This sales build-out success story is an example of how dramatic our interventions can be, as our sales turnaround was the critical factor in the company's very survival. Sales revenue grew from $50,000 in its first year (prior to our engagement) to $500,000 in the year during and immediately following our engagement. By following our recommendations, the company was able to sharply improve its sales performance- so much so that it secured its mezzanine funding from the University of Maryland as a result of its growth trajectory.
The company's lab test won fast-track approval by the FDA, so it seemed to make sense to target the laboratories that would perform the test. Unfortunately, they completely missed the bigger health care picture that held the secret to their success. No one within the company understood the health care delivery process or the payer reimbursement model that would ultimately determine adoption of the new test. Our analysis uncovered that the lab test (designed to help transplant patients and others with compromised immune systems) could only be provided to a patient during the course of treatment if a transplant surgeon ordered the test. In other words, lab managers couldn't order the test! The decision-maker in the buying decision was the transplant surgeon, not the lab manager.