MEASURING the VOICE-OF-CUSTOMER in HEALTHCARE
Pricing 101: Tools to Better Capture
Medical Customer Insights
1
2
Presenter
Robert-Jan Enzerink
Senior Consultant
renzerink@themarketechgroup.com
3
Who We Are
SELECT CLIENTS:
19 Years
in Business
QUICKFACTS
2 Global
Offices
9 International
Partnerships
4
The Program
1.Pricing 101 – Today
a) Pricing Considerations
b) Cascading Price
c) Van Westendorp
2.Pricing 201 – Septemb...
5
In 45 minutes, you will learn …
1
2 3
4
TMTG - Pricing 101
6
Pricing Considerations: What?
TMTG - Pricing 101
Product
Placement
Promotion
PRICE
Declarative Pricing Challenge
$
Uniqu...
7
Pricing Considerations: Why?
TMTG - Pricing 101
Need to understand how
to capture the value of:
o Better clinical outcom...
8
Pricing Considerations: Who?
TMTG - Pricing 101
Clinicians
+
+
+
?
-
-
-
Understand Benefits
Understand Value Propositio...
9
What price to test?
TMTG - Pricing 101
The price
to be tested must
be unambiguous
Capital Equipment:
o Siting costs?
o T...
10
The price to be tested must reflect the customers’
knowledge at purchase decision time
Description CPT Code Medicare Fe...
11
Overview of methodologies
TMTG - Pricing 101
Pricing 101:
o Declarative
o Cascading Price
o Van Westendorp
Pricing 201:...
12
Declarative Price Methodologies
TMTG - Pricing 101
— Fixed attribute offerings only
— Does not allow scenario modeling
...
13
Cascading Price
TMTG - Pricing 101
Cascading Pricing
 Best when an approximate price is known
 Test of willingness to...
9% 9%
23% 23%
17%
9%
32%
49%
0%
20%
40%
60%
80%
100%
Willing to pay at least $400,000 Willing to pay at least $300,000 Wil...
15
van Westendorp
TMTG - Pricing 101
 Best for determining acceptable price range
 Testing customer knowledge of reasona...
0%
20%
40%
60%
80%
100%
120%
CumulativePercent
Price US $000's
Bargain (Inexpensive)
Expensive
Too Expensive
Too Cheap
16
...
17
van Westendorp: vwPRO™
TMTG - Pricing 101
QBar. If this new product was offered at [b price], how likely would your pri...
18
van Westendorp
TMTG - Pricing 101
vwPRO™ Van Westendorp Price Sensitivity Meter
19
Summary
TMTG - Pricing 101
o Set Objectives
o Select & Screen Respondents
o Select Methodology
o Define Price
o Design,...
20
Preview
TMTG - Pricing 201
Pricing 201
o Choice-Based Conjoint (CBC) Modeling
o BYO & ACBC
o Preference Modeling for Pr...
MARKETS SERVED
MEDICAL IMAGING
METHODOLOGIES
GO-TO
MARKET
EXECUTION
SALES & MARKETING
COMMUNICATION
PRICING
OPTIMIZATION
N...
USA
502 Mace Blvd, Suite 15
Davis, CA 95618
PH: + 1 530-792-8400
FX: + 1 530-792-8447
www.themarketechgroup.com
Europe / F...
