Same Vision Insurance Plan, Different Model

It was easy for our client to go into the sales opportunity. They were pitching a comprehensive vision plan to a multi-billion dollar computer systems vendor. They had the right people. They said the right things. They had a price advantage of six figures.

But, (based on this opportunity review by Primary Intelligence) it wasn’t enough to knock out the incumbent:

What were the primary reasons you did not select VisionPlan?
“Network disruption was the primary reason. The business model for VisionPlan is strategically different than the business model for RIGHTEYE. RIGHTEYE’s model relies on incorporating individual, independent ophthalmologists and optometrists across the nation. VisionPlan utilizes chains like Optical Mart. When we did a network comparison between the physicians within the respective zip codes of our employees, the disruption was more than 80 percent. That would mean, if I were currently a patient of Dr. Jones and we selected VisionPlan, Dr. Jones may not be a part of the VisionPlan network. The cost model was very compelling, but we weren’t willing to disrupt 28,000 people and their family members to save a couple hundred thousand dollars.”

Was this a case of not having the right service, communicating poorly or staying in deal too long when the chances of winning were too slim?

What do you think? (cdalley@primary-intel.com, 801.838.9600 x5050)