Medical device manufacturers have never been able to rely on traditional sales approaches.
Strict regulatory and compliance guidelines, multi-faceted decision-making considerations, and unusual buying cycles all pose challenges that make conventional sales practices less effective for these companies.
Fortunately, business software tools like CRM (customer relationship management) are changing the game for medical device manufacturers.
With these powerful toolsets, organizations can leverage the power of advanced data analytics to uncover buyer patterns, identify sales trends, and optimize their sales processes.
In this article, we will explore the challenges faced by medical device manufacturers and demonstrate how the use of CRM data analytics can help companies overcome these challenges and gain an edge in this highly competitive industry.
For help finding a CRM that is right for your medical device manufacturing business, check out our CRM Buyer’s Guide for Med Tech.
What is CRM?
CRM is a software toolset that assists businesses with the day-to-day management of their people (customers and employees), work processes, products, and projects.
Once thought of primarily as a sales tool, CRM has evolved to address the needs of many different business aspects, including marketing, customer service, and project management.
Through the use of advanced automations tools and data centralization, CRM software can help your business improve communication (both internal and external), work more efficiently, and track performance.
The challenges of medical device sales
Medical device manufacturers face numerous obstacles when trying to bring their cutting-edge technologies to market.
- The regulatory landscape- Medical device companies must comply with the stringent regulations of the different governing bodies of the countries in which they operate.
For example, in the US, medical device manufacturers have to gain approval from the FDA (Food and Drug Administration) before many of their innovations can go to market.
In Europe, the EMA (European Medicines Agency) performs a similar function, but the guidelines that inform their approval process are very different.
For a sales rep trying to sell in these markets, understanding the regulation and compliance requirements of each is essential to proving expertise and gaining the trust of hospitals, clinics, and other healthcare facilities.
- Data protection- In recent years, data protection and patient privacy concerns have added another wrinkle to this already complicated puzzle.
Compliance standards like those imposed by HIPAA (Health Insurance Portability and Accountability Act — in the US) and GDPR (General Data Protection Regulation — in Europe) require that digital patient data be handled in a very particular way.
Not only does this require more training and stricter operational processes to achieve, but it also makes finding software tools that handle patient data harder, as many of these vendors don’t consider the needs of healthcare companies when designing their toolsets.
While these regulations aim to ensure patient safety, they pose a significant business challenge for companies operating in the healthcare space.
For more information on HIPAA-compliant CRMs, check out our article, HIPAA Compliant CRM Software.
- The decision-making process- The sales cycle for medical devices can be lengthy and complex, often involving several deal stages and multiple stakeholders.
Each stakeholder has their own priorities, concerns, and budget constraints, and, in some cases, these considerations can be at odds with each other.
Decision-makers often include:
- Doctors, nurses, and physicians
- Health insurance providers
- Purchasing departments
- Facility administrators
A sales rep must be able to highlight the practical, technical, clinical, and economic benefits of their products, often all at the same time.
- Technical expertise and training- Medical device innovations are at the forefront of emerging technology.
While this is great news for those who rely on these technologies to improve their quality of life, it poses real challenges for medical device companies looking to sell their products.
These companies must invest significant resources in training their sales teams.
Sales professionals are required to be up-to-date on the latest advancements in the field and be able to speak to the technical aspects of the products they sell.
This means allocating time for study and providing the resources needed to learn and develop.
Using CRM data analytics to overcome the challenges of medical device sales
CRM data analytics provide medical device sales teams with valuable insight that can help them optimize their sales processes in a number of ways.
- Track sales performance- CRM data analytics can provide complete visibility into sales performance. A CRM can help track:
- Win rate
- Sales revenue
- Sales activities
- Conversion rate
- Average deal size
- Sales cycle length
- Customer lifetime value (CLV)
- Customer acquisition cost (CAC)
Using these metrics, sales managers can see what is working and what isn’t. They can identify the strengths and weaknesses of their team (or individuals) and create training plans accordingly.
They can also use this data to inform their ICP and create targeted sales strategies.
- Track product performance- CRM data analytics can track the performance of medical devices in the market. A CRM can help track:
- Product returns
- Product usage data
- Customer satisfaction
- Sales volume by product
- Product service requests
With this data, sales leaders can gain insights into which products are performing well and which are underperforming.
They can zoom in further and measure performance by region, customer segment, time period (season, quarter), and more.
These insights can be used to inform product development and enhancements, sales strategies, and sales/marketing targeting efforts.
- Customer targeting- CRM data can help sales professionals better understand the needs, preferences, and behaviors of their customers.
This can inform targeted messaging that speaks directly to customer concerns and provide a data-based foundation for lead scoring and segmentation processes.
Better customer targeting is key to optimizing resource allocation and creating more effective training programs.
- Sales forecasting- CRM data analytics can provide valuable insights into sales trends and patterns.
By leveraging this data, sales leaders can create accurate sales forecasts and set achievable sales goals.
This can help with better resource allocation, inventory management, and more effective incentive-based compensation plans for sales reps.
Our article, Rewarding Sales Success: SPIFFs vs. Commissions, can help you better understand the power of incentive-based compensation.
- Improved customer engagement- A CRM keeps a comprehensive record of all customer interactions.
With this data in hand, sales leaders can identify what messaging is most effective when pitching to different decision-makers, what communication cadences have the best results, and what communication channels their customers prefer.
This information can also be used to identify common questions and objections, helping sales professionals be better prepared to address these concerns in the moment.
Data-driven optimization of your customer engagement processes leads to more closed deals, increased upsell potential, higher customer satisfaction rates, and improved customer retention.
FreeAgent CRM is the best CRM for medical device manufacturers
FreeAgent CRM is a modern work management platform that provides top-of-field software tools for companies of all sizes and technical proficiency.
FreeAgent is:
- Easy to use- FreeAgent’s modern user interface is quick to learn and easy to use, encouraging teams to work within the platform, driving up adoption and aligning your work processes.
- User-configurable- With FreeAgent, the power is in your hands. You can customize and personalize FreeAgent to fit the specific needs of your business and teams without external support.
- HIPAA compliant CRM- To demonstrate our commitment to ensuring all data captured and contained within the FreeAgent platform is safe and secure, FreeAgent CRM maintains HIPAA compliance.
To learn more, see our article FreeAgent Announces HIPAA Compliance.
To see FreeAgent in action, get a demo, and discover for yourself how we are leading the way to a better workday.
