Rise of Appointment Booking Software: ZocDoc Business Model and Revenue Streams
Healthcare marketplaces are drastically evolving, for they are becoming an integral part of millennial healthcare. When it addresses your needs to manage and organize patient appointments, it saves a great deal of time and eliminates a significant amount of human effort. Moreover, the rate of cancellations and missing the appointments will radically reduce. Practo’s successful business and revenue model is an ideal instance of the same. The success recipes of Practo, ZocDoc and other similar successful business can inspire more progressing enterprises to step up their game in the healthcare market.
Responding to our readers’ Requests, we have decided to dissect ZocDoc, their selling points, business model, revenue streams, and technology will the topics of discussion. Enjoy the read.
A Look into ZocDoc’s Growth Curve
ZocDoc is one of the most familiar online appointment booking apps in the United States. They are well recognized, for they cover 40% of the total U.S. population. Let’s take a glance at the history of ZocDoc now.
- Cyrus Massoumi, Oliver Kharraz and Nick Ganju founded ZocDoc in July 2007.
- A year later, in August 2008, ZocDoc managed to raise $3 million in its series A funding round.
- 4 months later, they won $100,000 the Forbes boost your business competition.
- July 14, 2014- they raised $15 million in its series B funding.
- The same year, in October, ZocDoc deployed their first ever iOS app. Over 2 million appointments were available in ZocDoc.
- Through Series C funding, they raised $75 million in September 2011.
- In the year 2012, ZocDoc achieved a milestone of having 1 million users.
- Series D funding raises $130 million in 2015 August.
- The estimated value of Zoc Doc was $2 billion in the year 2015.
- Over 6 million U.S people use ZocDoc currently.
Some More Interesting Facts About ZocDoc
- The idea of building a business like ZocDoc hits when the CEO burst eardrum on a cross-country flight and had to wait four days to see a doctor
- DST Global, Founders Fund, Khosla Ventures, SV Angel, Goldman Sachs, Bezos Expeditions and Marc Benioff are ZocDoc’s major investors
- 2.5 million patients a month visit ZocDoc from 1,800 different locations (according to 2014 statistics)
- During the inception of ZocDoc, the average waiting time for healthcare was 20 min
- The aim of ZocDoc is to help patients book appointments within less than a minute
ZocDoc Business Model Analysis- How ZocDoc Works?
One of the major factors that can positively influence your transit towards success is the business model. A well-crafted doctor appointment booking software with an excellent business model can help you survive the competition and mark your signature in any particular market. ZocDoc fundamentally deals with two entities, the patients and doctors. And the business model is framed in such a way to benefit both uniformly.
ZocDoc for Patients- ZocDoc enables their users, the patients to find the health experts who are available for appointments, and book the same without any hassle. Also, they can make informed decisions based on verified reviews. Custom notification helps patients to not miss ou any appointments scheduled.
ZocDoc for Doctors- ZocDoc makes doctors discoverable to the patients, thus improves their possibilities to improve appointments. Besides, ZocDoc also minimizes the no shows by filling up last-minute openings in doctors’ calendar caused by cancellations and shifting schedules.
ZocDoc Revenue Model Explained- How does it Make Money?
ZocDoc follows a somewhat selfless revenue strategy. It is a patient-centric solution and thus makes it completely free for patients to schedule an appointment. However, there are two ways in which ZocDoc generate revenue.
Subscription-based – Guess what! ZocDoc’s revenue streams are totally dependant on doctors/health experts. Doctors have to pay $3000 annually as a subscription fee. In favour of this, ZocDoc displays your profile, help you connect with patients who seek services similar to those you offer. Listing in ZocDoc will improve your reach and helps fill the last-minute cancellations.
Sponsored Listing – Except for the basic subscriptions, ZocDoc also offers sponsored listing options for Doctors who seek to achieve more reach and conversions. Similar to other sponsored ads in social networks, you can optimize your sponsored campaign by choosing the appropriate audience. Metrics like patient reviews and ratings, practice size, marketing and advertising budget, and bid rate should be considered if you planning to go for sponsored ads.
How does ZocDoc Manage to Give an Explicit Experience? What are the Technologies Involved?
The information we gathered through anatomizing ZocDoc says that they rely on technology and data science to connect patients with the right doctors and reduce the wait time. They work alongside with different practice management software (PMS) systems, which allows ZocDoc to partner with some of the large health systems and small practices in the U.S.
- ZocDoc’s proprietary sync technology connects with provider calendars, which connects with different PMS systems in real-time and display appointment plots to the patients, including newly available and the ones which are open due to reschedules, cancellations and no-shows.
- The search mechanism in ZocDoc involves integrated Machine learning concepts. It allows patients to search using their own language, including colloquial terms, slang, and misspell symptoms, thus find the right service provider who fits their needs.
- ZocDoc uses AI concepts to decipher, understand, and verify the patterns of patient’s insurance. This AI model reviews thousands of types of medical insurance cards and then relate them with known carrier and plan information.
Key Takeaways from ZocDoc
- One of the major achievement of ZocDoc is that they find the problem, the pain point of the masses and then addresses and solve the same using technology and innovations.
- Address the stakeholders’ demands too. ZocDoc’s main objective was to minimize the wait time, however, they also convinced the doctors by giving them a reason to register with ZocDoc. Better visibility, easy reimbursements/payment etc were the major benefits.
- The beginning wasn’t easy for ZocDoc. It took solid 9 years for them to get a massive network of doctors and practitioners on their platform, so that they can address the needs of 6 million patients per month, across 2000+ cities in the U.S.
- The key factor that sets ZocDoc apart from their competitors is the technologies they integrated. They introduced AI and Machine learning concepts to streamline the way the app operates. To have an in-house team or choosing a healthcare technology partner is a crucial factor.
Get Started with Agriya’s Appointment Booking Softtware
The prominence of appointment booking is mushrooming day by day. In fact, a multitude of businesses has already begun taking advantage of this amazing opportunity. However, to build an appointment booking software like ZocDoc isn’t an easy thing, especially if you belong to the startup family. Agriya’s ready-made product line introduces this premium online appointment scheduling solution, which allows businesses to employ and transform the script into a matured digital platform that meets all your goals and objectives. Also, because it is open for customization, one can make necessary changes to satisfy their unique demands.
What do We Offer?
- A streamlined UI interface that makes booking appointments easy as a pie.
- An advanced admin portal that helps you manage all the site activities.
- Secure and reliable payment gateways for efficient transactions.
- Pre-built Email Templates to facilitate your Email marketing strategies.
- Daily/weekly/monthly calendar view to organize the appointments without any hassle.
- Subscription-based revenue model to improve scalability, valuation and customer relationships.
- 100% customizable- allows you to make any change with respect to your unique demands.