A medical service company wanted to expand into one of the most competitive territories in their industry. Having studied the area on their own accord, they still were left questioning whether or not to pull the trigger and move forward with their plans. These competitors were triple the size of them and offered lower prices, making it impossible for them to match. Knowing how beneficial this move would be for them, they came to us for help.
Research is the most important task a company needs to perform when they make a change - that includes raising or lowering prices, changing locations, changing names, company policies, etc. etc. By performing research you mitigate errors and ensure a smooth transition - this furthermore allows you to map out and answer the “what ifs” that will surely arise when the plan doesn’t go accordingly.
With that being said, the first step we took with this company was customer research. Through this, we found that buyers were concerned about new medicaid penalties. These penalties were centered around hospital re-admits, and if penalized, could take away an entire year's profit for them. The buyers were concerned their current providers did not fully understand their needs and all of the challenges faced with serving at-home care in rural areas. It was also found that these buyers were aware of their company and the fact that they specialized in servicing rural areas.
After analyzing all of the data, we found that the buyers wanted more than just a “We got you covered” approach, which is what their current providers were telling them. They wanted a detailed and structured layout of how exactly this would be accomplished.
Our solution was formed around three elements
- Resources & Processes
- Three Pricing Tiers (options)
The Seminars were held in 9 different counties over the course of a month - this allowed companies to engage & ask questions. Then we developed sales resources and processes detailing risks that would accompany an infective rollout - creating an urgency in focusing on quality & dependability over low cost & volume. Lastly, we created a three tier pricing system based on per-patient-per-month to align with medicare guidelines.
The results spoke volumes - 6 month after those three actions were completed, 50% of the hospitals within the target area signed up. The larger competitors, who offered lower prices, struggled to deliver the services, leading to even more sign ups - it was also reported that many of these companies were losing money.
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