A value-based approach to simplify charging, better manage customer expectations and recoup annual value leakage of 3-5% for a global veterinary groupÂ
Challenge:
Cost-plus pricing approach in which inaccurate estimates provided, resulting in bill shock and difficult customer conversations
Itemised pricing created greater admin complexity for staff
Current approach undervalued services and skills, with a greater focus given to the cost of consumables
Outcomes:
Introduction of the new structure helped recover annual revenue leakage of around 3 – 5% of revenues
Changes made in the UK with plans to roll out the new structure in other European markets
Streamlined structure resulted in confidence in price estimation thereby improving competitiveness
More consistent & fairer charging resulting in a better customer experience
Reduces mis-charges and drives operational efficiencies