Valutus.

Case study · Customers

The category leader had a gap no one had seen.

A healthcare benefits provider wanted market share without cutting price. The opening turned out to be a set of attributes clients wanted that no one in the market was offering, the leading competitor included.

20%+

The preference gain against the leading competitor, once two new elements were added.

Precursor to Demand Realization™ · experimental testing, customers and prospects · uplift valued at more than 20% of revenue

01At a glance
Client
A healthcare benefits provider.
CORE dimension
Customers
Challenge
Grow market share and customer affinity by some route other than price.
Method
Attribute identification, then experimental testing with customers and prospects, then a customized financial model to price the shift.
Scope
Customers and prospects, tested against the leading competitor.
Outcome
Two product additions that drove a preference increase of more than 20 percent against the market leader. The uplift was valued at more than 20 percent of revenue.
02The challenge

Everyone was competing on the same axis.

The provider needed a stronger market position and did not want to buy it with price. Price competition in benefits is a race everyone loses slowly.

Working with the head of growth, we went looking for a different axis entirely. What did clients want that nobody was offering? Not a better version of the standard attributes. Something outside the set everyone was already competing on.

That question is rarely asked, because the standard attributes are the ones the whole category measures itself against. Anything outside them looks like a distraction until somebody prices it.

Why new beats better

Improving an attribute every competitor already offers moves preference a little. Adding one nobody offers moves it a lot, precisely because there is nothing to compare it against.

03What we did

Find the gap. Then price it.

The work ran in three steps, and the order matters. Identify what was missing, test whether it actually moved anyone, then put a financial figure on the movement.

01
Identify
Find the attributes clients cared about that existing offerings did not address, including those of the leading competitor. This is where the opening was.
02
Test
Experimental testing with customers and prospects to find which elements would move preference most, rather than which sounded best.
03
Value
A precursor to the Demand Realization™ Model translated the preference shift into a revenue figure the business could plan against.
04What it showed

It moved two groups at once.

The additions did not just win new preference. They hardened preference that was already there.

Prospects who already leaned toward the company became more certain of that preference. Prospects who were undecided moved into the company’s camp. Two different effects, both pointing the same way.

Because the avenues were genuinely new rather than conventional tweaks, the effect against the top competitor was large: a preference gain of more than 20 percent.

The model then valued that uplift at more than 20 percent of revenue. That is what turned a marketing observation into a capital allocation decision.

05The bottom line

Not a better answer. A different question.

Designing an offering around what clients care about at a deeper level is a measurable financial lever, not a branding exercise. The number is what makes it possible to argue for, and the number is what most organizations never produce.

How Customer Science and Demand Realization work →

From submerged value to banked value.

Let us talk about the value you create, and how you can demonstrate it. Credibly and concretely.

Notes on figures

  1. The preference gain of more than 20 percent is against the leading competitor, measured in experimental testing with customers and prospects.
  2. The uplift was valued at more than 20 percent of revenue. That is a valuation of the opportunity, not a record of realized revenue growth.