B U I L D I N G O N S U C C E S S

1. B U I L D I N G O N S U C C E S S

2. WHERE IS THE BUSINESS • As long as I’ve been an esthetician I’ve realized that I can physically only see 35-40 patients per week. I wasn’t going to get anywhere by simply doing service after service. The real money lies in the sale of products. • This may instill fear and apprehension in the physician, but the reality is, without product sales, the profitability of this venture will fail.” Susanne S. Warfield, Medical Esthetician Reference: Warfield, S. “Guide to Building a Medical Esthetic Practice”. Paramedical Consultants, Inc. 2001

3. WHERE IS THE BUSINESS • Defining the Skin Care Patient • Consumer Demand-The “Boomers” • 76 million baby boomers want to defy aging–major force in aggressive cosmetic technology development and “anti-aging medicine.” • Baby boomers and older comprise 51.2% of US population • Paradigm shift with increase in patients seeking “desire dermatology” and cosmetic surgery • Less demand for aggressive surgical procedures and significant post-operative recovery • Patients focused on wellness model of skin health Reference: Werschler, W.P. Skin & Aging, October, 2000, pp. 24-29

4. WHERE IS THE BUSINESS Chronology of the Skin Care Patient: Age 20-30’s • 20’s: Prevention, photo-protection, acne and hyperpigmentation • Treatment: skincare products; sunscreens; peels; glycolic acids • 30’s: Photo-protection and minimizing of photoaging • Treatment: skincare products; Botox injections; filler injections; breast augmentation; liposuction; peels Reference: AAFPRS Newsletter, Fourth Quarter 2001

5. WHERE IS THE BUSINESS Chronology of the Skin Care Patient: Age 40-50+ • 40’s: Correction of photoaging • Treatment: skincare products with more exfoliation; chemical peel; blepharoplasty; microdermabrasion; IPL • 50’s+: Reverse the damage - photoaging • Treatment: skin care products, facelift; tummy tuck; laser resurfacing

6. The Four Cornerstones of a Practice • Every patient who walks in the door should be given the opportunity to learn about: • Obagi Systems (Product or 1st Cornerstone) • Non-ablative Procedures (2nd Cornerstone) • Elective Surgeries (3rd Cornerstone) • Disease/Trauma (4th Cornerstone) The Four Cornerstones of a Practice

7. BUILDING YOUR PRACTICE Where is the BASE business? Right in your current practice! • 36% of cosmetic patients are repeat patients – Ask your staff to look through their existing files for potential patients • 34% of cosmetic patients have multiple procedures at the same time – investigate all option – teach your staff to include skincare products with the procedure • 51% of procedures are performed in the office • Offer combination of therapies in tiered fashion • Offer both “disease” and “desire” therapies • Patients can begin with simple cosmetic procedures/products and build up to more sophisticated ones

8. BUILDING YOUR PRACTICE • Where is your NEW business? Look for . . . • Patient Referrals. Do a “Bring a friend mailing or patient appreciation event.” • Nearby corporate buildings or large companies • Hook-up with health clubs (Curves, LA Fitness, The Spectrum, 24-Hour Fitness) • Hook-up with bridal stores • Hook-up with community associations/societies (churches, Women’s clubs, political organizations, etc.)

9. The Role of the Receptionist • Who do you have saying “Hello”? • Maintain a neat reception area. Make sure brochures are neatly displayed in reception area/procedure rooms/bathrooms • Reduce the clutter • “Seasonalize” product display area. Valentines, Spring, 4th of July, Summer, Fall, Halloween, Thanksgiving, Winter Holiday, etc. • The Receptionist and entire staff should have a fundamental understanding of skincare products sold in the office • Receptionist should be able to refer existing or potential patient to appropriate person in office for more detailed consultation • Train your receptionist to cross-sell; it can be indirect

10. The Role of the Aesthetician and/or Nurse • According to industry surveys, estheticians can generate an average of 50% of their gross daily revenue in product sales • Always set up next patient visits • Walk skincare patient to front desk to re-book • Put a system together to follow-up with patients • Track referral sources and send “thank you” letters to referring individual • Ask your patients to send in a friend and then send a “thank you” note or small gift for the referral • Have a referral card for the patient to give to the friend to bring in

