Skyrocket Revenue: A Wellness Company’s Programs & Pricing
This post provides a detailed breakdown of wellness programs and services including costs, profit margins and typical pitfalls for wellness providers. Download our Business Model and Revenue Calculator.
CoreHealth has worked with a variety of wellness providers and have paid close attention to what makes them successful. Here we share highlights of successful wellness companies and traps to avoid.
What Makes Wellness Companies Successful?
With over 15 years of experience, CoreHealth has worked with most every type of wellness provider. Whether these providers are a division of a larger company, such as an Insurer or Employee Assistance Program (EAP) provider or a corporate wellness company, they are a varied bunch in what they offer to clients. Some are highly profitable, some not so much. Some have even driven the price down so much, wellness has become a commodity.
Further to our introductory blog to the skyrocket revenue series, the first step to growing your company is to determine your business model which includes program offerings and how to price them.
After working with so many providers, we have seen trends and observed what makes them successful. After all, their success is our success since our corporate wellness technology powers their wellness programs.
Many newer companies in the space ask us for advice to help guide their program pricing. While we don’t disclose our existing customers’ pricing models, we still want to be able to provide guidelines that will help organizations (buyers or sellers) make good decisions.
Input from the Experts
We consulted with our partner Archetype Solutions Group who successfully grew their subsidiary wellness company WellNow and they shared their insight. Learn how WellNow (and other providers) priced their wellness programs in this Business Model & Revenue Calculator document (download below). Due to its tremendous success, WellNow joined forces with a leading coaching company (apparently their pricing model was effective!).
For a detailed breakdown of wellness program offerings including costs, profit margins and typical pitfalls for companies download this Business Model and Revenue Calculator.
Common Wellness Offerings
The term wellness provider, in the context of this document, includes corporate wellness companies, insurers and their wellness divisions, health coaching companies, employee assistance providers, group benefits brokers and human resources consulting firms. There are some key streams of programs and services that wellness providers typically offer as part of their business model:
Screening and Assessment Services
- Biometric screening
- Health Risk Assessment (HRA)
- On-the-spot coaching
- Online, telephonic or in-person health coaching
Health and Wellness Challenges
- Activity/step/nutrition/mental health challenges (also see our workplace wellness challenges catalog).
- Strategic Advisory Services
- Program Administration
Disease Management (intervention)
- Smoking cessation
- Stress management
- Eating and exercise habits
Lifestyle Management & Risk Reduction (prevention)
- Preventive lifestyle programs that may focus on stress, relationships, mindfulness, nutrition, activity, finances, smoking cessation and beyond. See our Digital Behavior Change Programs Catalog for the programs we offer as part of our platform.
WELLNESS PROGRAM OFFERINGS
As noted above, here we focus on the following components of a full-service wellness program. Download the business model for further program and pricing details:
1. Program Administration and Design
Program Administration and Design is the time and effort expended by the account managers and the client services team (wellness coordinators and customer service) to design, implement, and service the wellness program.
2. Wellness Platform
Most wellness platforms will house everything associated with your wellness program including: health risk assessments (aka HRA), activity and tracker challenges, coaching modules, self-guided learning series, and educational materials – all of which may be integrated with activity apps.
Choosing the right Corporate Wellness Technology Can Help You Grow!
3. Biometric Screenings
Wellness providers generally work with a network of biometric screening vendors for onsite and offsite lab and vital screenings. Vendor costs are usually dependent on the level of account management and onsite services offered by the vendor. Not providing biometric screenings yet? Read the Pro's and Con's of Biometric Screening for Corporate Health.
4. Wellness Coaching
There are several coaching options a company can offer. Coaching can range from lower-touch email and text coaching to higher-touch telephonic, onsite, and video coaching. To learn more about health coaching, read our Introductory Guide to Employee Health Coaching.
Traps of Unsuccessful Wellness Companies
While the average provider commands a high margin for their services, they do incur significant overhead and technology expenses. Below are some common pitfalls to consider:
- Low Revenue, High Effort Clients: not all clients are equal. Some clients demand alot of your time while others are more self-sufficient. It's important to identify your high and low revenue clients and evaluate the time to manage each. You may need to make the tough business decision to discontinue providing your services to those clients that eat up your resources and don't positively impact your bottom line.
- Fixed Payroll, Variable Client Utilization: providers whose coaching base is staffed by full-time employees may run into the issue of under-utilization of their coaches.
- Innovation Costs, No Sales: expenses can mount quickly for wellness companies if they do not carefully track and audit their operations. A healthy pipeline and an ongoing business development strategy is critical to long-term success.
- Lead Time, No Sales: the need to be conscious of sales cannot be overstated, especially given that most clients wish to tie the start of their wellness program to their open enrollment.
Additional Resources You May Like
Check out these other great resources to help you grow your wellness revenue.
- Comprehensive Guide to Wellness Technology
- Introductory Guide to Employee Health Coaching
Or pick your business to find resources relevant to your needs:
ABOUT COREHEALTH TECHNOLOGIES
CoreHealth Technologies Inc. is a total well-being technology company trusted by global providers to power their health and wellness programs. Our wellness portals help maximize health, engagement and productivity for 3+ million employees worldwide. We believe people are the driving force of organizations and supporting them to make behavior changes to improve employee health is in everyone’s best interest. With the most flexibility, customizations and integrations of any software in its class, CoreHealth’s all-in-one wellness platform helps grow great wellness companies. Simple to sophisticated, based on you. For more information, visit the CoreHealth website or YouTube Channel.
Written by Cindy Danielson
Cindy Danielson is CoreHealth's Marketing Maverick and team leader with a passion for connecting people and technology. In addition to marketing, she has experience as a Benefits Brokers, HR Professional and Project Manager. She loves sales and marketing process while leveraging systems such as Salesforce, Microsoft Dynamics CRM and HubSpot.