015 Utilization [w/Cool Marketing]: 30 to 45 treatments per month
2016 Utilization [w/Cool Marketing]: 42 to 91 treatments per month
2017 Utilization [w/Cool Marketing]: 81 to 132 treatments per month
Background:
We bought our first CoolSculpting machine back in 2014. For the first year, we did nearly everything our Zeltiq rep told us to do. We put out their brochures, held Cool events, launched a Zeltiq CoolSculpting microsite and spent a couple thousand dollars each month on internet marketing. All this effort only got us about 2 patients a week. That's it.
Frustrated with those results and the ever-increasing number competitors around our center, we started searching for a marketing firm that could help us get more patients. We spoke to a handful of enthusiastic, over-confident agencies before discovering Cool Marketing. After experiencing a demo of their capabilities, we were sold. But there was a catch: our practice had to apply to procure a license to their proprietary brands. Let me explain...
Cool's parent company (Rayhawk) owns two trademarks which are perfect for marketing CoolSculpting: Dr. Freeze and Dr. Sculpt. Both of these brands are key upgrades to Rayhawk's standard Cool Campaign, but the licensor is super particular about who they license the names too. In fact, we were cautioned to not be surprised if we were denied because a lot of applicants get rejected. Our office manager submitted a digital application and included 5 flattering pictures of our facilities.
Then, we waited about 2 to 3 weeks to hear back... When we finally did, it was good news!
The Cool Marketing Effect:
Our new Cool Campaign was launched about 5 weeks after we signed the license agreement and paid a license acquisition fee (an initial fee of $10,000 required to acquire the license to operate under the Dr. Freeze brand). They also launched a Google Pay-Per-Click campaign that drove traffic to our Dr. Freeze microsite.
Almost like magic, the phone started to ring: "Hello, is this Dr. Freeze?" We felt legit. People were not just asking for CoolSculpting - they were specifically asking for Dr. Freeze. Most of the callers were motivated consumers who scheduled consultations during the initial call. The "No Show" rate was relatively low (20%), and our new consultation conversion rate was about 70% (which I have heard is relatively high).
As you can tell from the numbers (see above), all this translated into sales with our CoolSculpting machine being used every day. Our medical director was thrilled because purchasing the CoolSculpting machine was a big gamble that was finally paying off. He was so happy that he purchased a second machine to help us accommodate the increased patient load.
Cool Campaign Costs and Revenue:
The old saying that "you got to spend money to make money" definitely applies here:
Initial setup (aka license acquisition fee): $10,000
Monthly License / Service Fees: $3,000 (2,000 for Cool Campaign + 1,000 for Dr. Freeze license)
Monthly advertising spend: $3,500 (paid directly to Google, Facebook, Yelp, etc.)
Total monthly marketing expense: $6,500
Monthly Revenue (based on $600/cycle):
2015: $18,000.00 - $27,000.00
2016: $25,200.00 - $54,600.00
2017: $48,600.00 - $79,200.00
To summarize, today our practice is making over 10 TIMES what we spend on our Cool Campaign. You read that right, the total cost for our Cool Campaign (including Dr. Freeze license and ad spend) is approx. $6,500/month, and it delivers as much as $79,000 of CoolSculpting revenue in a single month. So actually, on a good month that is a 12x return.
Numbers don't lie, and those numbers say one thing loud and clear: Coolsculpting can be very profitable when you are working with the right marketing company.