The Power of Collective Wisdom [If You Want to Go Far, Go Together]

@cryoprosunited Oct 07, 2019
 

What Works for Other Cryotherapy Businesses May Also Work for Yours

A Few Ideas from Conversations in Cryotherapy Owner Forums

Over the years, I have been paying close attention to the conversations in various internet forums for cryotherapy businesses, and the input from the peers has helped a lot. It also convinced me that sharing the experiences in a more structured way would help, so that more people can benefit (that's how the CryoProsUnited idea was born).

For a small business owner, the most expensive resource is TIME. Any research is very time-consuming, and not every useful online conversation could be picked up.

This article not only summarizes observations and ideas expressed by various cryotherapy business owners, but also refers to very practical advice and sources of information and products. Just pick what appeals to YOU and put it to work!

 

But let’s start with a little self-assessment first to establish where YOUR business stands and, therefore, what it needs most.

What Should be Your Highest Priority Depending on the Status

(perspective offered by Malachi Munroe, a partner in a Florida-based cryotherapy business and a marketing expert, owner of Munroe Media Inc.)

Every business’s main focus shall be rooted in the current stage of development that is closely related to the top “must implement” actions. Here’s some benchmark data:

IF the monthly revenue is below $10,000, there probably is an issue with having enough clients come through the door predictably and regularly.

In this case, “how to get more clients” should be the question to ask, and seizing the opportunity (marketing) should be the focus. Work on lead generation and booking appointments, i.e. building the client base, while also looking for the ways to have them come back.

Mark Murdock, former Managing Director of CryoUSA, now running his own consulting business NSIA Consulting, stresses that having not enough clients is rarely the main problem, unless the business is brand new. In most cases, the data base of people who have been through the door at least once is large enough to sustain the business even if only 10% became members, i.e. regulars. If that number could be increased to 20%, or beyond, the business would never have revenue issues; so, even in the early stages getting more appointments should go hand in hand with providing incentives to return – buy packages or memberships.

IF the monthly revenue is around $15,000 to $25,000, it’s a sign of having a pretty good business (location that’s convenient for the target audience, a working system for lead generation and conversion, word of mouth advertising), but there is a potential to sell more.

How to generate more revenue (sales) per client should become a priority. A Premium membership option, larger packages and package upgrades, complementary wellness products could all improve the numbers here.

When the monthly revenue exceeds $30,000, it’s time to stop being overly closely tied to the business (being a tireless owner/operator). The focus should shift to strengthening the brand rather than marketing for leads and to building a team. This is also the time to start thinking about scaling - adding new locations.

Reliable processes and fulfillment (quality of service) must be the priority as it establishes the brand and builds loyalty and brand ambassadorship among fans.

For cryotherapy businesses that make more than $40,000 per month, operations management becomes a key. It’s a healthy business, the owner of which can afford to no longer be the operator and can focus on working on it rather than in it. The business has reached the zone of maturity and maximization, and the question now is: where next? The options include scaling, as well as selling.

Are You Missing Opportunities by Making These Same Mistakes?

(based on analysis of the approaches by 20 cryotherapy providers in Denver area, Colorado, by an independent marketing consultant Dylan Bradley)

Findings and suggestions:

(1) Just 7 out of 20 companies had a Facebook Pixel.

It is a FREE “must have” tool that helps collect valuable data on your audience’s behavior if also installed on the website.

(2) Only 3 or 4 companies were running Facebook ads.

You've already paid to get people to the website and should not just let them go. Once Facebook Pixel is installed, it’s easy to set up re-targeting ads to those who have visited the website, possibly, without taking any action.

(3) Only 7 out of 20 companies had any sort of lead magnet (e.g. special offer) on their websites.

Designing an appealing special offer maybe a powerful lead magnet. This one offer should not bee seen as a money maker but a way to capture a lead that could then be moved through the marketing funnel through retargeted Facebook ads and e-mail marketing.

A solid up-sell process in place will ensure that profit is made in the back end of the funnel.

The special offer, once designed, could also be promoted via “cold” Facebook ads. Hardly any cryotherapy business is doing this, although Facebook allows to run ads for very specifically defined local audiences, thus minimizing overspending.

(4) The social media marketing lacked engaging original content.

The easiest way to create it is via capturing and telling real client’s experiences and success stories or video updates on what is happening and what are the hottest offers (see the Wine & Chill event example from ChillRx below).

(5) The websites were slow and difficult to navigate, and the online booking was way too complicated - too much information required and too many steps/clicks to sign up, thus scaring away prospects.

In many cases, a better way would be to capture the interested person’s contact information and to reach out to them individually to schedule an appointment.

Is a Discounted First-Time Offer a Good Idea?

(multiple business owners said they were either not doing it or had stopped doing it over time, as it would attract mainly cheap deal seekers without an intention to come back. A more detailed explanation was offered by Tara Mechaley, the owner of the South Dakota-based The Body Spa & Cryotherapy

“I would like to share my perspective on $20 first-time offers”, Tara said. “We don’t offer a first-time discount, yet we do have a “buddy discount” that gives $10 off if you bring a friend. The reason we don’t is because I personally feel it brings people into the door but does not keep them. Cryo is a treatment that many won’t feel benefits of after just one session; so, a person who comes in curious and comes for the discount takes the discount and leaves without coming back. As a result, you have not secured their business AND they have left feeling that there was no value to their session other than the discount.

We have a 3-pack, 6-pack and 30 day unlimited that the appointment they just paid for goes towards.

