£500k red light therapy company is struggling to grow

Today on the podcast, we’re diving into a unique business that’s all about red light therapy with Bryan the founder of Red Light Rising

If you’re scratching your head wondering what that is, you’re not alone! I was in the same boat! But don’t worry, we’re about to unpack everything, from what red light therapy is to the marketing challenges this business is facing as it navigates a now crowded market.

The business landscape: From blue ocean to red ocean

A few years ago, this business was thriving in what the owner described as a “blue ocean”—a market with little competition. But fast forward to today, and that ocean is looking a bit more “red” as the market has become saturated with competitors. This shift has brought significant marketing challenges, and they’ve come to us for help.

What is red light therapy?

First things first: What exactly is red light therapy, and why do we need it? We had the pleasure of having Brian, the business owner, join us to explain. Red light therapy is a form of treatment that uses specific wavelengths of light, particularly red and infrared, to penetrate the skin and stimulate energy production in cells. This process has numerous benefits, from pain relief to improved skin health.

Brian’s company makes devices that allow users to enjoy these benefits at home, which is particularly appealing in regions like the UK, where sunny days are rare. Originally, red light therapy was something you couldn’t easily purchase in the UK, which gave Brian a significant advantage when he started his business in 2017. However, as the market grew, so did the competition.

The marketing challenges

Despite their early success, the influx of competitors has caused the business to lose market share. Several key issues have been identified:

• Facebook Ads tracking problems: Attribution issues led to wasted budget and ultimately, the decision to turn off ads.
• Google Ads inefficiencies: Previous agencies failed to deliver, leading to underperformance in this critical channel.
• SEO shortcomings: Their SEO strategy has lagged behind due to changes in Google’s algorithms, causing them to miss out on valuable organic traffic.

The importance of knowing your numbers

One of the first things we discussed was the importance of understanding the business’s financials. Brian aims to grow his business from a current turnover of £500,000 to £1 million within a year. However, without a clear plan and understanding of the numbers—such as the number of sales required and the expected average order value—this goal can feel more like wishful thinking than a strategic target.

Building a growth strategy

To successfully grow to £1 million, the strategy should involve:

• Product innovation: Brian has already begun to innovate with new product features, but it’s crucial to understand how these innovations will impact the average order value and sales volume.
• Channel-specific ROI: Each marketing channel, whether it’s Google Ads, Meta, or email marketing, needs to have a clear return on investment. This means knowing exactly what level of revenue is necessary to justify the marketing spend.
• Data-driven decisions: With tracking issues now addressed, it’s vital to use tools like Google Analytics 4 (GA4) to gather accurate data on traffic sources and conversion rates.

Content and education: The key to selling high-ticket items

For a product like red light therapy, which is relatively new to many consumers, education is key. Brian can’t rely solely on direct sales; he needs to nurture potential customers by educating them on the benefits of the product. This can be achieved through high-quality content, such as blog posts, videos, and social media campaigns, that explain what red light therapy is, how it works, and why it’s beneficial.

The road ahead

By taking a more scientific approach to marketing and focusing on the business fundamentals, Brian can reclaim lost market share and continue to grow. The journey involves understanding the numbers, creating a clear strategy for each marketing channel, and, most importantly, educating potential customers to build trust and authority in the red light therapy space.

Brian has a fantastic product with huge potential, and with the right approach, there’s no reason why he can’t hit that £1 million target and beyond. It’s all about aligning his marketing efforts with the business’s overall goals and making data-driven decisions to drive growth.

So, here’s to Brian’s journey—may it be as bright as the red light his products emit!

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