Practo is an Indian based company that is now established in about 15 countries. It is an application that works as a bridge between doctors and patients and is mainly focused on booking interactions with doctors. It was founded by 2 Indian B.Tech students, Shashank ND and Abhinav Lal. They aimed to come up with a way to save or keep reports and other medical prescriptions. Their idea was then put into action and they came up with an online platform where the patients can interact with the best online doctors, book appointments and so on.
Practo's Business Model
The first thing that a business has to do is to figure out the major activities and value propositions and make a perfect, working business model. Practo, being a common platform for patients and doctors, they had to make sure there was proper value provided to both sides.
Practo- The Value Provided To Customers
Their major value proposition for patients was to make online healthcare search easier. The application must be able to help patients look for various medical help like doctors, hospitals, clinics, laboratories, check-up and scan bookings and so on. This must be done through the app or website and without any issue. They should be able to get a virtual doctor on demand.
The next plan was Practo Plus, which is a subscription-based membership. This is to provide perfect 24/7 care.
Practo not just helps book appointments but also consult a doctor online. This is a cost and time-saving attribute in the app. In this case, the communication can be through audio call, video call and also image sharing through the app. This can help the doctors diagnose and give necessary medical advice.
Just like Google drive helps us save details and records for future use, Practo drive helps patients store the necessary medical records like test results, prescriptions, schedules, etc. This is highly secure and safe.
Why Should Doctors Use Practo?
Practo helps the doctors get more patients and grow their practice online. They can hence maintain a better relationship with the patients and also chat with them whenever necessary. A prescription can also be uploaded through the app. Follow-ups and other notifications can also be given by the doctors to the patients. They can also publish health-related articles and tips. Practo makes the entire system easier and efficient.
Practo provides a complete tool for clinic management for doctors which helps in generating invoices, reminders, storage of bills and prescriptions, etc. On the whole, the online visibility of the clinic and the doctor grows with the use of Practo.
Practo's Customer Segments
Practo has segmented their customers into 3. Which are:
Key resources for Practo
The major resources that they use are the website, the app, their staffs and manpower and Information technology.
Their major activities are:
- Marketing and advertising, through which they promote their product and services. With the growing use of social media, they use those platforms to promote Practo.
- This, being a technology-based app, their another major activity is to develop an easy to use software.
- They also had to bring in and enhance the network between patients, doctors, labs, clinics and so on.
They also have the perfect customer relationship management strategies. They provide 24/7 customer service through mails, chat and also phone calls and their automated services, like notification system and SMS services have helped them maintain customer relationships.
How Practo makes money?
Any company thinks of how to increase revenues and hence generate more profits. Practo also has its way to make huge revenue. We know that Practo has a few products and services and using this they generate the revenue.
They initially started by taking a certain percentage of money for every booking that takes place. As they expanded, they found more opportunities to get better revenues.
Practo charges the doctors and hospitals some money for getting listed in the app or the website. This also gives them some revenue. They are now expanding their domain and are now connecting bigger hospitals, labs and pharmacies and take commissions from all these. This is their basic revenue model. Over this, there are a few other ways by which they generate revenue.
They get revenues through their acquisitions. Practo has acquired 4 companies which are as follows:
- QikWell: It is an online appointment booking software.
- FitHo: It is a lifestyle disease prevention app.
- Genoo: A software development firm
- InstaHealth: Hospital management software.
Practo’s Revenue Model
Over the years, Practo has helped doctors reach a lot of patients and also helped them practice medicine.
Just like there are search results on search engines, Practo has a search result. Doctors need to get on top of the list to be able to do more online consultations and hence earn more. Practo Profile sells premium listing and for this, the doctors have to pay some money. This is a part of their revenue.
The next way of generating revenue is through Practo reach wherein, Practo provides ad spaces on their website and app. It is available in various sizes and the payment depends on various factors. Displaying ads on their website also gives them good revenue as we know that Practo has a lot of users.
There is another division in Practo which is called as Practo Ray. This helps the doctors Manage the hospital or clinic. It is a PMS (Practice Management Software) for the doctors. For doctors to use this, they need to pay a fee, monthly. This is the largest source of revenue for Practo.
Next comes Practo Plus. It is a subscription-based yearly healthcare plan for patients. It offers unlimited online doctor consultation and Practo gets some revenue from this too.
Practo earns from medical deliveries too. Now that they have tie-ups with labs and pharmacies, they get some commission for bookings and also from delivering medicines to the patients. They also make the sale of medicines to drug stores and chemists.
The main reason for Practo to be able to attract the customers is because they can cover the right audience. They know that there is no big point in covering famous doctors as they would have already established themselves and would not pay much for Practo and so, they started by approaching new doctors and clinics who will need to get patients. Also, there are not many competitors in the field as Practo has already attracted most doctors and patients and it is well established.