Test Menu Optimization
Faced with a large list of test menu options for a new diagnostic detection technology, we helped our client to optimize the roll-out of these options into several phases to drive maximum placements and revenue overtime.
Situation
- Health Advances’ client had developed an automated, multiplex capable, high throughput detection technology for the clinical laboratory with the potential for use with a wide variety of test menu options.
- While a large company with significant resources, a staged approach to test menu launch was required to optimize the timing of resource allocations.
- The challenge was to prioritize development and launch of the test menu options into waves that would allow customers sufficient testing volumes to allow for instrument purchase prior to availability of the entire test menu.
Critical Questions to Address
- For which testing categories or specific assays does this technology provide a clinical, logistical or economic benefit versus existing technologies?
- What is the likelihood of adoption of various test menu items by each customer segment? Are there families of tests that resonate with each customer group?
- What are the potential volumes and achievable price points for each test? What is the revenue potential for each menu item?
Health Advances Approach
- Refined the list of potential tests based on technological parameters.
- Conducted interviews and an on-line survey with laboratory directors across various customer segments to determine current test menu needs, pricing sensitivity, and overall interest in the client’s platform.
- Developed an interactive revenue projection model demonstrating the impact of variations in the order of test menu build-out.
Results
- Health Advances recommended a test menu role out strategy that would drive early placements in the customer segment expressing the greatest overall interest in the product.
- The second wave of tests was directed at other customer segments but with additional value in the primary customer segment.
