Medical devices sales – creating value propositions

In our last post we introduced you to the Bain Brief on the medical device industry. There are two other points from the Brief that we think are critical to sales training in this market space.

First, the Brief noted that companies will need to determine the amount of resources it directs to clinical decision makers vs. economic influencers, such as materials management, finance, or OR managers. It goes on to note that medical device companies need to identify the appropriate call point, too – for example, a surgeon or department head? Procurement manager or CFO?  While medical device companies need to make these resource utilization decisions, we believe that each sales person needs to look at their accounts, design their strategy and then determine how they might appropriately allocate their time and other resources to each account.

Second, the Brief discusses value propositions – a topic we’ve raised before.

Medical Device Sales Market

When creating value propositions for medical devices, the Brief raises three points worth sharing:

  • The primary component of medical device companies’ value proposition is the product and the clinical outcomes it delivers. So, the value proposition must offer docs a variety of clinical capabilities across a spectrum of price points – ranging from value products to premium products.
  • Many companies bundle services along with their product in their overall value proposition, like providing training for surgeons, operating room support, and CEUs. Some companies are moving beyond these types of added value items to ones that are helping hospitals control costs and improve profitability – e.g., inventory management, consignment, training staff.
  • Pricing plays a critical role in crafting value propositions – and sales people (and their companies) must think creatively – from buying unbundled products a la carte at one end of the spectrum to bundled offerings on the other. Companies also need to think creatively and, perhaps price like a partner – considering gain-sharing or profit sharing programs, too.

Check out other posts on sales effectiveness at the Sales Training Connection. 

©2011 Sales Horizons™, LLC

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