Case Study - ADAC Laboratories, now Philips Medical
ADAC Laboratories was a major manufacturer of high technology, capital medical equipment. Their premier product line, nuclear medicine cameras and related computer software, was used to visualize disease states in a relatively non-invasive and less expensive manner than other diagnostic modalities, such as nuclear magnetic imaging and CAT scanning.
With 30+% market share, they were among the top companies in the industry, but there was no clear market leader.
Given the pressure on healthcare costs and market maturity, the nuclear imaging market slowed to single digit growth rate from the 20+% rate it had enjoyed, causing increased competitive pressure and heavy discounting, causing a decline in margins.
The challenge was "how can we become the market leader and maintain healthy profit margins in a highly competitive marketplace?" Although the sales team was very experienced, successful and well respected in the industry, a new approach was needed to respond to the new challenges in the marketplace.
Key elements of the solution included implementing a process to change the way the sales and marketing teams approached selling and marketing to their customers. A new sales process and approach to developing sales tools were formulated and were very helpful in significantly improving sales effectiveness.
The company reported that the new approach provided methods that built the perceived value of the solution and reinforced the importance their unique capabilities in helping the buyer produce critical business and clinical results. In addition, the new approach enabled the sales and marketing teams to be more effective in aligning with the customerís buying process and the roles of each of the key influencers in the decision process.
Here are the results that occurred over the first 1.5 years of using our approach:
- Market Share increased 53% and they became the clear market leader
- Profit Margins increased 10%
- Orders increased 49%
- Sales per salesperson increased 50%
- Win/Loss Ratio increased 131% (more than doubled).