Hydrafacial has partnered with aesthertic dermatology chain LaserAway as the facial service company builds out its reputation for driving incremental sales.
With the partnership, Hydrafacial is billing itself as a gateway treatment that brings customers through the door on a near-monthly basis. Customers can then load up on the additional treatments LaserAway offers, like injectables, laser hair removal or body contouring. According to Hydrafacial-owner Beauty Health, the average HydraFacial customer visits just over three treatment providers per year. Hydrafacial is a commonly available treatment at facial spas, and the brand does frequent advertising and influencer promotion. A typical HydraFacial service retails for under $300 per session. Andrew Stanleick, CEO of Beauty Health Company, said that 90% of Hydrafacial customers go on to receive additional services such as microneedling or injectables.
“There is a real opportunity for [partners] to use HydraFacial to build a relationship with a consumer and then upsell them other services,” he said.
Beauty Health’s second-quarter earnings will take place on Aug. 9. The company’s first-quarter earnings, reported in May, stated that net sales for the period were $86.3 million, an increase of 14% year-over-year, continuing its trend of double-digit quarterly growth. Beauty Health also raised its fiscal year 2023 net sales guidance to $460 million to $480 million, owed to continued strength in consumer demand, strong global traction for its newest Hydrafacial machine called Syndeo and a re-acceleration business in China. The medical channel is 60% of Beauty Health’s sales in the U.S. Hydrafacial has existing partnerships with medspa chains, including Ever/Body, and Sephora stores. Hydrafacial is the cornerstone of Beauty Health’s portfolio, what also includes SkinStylus microneedling and Keravive scalp exfoliation.
LaserAway, founded in 2006 and with 130 locations, received a strategic investment from private equity firm Ares Management in 2021 and does not disclose sales. Approximately 50% of its revenue comes from non-laser services, said Scott Heckmann, co-founder and CEO of LaserAway. The American Med Spa Association estimates that the U.S. medspa sector will see 29% revenue growth through 2025.
Although what percentage of revenue spas and similar businesses earn from treatment packages is unclear, they are a popular sales tactic for such businesses. They guarantee a regularly returning customer, serving as a reliable revenue source. By the fourth quarter, Beauty Health will launch a Hydrafacial loyalty program, connecting customers to providers and offering personalized information about the treatments they’ve received via the Syndeo device. Heckmann said that LaserAway, for its part, has a loyalty program called LaserLove, and that Hydrafacial will be an option for members to earn points. The idea is to become a one-stop treatments shop for LaserAway customers. He declined to provide an exact figure, but said LaserAway has several hundred thousand members. Beauty Health and LaserAway will jointly promote the new partnership via advertising, influencer partnerships and marketing campaigns.
“[Our strategy is] using the LaserLove program to make sure that when people spend money at LaserAway, it goes toward other services that they want,” he said. “We want people to stay in our four walls.”