This article is in continuation to our recently published article Update on the FY 2024 North American Clear Aligner DTC Market. Link here.
Overview
In our recent article, insightsZ highlighted how the DTC brand Byte succeeded in capturing an outsized share of growth in the North American clear aligner market (see article here). FY 2023 Byte’s US sales revenue is estimated to be $170 million – reaching a market share of almost 9 percent. Treading on a highly optimistic outlook, insightsZ guidance concerning Byte’s growth is estimated to be 18 percent in FY 2024 (versus previous year).
insightsZ estimates that Byte has treated more than 460,000 patients since its inception in FY 2018 – making it the North American market leader in the DTC category. The company’s new dentist-directed hybrid model launch, Byte+ is expected to turbocharge the brand’s growth, possibly even enabling the company to beat the earlier revenue projections. In the upcoming months, Byte+ is looking at expanding its network of partner dentists in US and Canada.
Launch of Dentist-directed Hybrid Model Byte+
The new dentist-directed hybrid model, Byte+ was launched in April 2024 in North America. Unlike Byte’s traditional commercial approach, the brand’s go-to market model includes partnerships with both General Dentists and Specialist Orthodontists.
Since its launch, Byte+ has expanded its network to more than 100 dentists in the last 3.5 months. As a matter of fact, in the month of June alone, Byte+ added more than 50 dentists to its network. insightsZ expects Byte+ to add more than 1,000 dental offices to its partner network before the end of FY 2024.
Unlike its purely DTC arm, Byte+ targets a growing demographic of older teens and adults who’re looking for clear aligner treatment at a lower price point, together in active consultation with a dental office.
What’s new with Byte+ ?
Unlike SmileDirectClub that relied on a relatively asset-heavy model of SmileShops retail format, Byte doesn’t have any physical stores or locations to assist intraoral scans or even sales assistance. Byte’s patient journeys are 100% virtual – leveraging digitization and remote patient monitoring services. However, with the launch of dentist-directed hybrid model Byte+, the status quo is set to undergo significant change. That is, Byte+ experience begins with a seamless integration into the dental office’s existing CRM, enabling prospective patients to schedule their initial appointment with the Byte+ Partner office. This go-to market approach is clearly enabling Byte+ to remain asset-light, yet drive +HDD revenue growth.
Byte+ will offer competitive pricing & accessible financing for all patients, irrespective of their credit score. Byte+ treatment services have a sticker price of $2,999 in US. On the basis of the existing pricing structure, Byte+ will be sold at a considerably premium versus the Byte’s DTC business. At the moment, Byte+ is not available in Canada or Australia. Unlike Invisalign or other dentist-directed clear aligner brands that don’t offer such financial products or services, conventional dental office’s payment plan options are very limited and depend on the dental office’s commercial offering.
Every Byte+ patient will get a personal customer service person, Byte Advisor. A typical Byte Advisor is a sales-rep who supports their patients during their entire treatment journey incl. pre-sales, financing and other areas. insightsZ doesn’t have any information about how Byte Advisors will be compensated as traditionally they’ve earned commission on DTC sales. However, in case of Byte+, the dental office occupies center-stage in terms of how patient pipelines are filled and effectively managed.
HyperByte will continue to be included in all Byte+ treatments. The company’s high-frequency vibration device, HyperByte is intended to help provide a more comfortable aligner fit and even encourage faster dental shifts. Byte includes this device in the cost of all their DTC aligner bundles offering. FY 2021 Dentsply Sirona acquired HyperByte manufacturer Propel Orthodontics in a deal valued at USD 130 million.
Just like all Byte treatments, Byte+ treatments will continue to be backed by Byte-for-Life - a coverage plan that guarantees patient’s smile for a lifetime. In other words, even if a patient’s teeth shift years down in the future, the company will create new aligners to readjust them, as long as the patients purchase their retainers every six months and wear them as instructed. There may be additional fee that the dental office may charge the patient for relapse case-treatment.
insightsZ continues to closely monitor the global clear aligners industry, in addition to other high-margin, high-growth categories within the dental space. Stay tuned for more!
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