Eargo’s tiny hearing aids fit snugly into the ear canal and are almost impossible to detect. By only amplifying high frequencies, wearers receive a more natural sound. What really sets them apart from other hearing aids on the market today, is that they are rechargeable units, not relying on the added expense of keeping a supply of batteries on hand.
Behind their novel technologies, however, is a stellar approach to customer service that is unlike any other on the hearing aid market. Prospective customers connect with Personal Hearing Professionals, who walk them through the process of picking out a hearing aid with concierge-like attention to detail and customer needs. Included with product purchase comes unlimited access to customer support.
Recently, the “virtually invisible” hearing aid manufacturer made its market debut with an outsized IPO. Eargo raised $141 million under the Nasdaq ticker “EAR.” Eargo priced its 7.9 million shares at $18 apiece, up from the $14-$16 they had initially planned to sell for. By closing, stock was selling for $43 a share, rising 142% over its set price.
CEO Christian Gormsen and CMO Shiv Singh both indicated that the company will use the influx of funds to increase brand awareness. Unlike most hearing aid retailers, Eargo has forgone brick-and-mortar sales locations entirely and instead focuses operations solely online. Gormsen has specifically noted that any expansion will work on improving existing technologies and virtual services and will not entail building physical retail or service locations.
"We want to be an industry innovator and we plan to invest in our technology development and build out our tele-care model. Our model of tele-care is resonating as we have seen strong growth during the pandemic,” Gormsen said.
Eargo has never used third-party retailers, instead opting to maintain direct, remote contact with each customer. Customer services representatives can even access a customer’s mobile device to help them navigate the app, should extra help be required. They have built an entire business around being 100% virtual, and it seems to be working for them. Especially as customers seek out alternatives to brick-and-mortar locations during a global pandemic, Eargo and their online-only services have enjoyed massive growth.