A health information technology company had achieved strong market penetration with hospitals, health systems and individual health care professionals. However, advances in technology and computer networks, consolidation of the provider market, and the company’s lack of a comprehensive pricing strategy had created challenges. The client realized that it was time to develop a more rational approach to the market and turned to Health Business Group to assist.
We developed a robust customer segmentation model based on extensive quantitative analysis of customer usage patterns, created a cross-segment pricing formula based on value realization, supported development of a plan to communicate the new approach to customers, and devised a migration path to smooth the transition for customers.
The client rolled out the model with its salesforce over a two-year period and achieved real-world success. In addition, the customer segmentation model has been used as a guide for product development, which was an unexpected but welcome byproduct of the original work.