Animal Health Solutions

14 Covetrus | ph: 855.724.3461 | fx: 888.329.3861 | northamerica.covetrus.com Now is the time for wellness Pet ownership and spending on companion animals is climbing. Pet owners spent nearly $96 billion in 2019, according to the American Pet Products Association, including $29.3 billion on veterinary care and product sales. * Boarding, grooming, insurance, training, pet sitting, and services outside of veterinary care. Pet Food and Treats Pets, Supplies, and OTC Medicine Veterinary Care and Product Sales Other Services* The recent spending boom is partly explained by the increasing humanization of Fluffy and Fido. Three out of four pet owners surveyed by Harris Williams & Co. expressed a willingness to spend any amount to keep their pets healthy. This trend should only continue as the nation's 80 million Millennials – who increasingly favor pets over parenthood – edge out Baby Boomers as the single largest generation of dog owners. 0% 25% 50% 75% 100% View pet as a family member Believe their pet has human personality traits Would spend any amount to keep their pet healthy At the same time, Millennials, along with older Americans, are flocking to subscription services from Amazon, Netflix, and the like. The growth of the subscription economy is expected to spur a rising demand for similar models in pet wellness. The fusion of these forces makes now the ideal time for a pet wellness plan program. However, to reap results, a program must move beyond the bundle-and-discount models of yesterday. What do top wellness plan programs do differently? Successful pet wellness plan programs encompass both the Practice of Wellness and the Business of Wellness, explains Ron Nelson, EVP of Operations at VCP-Covetrus ® , the only veterinary solution to address both elements. The Practice of Wellness focuses on software, wellness plan design, and program management. The Business of Wellness embraces marketing, pricing analysis, plan differentiation – all coupled with real-time data analytics to allow you to make data-backed decisions about your program. The combination of the Practice of Wellness and Business of Wellness empowers veterinary practices to grow and scale wellness plan programs. "It's not your father's Oldsmobile," notes Nelson of the distinction. A well-run wellness plan program is a strategic business tool that reaches beyond preventive care. It is the engine for growing compliance, building customer loyalty, standing apart from the competition – and boosting the bottom line. Wellness plan programs also act as a foot-in-the-door strategy to grow revenue for value-added services, including dental procedures, spay/neuters, and offerings like acupuncture, holistic medicine, preventive medicine, and beyond. For veterinary practices weighing whether to add a pet wellness plan program, "there's no better time," Nelson notes. "Not only does it make sense, but the market dynamics – what's going on in the marketplace, what's going on outside the marketplace in terms of consumer behaviors – have all come together to make this an incredible time for membership."

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