Clients typically receive a high return on investment from the program when compared to the one-off ad-hoc pricing they would have had to pay if they had not signed Premier Pass. This high return on investment for the clients is skewed, however, because had they been required to pay full price for each enrollment, many clients would not have sent that many participants to virtual classes to begin with. This is where the disconnect was with leadership views that Premier Pass was causing the Client Education team to lose money instead of earn it.
Opportunity. The Premier Pass program needed to be justified. Leadership was requesting a year over year return on investment for Cerner based on actual costs for the Client Education team. Only the …show more content…
Using the cost per enrollment for virtual classes, and cost per onsite class, those calculations were added to the pricing tool. The inputs for the tool stayed the same: Client bed size, number of project team members expected to take virtual classes, and the number of onsite course. The number of project team members expected to take virtual classes was multiplied by the number of virtual classes a project team member was expected to take, which was a standard tow courses based on additional analyses completed prior to this project. The number was then multiplied by $600 which was found to be the largest cost for a virtual enrollment. Then the number of onsite classes the client requested was multiplied by $2,000 which was found to be the cost Client education incurred per onsite course. The client bed size was taken into consideration by the ‘buffer’ which was added to reduce the risk in client overconsumption of the program. Each buffer started at the client list price for an onsite course that they would pay if they were not Premier Pass. With each increase in the client bed size, a 17% increase was applied to the buffer due to the additional risk associated with more people. Another factor which has not been mentioned due to lack of significant relevance in the analyzation process is Cerner Certified Trainer Program, or CCTP. …show more content…
The ROI for the past two years was just under 400%. Through this analysis and presentation, the leadership team was satisfied with the information, and have decided to continue with the present Premier Pass model. The only update to the program will be to adopt the new Premier Pass pricing tool mentioned in this paper. This pricing model will be utilized for new footprints, or new clients who are interested in signing Premier Pass. This tool will be a change to the current model in the sense that clients may experience a lower ROI from their end. Therefore, the pricing model will only be used for new clients. As for the 53 existing Premier Pass clients, upon their yearly renewal, the client ROI will be calculated on an individual basis, and analyzed to assess the appropriate renewal rate. To avoid a vast increase in the contract pricing and risk of clients not renewing, the year over year contract price should not exceed 10% from the previous year’s contract pricing. The project has allowed the Client Education team to assess the Premier Pass program, and justified its existence. Continued conversations on the Premier Pass program will convene yearly with the new Premier Pass program manager, and the leadership team. A yearly Cerner ROI report will be conducted as well as perceived ROI for the active Premier Pass clients. As ad-hoc enrollment prices continue to
Opportunity. The Premier Pass program needed to be justified. Leadership was requesting a year over year return on investment for Cerner based on actual costs for the Client Education team. Only the …show more content…
Using the cost per enrollment for virtual classes, and cost per onsite class, those calculations were added to the pricing tool. The inputs for the tool stayed the same: Client bed size, number of project team members expected to take virtual classes, and the number of onsite course. The number of project team members expected to take virtual classes was multiplied by the number of virtual classes a project team member was expected to take, which was a standard tow courses based on additional analyses completed prior to this project. The number was then multiplied by $600 which was found to be the largest cost for a virtual enrollment. Then the number of onsite classes the client requested was multiplied by $2,000 which was found to be the cost Client education incurred per onsite course. The client bed size was taken into consideration by the ‘buffer’ which was added to reduce the risk in client overconsumption of the program. Each buffer started at the client list price for an onsite course that they would pay if they were not Premier Pass. With each increase in the client bed size, a 17% increase was applied to the buffer due to the additional risk associated with more people. Another factor which has not been mentioned due to lack of significant relevance in the analyzation process is Cerner Certified Trainer Program, or CCTP. …show more content…
The ROI for the past two years was just under 400%. Through this analysis and presentation, the leadership team was satisfied with the information, and have decided to continue with the present Premier Pass model. The only update to the program will be to adopt the new Premier Pass pricing tool mentioned in this paper. This pricing model will be utilized for new footprints, or new clients who are interested in signing Premier Pass. This tool will be a change to the current model in the sense that clients may experience a lower ROI from their end. Therefore, the pricing model will only be used for new clients. As for the 53 existing Premier Pass clients, upon their yearly renewal, the client ROI will be calculated on an individual basis, and analyzed to assess the appropriate renewal rate. To avoid a vast increase in the contract pricing and risk of clients not renewing, the year over year contract price should not exceed 10% from the previous year’s contract pricing. The project has allowed the Client Education team to assess the Premier Pass program, and justified its existence. Continued conversations on the Premier Pass program will convene yearly with the new Premier Pass program manager, and the leadership team. A yearly Cerner ROI report will be conducted as well as perceived ROI for the active Premier Pass clients. As ad-hoc enrollment prices continue to