Key Takeaways
- According to the AHA, companies that drive the post-pandemic economy will focus on subscription-based programs. Subscriptions are a great way to garner tremendous revenue in short period of time.
- Gamification monetization strategy is proven to engage patients quickly and improve their diet, walking, and overall wellness.
- Promotion of telemedicine services on website and social media maximizes patient visits, thus increasing cash flow for healthcare practitioners.
- Optimizing patient time averts waiting time and ensures a steady revenue cycle for practitioners.
The most obvious question that ponders in the minds of healthcare development companies is how to monetize healthcare apps. Or what’s the best way for telemedicine app monetization?
One size doesn’t fit all, hence revenue strategies will vary for different healthcare apps. In case of telemedicine applications, developers need to carefully select a revenue model based on features and services offered.
According to statista, in 2021, over $208 billion was generated through advertising revenue model, whereas in-app purchase generated $185 billion. These methods proved to be effective monetization tactics. However, there are other techniques which are increasingly becoming popular amongst well-known commercial applications such as Spotify, Netflix, and Amazon.
Let’s look at 13 telemedicine app monetization tactics that both healthcare development companies and medical practitioners can implement.
13 Monetization Tactics for Telemedicine Apps
For Healthcare Development Companies
1. Premium Model
The most straightforward method of telemedicine app monetization is the premium model. Mobile app development companies can use this strategy to get instant revenue. Under premium model, a user purchases services or products directly from a telemedicine app for a one-time fee.
Though premium model results in higher revenue per download, it isn’t a profitable tactic. Users are likely to prefer a free app which offers the same services. The likelihood of people using a premium telemedicine application depends on the type of services offered.
A premium application is likely to do well in the market if it offers some unique features. For instance, the premium version of YouTube provides ad-free video streaming, built-in video downloads, background listening, YouTube music, and much more. Just like this, for telemedicine applications, app developers can install unique features that sets the app apart from the rest.
2. Freemium Model
A freemium monetization model is in which companies offer limited features for free and users need to subscribe for advanced features or services. The key goal of the freemium model is to attract new users. If development companies aren’t succeeding with this goal, then the installed features aren’t compelling enough. Or in some cases, companies have made the wrong choice of selecting free features.
Another scenario could be that there’s too much traffic on telemedicine app, but fewer premium subscriptions. In this case, free offerings are too rich, hence it’s time to cut back a bit. Consider reviewing Dropbox and LinkedIn studies if planning to implement freemium model for telemedicine app monetization.
According to a Harvard Business Review, Dropbox attracted 200 million users because it offered two gigabytes of cloud storage for free and if users run out of storage, they can easily buy it for $9.99 per month. Furthermore, pay close attention to target conversion rates. Too many conversions isn’t a good sign as it indicates that free services lack quality. On the other hand, giving too much for free devalues what’s being offered on premium.
3. Subscriptions
For years now, notable companies such as Netflix, Amazon, and Microsoft are using the subscription based monetization model. This model has given these companies tremendous success rate.
According to the American Hospital Association (AHA), companies that drive the post-pandemic economy will look beyond episodic and transactional relations with consumers and instead focus on subscription based programs.
Subscription model helps healthcare development companies to connect with users in a convenient way. Thus, building a steady cash flow and user base. This model is useful in predicting revenue for each month as consumers are paying continuously. Therefore, this prediction helps to determine accurate resources of company.
4. Gamification
Games in particular not only excites kids but also people from all age groups. The adrenaline rush, competitiveness, and sportsmanship spirit experienced while playing any type of game develops a strong personality.
As per a report by Zippia, a job posting site, companies that use gamification at work are seven times more profitable than those who don’t use it. Similarly, gamification in the telemedicine apps empowers patients to manage their health even better.
Gamified apps can help people with cardiovascular diseases to ameliorate their diet, walk, water intake, etc. The best example is EveryMove, a web application that collects data from trackers and apps and compares it with other people. This promotes social competitiveness and a user might go the extra mile for his/her fitness.
Another though provoking case is that of the Blue Shield California, a not-for-profit health insurer that makes wellness fun through social media. Participants earn badges, points, and status. Blue Shield states that out of the 80 percent of its employees, 50 percent reduced smoking after indulging in fun activities.
5. Create Payable Content
Creating payable content is a telemedicine app monetization strategy that works well if users are seeking peer-to-peer services or valuable educational content. Payable content strategy can be applicable for both patients and doctors.
Both maybe able to view limited content for free and to check additional content they need to sign-in and pay a subscription fee. Doctors are likely to pay to keep themselves up-to-date with recent advancements in the healthcare sector.
6. In-App Purchase Option
In-app purchase option allows developers to provide application for free. Development companies can advertise their upgrades, paid features/services, items for sale, etc., to anyone who downloads an application.
In-app purchase uses payment methods that’s offered by the app stores such as Apple or Google Play. These app stores are known for their security, privacy, and seamless experience.
