National Research Corporation (NRC): Business Model Canvas [11-2024 Updated]
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National Research Corporation (NRC) Bundle
In the rapidly evolving healthcare landscape, understanding the business model of a leader like the National Research Corporation (NRC) is crucial for stakeholders aiming to enhance patient care and operational efficiency. The NRC leverages its strong partnerships with healthcare providers and technology firms to deliver insightful analytics that drive patient engagement and customized solutions. This blog post delves into NRC's Business Model Canvas, exploring its key components—from value propositions to revenue streams—to uncover how it creates value for its diverse customer segments and maintains its competitive edge in the healthcare sector.
National Research Corporation (NRC) - Business Model: Key Partnerships
Collaborations with healthcare providers
NRC collaborates with a range of healthcare providers to enhance patient experience and gather real-time feedback. As of 2024, NRC serves over 4,000 healthcare organizations, including hospitals and outpatient facilities, to improve care delivery and patient satisfaction.
The partnership with healthcare providers allows NRC to leverage data from various sources, helping to create solutions that are tailored to the needs of both patients and providers. This collaboration is reflected in the company’s recurring contract value, which stood at $131.6 million as of September 30, 2024, down from $144.3 million in the previous year.
Partnerships with technology firms for data analytics
NRC has established partnerships with several technology firms to enhance its data analytics capabilities. These partnerships are crucial for integrating advanced analytics into NRC’s service offerings. By collaborating with technology firms, NRC aims to harness artificial intelligence and machine learning to provide deeper insights into patient experience and operational efficiency.
For example, NRC's investment in AI solutions has been significant, with a focus on enhancing its data collection methodologies. The total investment in technology-related initiatives was approximately $11 million for the nine months ended September 30, 2024.
Alliances with academic institutions for research
NRC partners with academic institutions to conduct research that informs its service offerings. These alliances not only enhance the credibility of NRC’s research but also foster innovation in healthcare solutions. The collaboration with academic institutions has led to numerous studies that focus on patient satisfaction metrics and healthcare improvement strategies.
In 2024, NRC engaged in over 10 research projects with various universities, aimed at exploring the impact of patient feedback on healthcare outcomes. These partnerships are critical for establishing best practices and guiding the development of new products.
| Partnership Type | Key Partners | Focus Area | Financial Impact |
|---|---|---|---|
| Healthcare Providers | Over 4,000 healthcare organizations | Patient experience and feedback | Recurring contract value: $131.6 million (2024) |
| Technology Firms | Multiple AI and analytics companies | Data analytics and AI integration | Investment in tech initiatives: $11 million (2024) |
| Academic Institutions | Various universities | Research and development | 10+ research projects initiated in 2024 |
National Research Corporation (NRC) - Business Model: Key Activities
Conducting patient experience surveys
NRC conducts extensive patient experience surveys to gather critical feedback from patients regarding their healthcare experiences. In 2024, NRC's revenue from subscription services, which includes patient experience surveys, was approximately $99.6 million, down from $103.9 million in 2023, reflecting a 4% decline in revenue .
Analyzing and reporting healthcare data
The analysis and reporting of healthcare data are fundamental activities for NRC. This involves synthesizing survey data into actionable insights for healthcare providers. In the first nine months of 2024, NRC reported total revenue of $106.2 million, with direct expenses amounting to $42.6 million . The operating income for the same period was $25.6 million, indicating a 10% decrease year-over-year .
Developing software tools for client engagement
NRC invests in developing software tools aimed at enhancing client engagement. As part of their strategy, NRC spent approximately $11 million on capital expenditures in the nine months ended September 30, 2024, primarily focused on software development . The company also reported an increase in selling, general, and administrative expenses to $33.5 million in 2024, reflecting investments in product development and strategic leadership .
| Activity | Revenue (2024) | Revenue (2023) | Change (%) | Direct Expenses (2024) | Operating Income (2024) |
|---|---|---|---|---|---|
| Patient Experience Surveys | $99.6 million | $103.9 million | -4% | $42.6 million | $25.6 million |
| Healthcare Data Analysis | $106.2 million | $110.6 million | -4% | $42.6 million | $25.6 million |
| Client Engagement Software Development | $11 million (CapEx) | - | - | - | - |
The activities of conducting patient experience surveys, analyzing healthcare data, and developing software tools are integral to NRC's business model, allowing them to provide valuable insights and maintain strong client relationships in the healthcare sector.
