Born from necessity during the pandemic, healthcare providers changed the nature and mix of their interactions with both patients and those organizations supporting their patient care efforts. Shifting provider priorities and expectations directly dictate investments and actions necessary to thrive as a supplier of devices, services and/or technologies within the healthcare ecosystem.
Along with investments in technology and enhancing digital content and capabilities, the most effective and efficient healthcare commercial models have moved away from the single-seller or “lone-wolf” model and embraced a model focused on alternative roles. Healthcare companies are now surrounding their primary seller with key account managers, inside sales, customer success reps and junior reps to help drive productivity.
In 2020, Alexander Group observed expense to revenue ratios for healthcare companies fall to historic lows. This low expense to revenue ratio is likely not sustainable long-term and should stabilize as T&E associated with travel, meetings and conferences return. This pressure on expense to revenue in the face of supply chain cost increases, the need for technology investments and rising labor costs brings an associated increase in rep productivity expectations.
Failure to adjust to these ongoing and lasting changes will lead to commercial obsolescence, under-served customers and market share degradation. Making the necessary changes to your commercial organization means shifting your investment profile, increasing rep productivity expectations and augmenting traditional selling motions with the necessary tools, capabilities and auxiliary roles.
Alexander Group works closely with healthcare revenue leaders to identify critical actions for profitable growth. Experience shows that these leaders can miss untapped potential unless they have a clear go-to-market strategy, backed by aligned sales motions and appropriate compensation. We’re ready to help you build a solid go-to-market model.