Why it matters:
- 82% of consumers consider wellness a top or important priority in their everyday lives, according to a McKinsey report.
- And they place a high premium on data- and science-backed health and wellness solutions, the report found.
- At telehealth disruptor Hims & Hers, which has grown to $872 million since its 2017 launch, 30% of its customers are choosing data-driven personalized healthcare solutions, such as prescription medications tailored to individual patients.
Hims & Hers Health is taking a segmented, deliberate approach to growth that leverages its technology capabilities and unique business model, as well as consumers’ ever-increasing interest in health and wellness.
The data-driven telehealth company, which launched in 2017 with a focus on providing treatments for men’s sexual healthcare (SHC) issues and hair loss, has since expanded into women’s health and wellness needs to serve five different specialty areas: mental health, sexual health, hair care, skin care, and weight loss. It provides patients with access to both over-the-counter and prescription drug treatments and other products for health conditions after remote consultations with licensed healthcare providers.
An estimated 100 million people in the U.S. suffer from one of these or more of these conditions, Melissa Baird, Chief Operating Officer, at Hims & Hers Health, told CO—.
“Each specialty that we have launched represents a subset of the healthcare industry that has been relatively underserved to date, [which] is indicated by a massive disconnect between those seeking treatment and not receiving it,” she said. “They’re seeking a solution.”
Hims & Hers COO on leaning into growing trends: telehealth and wellness — particularly among millennials and Gen Z
A Grand View Research report estimates that the global telehealth market, which surged during the pandemic, totaled $101.2 billion in 2023, and is expected to grow at compound annual rate of 24.3% from 2024 through 2030.
Meanwhile consumer demand for convenient health-and-wellness solutions is increasing. A McKinsey & Co. report estimated that the wellness market in the U.S. has reached $480 billion and is growing at 5% to 10% per year. It found that 82% of consumers consider wellness a top or important priority in their everyday lives, and this is especially true for both Gen Z and millennial consumers, who purchase more wellness products and services than older generations.
The report also identified several trends that align with the Hims & Hers business model, including an interest in both at-home diagnoses and personalized treatments.
About 20% of survey respondents in the U.S. said they look for products and services that are backed by science and data to provide recommendations.
“There is an opportunity to pair these tools with generative AI to unlock greater precision and customization,” the McKinsey report concluded.
Each specialty that we have launched represents a subset of the healthcare industry that has been relatively underserved to date, [which] is indicated by a massive disconnect between those seeking treatment and not receiving it.
Melissa Baird, Chief Operating Officer, Hims & Hers Health
Data-driven heart health to weight-loss treatments poised to yield ‘millions of subscribers, and that many more people cared for’
With seven years of experience providing wellness-related treatments and gathering information, Hims & Hers Health, which boasts 1.7 million subscribers and counting, has a sizable trove of data it can analyze around patient preferences and the barriers to effective treatments. This is enabling the company to offer more solutions that are tailored to each individual, which can include combinations of different medications, or adjustments to the doses of prescribed medications, or different forms of those medications — gummies instead of a pill, for example.
The efforts around personalization, Baird said, are helping the company grow within each of its specialty areas.
“By understanding our customer and striving to provide a solution that is tailored specifically for each of them, we’ve seen an opportunity to drive double-digit penetration into each of these specialties over time,” she said. “That’s going to translate to tens of millions of subscribers on our platform, and that many more people cared for.”
An example is the launch last year of Heart Health by Hims. As heart disease is the leading cause of death of men and women in the U.S, according to the CDC, Heart Health aims to promote men’s cardiovascular health and by extension, their SHC, as the two are often related, Baird said.
Through Heart Health by Hims, healthcare providers can personalize treatments to combine active ingredients found in clinically proven medications to address multiple conditions in one pill, leveraging the brand’s technology and pharmacy capabilities.
Hims & Hers Health customers have responded to the brand’s expanded treatment opportunities, Baird said, noting that by the end of 2023, 30% of customers were choosing personalized treatment options, such as its prescription chewable mints, which can be compounded specifically to meet the needs of individual patients, and other personalized solutions in areas such as hair loss and weight loss.
In May, Hims & Hers added to the growing list of companies like WW and Noom to add GLP-1 medications such as Ozempic to its offerings to help users with weight-loss management.
To receive customized weight-loss treatments, for example, patients fill out an online survey in which they describe their goals, their eating and exercise habits, and other information that helps the company provide a personalized treatment plan. Today nearly all patients undergoing weight-loss treatments with Hims & Hers are in customized treatment plans, said Baird.
[Read: Emotional Rescue: (Unexpected) Brands Are Building Wellness Into Marketing Plan]
Tapping AI to identify potential healthcare solutions more precisely
Hims & Hers is increasingly using artificial intelligence (AI) to parse its data to improve the experience for both patients and the healthcare providers it works with. Last year, Hims & Hers launched MedMatch, a generative AI tool that taps millions of anonymized data points from millions of customers to help providers identify more precise and potentially more effective treatment solutions for patients, such as mental health care options, faster.
“That translates into better efficacy [and faster recovery] for that patient,” said Baird. “And that in turn drives loyalty on the platform.”
Hims & Hers also seeks to leverage the holistic nature of its platform, in which it seeks to remain connected with patients from their initial screening through their provider consultations and treatment regimens. By combining drug prescription fulfillment with medical consultation and record-keeping, the company maintains that it can adjust treatment plans over time and better monitor patients’ adherence to their prescribed treatment plans.
As the company continues to expand into more treatment specialties, it is able to leverage this approach, and the technology tools it has developed to execute it, across the different health conditions it seeks to treat.
“Once we started personalization in one category, it resonated so well that we started across the entire subset of categories,” said Baird.
Although the different areas of specialty have some commonalities, Hims & Hers has an in-house medical lead and an external medical advisory board for every specialty, which helps inform treatment aspects such as safety and clinical rigor. In addition, some treatments — such as for mental health or weight loss — might require more interaction with providers than others, and the company has designed its platforms to accommodate these differences, Baird said.
With $872 million in sales in 2023, Hims & Hers is eying ongoing growth, she said. “Our expectation is for momentum to continue.”
CO— aims to bring you inspiration from leading respected experts. However, before making any business decision, you should consult a professional who can advise you based on your individual situation.
CO—is committed to helping you start, run and grow your small business. Learn more about the benefits of small business membership in the U.S. Chamber of Commerce, here.
CO— Exclusives: Insider Strategies
How the buzziest brands and hottest startups are solving today's biggest business challenges. CO— brings you advice from startup founders and top executives for thriving in a new world.
