Fuel Your Business Growth: Top 10 Health & Wellness Strategies

The health and wellness market is booming — the global market had an estimated value of more than $1.5 trillion in 2021¹ — and is expected to continue growing, but so will the competition. 

As with any prosperous industry, more and more newcomers are entering the market, creating an influx of choices for prospective buyers. Add the power of the internet, and buyers can access more options and information to drive their decisions than ever before. As a result, any business in this market that wishes to thrive will need to stand out from the rest. Here are ten strategies to power growth in your health and wellness business and stand out from the competition:

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1. Identify your target market

It is crucial to select a target market within the health and wellness industry and ensure it is the right one for your business. This decision will influence two critical aspects of any business: product development and positioning.

Product (or service) development is the cornerstone of any business looking to grow — your market offerings should improve and grow with you. As this industry caters to particular needs and requirements of customers, like specific health conditions or physical limitations, understanding whom you are serving will ensure you have accurate product development.  

Positioning is similar to product development, as it needs to appeal to the particular needs of your customers. Not only do the consumers in this market tend to have specific requirements, but they are also much more selective and cautious regarding their health and wellness. So, in comes the three stages of the buyer’s journey: awareness, consideration and decision.² The first stage, awareness, is when the buyer becomes aware of their problem and begins considering solutions. Next is the consideration stage, when the buyer identifies what could fix their problem and begins analyzing available options — this is why you want to be aware of who your customers are and communicate how you can solve their pain points. Finally, by the decision stage, when the buyer decides which solution suits their needs best, you want to be established as a clear front-runner.     

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2. Evaluate competitors

Conducting a competitive analysis will help you understand how saturated your area of the health and wellness market is and who are your greatest competitors in that space. Identifying the strengths and weaknesses of your opponents (and your own business) will highlight ways to differentiate yourself. Evaluations should also include prominent brands you aspire to be like so that you can use what they do right for inspiration.

Given how quickly the health and wellness industry is growing, additional analyses should be conducted regularly. Frequently refreshed data will provide insight into new developments in the industry and help you stay ahead of new competitors.   

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3. Increase service offerings

Total health and wellness industry spending is estimated to be around 70% on products and 30% on services, but a shift towards more service spending is projected in the next few years.³ This anticipated shift is likely partially due to more services becoming readily available as COVID-19 protocols lift, but a drive for more personalization may also influence this change.

 "More today than ever before, consumers of Health and Wellness products and services want to see personalized data which validates the commitment they've made in their health." - Michael Sarajian, Chief Growth Officer, imaware

Businesses looking to fulfill the upcoming need for personalized experiences should consider partnerships with companies like imaware. imaware offers a range of scientifically-verified at-home health tests which supply patients with physician-reviewed health data to drive their wellness journey forward. Powered by imaware is a white-labeled experience that provides businesses with a verified home testing infrastructure and custom biomarker panels, enabling you to take personalized member care to the next level.

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4. Track key performance indicators (KPIs)

Establish what is and isn’t working for your business by identifying your KPIs and measuring the data. Here are seven KPIs to consider:

• Customer acquisition cost (CAC) evaluates the total cost of efforts, like marketing and sales endeavors, to convince a customer to make a purchase.
• Customer conversion rate is the rate at which leads take a desired action, like becoming a customer by making a purchase. This rate may also shed light on areas like the quality of generated leads, issues within the customer journey or misfires with current offerings.
• Retention rate is the amount of customers that continue using your business.
• Churn rate refers to customers that stop using your business within a certain amount of time. In such a competitive market, this rate is critical to monitor.
• Net Promoter Score (NPS) tells you much about your customer satisfaction levels as it assesses their likelihood of recommending your business to others. Given the importance of referrals and trust in this industry, a good NPS can mean more warm lead generation and increased customer loyalty.  ‍
• Customer lifetime value (CLTV) predicts how much value a customer will generate throughout their relationship with your business.   ‍
• Growth rate measures general success by assessing things like customer or revenue growth.‍
• Return on investment (ROI) is a way to measure the profitability of an investment and assess whether the cost was worth the return. 

