How does Hims & Hers Fuel Growth?

Why it matters:

• 82% of consumers consider wellness a top or important priority in their everyday lives, according to a McKinsey report.
• They place a high premium on data- and science-backed health and wellness solutions.
• At telehealth disruptor Hims & Hers, 30% of its customers are choosing data-driven personalized healthcare solutions.

Hims & Hers Health is taking a segmented, deliberate approach to growth that leverages its technology capabilities and unique business model.

COO Melissa Baird on Trends

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 a 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.

“There is an opportunity to pair these tools with generative AI to unlock greater precision and customization,” the McKinsey report concluded.

Data-driven Heart Health to Weight-loss Treatments

With seven years of experience providing wellness-related treatments, 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.

“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,” said Baird.

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.

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.

Tapping AI for Precision

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.

“That translates into better efficacy [and faster recovery] for that patient,” said Baird. “And that in turn drives loyalty on the platform.”

With $872 million in sales in 2023, Hims & Hers is eying ongoing growth, she said. “Our expectation is for momentum to continue.”

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