Recurring revenue model
to establish a more resilient business
Company
Tover
Headquarters
Utrecht, Netherlands
Industry
Healthcare, MedTech
My project role
Vision + strategy · Creative direction · Service design
Tover is a Dutch scale-up in the MedTech industry. In 2015 Tover introduced it's first product, the Tovertafel. It became an overnight success. The introduction was followed by a period of fast growth and international expansion.
After several years the high growth rates diminished. Having only one product line, this immediately impacted business results. Could a recurring revenue model contribute in building a more resilient business? And create a positive change for Tover and their customers?
The challenge
Make a concrete proposal what a recurring revenue model for Tover looks like, including clear proposition(s) and pricing strategy.
Questions to explore:
Could we keep the current proposition, or should amendments be made?
Are clients be open to subscription methods?
Could a subscription model also improve the user experience and boost customer satisfaction?
Gain understanding
Through co-design, interviews and a series of experiments we gained a good understanding of customer needs and market dynamics.
At the end of this stage, we had a clear view about the elements were most valuable for the customer and the end-user.
"I love that we always have access to the newest games. And colleagues can grasp Tovertafel knowledge in My Tover, greatly reducing my workload!" - Care staff manager
Create solutions
The insights from interviews formed the starting point for a team wide hackathon. This gave a wide range of ideas and input for further development. The best ideas were selected and prototyped using of the shelf software solutions.
The prototypes were validated and improved using co-design methods. For this we could use Tover's co-design network, a group of dedicated care homes with motivated lead users. In three iterations an attractive proposition was created that was ready for introduction in 3 countries.
The result
A brand new offering: Open Play & Learn. Featuring significant benefits for Tover along with an enhanced customer experience.
In two steps the new business model was introduced. Initially it was offered complementary to the transactional model. Later it was integrated with the core proposition.
In this project a new proposition, an online platform, a zero-touch customer journey and a corporate rebranding all came together. This formed an great basis for Tover for the covid pandemic. Not only did the company stand its ground; it even managed to grow in this hectic period.