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Subscriptions - Aesthetics Innovation Summit · * McKinsey & Company **Zuora.com. of subscription...

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The impact of Subscriptions on aesthetic businesses
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Page 1: Subscriptions - Aesthetics Innovation Summit · * McKinsey & Company **Zuora.com. of subscription are curated product 55% or services experiences 42% The Modern Consumer Seeks Personalization

The impact of

Subscriptionson aesthetic businesses

Page 2: Subscriptions - Aesthetics Innovation Summit · * McKinsey & Company **Zuora.com. of subscription are curated product 55% or services experiences 42% The Modern Consumer Seeks Personalization

2

The world is shifting to a new kind of business model.

The way consumersbuy has changed

for good.

Page 3: Subscriptions - Aesthetics Innovation Summit · * McKinsey & Company **Zuora.com. of subscription are curated product 55% or services experiences 42% The Modern Consumer Seeks Personalization

3

growth of the subscription market in each of the past 5 years*

$500B

>100%

will be spent on subscriptions globally in the next 12 months**

46% of U.S. consumers have signed up for 1+ subscriptions*

* McKinsey & Company **Zuora.com

Page 4: Subscriptions - Aesthetics Innovation Summit · * McKinsey & Company **Zuora.com. of subscription are curated product 55% or services experiences 42% The Modern Consumer Seeks Personalization

of subscription are curated product or services experiences55%

42%

The Modern Consumer Seeks Personalization and Convenience

60/40 % split between women and men subscribing

of men have 3+ subscriptions versus 28% of women

age of consumers more likely to subscribe to services25-44

* McKinsey & Company

Page 5: Subscriptions - Aesthetics Innovation Summit · * McKinsey & Company **Zuora.com. of subscription are curated product 55% or services experiences 42% The Modern Consumer Seeks Personalization

of aesthetics patients are NON-compliant73%

$9B opportunity by solving patient compliance

65M aesthetic consumers seeking; only 4-5M actively engaging

Bringing

Subscriptions to Aesthetics Businesses

Page 6: Subscriptions - Aesthetics Innovation Summit · * McKinsey & Company **Zuora.com. of subscription are curated product 55% or services experiences 42% The Modern Consumer Seeks Personalization

We talked about subscription’s potential to

double the frequency of treatments to improve

patient outcomes

Page 7: Subscriptions - Aesthetics Innovation Summit · * McKinsey & Company **Zuora.com. of subscription are curated product 55% or services experiences 42% The Modern Consumer Seeks Personalization

Plastic Surgery Practice Success:

Dr. Stephen J. Ronan, MDBlackhawk Plastic SurgeryBrentwood, CA

Page 8: Subscriptions - Aesthetics Innovation Summit · * McKinsey & Company **Zuora.com. of subscription are curated product 55% or services experiences 42% The Modern Consumer Seeks Personalization

Why we decided to offer aestheticsubscriptions?

V I P

$

Treatment frequency remained a challenge, no matter the price

Brand rewards are not designed to increase practice loyalty

We trained our patients to wait for VIP events

Page 9: Subscriptions - Aesthetics Innovation Summit · * McKinsey & Company **Zuora.com. of subscription are curated product 55% or services experiences 42% The Modern Consumer Seeks Personalization

Blackhawk Plastic Surgery: Our Results

Baseline Patients

Subscription Members

Growth

* Annualized run rate

Neuromodulator Compliance

Neuromodulator Spend (annual)

Filler Compliance

Filler Spend (annual)

116%

226%

43%

42%

1.41x

$548

1.6x

$1,323

3.04x

$1,787*

2.3x

$1,877*

Page 10: Subscriptions - Aesthetics Innovation Summit · * McKinsey & Company **Zuora.com. of subscription are curated product 55% or services experiences 42% The Modern Consumer Seeks Personalization

A Case Study:

Balfour DermatologyBrentwood, CA

Page 11: Subscriptions - Aesthetics Innovation Summit · * McKinsey & Company **Zuora.com. of subscription are curated product 55% or services experiences 42% The Modern Consumer Seeks Personalization

1,008Members subscribed

in 24 months

$1.8MIn recurring practice revenue established

Top 50Allergan business

ranking vs. top 150 prior

3.3/yrGrowth in average annual patient

treatments from 1.5 to 3.3 per year

Balfour Dermatology: The Impact of HintMD

Page 12: Subscriptions - Aesthetics Innovation Summit · * McKinsey & Company **Zuora.com. of subscription are curated product 55% or services experiences 42% The Modern Consumer Seeks Personalization

Subscriptions Change Behavior

1.4

2.9HintMD subscription

member treatments:

Traditional patient treatments:

Page 13: Subscriptions - Aesthetics Innovation Summit · * McKinsey & Company **Zuora.com. of subscription are curated product 55% or services experiences 42% The Modern Consumer Seeks Personalization

Subscriptions Change Behavior

1.2

3.7 HintMD subscription

member treatments:

Traditional patient treatments:

Page 14: Subscriptions - Aesthetics Innovation Summit · * McKinsey & Company **Zuora.com. of subscription are curated product 55% or services experiences 42% The Modern Consumer Seeks Personalization

Subscriptions Change Behavior

1.6

8.4HintMD subscription

member treatments:

Traditional patient treatments:

Page 15: Subscriptions - Aesthetics Innovation Summit · * McKinsey & Company **Zuora.com. of subscription are curated product 55% or services experiences 42% The Modern Consumer Seeks Personalization

patient members

Subscribing

2-3x

Life-time-Value of Subscription Patients

more valuable than non-subscribing patients

Page 16: Subscriptions - Aesthetics Innovation Summit · * McKinsey & Company **Zuora.com. of subscription are curated product 55% or services experiences 42% The Modern Consumer Seeks Personalization

enjoy Revenue GrowthDoctors

Staff

How can success be replicated across all aesthetic businesses

manages Practice Operations

Ease of Use is key to Success

Page 17: Subscriptions - Aesthetics Innovation Summit · * McKinsey & Company **Zuora.com. of subscription are curated product 55% or services experiences 42% The Modern Consumer Seeks Personalization

Introducing HintMDOur next-generation point-of-sale system that enables it all

Brilliant Distinctions®

Page 18: Subscriptions - Aesthetics Innovation Summit · * McKinsey & Company **Zuora.com. of subscription are curated product 55% or services experiences 42% The Modern Consumer Seeks Personalization

Services Skincare Solutions

Open Aesthetics Platform

Page 19: Subscriptions - Aesthetics Innovation Summit · * McKinsey & Company **Zuora.com. of subscription are curated product 55% or services experiences 42% The Modern Consumer Seeks Personalization

A Win–Win–Win Platform

Partners Win:

Providers Win:sales growth and market expansion

increased loyalty and >$1,000 incremental spend / patient

Patients Win:personalization, convenience, value,results

Page 20: Subscriptions - Aesthetics Innovation Summit · * McKinsey & Company **Zuora.com. of subscription are curated product 55% or services experiences 42% The Modern Consumer Seeks Personalization

20

Thank You


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