We also offer a $5 selfie discount. If the person takes a selfie or has a picture taken of them and posts it on social media with us tagged before they check out, we apply the $5 discount to whatever package or service they buy. Clients live this, and it spreads our name to areas of social networks we don’t normally show up in. Free marketing.

By not discounting the first session we can weed out who will actually use our services regularly and secure an up-sale to guarantee continued business AND better results for the client. Plus, we hold our value instead of appearing like a wellness gimmick.

I have also seen businesses do $20 Tuesdays. This appears desperate, and all it guarantees is that clients only book appointments on Tuesdays. That cuts income potential.

We do RARELY throw in “buddy days”, though (buy one get one free) on historically slow days to re-excite clients, but we only advertise it 2 days prior as a “flash sale”, so that we do not lose regular business throughout the rest of the week.”

Most cryotherapy business owners would share the view of building and explaining value rather than discounting, not only to the first-time clients. We’ve also discussed it in a blog post on competing on value, not price. You can access it here

Discount as an incentive should be used sparingly to avoid people only buying at a discount. Instead, one or two major promotion campaigns could be planned to pre-sell packages (like 6-12-month memberships) and to boost cash flow.

Using Events to Attract More Visitors

(the experience of Paul Musho, the owner of Chill Rx Cryotherapy in Red Bank, New Jersey)

For quite some time, Chill Rx Cryotherapy has been offering Wine & Chill Fridays.

After coming across a sponsored article on the local news website TAPinto.net, I decided to reach out to Paul and ask how these events have been helping to grow his business, as the message has definitely been attracting attention. I caught myself thinking that if only I lived in Red Bank, I would be there 😊.

Here is what the advertisement said:

“What are you doing after work?

Well, instead of sitting in a dark bar with your friends or significant other, have a couple glasses of wine and tasty hors d'oeuvres at ChillRx Cryotherapy, starting at 5:00pm and lasting till 8:00pm.

The owner and staff will be glad to show their cutting-edge healthcare and beauty technology that provides numerous non-invasive therapies for specific ailments.”

ChillRx Cryotherapy Red Bank store is a self-funded franchise that Paul opened in November of 2018. It’s located in a busy downtown area where people both work and play. 15 restaurants are within a walking distance. Thanks to the portfolio of services and creative approach to marketing, the business has been doing well, although it’s just approaching the 1st anniversary.

ChillRx has long hours (7:00am to 8:00pm during the week and 9:00am to 4:00pm on the weekends) to cater to the needs of the target audience. The services offered include whole body cryotherapy, local cryotherapy, cryo facials, infrared sauna, sonic wave, ChillSculpt, ChillSkin and NormaTec compression.  Over 50 customized protocols have been developed for specific health and wellness conditions, and various packages help clients choose the best regimen for their needs (to benchmark, check out https://redbank.chillcryo.net/)

Wine & Chill Fridays (5 pm to 8 pm every Friday) were introduced to serve both people leaving work and coming to downtown for dinner or entertainment, and they have been well received, resulting in 5-10 extra visits every time.

Paul is now ready to introduce Coffee & Cryo mornings between 7 and 9 am to invite more people before they go to work.

Boosting the Bottom Line with Products that Complement Treatments

(the discussion was initiated by Cryo-X in Grapevine, TX, seeking new ideas for the upcoming holiday season)

Here is a summary of products that were suggested as "in demand" by various cryotherapy locations:

Collagen, protein powders, vitamin drinks, snacks:

Kelly Carden, the owner of Cryo1one recommends Vital Proteins (collagen peptides, collagen water, collagen powders). More info: www.vitalproteins.com

Fernando Vega, the owner of Cryo XL, has great experience with vitamin drinks from LIFEAID Beverage Company: www.lifeaidbevco.com

Tiffany Milroy Jimerson with Chill Out Charleston offers Organo Reishi Coffee. It contains ancient Chinese mushroom Ganoderma lucidum, reported to have numerous health benefits, including improved immune function. Various brands and sellers available.

Along with coffee, some cryotherapy providers have started offering breakfast using the appeared on Shark Tank ready-to-eat overnight oats Mush, sold in sealed portion size containers and available in different flavors: www.eatmush.com.

CBD products:

Cryo-X in Grapevine, TX, names CBD gummies as their bestseller and recommends www.justcbdstore.com as a source.

Many other providers, including Marcus Metcalf, the owner of Recover in Tulsa, OK, successfully sell CBD-infused pain-relieving creams.

Other products:

Kai Stubbe, co-founder of Cryo Science, has transformed his experience with cryotherapy into the world’s first set of supplements specifically for the cryotherapy industry: www.CRYOxCELLence.com.

Susan Franklin with Evansville Cryo recommends cold roller balls from www.recoupfitness.com.

Cryoluxe offers both cooling pain relief cream Cryofreeze and Cryoball: www.cryoluxe.com.

You may also be interested in growing in popularity neck hammocks developed by Dr. Sudell and named “one of the best health finds of 2019”: www.neckhammock.com, especially if your services include massage, chiropractic adjustments or physical therapy.

Recovery sleeves, wraps, or shoulders designed to make icing at home easy may be of interest if you specialize in recovery: www.coolcorpinc.com

The bottom line is that offering selected health and wellness products for sale along with gift cards, particularly in the gifting season, may be the revenue boost that you have been looking for.

P.S. The above is just a summary of recommendations offered by the named cryotherapy entrepreneurs. None of the links provided hides an affiliate interest. All information has previously appeared in the public space.

 

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CryoProsUnited was established  to be a RESOURCES and RELATIONSHIPS company for cryotherapy businesses and to unify the industry FOR SUSTAINABLE GROWTH.

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