Lyric – a new format shaping up

You announced the launch of the third generation Lyric at the AudiologyNOW! conference in Orlando. What is new about the product?

The latest Lyric generation builds on the strong market success of the second generation device introduced two years ago. We have incorporated a new processor and electronics, with low power consumption, and improved on the moisture protection of the product. In addition, we introduce a completely new easy-to-use programming wand. Featuring the latest technology the new Lyric generation brings a more natural hearing experience to users, and improved programming flexibility to Lyric partners.

Why are Lyric wearers so satisfied?

Our vision is to create a world where everyone enjoys the delight of hearing and therefore lives a life without limitations. Lyric clearly helps us with that, prompting a positive change in the behavior and attitude of customers toward hearing solutions. This is also reflected in the positive market response with 94% of Lyric wearers in a survey stating that they would recommend it to friends or loved ones. Sitting just 4mm from the ear-drum and completely invisible, it can be worn 24/7 for several months*. This means that Lyric wearers can truly enjoy better hearing with no compromises in lifestyle as they can do sports, shower and wear normal headphones, which is not always possible with traditional hearing instruments. That is why we call it truly hassle-free.

* Individual replacement needs may vary. Duration of device battery life varies by patient and is subject to individual ear conditions.

How is the Lyric business developing right now?

The reduced size and improved anatomical fit rate of the second generation Lyric, supported by an increased training and call center capacity, the number of customer trials and subscriptions almost doubled since its introduction two years ago. More than half of the consumers who responded to Lyric advertising had never previously had a hearing aid. This new interest has generated a steep rise in subscription revenues, contributing to the overall market-beating growth in Phonak’s premium hearing instrument category.

Are your customers also satisfied with the development of their Lyric business?

We have seen an unprecedented demand from audiologists who would like to become Lyric partners. Data from our most successful partners clearly shows the business opportunity. After they started offering Lyric as part of their hearing aid portfolio, revenues grew strongly with a significant portion of the sales stemming from Lyric. Revenues from renewals thereby represent a significant portion, demonstrating that this unique business model results in a steady and recurring revenue stream for this successful practice.

You also expanded internationally in recent years. How is the business developing outside of the US?

Lyric revenues continue to originate primarily from the US, but the number of trials in countries such as the UK, Canada, Germany and Switzerland has risen significantly in 2013, in many cases more than doubling over 2012. This year, already around a third of the points of sale are outside of the US and the share of revenues is growing rapidly as the efficiency at the points of sale is increasing, supported by intense training efforts. Our introduction of the third generation Lyric represents the next big step to expand the accessible market with this groundbreaking format internationally.