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Brand Design & Marketing
How Hims + Hers uses branding to command premium prices
Hims & Hers Health is a telehealth company that sells prescription and over-the-counter drugs online. Since their founding in 2017, they’ve grown into a publicly-traded company with a market cap that exceeds three billion dollars.
This is especially impressive because their core business business isn’t particularly unique– they made their name selling generic prescriptions for hair loss, erectile dysfunction and more.
Hims’ published price for a 30 day supply of finesteride is $22. The same medication can be purchased elsewhere for $6. This results in $192 more revenue per patient annually. It may not sound like much, but when you consider that Hims reports having 1.7M patients, this equates to over $326M in potential revenue!
Hims & Hers has managed to build a $3B+ business because they command a 275% premium on the sale of their generic products. So it turns out it’s not always the lowest priced option that wins, but rather the brand that inspires action and loyalty.
“Ultimately, Hims & Hers’ business relies on building a trusted brand and on good distribution capabilities to create growth.”
From the beginning, Hims & Hers has taken a savvy and modern approach to branding in notoriously stigmatized categories of medicine. Their warm and sophisticated branding stands in stark contrast to the tired corporate, clinical vibes of the products they sell, like Cialis and Propecia. Hims & Hers’ made-for-millenials brand aesthetic instantly differentiates and destigmatizes their product, even managing to make it feel suave or cool.
Hims & Hers wins again when it comes to patient experience. They’ve identified and solved for the fact that stigma is a powerful barrier to accepting care in their product categories. By eliminating an awkward in-person appointment with telemedicine and another potentially embarrassing interaction at the pharmacy counter with a mail subscription-based product delivery, they’ve drastically improved patient touchpoints that have allowed them to provide a superior patient experience over their competitors.
There are tangible, business benefits to focusing on branding and patient experience. Although an excellent brand can be tough to put a value on, the per-dose price premium that Hims & Hers can charge on their product should serve to illustrate the massive value that a commitment to these two ideas can provide.
Even if you can’t pivot your whole business to telemedicine or make a similarly bold move, identifying and improving the places where patients interact with your business can pay off massively. Other healthcare businesses have leveraged patient experience design with similar success, like Tend in dentistry or One Medical in primary care.
And even small and medium-sized healthcare businesses can stand out and add value to their business with a modern and sophisticated look from Patientli. No $3B market cap required.
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