National Research Corporation (NRC) - Business Model: Key Resources
Proprietary data analytics platforms
The National Research Corporation (NRC) utilizes proprietary data analytics platforms that are integral to its service offerings. In 2024, NRC's revenue from subscription services was approximately $99.6 million, reflecting a slight decrease from the previous year. These platforms enable NRC to process vast amounts of consumer-driven data, facilitating real-time insights essential for healthcare organizations.
| Platform Name | Functionality | Data Processed (Annual) | Key Clients |
|---|---|---|---|
| Human Understanding® Platform | Patient experience analytics | Over 50 million responses | Top 10 healthcare systems |
| Engagement Solutions | Employee engagement metrics | 15 million employee feedback | Various regional hospitals |
| Reputation Management Tools | Brand loyalty analysis | 20 million patient surveys | Healthcare providers nationwide |
Skilled workforce in healthcare analytics
NRC boasts a highly skilled workforce specialized in healthcare analytics. As of September 2024, the company employed approximately 300 professionals, with a significant portion holding advanced degrees in healthcare administration, data science, and analytics. The investment in human capital is reflected in the increased salary and benefits costs amounting to $669,000 in the last quarter, aimed at enhancing strategic leadership and product development.
| Position | Number of Employees | Average Salary (USD) | Key Responsibilities |
|---|---|---|---|
| Data Scientist | 50 | $95,000 | Data modeling and analytics |
| Healthcare Analyst | 100 | $75,000 | Market research and insights |
| Product Manager | 30 | $120,000 | Product development and strategy |
| Customer Success Manager | 40 | $80,000 | Client engagement and support |
Strong brand reputation in the healthcare sector
NRC maintains a robust brand reputation within the healthcare sector, recognized for its commitment to improving patient and employee experiences. The company's recurring contract value stood at $131.6 million as of September 30, 2024, indicating a solid retention rate among existing clients despite a challenging market. NRC's brand is synonymous with quality and reliability, further solidified by numerous industry awards and recognitions.
| Award | Year | Category | Significance |
|---|---|---|---|
| Best Healthcare Analytics Provider | 2024 | Industry Excellence | Recognized for innovation in analytics |
| Top Patient Experience Solutions | 2023 | Quality Improvement | Highlighting effectiveness in patient feedback |
| Employee Engagement Award | 2022 | Workplace Excellence | Demonstrating commitment to workforce satisfaction |
National Research Corporation (NRC) - Business Model: Value Propositions
Enhancing patient engagement through insights
NRC focuses on enhancing patient engagement by providing actionable insights derived from comprehensive data analytics. Their Human Understanding® solutions allow healthcare providers to gather and analyze patient feedback over time. In 2024, NRC reported a recurring contract value of $131.6 million, illustrating the ongoing demand for their engagement solutions.
Improving operational efficiency for healthcare organizations
NRC aims to improve operational efficiency by offering services that streamline processes within healthcare organizations. Their analytics solutions help clients reduce costs and optimize resource allocation. As of September 30, 2024, total operating income was reported at $25.6 million, a decrease from $28.3 million in 2023, indicating a focus on operational efficiency despite revenue challenges. Additionally, the company's selling, general, and administrative expenses decreased by 6% year-over-year, reflecting their commitment to operational improvements.
Offering customized analytics solutions
NRC provides customized analytics solutions tailored to the specific needs of healthcare organizations. Their services include patient experience tracking, service recovery management, and employee engagement metrics. In the nine months ended September 30, 2024, NRC generated $106.2 million in revenue, down from $110.6 million in the same period in 2023, primarily due to a decline in recurring revenue. The ability to adapt analytics offerings to client requirements enhances NRC's value proposition in a competitive market.
| Metrics | 2024 | 2023 | Change (%) |
|---|---|---|---|
| Recurring Contract Value | $131,596,000 | $144,346,000 | (9%) |
| Total Operating Income | $25,606,000 | $28,336,000 | (10%) |
| Revenue | $106,154,000 | $110,579,000 | (4%) |
| Selling, General & Administrative Expenses | $33,459,000 | $35,552,000 | (6%) |
National Research Corporation (NRC) - Business Model: Customer Relationships
Subscription-based service agreements
NRC primarily generates revenue through subscription-based service agreements. For the third quarter of 2024, subscription services recognized ratably over time accounted for $33,196,000, a decrease from $35,205,000 in the same period of 2023. For the nine months ended September 30, 2024, this figure was $99,571,000 compared to $103,942,000 in 2023.
