American Well – Direct-to-Consumer (DTC) Decision 

Overview:

American Well, a leading telehealth platform founded in 2006, aimed to expand its business model beyond working with insurers and employers by targeting individual consumers directly. This project evaluated the viability of American Well's Direct-to-Consumer (DTC) move, analyzed key stakeholder responses, and proposed a strategic launch plan for the DTC initiative. 

Problem / Challenge:

American Well’s traditional B2B model focused on partnerships with insurers, employers, and delivery networks. However, the leadership team considered launching a DTC model to reach patients directly.

Key challenges included:

• Gauging the willingness of doctors, patients, and payers to adopt a direct online healthcare model.

• Ensuring the regulatory environment would support virtual healthcare expansion.

• Developing a marketing and operational strategy to differentiate American Well in a competitive telehealth space.

• Managing risks associated with market cannibalization and brand dilution.

Solution / My Role:

• Stakeholder Analysis: Assessed stakeholder interests using Porter's Five Forces and Value Chain Analysis, identifying risks and opportunities across doctors, patients, and insurers.

• Market Segmentation Strategy: Classified customer segments into B2B (health plans, employers, delivery networks) and B2C (individuals by demographic, behavioral, and healthcare utilization patterns).

• DTC Launch Strategy: Designed a detailed go-to-market plan, including target market selection (urban/rural demographics), positioning around convenience and cost-savings, pricing models ($48 per consultation), and digital promotions strategy.

• Expansion Evaluation: Evaluated parallel growth strategies including partnerships with employers, retail pharmacy chains (e.g., Rite Aid pilot project), kiosks, and healthcare delivery networks like Cleveland Clinic and Ascension Health.

• Cost Analysis: Estimated the potential annual cost savings for self-insured employers with 50,000 employees and evaluated the financial incentive model for Primary Care Physicians (PCPs) to join the platform.

Tools/Frameworks Used:

Porter’s Five Forces · Value Chain Analysis · Strategic Marketing Planning · Stakeholder Mapping · Cost Analysis Models 

Results / Impact:

• Proposed a DTC strategy centered on urban millennial consumers and self-insured employer networks, emphasizing convenience, speed, and reduced costs.

• Highlighted operational savings for employers and improved revenue opportunities for PCPs adopting online consultations.

• Recommended entering the pharmacy space (e.g., Rite Aid partnership) to boost brand visibility and consumer trust.

• Identified critical SEO, mobile UX, and real-time support system improvements needed to enhance direct customer acquisition.

• Delivered a risk mitigation plan addressing potential regulatory challenges and competitive threats.