Go-to-Customer Benchmarking Key Findings in the Medical Device IndustryBy: 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.
Read more Alexander Group articles about the medical device industry.