Digital communications and the new medtech commercial model

E-book: The hidden potential of digitization


 

Digital communications and the new medtech commercial model

E-book: The hidden potential of digitization

A rapidly
changing market


Healthcare systems are increasing applying value-based models in which purchasers are looking for real-world evidence that premium medical devices improve patient outcomes and reduce the total costs of care. Added to this, new low-cost companies – often arising in emerging markets – are providing clinically-acceptable products as much lower price points.

Power shift to institutional decision makers

The focus on value-based models is linked to the change in who makes purchasing decisions in healthcare systems. Power continues to move from clinicians to institutional decision makers: hospitals, committees, buying groups, and regional and governmental agencies.

Not focusing on institutional payers is costly. Boston Consulting Group (BCG) estimates that: “Those companies that employ primarily a clinician-focused model generate revenues per sales rep that, on average, are 35% to 50% of the revenues generated by companies whose commercial models target administrative decision makers.”(1)

Digital technology
and the new medtech commercial model

In the face of these challenges, BCG have recommended changing the commercial business model through a number of transformational steps:


 

Customize the marketing strategy
Start with a systematic review to understand stakeholders, prioritise market segments, set specific strategies, and tailor the commercial model to execute.

Reinvent clinical selling
Do more focused clinical selling and, at the same time, invest in new institutional-selling capabilities to reflect the shift in decision-making power.

Partner with key accounts
With the top 10 percent of customers representing as much as 50 percent of the business in a given product category(1), identifying, understanding and then partnering with key accounts is vital.

Drive home a product’s value
Rather than focusing exclusively on the technical features, make the case for improved outcomes, reduced cost of care, shorter hospital stays, or lower rates of repeat surgeries

Invest in reimbursement capabilities
Provide evidence of health-economic benefits and enable local teams to communicate them effectively.

Make service a differentiator
Achieve real competitive advantage by differentiating the product offering, adding additional sources of revenue, and reducing costs.

The role
for technology

To explore how technology can play a role, we have broken down the new commercial model into a series of actions.
 


 

About Agnitio

Agnitio helps life science companies generate effective relationships with payers, medical professionals, and their patients. Agnitio’s system is implemented in more than 90 countries and 25 languages – and used by major pharmaceutical and medical device companies including Bayer, Philips Healthcare and Roche.

  1. Boston Consulting Group: Moving Beyond the ‘Milkman’ Model in Medtech. February 28, 2017, Götz Gerecke, Andrea Miotto , and Mills Schenck.
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  3. Boston Consulting Group: Fixing the Medtech Commercial Model. Still Deploying Milkmen in a Megastore World? July 2, 2013, Colm Foley and Götz Gerecke.

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