MedTech Leaders Sustain Growth Using More Complex Commercial ModelsBy: Doug Beveridge Medical Device, Revenue Growth Strategy, Sales Growth, Technology Sales
Recent insights garnered from ongoing Alexander Group (AGI) research suggest a return of historical growth levels within the MedTech industry. More specifically, average annual revenue growth rates are in line with research AGI conducted nearly a decade ago (in 2010). Unfortunately for commercial leaders, there is also a continued downward trend in gross margin percentages.
In recent discussions with 50+ leaders across the healthcare ecosystem, some recurring themes emerged about priority investment and opportunity areas:
- Strategic Accounts: Dealing with consolidation and the importance of properly meeting the needs of more complex/complicated key accounts (e.g., IDNs, GPOs)
- Revenue Motions: Establishing and enabling more complex and diverse field teams that properly align with emerging buyer journeys
- Sales Incentives: Better aligning reward systems to reflect new GTM realities, particularly in the areas of goal setting and incentive compensation
- Digital Emergence: Investing in new IT resources and Digital capabilities to better service customers and enable field resources
The need for new job roles, organizational capabilities and revenue motions means an increase in the level of commercial model complexity needed to sustain growth. Dealing with complexity represents a significant challenge for commercial leaders across the healthcare spectrum. AGI believes some answers reside outside of traditional healthcare practices in industries such as high tech where such complexities have existed for many years.
Does your organization have the necessary clarity of coverage, capabilities and enabling support programs to sustain your revenue growth engine?
Contact us to learn more and schedule a personal briefing gathered as part of our ongoing 2019 Healthcare Research.
We are actively recruiting leaders from medtech, pharma/biotech and health tech companies to participate in our current study aimed at providing insights around the strategies, roles and investment across the buyer journey. Contact us to participate.
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Topic – 2020 Planning: Driving New Commercial Motions in the Healthcare Ecosystem