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Pricing 101 - Tools to Better Capture Medical Customer Insights

Presenter: Robert Enzerink, TMTG Senior Consultant Don’t miss this two-part webinar series, where you will learn some of the methods to make better pricing decisions. Of the “Four P’s” in marketing, the simplest, most immediate, and the riskiest is Price. At TMTG, we offer a number of scientific tools to help you get the best insights on pricing for better business results. We will share with you a variety of methods to understand “What is my customer’s real willingness to pay?” for your products or services and how to capture that value through pricing. You will learn about: • Declarative techniques • Anchor-and-adjust • Cascading Price • Van Westendorp Pricing Meter • Price and Preference Sensitivity • Market Modeling View the presentation on YouTube: https://youtu.be/UlqOlKDpEls Contact The MarkeTech Group http://www.themarketechgroup.com USA The MarkeTech Group, LLC 502 Mace Blvd, Suite 15 Davis, CA 95618 Tele: (+1) 530-792-8400 Fax: (+1) 530-792-8447 France/EU The MarkeTech Group, SARL 3, Rue Emile Péhant 44 000 Nantes Tele: +33 (0)2 72 01 00 80 Fax: +33 (0)2 40 48 29 40
Published on: Mar 4, 2016
Published in: Marketing      
Source: www.slideshare.net


Transcripts - Pricing 101 - Tools to Better Capture Medical Customer Insights

  • 1. MEASURING the VOICE-OF-CUSTOMER in HEALTHCARE Pricing 101: Tools to Better Capture Medical Customer Insights 1
  • 2. 2 Presenter Robert-Jan Enzerink Senior Consultant renzerink@themarketechgroup.com
  • 3. 3 Who We Are SELECT CLIENTS: 19 Years in Business QUICKFACTS 2 Global Offices 9 International Partnerships
  • 4. 4 The Program 1.Pricing 101 – Today a) Pricing Considerations b) Cascading Price c) Van Westendorp 2.Pricing 201 – September 10, 2015 a) Preference Modeling & Conjoint b) Market Modeling TMTG - Pricing 101
  • 5. 5 In 45 minutes, you will learn … 1 2 3 4 TMTG - Pricing 101
  • 6. 6 Pricing Considerations: What? TMTG - Pricing 101 Product Placement Promotion PRICE Declarative Pricing Challenge $ Unique Healthcare Complications: o Reimbursement o 3P’s Challenge: Provider/Payer/Patient o Clinical vs. Economic Drivers
  • 7. 7 Pricing Considerations: Why? TMTG - Pricing 101 Need to understand how to capture the value of: o Better clinical outcomes o Increased patient throughput o Improved patient satisfaction o Shorter patient stays o Alternative treatments o Additional or different reimbursements
  • 8. 8 Pricing Considerations: Who? TMTG - Pricing 101 Clinicians + + + ? - - - Understand Benefits Understand Value Proposition Understand Medical Implications Understand Operational Implications Know Prices Know Reimbursements Understand TCO, NPV Purchasing & Service Line Managers ? ? - + + + ? You may need to query Nurses, CFO, CEO, Imaging Director, etc. Ensure that your (combination of) respondents: • Understand the relevant pricing model • Understand the clinical value • Understand the relevant decision process
  • 9. 9 What price to test? TMTG - Pricing 101 The price to be tested must be unambiguous Capital Equipment: o Siting costs? o Training? o Service plan? o Financing options? o Consumables? o Updates/Upgrades? Consumables: o Individual or box? o Unit or kit price? o List or ASP? o Inventory? IT/Software: o Scale: per unit/hospital/user? o Service/Support? o Updates/Upgrades? o Installation/V&V? o Subscription/Lease/Purchase? Consider the customers’ default assumptions $ $ $ $ $ $ $ $
  • 10. 10 The price to be tested must reflect the customers’ knowledge at purchase decision time Description CPT Code Medicare Fee CBC (with automated Hgb, Hct, RBC, WBC, platelet) plus automated diff 85025 $11.02 CBC as above without diff 85027 $9.17 Hemoglobin, automated 85018 $3.35 Hematocrit, automated 85014 $3.35 Platelet, automated 85049 $6.33 For per-test prices, from the 2012 Medicare Fee Schedule, blood test rates are: US 2D C-arm: $150-250,000 3D C-arm: $200-350,000 Movable CT scanner: $300-750,000 MRI scanner: $1.2-3,000,000 Full-size fixed CT Scanner: $750-2,000,000 X-ray imaging equipment ranges from plain X-ray to large fixed CT scanners. Prices of these systems may or may not include siting costs for a facility. Excluding siting costs, these systems range in price as shown below: Ex: Capital Equipment (CT Scanner) Ex: Consumables (POCT, CBC) GB EU £95-160,000 €113-190,000 £130-225,000 €150-265,000 £195-485,000 €225-565,000 £780-2,000,000 €900-2,250,000 £485-1,300,000 €565-1,500,000 To anchor or not to anchor? TMTG - Pricing 101
