Case Studies
NEW PRODUCT DEVELOPMENT KANO STUDY
Strategic Research.
This international B2B manufacturer of medical devices was developing a
new urologic product and needed to know which features of the product
were most critical in determining market interest and willingness to
purchase. This manufacturer commissioned SMS to evaluate 18 possible
product features (i.e. which features must be included in the product
and its variations and likewise, which features should be excluded) and
their desirability to the gynecologists and their patients.
Actionable Results.
The study results revealed that only 5 of the 18 possible product
features were of great importance to the buyer and were a determining
factor in the purchase decision. The manufacturer was able to use these
results to:
- Focus operation resources and investments
- Solidify the final product design requirements
- Establish the key marketing and sales messages
- Develop the appropriate pricing models
PRICING SENSITIVITY (VAN WESTENDORP) STUDY
Strategic Research.
Company is a worldwide leader in manufacturing technology devices.
Company was partnered with another organization, each creating
complimentary devices. Both companies were trying to decide why neither
product was selling, even though they were in such high demand. In
surveying the consumer, SMS first found that the packaged products were
not at a price point consumers were willing to pay. SMS then conducted
another study to determine an appropriate price point for their
clients’ individual product. Using the VanWesterndorp
methodology, SMS found the perceived normal price that consumers would
pay.
Actionable Results.
The results showed that if the company were to lower their price
anymore, consumers would view the product as poor quality and
unreliable, and would not purchase it. The study also showed that if
they charged too much for the product, the consumer would not consider
it. The company was able to bring these results of the study to their
partner as empirical evidence that their partner would need to lower
their prices instead so the two could again be complimentary and make
some sales.
VOICE OF THE CUSTOMER (VOC) STUDY
Strategic Research.
A global supplier of specialized tracheal devices faced worldwide
competition in product development. Similar products were hitting the
market offering comparable features at a lower price. While the Client
knew its product was superior, the dwindling economy had consumers
seeking lower prices rather than better quality. The notable
competition hit the Client financially; they observed shrinking margins
as well as declining share. The Client called in SMS’ experts to
aide with this predicament. SMS collaborated with the product team to
develop a customized Voice of the Customer (VOC) process to establish
an extended feature set. SMS designed a study that paired two proven
research methodologies together to pinpoint the key features sets the
consumer considered most valuable. In speaking to global medical
professionals (Respitory Therapists, Surgeons and Critical Care Nurses)
worldwide, SMS was able to define the critical feature sets, the
pricing tiers, sales forecast and market share estimates.
Actionable Results.
The Client was able to use the data reported by SMS to develop a new
product, which would satisfy a diverse set of consumer needs. Within
the first year the Client’s margin targets were met and market
share parity was re-established. By the second year, market share
continued to increase. Currently, the Client’s competition is
re-emerging to the market with new, similar products. In partnering
with SMS, the Client has been able to stay ahead of the trends using
their Voice of the Customer (VOC) process by continuously reaching out
to its consumers and adding differentiating value to their products.
MARKET DEVELOPMENT STUDY
Strategic Research.
This national retailer of clothing and outerwear needed more
information about their shoppers’ buying behavior. Almost 90% of
shoppers coming into their stores did not make a purchase. This company
needed information quickly, to try to boost their 4th quarter sales.
SMS developed a buyer-intercept study for this circumstance. The
targets were shoppers defined as non-buyers. The shoppers were then
asked questions regarding their shopping reasons, store visits,
shopping time, product interests, spending intentions, shopping
experience, competitive interests and brand product interests.
Actionable Results.
Shoppers were visually attracted to the storefront, which is why they
entered in the first place. However, the study showed that this
retailer needed to change a few things to make the stores more
aesthetically pleasing to shoppers. Shoppers also needed to be enticed
to buy, since the product is more discretionary than necessity. The
company is now implementing promotional tactics to increase impulse
purchases. For example, they changed the layout of their stores,
changed their return policy and are offering a free accessory with a
purchase over a certain dollar amount. They are also providing more
incentive to sales representatives to help increase sales. An online
store was also developed.
CUSTOMER SATISFACTION STUDY
Strategic Research.
A large financial institution wants to improve their customer
satisfaction along with their employees’ morale in their call
center. Specifically they want to improve employee retention by 20% in
the next year and maintain a consistent 90%+ caller satisfaction rate.
SMS hypothesized that if the employees were happier, the customers
would reap the benefits, and designed a study around this theme. The
study would identify the drivers of employee retention: what would give
these employees incentive to stay employed and help keep customers
happy. This was phase one of the study. Phase Two would identify the
customers’ needs.
Actionable Results.
The strategic research provided enough data for SMS to make some
inspiring recommendations for the company. SMS suggested the company
develop three new training and development programs for employees. The
goal of the programs would be to: give employees better quality of
information to answer customer’s questions, receive better
training in dealing with unsatisfied customers and give
supervisors’ better management training. The company is using
these recommendations and seeing positive results. Turnover is steadily
declining, they developed a tracking system for all the cost savings
and their caller satisfaction has remained consistently above previous
levels.