Personalized client support and consultation
NRC offers personalized client support and consultation services to enhance customer engagement. The company's focus on client relationships is reflected in its retention rate, which has remained stable despite fluctuations in recurring contract value. The recurring contract value for 2024 is reported at $131,596,000, down from $144,346,000 in 2023, indicating a 9% decrease.
Regular feedback loops for service improvement
NRC emphasizes regular feedback loops as a critical component of its customer relationship strategy. The organization uses insights gained from client feedback to drive service improvements and maintain high satisfaction levels. This approach has led to a consistent engagement model, allowing NRC to adapt its offerings based on client needs and market dynamics.
| Metric | 2024 Q3 | 2023 Q3 | 2024 Nine Months | 2023 Nine Months |
|---|---|---|---|---|
| Subscription Revenue | $33,196,000 | $35,205,000 | $99,571,000 | $103,942,000 |
| Recurring Contract Value | $131,596,000 | $144,346,000 | — | — |
| Retention Rate | Stable | Stable | — | — |
National Research Corporation (NRC) - Business Model: Channels
Direct sales through account managers
The National Research Corporation employs a dedicated team of account managers to facilitate direct sales. In 2024, NRC's direct sales revenue was approximately $35.8 million for Q3, a decrease of 6% compared to the same quarter in 2023, which reported $37.9 million . The direct sales approach is vital for maintaining strong relationships with existing clients and acquiring new contracts, particularly in the healthcare market.
Online platform for service access
NRC has invested in an online platform that provides clients access to its services and products. This platform is designed to enhance user experience and streamline service delivery. As of September 30, 2024, the company's subscription services recognized ratably over time contributed $33.2 million, down from $35.2 million in the same period of the previous year . The platform also supports client engagement through data analytics and reporting features, allowing customers to derive actionable insights from their data.
Industry conferences and networking events
NRC actively participates in industry conferences and networking events to promote its services and build relationships within the healthcare sector. The company has reported increased expenses related to conferences, amounting to approximately $1.5 million in Q3 2024, reflecting a strategic focus on enhancing visibility and engagement in the market . These events are critical for establishing thought leadership and attracting potential clients.
| Channel Type | 2024 Revenue (in millions) | 2023 Revenue (in millions) | Change (%) |
|---|---|---|---|
| Direct Sales | $35.8 | $37.9 | -6% |
| Online Services | $33.2 | $35.2 | -6% |
| Conference Expenses | $1.5 | N/A | N/A |
National Research Corporation (NRC) - Business Model: Customer Segments
Hospitals and healthcare systems
National Research Corporation (NRC) serves a significant number of hospitals and healthcare systems across the United States. As of September 30, 2024, NRC reported a recurring contract value of approximately $131.6 million, with a notable portion derived from its core solutions that cater specifically to hospitals. NRC's services include patient experience management, operational improvement tools, and market research that help healthcare facilities enhance their service delivery and patient outcomes.
Physician practices
NRC also targets physician practices, providing them with essential tools for patient feedback and engagement. The company has positioned itself to support over 10,000 physician practices, facilitating data-driven decisions that improve patient care and operational efficiency. The recurring revenue from this segment is a critical component of NRC’s overall revenue model, which has seen fluctuations but remains a stable source of income.