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5. Utilize technology

Technology has become a large part of the health and wellness industry — the Global Wellness Institute projects the digital health market will have a 27.9% compound annual growth rate (CAGR) from 2020 to 2027⁴ — and with good reason. Technology used strategically can greatly enrich the customer experience with greater convenience to users and businesses. 

Virtual fitness classes, telehealth appointments, health tracking apps and other digital developments have displayed the capacity to change how many health and wellness businesses operate entirely. Technology that measures essential health metrics, such as smartwatches, is particularly beneficial for increasing personalized care capabilities. It can streamline certain processes between healthcare providers and patients, provides more resources to support patient health and may ultimately result in better health outcomes. Remote services also expand the potential customer base. 

Not to mention how technology can be leveraged internally to generate advanced analytics or automate certain operations.  

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6. Embrace advancements

Never stop looking for ways to improve. Strategies for improvement include:

• Tracking trends
• Monitoring competitor activity
• Analyzing customer feedback
• Updating sales strategies
• Investing in research and development efforts 

Leaders in the healthcare industry agree that the COVID-19 pandemic fundamentally changed how they work.⁷ As a result, innovation has become an even more significant part of this industry, and with constant technological advancements, this is likely to continue.  

One method of generating innovative ideas is utilizing the customer feedback loop.⁸ A valuable tool, this loop has the potential to provide your business with useful insights continuously, and it all starts with asking for customer feedback. Once the feedback is carefully analyzed and organized, it should be implemented to produce positive changes to the business. After implementation, it is essential to follow up on the feedback so customers are encouraged to provide additional input and continue the cycle of improvements.  

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7. Seek strategic partnerships

Use strategic partnerships to reach more customers in your industry and gain traction in circles outside your regular audience. Partnerships are a way to keep up with the competition and changing market, increasing capabilities and efficiency while reaching new potential customers and potentially cutting costs. 

“Strategic partnerships are the key to unlocking new doors and reaching a wider audience.  By collaborating with like-minded businesses, you can leverage each other's strengths and resources to create more value for your customers and establish a stronger market presence.  At imaware, we help our partners stay engaged with their end users." - ‍Michael Sarajian, Chief Growth Officer, imaware

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Don’t limit it to other companies — influencers have become a cost-effective strategy to boost online conversions. 

In the health and wellness industry, trusting a product or service is a critical part of a user’s willingness to seek physical or mental health care as well as utilize preventative measures.¹⁰

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8. Be a thought leader

A thought leader can demonstrate they are an expert in their field. 

Not only do thought leaders influence others in their industry, but they also instill trust in potential buyers. As a successful health and wellness business, being deemed trustworthy by potential and current buyers is crucial to your success.

Becoming a thought leader requires experience, research, awareness and continued education in your field of expertise. Thought leaders provide educational resources, like writing published articles or hosting Q&A sessions, and guidance to others. Published expert content using SEO practices can also help establish a solid online presence. 

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9. Reward customer loyalty

Reward customers for their loyalty using promotions, points and referral programs. Promotions generate leads and sales by capturing attention and making customers feel good about their purchases.  

Customers are not only more likely to buy from companies with points programs; they are 84% more likely to stick with the same company for future purchases if they have a rewards program.¹¹ Ultimately, this helps increase retention rates and reduce the cost of acquiring new customers, essential in an industry where buyers have much power.   

A referral program is one of the most cost-effective ways to generate warm leads.¹⁴ This is because referred customers are more likely already within the target audience and looking to purchase. 

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10. Develop a growth plan

Get the most out of your growth strategies by ensuring they all fit into one overarching plan. 

Set company-wide objectives and key results (OKRs) to help each team align their goals with the larger picture.¹⁵ KPIs should be an integral part of measuring the success of your strategies, but OKRs will help highlight what needs to be fixed to improve those numbers. Uniting team members within one clear plan will help reduce information silos between departments and encourage cross-departmental collaboration increasing support and efficiency. This is also an opportunity to implement a project management system and a project manager to oversee the growth stages.

The plan should include a detailed timeline, with specific growth milestones and departmental interdependencies, to ensure no critical steps in the process are missed — foster growth throughout your business with a cohesive plan.