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The medical aesthetics industry has seen unprecedented growth across the globe in recent years. In North America, the number of medspas grew 18% in 2023, more than twice the expansion for beauty and wellness service businesses as a whole (8%). Several factors underlie the rapid growth, including technology advancements, a growing demand for non-invasive procedures, and an increasing emphasis on holistic wellness.
Moreover, demographic shifts, such as the rise of younger consumers who think of aesthetics and wellness as lifestyle essentials, have also played a role in shaping the industry.
This post covers key trends for medspas to act on in 2024, based on findings from the 2024 Beauty and Wellness Benchmark Report from Zenoti. Even though the medspa sector added clinics faster than any other beauty and wellness service type, the report notes, per-clinic revenue growth averaged just 2% in 2023. If revenue growth is sluggish at your medspa, read on for four levers to pull to kickstart growth.
By understanding the trends, tech innovations, and customer behavior shifts in the medspa landscape, medical spa owners and operators can expect to ride the growth wave for at least the next decade.
As the popularity of medspa services grows, so does the potential for membership revenue. Membership programs can be mutually beneficial, providing a steady revenue stream for the business and valuable perks for loyal clients.
By offering exclusive discounts, priority booking, and special events, medical spas can enhance the customer experience and foster a sense of community. Consider implementing easy-to-manage digital membership programs that offer value-added services for a monthly or annual fee. This strategy can drive greater loyalty, predictable revenue, and more opportunities for upselling.
Additionally, personalized treatment plans and regular check-ins can further strengthen client relationships. Emphasize the convenience and bespoke nature of the membership program to attract and retain clients, ultimately driving new guest acquisition and repeat visits.
With 90% of Americans owning smartphones, businesses should prioritize a strong online presence and easy-to-navigate digital touchpoints. A robust digital strategy can help medspas struggling to fill their appointment book. There’s data in the benchmark report that correlates online bookings with higher revenues.
Encourage your clinicians to integrate online booking links into their social media platforms to expand booking options and shorten the appointment booking process for customers. Additionally, medspas that use Reserve with Google can improve their search presence and attract new clients. Reserve with Google allows users to book appointments directly from Google Search and Maps, making it easier for them to connect with your services.
By using these digital tools and integrations, businesses can “meet” potential clients where they search for and book services – online.
Online gift card sales at medspas grew 19% in 2023. This trend highlights the growing preference of consumers for digital transactions and the importance of providing easy access to your services online. By selling gift cards online, you activate an always-on sales channel for your business, helping you attract new customers and maximize profits.
For digital gift card programs, ensure your website is optimized for mobile devices, as many customers prefer shopping on their smartphones. Promote your online gift cards through various channels, such as targeted email marketing, social media posts, or even integrating promotions within your online booking system.
Offer gift card promotions during holidays and special occasions to further boost sales and customer engagement. Doing this can help you tap into the growing market of online shoppers and help expand your medspa customer base.
Related reading: Are medical spas profitable? A guide to maximizing medical spa revenue
Package sales have become a sizable revenue source for medspas, accounting for 21% of all collections. Also called service bundles, packages can give clinic revenue a healthy boost. With service bundles, clients can experience a range of complementary treatments, leading to more noticeable and satisfying results.
Highly satisfied single-service clients are also great candidates for service bundles that include multiples of the same treatment, like a package of six laser treatments for hair removal, for example.
To get going with service packages, consider creating combos that pair popular services such as laser treatments with skincare products, or encourage trial of a new offering by pairing it with a current customer favorite.
As revenue enhancers, packages give clients richer experiences, encouraging repeat bookings and fostering long-term relationships.
The medspa sector saw unprecedented growth in 2023, and it shows no signs of slowing down. For medspas, staying competitive means constantly adapting to shifting trends.
To help medspas understand and respond to current trends, Zenoti created the 2024 Beauty and Wellness Benchmark Report. As the definitive source of industry data – in business for 14 years and powering nearly 30,000 beauty, wellness, and fitness businesses across the globe – Zenoti is uniquely qualified to create the report.
Four industry trends noted in the report translate to these strategies to drive revenue in 2024:
The four strategies give medspas facing sluggish revenue growth a place to start.
Do you own or operate a medspa? The report also includes benchmark data for top-performing, high-achieving, and average medspas based on their 2023 revenue totals. Read the report to see how your medspa stacks up for eight key metrics, including revenue per center and utilization rate.
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