Kevin JohnsonUS citizens usually pay two to three times more than other nations for prescription drugs. This makes it incredibly difficult for them to afford medication, with around 18 million adults unable to afford doctor-prescribed medicines.
Subsequently, several US residents have resorted to skipping medicines or cutting their dosage in half to save medicine and, by extension, money. So are there any less risky options to save money on drugs?
There are a few financial assistance programs, but third-party websites like GoodRx are becoming increasingly popular among US citizens to cost-compare medicines and acquire coupons to save up to 80% on drugs at local pharmacies.
What is GoodRx?
Founded in 2011 by Doug Hirsch, Trevor Bezdek, and Scott Marlette, GoodRx is a healthcare company that aims to address the complexity, affordability, and transparency challenges faced by the US healthcare ecosystem.
It offers a platform where Americans can compare drug prices, which vary by pharmacy, to find the lowest pharmacy cost and save up to 80% on drug costs. Moreover, Americans can obtain free coupons to pay less than the retail amount to fill their prescriptions.
GoodRx also provides virtual healthcare consultations with certified US practitioners at a discount. Millions of Americans use GoodRx monthly, but what is GoodRx’s customer segmentation?
GoodRx Customer Segmentation
Primarily, GoodRx caters to three types of customer segments:
- Individual consumers: The easy-to-use online platform and mobile app make it highly convenient for individuals to compare drug prices by pharmacies and pick the one with the lowest cost. GoodRx’s free coupons are an excellent tool for individuals to save the most they can on medicines. Their telehealth services help individuals get treated by certified practitioners and get lab tests done that they might’ve put off due to long wait times for in-person visits and affordability issues.
- Healthcare professionals: Doctors, physicians, and other healthcare professionals are empowered to help patients through the platform. Pricing details and GoodRx codes are added directly to the EHR (Electronic Health Record) systems to help the practitioners provide a customer-friendly service.
- Healthcare companies: Pharmacies, PBMs (pharmacy benefit managers), pharmaceutical manufacturers, and telehealth providers use GoodRx to access its customer base and provide affordable solutions.
GoodRx is a leading healthcare platform in the US, but why do Americans trust GoodRx to safeguard their health? Let’s find out.
GoodRx’s Value Propositions
GoodRx’s host of solutions includes:
1. Drug savings
The most popular value proposition of the bunch, drug savings, is GoodRx’s core service. It’s an easy process through which consumers can compare the drug prices of their nearby pharmacies, pick the one offering the lowest rates, and acquire a free coupon to maximize their savings.
2. Telehealth- Online Consultations and Medical Examinations
GoodRx’s online consultations service aims to schedule same-day virtual healthcare appointments that are easy on the pocket. It’s accessible via phone, video, and text. All consumers need to do is answer a few personal questions and consult a licensed healthcare provider to receive their prescriptions.
The platform also lets individuals find blood test service centers in their neighborhoods without them having to spend thousands of dollars. GoodRx offers at-home lab tests on its platform too.
3. Subscription offerings
GoodRx Gold is a monthly healthcare membership offering even more savings on individual and family plans. Consumers can access over 1,000 prescriptions for less than $10, and telehealth services start at just $19.
Moreover, they can get the medicines delivered to their home for free, cancel the membership anytime, and even take the 30-day GoodRx Gold trial before committing.
GoodRx also powers Kroger Rx Savings Club’s drug-saving subscription.
Who are the Key Partners of GoodRx?
GoodRx’s partners have helped the company carve a niche in the pharmaceutical industry. Its key partners are:
- Healthcare professionals: GoodRx partners with licensed healthcare practitioners to offer its consumers the best virtual medical services.
- EHR providers: They help GoodRx maintain patient data, including problems, diagnosis, medications, and progress, using EHRs.
- Partner pharmacies: GoodRx partners with pharmacies across the US to offer the best drug prices to its customers.
- Developers: Technology partners ensure that GoodRx runs smoothly without glitches.
- Affiliates: GoodRx partners with brands to provide health benefits to their consumers.
What are GoodRx’s Key Resources?
GoodRx’s key resources include:
- Profitable partnerships with major healthcare providers and pharmacies across the US.
- An intellectual database comprising details about millions of patients in the US.
- Technology and IT infrastructure that delivers a seamless and user-friendly experience.
- Algorithms and AI help the platform compare drug prices by pharmacies quickly.
What are GoodRx Channels?
GoodRx is accessible through its website. Additionally, it has dedicated apps to serve Android and iOS users.
Consumers can use the app or website to save money on drug prices, acquire coupons, and schedule virtual appointments with doctors. They can go through its Health Information page to browse and read articles related to healthcare issues.
GoodRx has an app for healthcare professionals too.
How does GoodRx Maintain Customer Relationships?
GoodRx is easy to use and doesn’t require customers to sign up to compare drug prices and obtain coupons. They only need to add their location details to compare drug prices and avail of coupons.
GoodRx’s social media platforms and online and offline marketing strategies help it connect with its consumers directly.
It encourages customers to use self-service tools like blogs, articles, and guides on the GoodRx Support and Help page. Customers can also chat with the GoodRx customer support team.
What is GoodRx’s Cost Structure?
GoodRx incurred operating expenses of $764.8 million for the fiscal year 2022. Its cost and operating expenses include the cost of revenue exclusive of depreciation and amortization, product development and technology, general and administrative, and depreciation and amortization expenses.
How Does GoodRx Generate Revenue?
With over 80% repeat transactions and $8 billion gross transaction value, GoodRx is a hit among US citizens. Its revenue for 2022 was $766.6 million.
But how does GoodRx earn revenue if it’s free not only to use but also obtain coupons? Does it earn only from its Gold membership and telehealth services? Not quite.
GoodRx’s revenue streams can be categorized into four sections:
Telehealth
GoodRx earns a good chunk of its revenue from its online consultation services. It charges $49 for its telehealth services without a membership and $19 with a Gold membership.
Coupons
GoodRx partners with more than 70,000 pharmacies in the US that accept its promo codes. So when an individual uses a coupon to fill their prescription, GoodRx earns a commission or a fixed payment per transaction from PMBs.
Gold subscription revenue
GoodRx’s Gold subscription accounts for a good portion of its revenue. Its individual plan costs $9.99 per month, and the family plan costs $19.99 per month.
Advertising
GoodRx earns revenue from pharmaceutical companies by allowing them to advertise their products on their platform. It also charges a fixed amount from pharmacies to improve platform visibility.
The Bottom Line: GoodRx is Transforming the Pharmaceutical Market in the US
GoodRx is making it easier for US consumers to fill their prescriptions, consult a doctor the same day, and get their blood tests done without breaking the bank. They plan on adding to their list of services in the coming years to make their consumers’ lives easier and help them save more on drugs.
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