Consolidation and COVID-19: role of lockdown in animal health digitalisation

The global market for animal health for companion animals has been undergoing a process of digitalisation for some years.

In a highly consolidated market, businesses have sought to differentiate through improved customer experience and new types of services.

While consolidation has led to the streamlining of practice management systems, the uptake in digital innovations has been slow and somewhat disconnected. This has typically seen businesses dip into new services, but without realising the full potential of new channels.

Now lockdown has forced the issue.

The pandemic has proved particularly challenging for veterinary businesses that have transitioned to “as-a-service” models. This strategy has been on the rise over the past three years and, on paper, subscription models offer a very practical means to drive customer loyalty. However, no one could have foreseen COVID-19.

Practices have only been able to run limited services – the outcome has been disgruntled subscribers unable to access their pets’ allocated check-ups and treatments. Consequently, numbers have taken a hit across all markets.

Businesses have been forced to adapt their approach to consultation and prescribing fast.

While some have experimented with socially distanced models – kerbside deliveries and collections have provided a lifeline to many in the United States, for example – compliance issues in the handling of prescription drugs make this a complex proposition.

In theory, practices remain in a strong position due to compliance rules in selling prescription drugs direct to the consumer. All transactions need to be authorised by a qualified veterinarian.

However, businesses have been forced to rethink traditional models and explore alternative options that minimise – or ideally cut out – in-person contact.

Unlocking benefits – for all

With the right software in place, vets can manage proof of authorisation remotely and offer greater flexibility to the pet owner with options that comply with social distancing guidelines – such as home delivery or click and collect.

An additional benefit in making the process as seamless as possible is that it actively discourages them from purchasing repeat prescriptions from outside the practice.

Digitalisation extends beyond prescribing, though; telemedicine – remote consultations completed via a call or video conference service – have been gaining traction, particularly in pet insurance.

No reason exists as to why a pre-assessment by a vet nurse can’t be done virtually in any veterinary scenario. Escalating cases to a physical examination by a veterinarian only when entirely necessary frees up the vet’s time to focus on higher-value services or more immediate consultations.

The advantages to pet owners are also readily apparent – less time spent in waiting rooms, especially during busy periods when they may be subject to delays.

While the advantages of animal health digitalisation should be clear to practitioners and consumers, it still isn’t yet widespread – at least in terms of joining up all of the services a business can offer, from practice management systems to e-commerce.

While it may be straightforward to set up and send an automated reminder to a customer about a regular flea treatment, closing the loop on ordering, authorisation and dispatch is another matter.

The key factors for the pet owner and veterinary business alike are traceability and visibility across the entire experience – from appointment, reminder and order, through to delivery.

It is, therefore, critical that data flows in and out of systems in a timely manner, and to ensure feedback loops and interactions between parties are efficient and informed.

One size does not fit all

The challenge in deploying full-service digitalised animal health services doesn’t lie with any particular software – rather, it’s in combining and making sense of data streams from multiple sources and operating systems.

This is particularly complex if data is held on-premise across multiple practices, or worse if that data crosses borders. In this case numerous compliance headaches will occur – even if it’s stored in the cloud.

Consequently, digitalisation takes time and lockdown may, therefore, have been a missed opportunity for many. No real quick fixes exist. Some businesses have looked at short-term solutions that do not automate processes, but this raises questions in relation to compliance and traceability rules.

Others have tried to automate parts of the process that favour their own services or product range.

This option does not suit the larger corporate players – they favour independent systems that support their contracts, with multiple manufacturers to cover the full range of products and services in their portfolio.

Rising to the challenge

Until recently, many saw digitalisation as a fad, but COVID-19 has forced the issue. With the right digital infrastructures in place, practices have been better equipped to withstand – and even emerge stronger from – the pandemic. While lockdown may slowly be easing, little doubt exists that digital services will continue to prove their worth, at the very least until social distancing is some way behind us.

Lockdown has offered a crash course on why animal health digitalisation is so advantageous. Although few practices will come out the other side with fully digitalised services, many will take elements of what they’ve learned – whether that’s remote consultations or proof of authorisation software – and apply them as stepping stones to full digital services.

Teams are already used to practice management systems and additional data streams don’t automatically translate to extra complexity. With carefully considered implementation, systems should not require significant maintenance over time. Moreover, automation streamlines processes and the additional data opens up new customer insights and, subsequently, offers opportunities to build in fresh revenue streams.

Of course, the pandemic has been disastrous for almost every sector – our own included – but we are better placed than most to bounce back. If we can take one positive from this, it’s that it could have been far worse.

A great many veterinary businesses have been able to continue practising thanks to their ability to adapt quickly to extraordinary circumstances, thanks to digital technologies.

Regardless of whether we were tech fans before the virus hit, it has shown us why we cannot afford to ignore digitalisation any longer.