The healthcare industry is entering a new phase-ready to influence the delivery and consumption of healthcare. Yes, the digital revolution has penetrated into the healthcare sector.
It is easy to point out that the Covid-19 pandemic has stimulated this change, but it has been going on for several years, although it is undeniable that the pandemic has already had an impact. Combined with innovative telemedicine practices, D2C (direct-to-consumer) healthcare brands entering the market and patients taking more proactive approaches to their healthcare have also increased. Driven by several other emerging trends, these factors have created a new paradigm for the healthcare industry.
Trends that are driving changes in healthcare: costs, cancellation of prescriptions, and changing consumer mindsets
Data by Peterson Healthcare and KFF Center Shows the sharp rise in the cost of traditional medical care. In 1970, the United States spent slightly less than 7% of GDP on health care expenses. In 2019, a few decades later, healthcare expenditures accounted for almost 18% of GDP. From this perspective, the health care expenditure in 1970 was approximately US$350 per person, while the cost in 2019 was US$11,582. If you look at the value of the U.S. dollar in 2019, this means a 6-fold increase.
The high cost of healthcare deductibles has driven a fundamental change in young consumers’ perceptions of the industry. Many people are now more willing to pay more for seeing a doctor if that means paying monthly for services they may not use. However, the lack of healthcare plans makes it easier for this growing group to pay higher costs for prescription drugs because they cannot take advantage of discounts negotiated and supplemented by large healthcare companies.
For patients who only need occasional prescriptions, this situation will not go bankrupt, but for patients with chronic diseases, the cost may become astronomical.For example, the data comes from Medical Expenditure Team The survey showed that compared with 2005-2007, the average annual cost of hypoglycemic drugs for the treatment of diabetes increased by 47% (from US$1,106 to US$2,727) in 2015-2017.
In the past few decades, we have also witnessed a significant increase in doctor overprescribing. People only need to pay attention to the epidemic of opioids to see this, but it can happen to any number of drugs, especially around drugs that treat chronic diseases. Patients have realized how much drug companies spend on marketing drugs and the deep relationships they have established with doctors to promote these drugs.
This consumer awareness has driven two other trends: the elimination of prescriptions and the search for natural alternatives. The Canadian Cancellation Network defines prescription cancellation as “a means to reduce or stop drugs that may be useless or that may cause harm. The goal of prescription cancellation is to maintain or improve the quality of life.” Of course, prescriptions should not be cancelled for life-saving drugs. However, many drugs do not provide sufficient benefits, and at the same time, patients are prescribing more prescriptions, taking more pills, and paying more than in the past few years.
Today, patients play a more active role in their healthcare. They are asking the doctor about the necessity of specific drugs. They are using more wearable devices to track their health, and they are looking for natural alternatives to prescriptions. As trends change, the market has opened the door to less traditional patient care methods, and D2C healthcare brands, whether they focus on telemedicine, wearable devices or natural supplements, can fill the gap and provide what patients need Care and solutions.
Challenges and opportunities of D2C medical brands
D2C brands face several potential obstacles when entering this budding ecosystem, but with the right methods, they can be resolved and turned into advantages.
Perhaps the most difficult challenge to overcome is collecting user data. Today, consumers are more aware of how their data is accidentally used, sold or exposed. A Rock Health report shows that although 73% of people are willing to share data with doctors, only 10% and 19% of people are willing to share data with technology and pharmaceutical companies, respectively. Data is very important for companies, especially those who want to use data to provide more personalized services.
Trust is an important factor for users, whether in terms of patients sharing data or purchasing products from new companies. Patients naturally trust medical professionals they know, but D2C brands need to build their online reputation to build customer confidence. By acknowledging this and using optimized e-commerce strategies, brands can use existing customers to attract new customers. Encouraging consumers to leave product reviews and answer questions from other patients about the product will greatly help establish social proof of effectiveness, trust and truthfulness.
The core of each brand’s successful strategy should be to emphasize consumer participation and add value to each consumer, not just the product. D2C brands should seek to establish an active online community where consumers can discuss their health journey in a safe environment and seek advice and support from peers. When brands invest in building online communities, they will send out and establish themselves as compassionate, customer-centric companies that focus on a holistic approach, not just sales. A true D2C healthcare company needs to truly integrate this empathy into the organizational culture.
D2C’s way to win
There is no doubt that the era of mobile healthcare is coming 85% of Americans Have a smartphone. Proactive healthcare providers can take advantage of the fact that patients can access anything 24/7. By implementing a D2C strategy, healthcare providers can meet customers where they are and provide them with the information they need on demand.
D2C brands with tangible products can also take advantage of the rise of e-commerce. Now, it is easier than ever for them to open an e-commerce store online and directly market to the people most likely to be interested in their products. By directly facing customers, brands can establish direct relationships through personalized service and easier access. The D2C brand can fill the “all-in-time” mentality that consumers have become accustomed to, thanks to e-commerce, which is more convenient than traditional healthcare providers can’t provide.
By using technology in combination with digital patient intake forms, artificial intelligence, and monitoring technology, D2C brands can make themselves invaluable to ordinary people. They can provide relevant educational materials through push notifications or alerts based on user actions or instant biometric technology. This one-to-one approach provides the personalized care that consumers now need from any company they contact (including companies in the medical industry).
Now is an exciting time to enter the field of D2C healthcare. Opportunities exist in many areas of the industry, and patients are eager for a more engaging and user-friendly experience more than ever. For D2C brands that are ready to take advantage of the ever-changing market, the sky is limitless.
