By Angela Burtch, Sr. Vice President, Merrill Research
3-Minute Read
Lip enhancement. Turkey Neck removal. Skin rejuvenation. Sculpting, enhancing, or changing our appearance is big business. So, in the ever-evolving world of aesthetic treatments, understanding market forces at work is critical. We’ve observed emerging key trends that include the rapid growth and expansion of the industry as evidenced by increased awareness and acceptance of treatments, technological advancements (new fillers, energy-based delivery, etc.), and increased consumer price sensitivity, to name a few.
Our recent market research study sheds light on these key trends and pricing strategies in this competitive field. With over 200 online interviews combined with telephone-aided to virtual interviews among medical professionals, this study offers valuable insights into the industry.
Methodology: A Blend of Innovation and Precision
One of the standout features of this study is the mixed-mode data collection approach. By combining online survey screening with virtual follow-up with screen share sessions, we ensured a comprehensive and engaging data collection process. This hybrid method not only increased participation rates but also allowed for real-time clarification and deeper insights. Mixed-mode surveys can enhance data quality and reduce nonresponse bias, making them a powerful tool in market research. Not to mention ensuring we are interviewing a real-life medical specialist and not a bot or other bad actor in a purely online survey. See another blog we wrote about data quality here.
The Power of Conjoint Analysis
A key component of our study was the conjoint exercise. Conjoint analysis is renowned for its ability to determine the optimal combination of features and pricing by simulating real-world purchasing decisions. By presenting respondents with various product attributes and price point choices, we could identify the most valued features and the ideal price range. And wait for it…we complemented our efforts in real-time using Zoom and shared our screens with respondents to complete the conjoint exercise. We used a panel of verified physicians and aesthetics decision maker respondents to recruit interviewees.
This method is particularly effective in any industry where there are many different pricing and package/service levels that can significantly influence consumer choices. And conducting it virtually is particularly effective when you want to target SME (Subject Matter Experts).
Key Findings: Pricing Insights
Our study revealed several critical insights, one of which was pricing strategies, including:
- Average Cost per Treatment: This provides a benchmark for the provider to evaluate their pricing strategies.
- Desired Price per Treatment Area: Based on over 15 variables, our client learned the importance of tailoring pricing strategies based on multiple “discrete choices,” including specific treatment areas and consumer preferences.
These findings underscore the need for flexible and dynamic pricing and service offerings that can adapt to market demands and consumer expectations.
Conclusion
This market research study offered a comprehensive view of the aesthetic treatment landscape, providing actionable insights for industry professionals. The use of mixed-mode data collection and conjoint analysis not only enhanced the quality of our findings but also demonstrated the efficacy of these methodologies in capturing nuanced market subtleties. Interested in the methodology? Contact us, and we will help you succeed.