The host store registers a developer account as application is built on their platform. Then, store charges a commission from the developer’s app revenue which is 15 percent currently. In-app purchase is conducted via mobile devices, hence unauthorized purchases gives rise to security issues.
7. Free Gifts
The word ‘free’ is enough to attract hundreds and thousands of consumers. Free services or products are a major attraction for people, because why not. It’s free after all. Providing free services is a smart move to surge traffic on application and to motivate users to use the app more often.
Some of the free services can include:
- Free calorie/weight calculators for weight loss and fitness.
- Providing a free medicine kit which encompasses personalized medications for those who adhere to their fitness routine regularly.
- Offering free checkups to new users.
8. In-App Advertising
In-app advertising is easy to implement because it provides a straightforward way to earn money with a telemedicine application. Healthcare development companies can think of collaborating with a mobile advertising company to generate ads that provide users services or products in their area.
Further, in-app advertising works according to pay-per-click or pay-per-view method. Some of the video ad developers pay app owners depending on the number of videos watched by users. This type of telemedicine app monetization tactic allows companies to reach target audience based on the app’s demographics.
Consider generating ads that don’t interfere with users’ experience and is bothersome as users may quit using the app due to constant disturbance of ads. Some of the in-app advertising formats include video ads, pre-poll ads, native ads, and banner ads.
9. Sponsorship
This tactic includes embedding a sponsors’ logo in the application in the form of a pop-up or an icon. Sponsorship can also include highlighting special offers by brands and promoting a sponsors’ post.
Telemedicine app development companies can rope in influential sponsors from the healthcare sector. This will enhance credibility of a healthcare application by ten folds. Additionally, this approach will prove to be beneficial in the medical sector as apps are promoted via sponsors and their logos.
For Healthcare Professionals
1. Maximize Patient Visits
According to the American Medical Association (AMA) survey released in 2022, physicians have enthusiastically embraced telehealth and expect to use it even more in the coming years.
Increase in the use of telemedicine application calls for a robust strategy to maximize patients visits, which eventually would contribute to revenue generation. Healthcare practitioners can augment patient base by understanding who to reach. For instance, consider answering questions such as:
- What percentage of patients come from rural and urban areas?
- What time of the day patients request appointments the most?
- Who are common walk-in or urgent patients?
From these questions, practitioners can capture specific traits of patients and also situations that can lead a patient to use telemedicine services. Further, an easy-to-access telemedicine app is preferred by a majority of people. Hence, consider partnering with a telemedicine app development company which caters to these needs.
Promote telemedicine services via website or social media to build a robust user base. Additionally, integrate ratings and reviews of telemedicine services because maximum people tend to judge a service via reviews. All of these practices can help healthcare professionals to surge patient visits, thereby increasing the cash flow.
2. Improve Clinical Skills
Being better than other healthcare professionals will increase your demand amongst patients. This eventually contributes to a growth in revenue. Some of the best ways to improve clinical skills are:
- Find a mentor: A person with considerable professional experience can help to identify shortcomings and guide on how to improve them.
- Pursue Higher Education: Continuing education is a great way to ameliorate skills. A master’s or doctorate degree updates a healthcare professionals’ knowledge and opens up opportunities as well.
- Obtain Hands-on-Experience: Attending seminars, workshops, and medical camps can improve skill set.
3. Optimize Patient Visit Time
Extended wait times, uneven revenue, and labor overruns are an indication of mismanaged time. Optimizing patient time visit is the key to avoid these issues. Healthcare practitioners can create a template for different visit types. Establish time system for follow-ups, new patients, emergency visits, and so on. Stick to this template.
Varying patient visit types creates a time difference and allows leeway to get clinic and hospital back on track. Further, optimize time by providing a preregistration process for new patients. This saves admin from tedious paperwork and averts long waiting hours at hospitals. Saved time can be used to see follow-up patients or anyone who needs urgent attention.
Next, stick to the schedule and remind staff the importance of time. Ensure that all patients arrive 15 minutes prior to appointment and those who arrive early consider moving up their appointment. Additionally, reschedule appointments for patients who arrive late or don’t show up. Doctors can fill up empty slots with patients who need it.
4. Increase Consultation Fees
Healthcare professionals can increase their telemedicine consultation charges as per market demands. At times, professionals are hesitant to increase their charges due to the fear of losing patients or negative pushback from insurance companies.
Assuming that certain specialist doctors are short in supply, amount can be hiked. Doctors who are hired in medical facilities may not have the authority to change pricing, but they can always look for new opportunities in the market.
Need Help to Build a Telemedicine App?
Arkenea, a healthcare software development company specializes in custom telemedicine app development that matches with the needs of healthcare organizations.
Our 10+ years of experience in the healthcare software development sector helps to analyze and pin point all the necessary features and functionalities required to develop a world-class application.
If you’re looking to develop a customized telemedicine software for your facility, then connect with Arkenea.