Segmenting the healthcare provider landscape to focus a new account-based model
A leading healthcare equipment and services company was struggling to maintain share and grow in a rapidly changing healthcare market. What was a ripe opportunity for the company to sell its offers to individual departments of healthcare providers became threatened by a shifting political and business landscape that was pushing more and more system-wide decision-making into the executive suite. While the company recognized the need to change how it went to market to build strategic relationships with providers expanding under the new industry rules, it was unclear which specific customers to target, how to re-structure a department-led commercial team to one that was more cross-department or account-based, and how to best position the company to win more business at the enterprise level.
A current FullSurge partner in a previous role assembled and led an engagement team to develop a segmentation strategy for the client. It was clear from the onset that the company needed to establish a singular view of its customer base that provided actionable and shared insights across internal business groups. To accomplish this, existing data were integrated and analyzed across the disparate groups to unearth patterns and prove the value of attribute clustering to executives. These insights were then built on with an extensive primary research effort with hospital CXOs to determine multi-dimensional segments. These dimensions helped to establish rich profiles of segments that included such factors as driving needs, operational philosophies, market spend, decision-making roles, size/growth, brand perceptions, etc. The analysis resulted in five overarching segments, each with distinct characteristics and spend potential. In addition, knowledge about these segments was uncovered that helped the company understand who to target, how to target them, and how to articulate a value proposition that was meaningful, distinct, and credible. The segment and targeting strategy became the foundation for a transformative plan-to-win strategy that clarified overriding priorities the company would focus on in the coming years to re-gain growth and re-establish their brand. The segmentation findings and plan-to-win was launched over a three-day period at the annual commercial sales meeting consisting of the company’s top 200 executives.
The segmentation provided the commercial and marketing teams the context, focus, and confidence they needed to effectively move toward the account-based model. After the segments were defined, a typing tool was created that helped to categorize the entire healthcare provider population into one of the five segments, and thus, which specific accounts to target with which type of commercial team. The company spent the following year implementing the account-based model based on the findings and strategies set by this work.