Go-to-Customer Benchmarking Key Findings in the Medical Device Industry

By: Craig Ackerman Medical Device, Revenue Growth Strategy, Sales Strategy

The Alexander Group (AGI) has worked with medical device companies for over 30 years. AGI’s recent industry study of over 50 leading medical device companies includes data on go-to-customer structure, emerging marketing, sales and service jobs, productivity, sales costs and sales compensation. The following key benchmarking findings are part of these broader results.

Medical device companies share three concerns:

  • Facing a growth-constrained environment
  • Reducing sales expense as a percentage of revenue
  • Investing more in junior representatives and clinical specialists

Facing a growth-constrained environment

In the industry as a whole, margins are dropping and device companies must defend prices. There has been more change in the last five years than in the last 30, and yet there is accelerating pressure for quality outcomes.

Reducing sales expense as a percentage of revenue

Medical device companies are reducing cost but need to grow revenue. By flattening and reducing sales and support headcount and pay, costs are going down.

Investing more in junior representatives and clinical specialists

In the past, the medical sales representative was the top of the food chain. They had relationships with doctors when doctors were the buyers. Now, products are more commoditized and regulations are stricter. It now makes sense to hire more junior representatives and clinical specialists to perform more routine tasks with hospitals.

These key findings are only a portion of the highlights from this survey. Whether planning for a new fiscal year or revamping the current year, these survey findings can bolster go-to-customer strategy, sales compensation planning and revenue growth. Download our full eBook to read more.

To learn more, visit the Alexander Group’s Medical Device practice page. If you have questions, please contact one of our practice leaders.

Read more Alexander Group articles about the medical device industry.

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Craig Ackerman

Craig Ackerman is a principal in the Atlanta office and the leader of the firm’s Medical Device practice. Areas of focus in his consulting work include market segmentation, customer coverage models, sales process effectiveness, sales job design, quota setting and incentive compensation design. Craig works with sales organizations to develop actionable go-to-market strategies across many industries, including medical devices, biotechnology, financial services and high technology.

Prior to joining the Alexander Group, Craig held leadership positions in sales and marketing with major telecommunication and distribution companies, and as a management consultant with a Big 5 firm. Craig has extensive expertise in business process improvement, operational support systems and customer acquisition strategies. Craig has a B.S. from Florida International University and an MBA from the Goizueta School of Business at Emory University.