  • 11. 11 Overview of methodologies TMTG - Pricing 101 Pricing 101: o Declarative o Cascading Price o Van Westendorp Pricing 201: o Choice-based Trade-offs o ACBC & BYO
  • 12. 12 Declarative Price Methodologies TMTG - Pricing 101 — Fixed attribute offerings only — Does not allow scenario modeling — Outliers & erroneous responses + Efficiency + Easy to understand + Straightforward results + Answers to specific questions (price range, WTP, adoption) Disadvantages Benefits
  • 13. 13 Cascading Price TMTG - Pricing 101 Cascading Pricing  Best when an approximate price is known  Test of willingness to pay  Fixed product configuration(s) Not at all likely (no likelihood of purchase at this price) Somewhat Likely (at least a 25% likelihood of purchase at this price) Likely (about a 50% likelihood of purchase at this price) Very likely (at least a 75% likelihood of purchase at this price) Extremely likely (at least a 90% likelihood of purchase at this price)      S4Q2A: How likely would your office or clinic be willing to pay $400,000 for this system? (Please keep in mind that the price includes warranty, installation, and training for the first year). S4Q2B: Repeat question at $300,000 S4Q2C: Repeat question at $200,000
  • 14. 9% 9% 23% 23% 17% 9% 32% 49% 0% 20% 40% 60% 80% 100% Willing to pay at least $400,000 Willing to pay at least $300,000 Willing to pay at least $200,000 PercentSelected How likely would your office or clinic be willing to pay $400,000/$300,000/$200,000: (N = 47) Extremely or Very likely to pay $200,000 Extremely or Very likely to pay $300,000 Extremely or Very likely to pay $400,000 14 Cascading Price TMTG - Pricing 101 Cascading Pricing
  • 15. 15 van Westendorp TMTG - Pricing 101  Best for determining acceptable price range  Testing customer knowledge of reasonable price levels  Fixed product configuration(s) Van Westendorp Price Sensitivity Meter At what price would this product... ...become so expensive that you would not even consider it? [TOO EXPENSIVE] ...become too cheap, such that you would question its quality? [TOO CHEAP] ...start getting expensive, but still be worth considering? [EXPENSIVE] ...be such a bargain that you would consider it a great deal? [BARGAIN] Classic van Westendorp
  • 16. 0% 20% 40% 60% 80% 100% 120% CumulativePercent Price US $000's Bargain (Inexpensive) Expensive Too Expensive Too Cheap 16 Acceptable Price Range van Westendorp TMTG - Pricing 101 PMC PME
  • 17. 17 van Westendorp: vwPRO™ TMTG - Pricing 101 QBar. If this new product was offered at [b price], how likely would your private practice be to purchase it? QExp. If this new product was offered at [c price], how likely would your private practice be to purchase it? o No chance, almost no chance (1%) o Very slight possibility (10%) o Slight possibility (20%) o Some possibility (30%) o Fair possibility (40%) vwPRO™ (van Westendorp PRO)  Enhancement to capture PURCHASE LIKELIHOOD:  Best for determining acceptable price range  Testing customer knowledge of reasonable price levels  Fixed product configuration(s) Does NOT indicate purchase likelihood Van Westendorp Price Sensitivity Meter o Fairly good possibility (50%) o Good possibility (60%) o Probably (70%) o Very probably (80%) o Almost sure (90%) o Certain, practically certain (99%)
  • 18. 18 van Westendorp TMTG - Pricing 101 vwPRO™ Van Westendorp Price Sensitivity Meter
  • 19. 19 Summary TMTG - Pricing 101 o Set Objectives o Select & Screen Respondents o Select Methodology o Define Price o Design, Field, QC o Interpret Correctly
  • 20. 20 Preview TMTG - Pricing 201 Pricing 201 o Choice-Based Conjoint (CBC) Modeling o BYO & ACBC o Preference Modeling for Price Sensitivity o Market-calibrated Modeling for Price, Profit & Market Share DATE: Thursday, September 10, 2015 TIME: 2:00 PM Eastern / 11:00 AM Pacific
  • 21. MARKETS SERVED MEDICAL IMAGING METHODOLOGIES GO-TO MARKET EXECUTION SALES & MARKETING COMMUNICATION PRICING OPTIMIZATION NEW PRODUCT ROADMAP MARKET OPPORTUNITY ASSESSMENT Qualitative MEDICAL DEVICES AND DIAGNOSTICS HEALTHCARE IT PHARMACEUTICAL INDUSTRIES TECH TRANSFER MEASURING the VOICE-OF-CUSTOMER in HEALTHCARE Quantitative 21
  • 22. USA 502 Mace Blvd, Suite 15 Davis, CA 95618 PH: + 1 530-792-8400 FX: + 1 530-792-8447 www.themarketechgroup.com Europe / France 3 rue Emile Péhant 44000 Nantes PH: +33 (0)2 72 01 00 80 FX: +33 (0)2 40 48 29 40 22

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