A drop in sales of our client’s best selling intrathecal pump pushed the company to seek advice from HBS. Having been leaders of the market for several years, new entrants had managed to gain considerable market share. In order to prevent this, the company had cut their prices by 10% but even with the measure sales were dwindling.
We design a customer satisfaction and attrition study targeting pain specialists, neurologists, nurses and purchasing managers. The aim of the study was to try to understand the image of the company and overall customer satisfaction in terms of products (efficacy/innovation), value (direct cost and added costs) and pre-after sales service.
Respondents clearly showed that our client was a winner in terms of product efficacy and innovation and also in value for money. However, the long leadership in the market had created an corporate culture which was not supportive or helpful to customers. Sales reps and account managers were accused of pre-sales arrogance and their post-sales customer care was non existent. Hence, customers were switching to new players who were keen to nurture new accounts. The company undertook a re-training program for customer service.