The Pareto Principle: Utilizing the 80/20 Rule in Your Aesthetic Business to Identify + Optimize Top-Performing Services, Products and Patients

Let’s begin by understanding what the 80/20 rule is all about.

The Pareto Principle suggests that 80% of outcomes come from 20% of input. In other words, 20% of causes generate 80% of results while the remaining 80% of causes generate the remaining 20% of results. The rule helps businesses to identify the key drivers of success and focus their efforts toward them to achieve optimal results. So, how can you apply the Pareto Principle to your cosmetic dermatology and aesthetic business strategy?

Here's a few smart ways to get the most out of your time and resources:

1) Identify Your Top-Performing Cosmetic Treatments, Aesthetic Services + Retail Products.

Analyze your sales data to determine which services and retail products generate the most revenue and profit for your business. Which ones get the most positive feedback from your patients? By focusing on these top-performing products and services, you can increase your revenue and elevate patient satisfaction.

For example, if you own a cosmetic dermatology practice and offer services such as laser skin rejuvenation, cosmetic injectables, and chemical peels, find out which treatments are most in-demand. Maybe 20% of your services generate 80% of your income. In this case, you can optimize your service menu and allocate more resources to the top-performers to maximize profits.

2) Target Your BIG Spenders.

Identify your top 20% of patients who generate the most business for your cosmetic dermatology practice or medical aesthetic business . These patients are your most loyal patients, who also tend to refer new patients to your business. Offer these big spenders a VIP patient experience with exclusive offers, personalized extras, and special promotions that keep them coming back.

Imagine, for example, that your medical aesthetic or dermatology practice serves more than 500 patients per month. You notice that a small percentage of those patients are repeat clients who consistently purchase multiple services, medical grade skincare products, and refer new patients. By focusing on these loyal patients and showering them with perks like priority booking times, exclusive offers, and upgraded rewards programs, you're much more likely to foster a sense of brand loyalty and increase your patient retention rate.

3) Optimize Marketing Efforts

The Pareto Principle also can aid your marketing efforts. 20% of advertisements tend to yield the highest ROI for businesses on average. Therefore, it's important to concentrate your financial resources on optimizing that 20% rather than attempting to deluge every potential patient with a marketing message.

Do a deep dive into your marketing data to determine which channels drive the most traffic and generate the most leads for your cosmetic dermatology practice or medical aesthetic business. Once identified, optimize your campaigns by targeting these specific channels, whether it is through creating Messenger bots that extend exclusive offers, Instagram ads that attract new followers, or YouTube influencer campaigns that guarantee a high view rate on your services.

Another component to keep in mind is encapsulated by the Pareto Principle's other side. If 80% percent of leads are not converting, this can inflate marketing expenditure. Analyze this data under the 80/20 rule to identify whether your marketing strategy should highlight fewer, more precise patient segments or needs to change its approach altogether.

By applying the Pareto Principle to your cosmetic dermatology practice or medical aesthetic business as a whole, you can easily identify and optimize on the 20% that drives the 80%—resulting in a more efficient use of your time and resources, increased patient satisfaction, and elevated revenue.

Connie Kurczewski is a medical aesthetic business advisor who works with dermatologists and aesthetic business owners on building top-tier practices with empowered teams and optimized processes, so they can reduce burnout and scale intentionally to achieve their professional goals.  Book a get acquainted call.