The healthcare tech market is booming like never before. From fitness trackers to workout guide platforms, healthcare apps are transforming the way we use to manage our well-being. But a major question that every healthcare organization must answer is how to turn a valuable health service into a sustainable business?
Setting up monetisation within a healthcare app isn’t as simple as monetizing a social media platform. You need to build a balance between revenue as well as user trust, data security, and ethical responsibility. One wrong step can hurt your bottom line and damage your reputation for a long run.
This guide provides you with the most effective monetization strategies for healthcare apps, and how healthcare app development services help you choose the right model for your product and your audience.
Understanding the Healthcare App Landscape
Before you devise your mobile app development strategy, make sure you understand your app’s category:
- Patient-Centric Apps: Create mobile apps that help with fitness, wellness, meditation, symptom checkers, chronic disease management.
- Clinical & Medical Apps: Develop a mobile app that focuses on niche, such as telemedicine, electronic health record (EHR) access, remote patient monitoring, mental health therapy platforms.
Top Monetization Models for Healthcare Apps
Here are some monetization models you can consider to develop your apps with the help of an experienced mobile app development company:
1. Freemium Model
Freemium models are the ones that offer a free and basic version of your software to bring attention to a large user base. Once a user base is generated, it offers advanced features, personalized plans, or ad-free experiences providing a paid subscription. Such models are best for Wellness, fitness, mental health, and chronic disease management apps.
- Low barrier to entry encourages downloads and user acquisition.
- Creates a funnel to turn users into paying customers.
- Provides a continuous revenue stream.
2. Subscription Model (SaaS)
In this model, users have to get a monthly or annually recurring fee to access the full functionality of the app. This is the most preferred software-as-a-service (SaaS) model in healthcare. It suits best to telemedicine platforms, mental health therapy apps, and wellness programs.
- This model encourages continuous value delivery and discourages churn through updates and new features.
- It is more aligned with health journeys.
3. In-App Purchases (IAP)
Within the IAP app models, users can make purchases for the digital goods or get a subscription for one-time services within the app. These applications offer personalized content, one-time consultations, and even some specialty programs.
- Such a revenue model permits users to pay only for what they need.
- Often complicates user experiences if not integrated smoothly.
4. Partnerships and Sponsorships
These models-based apps allow users to partner with certain brands, pharmaceutical companies, insurance providers, etc. This model is best suitable for apps with a large, targeted, and engaged user base.
- Significant source of revenue without charging the end-user.
- Connecting users with trusted products and services to provide value.
5. Licensing and White-Labeling
For this model, you license your technology platform to other businesses (B2B). The model works best for apps with robust, scalable technology that solves a clear problem for healthcare organizations, insurers, or employers.
- Large contract values and high revenue per customer.
- Shifts user acquisition and marketing costs to your B2B client.
Key Considerations for Choosing Your Strategy
Here are the main considerations for choosing your strategy discussed below.
- Know Your User: You need to identify your users to see if they’re consumers, patients, or medical professionals. Determine their willingness to pay and expectations as they can differ vastly.
- Value Proposition: Try to find out the core problem your app will resolve. A life-saving monitoring tool for diabetic patients which can ask for a higher subscription price.
- Regulatory Compliance: HIPAA and GDPR compliances are not optional. Any application model involving Protected Health Information (PHI) must be compliant to the regulations from day one.
- Trust and Transparency: Be clear about how you will be making money through your app. Hidden fees will destroy the user base and their trust faster than you build it.
- Hybrid Models: Never be afraid to try the mix and match of these models. Combine a freemium app with subscriptions and carefully chosen sponsorships to create multiple revenue streams.
Conclusion
Successful healthcare apps monetize their models by delivering undeniable value. Whether your app focuses on saving a user’s time, improving health, or simply providing every necessary information, the revenue model should be a natural extension. Start by understanding what your users’ needs and their pain points are.
It is then possible to choose a transparent and ethical strategy. Putting user trust at the center of your digital health brand makes it profitable and sustainable.
