Adapting Your Commercial Model to the New Healthcare EcosystemBy: Craig Ackerman Medical Device, Revenue Growth Strategy, Sales Coverage, Sales Strategy
The Alexander Group (AGI) attended this year’s MedTech Conference and had the opportunity to present timely industry research and trends. The conference theme was Innovation Transforming Health Care. Much of the conversation focused on how healthcare companies are moving beyond traditional products and boundaries. With the industry changing rapidly, it isn’t about the device, prescription or IT system. It’s about the healthcare ecosystem focusing on improving patient outcomes while reducing costs across the continuum. As such, there is an increased focus on differentiated products for complex procedures, post-acute solutions and digital health. From precision medicine, connected platforms and apps to artificial intelligence, data and media, the future of healthcare is transforming.
During our presentation we discussed AGI’s recent research specifically around the top trends impacting commercial models. As innovation continues to transform the industry, commercial models are adapting. Sales and marketing organizations are moving beyond traditional sales representatives and adapting (not always by choice) their commercial models to changing realities. Our research shows the companies that embrace innovative investment strategies produce sales growth that is three times the industry average. These companies are more agile, investing in new roles and finding new ways to differentiate themselves from the competition.
High-performing companies invest significantly more in their commercial organization. They also invest differently. Consider these facts:
- 35 percent higher investment in customer-facing resources
- 2x more junior reps and field marketing resources
- 2x more key account managers
Along with these investments, high-performing health care companies need to become more adept at covering all revenue motions, which include fulfillment, advocacy and innovation.
Fulfillment focuses on selling the core portfolio of products. Advocacy hones in on justifying the clinical and economic value at key accounts. Innovation pinpoints the newest products that offer innovative ways of diagnosing, monitoring and treating diseases. Companies that successfully execute against all motions win with industry-leading revenue growth.
AGI’s Craig Ackerman, Steve Winsch and Doug Beveridge share timely
industry trends and research at recent MedTech Conference. © 2018 Alexander Group, Inc.®
How can you adapt your go-to-customer strategy and revenue motions to ensure you’re setting your company up for success in this change-filled era? The first step is adapting your commercial organization to meet the needs of ever-changing customers. Your customers no longer engage in a non-linear buying cycle. As such, commercial models require you to invest more heavily in digital marketing, establish new customer-facing roles and enable your sellers with the tools to succeed. The revenue growth leaders at AGI can help you start your commercial transformation by understanding the buyer journey, determining customers’ needs and identifying the gaps in your organization to formulate a plan of action.
The healthcare industry is growing. Organizations need to have a plan in order to keep up the pace. AGI medical leaders have the knowledge, expertise and vast database to help your commercial organization orchestrate a successful future. Contact us today to get started.
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