11. The Role of the Aesthetician and/or Nurse • Listen to the patient’s needs • Review patient questionnaire • LAER to fully understand patient concerns • Educate patient on the Obagi Systems Skin Transformation Process • Utilize Obagi Systems Brochures, Before and After Pictures • Be creative - create your own educational guide to Skin Transformation • Share one Obagi Success Story! • Utilize Obagi Guide to Skin Transformation •  Schedule Follow Up • Let your patient know that you are committed to helping them achieve transformed skin

12. The Role of the Office Manager •  Oversee and aid staff in implementing a skin care program • Develop office protocols that allow all patients, current and new, to learn about skin care • Give every patient who walks in the door the opportunity •  Implement quarterly in office promotions • Featured product of the month specials • Gift with purchase promotions • Utilize your Obagi Sales Representative to plan your yearly Obagi Marketing Program

13. The Role of the Office Manager • Establish Practice Goals for Skin Care Sales • Brainstorm with staff on how to reach these goals • Set goals or programs for growth of skin care sales • Measure, monitor and motivate the staff •  Establish Employee Incentives • Percent of product sales • Percentage of sales for new patients • Quarterly commission plans • Yearly bonus plans

14. Role of the Physician • Be friendly; the staff will follow your lead • Create a teamwork environment; your patients will “pick-up” on the feel of the office • Support Staff Incentive Programs to help build Skin Care Business • Create staff incentives within practice to grow the business (individual and/or team orientated) • Set monthly goals or objectives and support staff to achieve those goals • Participate in new and existing Patient Events, open houses, etc. • Inform patient of the benefits of Obagi Systems • Reassure the patient that they are receiving the best in Rx Skin Care treatment • Reinforce the treatment programs prescribed by Nurse/Aesthetician

15. BUILDING YOUR PRACTICE In-office marketing ideas: • Replace magazines in waiting areas with your before and after cosmetic surgery books – patient and staff photos • Discount products two times a year to increase business in slower months • Feature a product or service for the month • Video with infomercial in waiting areas and exam rooms

16. BUILDING YOUR PRACTICE In-office marketing ideas, cont.: • Patient Surveys so you get to know your patient’s needs • Develop 5 different success stories to share with patients on a rotating basis and then ask for the referral if patient knows someone in that same situation who could benefit from cosmetic services • Website updated on regular basis • Create a service menu professionally displayed in reception area and procedure rooms • One for the office • One for the aesthetician

17. BUILDING YOUR PRACTICE In-office marketing ideas, cont.: • Offer free skin care consultation on first visit • Offer discount package – mix the cornerstones • Monthly or quarterly newsletters – e-mail • Have a Loyal Patient Reward Program that encourages existing patients to try new cosmetic services and directs new cosmetic patients to practice • Remember special days for key patients to build loyalty – great for the aesthetician or receptionist to manage • Example: birth date, anniversary, referrals, hobbies, etc. • Have a set of Birthday/Anniversary/General cards in your office

18. Transform Your Practice • Obagi Practice-Building System • If you take advantage of all four Obagi System opportunities, you are sure to grow your business

19. Transform your Practice It’s been proven that participating in any of the Obagi Practice-Building System Programs can grow your business But Participating in all four can Transform your Practice!

20. New Patient Additions • The number of new patients added to practice • Obagi will help you put a plan together to succeed

21. The Growth Planner • Most skin care lines say they work to help improve skin condition • At Obagi, we help you transform your patient’s skin, while simultaneously building your patient base How much do you want to grow?

22. Growth Planner Worksheet • Use this worksheet to start a custom Obagi Practice-Building System for your office

23. Top 12 Practice Builders • Maintain existing patient base and identify new patient on a monthly basis by participating in the Four Obagi System Practice-Builder Programs • Maintain a neat reception area that supports your practice’s services • Make sure your first impression is a good one! • Implement LAER – Objection Handling • Referrals – ask patients for referrals • Make sure every staff member knows the skincare products you sell in the office. • Share patient success stories and refresh/rotate them on a frequent basis • Implement/rotate one or two in-office marketing programs every quarter • Set monthly expectations/goals for your staff and support them in achieving them • Walk skincare patients to front desk to re-book • Make use of patient’s waiting time in the reception area and procedure rooms • Have a product inventory system in place

24. The Obagi Systems Give every patient the opportunity to have transformed skin: Obagi Nu-Derm Obagi-C Rx Obagi Professional-C & Cffectives

25. Obagi Systems Thank you for joining us today!