understanding customer benefits

 

problem statement

The company are the global leader in their segment with annual sales of around $600m in 2003. The products are principally used by nursing staff rather than physicians. In the last 2 years the company has begun to face serious competition from lower price competitors. Following a review of their R&D department we were asked by the VP of Innovation to undertake a program of interviews and clinical observation.

our hypothesis

We believed that there was no clear linkage between patient assessment / diagnostic technologies and choice of treatment or product. Consequently the factors that affect product choice were more to do with ease of use and familiarity rather than clinically proven efficacy. Nurse education which had been seen as the route in the past was unlikely to overcome the bias of local practices.

findings

The products and technologies that are preferred are those which demonstrate a clear visual improvement in the patient over a single treatment. More sophisticated measurements of progress were distrusted or not always available to the appropriate clinical staff. Only 2% of carers were 'in control' of clinical outcomes in this field, the rest were at best 'knowledgeable guessers'.

impact on strategy

The company has changed the criteria it uses for the assessment of new products and technologies to more closely meet the real as opposed to stated needs of their core market. An on-going program of customer involvement has been put in place that will give widespread access by company staff to customers outside of their day to day commercial interactions. Closer and more formal arrangements are being put in place with successful centers to develop future products and standards of clinical excellence.

"the best day I have spent in the company since I joined" - Senior Sales Manager (after a day of observation and interviews)