Medical Device Manufacturers: Is Now the Right Time to Launch a Transformation Initiative?
As a medical device manufacturer, you need growth and margins to be consistent. If either of these aspects are dwindling, then it may be time for you to reassess your business model.
The Medical Device Manufacturing Industry
There are several changes in the medical device industry that could have an impact on margins. While the need for equipment remains high and your business has a large market share, opportunities are declining and this is putting strain on both you and the industry.
The changes include:
- The introduction of a new U.S. medical device tax
- The growth of government investment into comparative-effectiveness research
- Changes in patterns of use
- Higher patient and doctor expectations
While many of these changes have already been implemented, it’s still important for you to consider their impact on your medical device manufacturing business so that you can alter your business model accordingly.
How Can Transformation Help the Medical Device Manufacturing Industry?
The transformation of your medical device manufacturing business will enable the industry as a whole to increase its competitive edge. You can achieve this by:
- Aiming to improve sales performance year-after-year
- Creating a sales and marketing initiative that allows for cross-promotion
- Thinking like your customer and then utilizing the information in all aspects of your business
- Reviewing, building and evolving your existing business processes
In order to transform your medical device manufacturing business you need to be proactive and find ways to improve your existing model and methodologies. Rather than focusing on increasing or decreasing your marketing budget or increasing or reducing the amount of sales reps you have, which is a short-term solution, focus on your overall business model. This means looking critically at:
- Your target customers. Evaluate your existing customers and establish how you can better service their needs. Define new customers groups and see how you can attract them to use your services.
- Your products and services. Look at your existing product and brand awareness. Define how you can change and improve these, then implement new programs to attract a larger, targeted customer base.
- Your sales and marketing processes. Reward existing customers to increase existing customer loyalty. Try up-selling, introducing buying incentives, and cross-promoting products and services.
- Your staff and employee retention. To better service your customers, educate and improve staff sales techniques and product and service knowledge. Recognize and reward staff for meeting sales targets, and introduce incentives to sell more.
Is Now the Right Time for Transformation?
If you’re finding that your sales growth and margins are declining, it’s time for action. Procrastination will only lead to further decline and could jeopardize the future of your medical device manufacturing business.