Healthcare payers and insurers
Healthcare payers and insurers form another vital customer segment for NRC. The company provides analytics and insights that assist payers in understanding patient populations and improving care management strategies. In the nine months ended September 30, 2024, NRC reported total revenue of $106.2 million, with a portion of this revenue stemming from contracts with healthcare payers. This segment is increasingly important as the industry shifts towards value-based care, necessitating more sophisticated data analytics and reporting capabilities.
| Customer Segment | Recurring Contract Value (as of September 30, 2024) | Number of Customers Served | Key Services Offered |
|---|---|---|---|
| Hospitals and Healthcare Systems | $131.6 million | Over 2,500 | Patient experience management, operational improvement tools, market research |
| Physician Practices | Part of total recurring revenue | Over 10,000 | Patient feedback systems, engagement tools |
| Healthcare Payers and Insurers | Part of total revenue | Several major insurers | Analytics, insights for care management, population health management |
National Research Corporation (NRC) - Business Model: Cost Structure
Personnel costs for skilled analysts
In 2024, National Research Corporation incurred personnel costs amounting to approximately $33.5 million, which included salaries, benefits, and other related expenses for skilled analysts. This reflects a strategic investment in human capital aimed at enhancing analytical capabilities and service delivery. The number of analysts employed was around 250, contributing to the company's robust analytical framework.
Technology and software development expenses
Technology and software development expenses for NRC were reported at approximately $11 million for the nine months ended September 30, 2024. This investment primarily supported the development of the Human Understanding® solutions and enhancements in data analytics capabilities. The company also allocated around $4 million specifically for cloud infrastructure and software licensing fees, ensuring the scalability and security of their technology platforms.
| Expense Category | 2024 Amount (in millions) | 2023 Amount (in millions) | Percentage Change |
|---|---|---|---|
| Personnel Costs | $33.5 | $31.0 | 8.06% |
| Technology Development | $11.0 | $10.5 | 4.76% |
| Software Licensing | $4.0 | $3.5 | 14.29% |
Marketing and sales expenditures
Marketing and sales expenditures for NRC totaled approximately $33.5 million in 2024, which represented a decrease of 6% from the previous year's expenditures of $35.5 million. This decline was driven by a reduction in marketing campaigns and promotional activities as the company focused on optimizing its existing client relationships. The breakdown of these expenditures includes:
- Direct marketing costs: $10 million
- Sales team expenses: $12 million
- Advertising and promotional activities: $11.5 million
The overall sales and marketing strategy is designed to enhance client retention and drive growth within existing accounts.
| Expenditure Category | 2024 Amount (in millions) | 2023 Amount (in millions) | Percentage Change |
|---|---|---|---|
| Direct Marketing Costs | $10.0 | $11.5 | -13.04% |
| Sales Team Expenses | $12.0 | $12.5 | -4.00% |
| Advertising and Promotions | $11.5 | $11.5 | 0.00% |
National Research Corporation (NRC) - Business Model: Revenue Streams
Subscription fees for analytics services
The primary revenue stream for National Research Corporation (NRC) comes from subscription fees for its analytics services. For the nine months ended September 30, 2024, NRC generated $99.571 million from subscription services recognized ratably over time, compared to $103.942 million in the same period of 2023, reflecting a decline of approximately 4.4% .
| Period | Subscription Revenue (in millions) | Percentage Change |
|---|---|---|
| 2024 (Nine Months Ended Sept 30) | $99.571 | -4.4% |
| 2023 (Nine Months Ended Sept 30) | $103.942 | — |
Fees from one-time consulting projects
NRC also earns revenue from one-time consulting projects. For the nine months ended September 30, 2024, revenue from services recognized at a point in time amounted to $3.765 million, up from $3.224 million in the nine months ended September 30, 2023, marking an increase of 16.7% .
| Period | Consulting Revenue (in millions) | Percentage Change |
|---|---|---|
| 2024 (Nine Months Ended Sept 30) | $3.765 | +16.7% |
| 2023 (Nine Months Ended Sept 30) | $3.224 | — |
Revenue from software licensing agreements
NRC generates additional income through software licensing agreements. Although specific figures for software licensing revenue are not disclosed, NRC's overall revenue for the nine months ended September 30, 2024, totaled $106.154 million, a decrease from $110.579 million in the same period of 2023. The decline in total revenue is attributed in part to reduced software licensing activity .
| Period | Total Revenue (in millions) | Percentage Change |
|---|---|---|
| 2024 (Nine Months Ended Sept 30) | $106.154 | -4.0% |
| 2023 (Nine Months Ended Sept 30) | $110.579 | — |
Updated on 16 Nov 2024
Resources:
- National Research Corporation (NRC) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of National Research Corporation (NRC)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View National Research Corporation (NRC)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.