Health Care, Professional services

Medical Services Company, USA

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Challenge
A small medical services company had expertise in serving rural areas where the economics were completely different. When medicare changed its reimbursement policies it created an opportunity to expand into nine adjacent counties. Atenga was called in to help determine the pricing and messaging that would enable it to compete with larger established companies already in place but not yet providing the services needed.

Solution
We measured customers’ willingness to pay based on brand awareness and different value drivers. In this custom project, we also measured customers’ awareness of competitors’ brands and looked at specific customer concerns related to the change in medicare’s policy. We found that customers were very concerned about new medicare penalties.  Also, while they were skeptical that existing providers understood their needs or the special challenges of providing services to rural populations at home, they were generally aware of client’s existence and recognized their special expertise in serving rural areas. We also provided specific pricing recommendations.

Results
The company drove an information campaign in each county and developed its product offering according to customers’ preferences. Within six months, the company signed up more than half the hospitals in the target area. Competitors who offered lower prices struggled to deliver services and were reported to be losing money.

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