Sales Challenges for Startups and niche players
size matters
You need to join forces to finance the expensive customer interaction
1:
Most classic Medical Device products are part of a treatment regime. Hence, they are part of an assortment and do not have blockbuster potential in their own right
3:
A key component of success is the size of the salesforce promoting the treatment regime a product fits into. A vast and stable sales pressure is required to reach the corners of a market. Therefore, the commercialization process is key to success. If not done correctly, even the right products will fail
2:
MedTech products are sold via hundreds of wholesalers, and thousands of hospitals, and used by millions of nurses. To succeed, products need to fit into “solution selling, ” concepts of manufacturers will struggle to get attention on their own.
4:
In MedTech, you build companies, as the exit opportunity often lies after proof-of-sale at a level of €10-20 million. At this level, the industry is reassured; they can use their sales muscles to take innovative products to higher levels. They are reluctant to experiment with their valuable sales resource.
Solution:
You need to join forces to finance the expensive customer interaction
Sales efficiency matters
Sales Reps spend most of their time traveling
1:
Sales Reps spend most of their time in their car, driving from one customer to the next – unless they have a wide assortment, enabling them to visit more customers in a smaller geographical area
2:
The larger the territory Sales Reps have, the more time they waste in their car. If you have one Sale Rep in Denmark or a regional state in Germany, less than 25% of the time is likely to be spent in front of customers
3:
If a message is too narrow or specific for a diagnosed area, nurses will often not allow Sales Reps to be received (the door stays closed).
Solution:
Join forces to reduce sales regions to a manageable size
Solution selling is required
The chance of succeeding with a one-product approach is limited
1:
Well-educated nurses and doctors diagnose and treat all aspects of a ‘ ‘patient’s condition
3:
The large players in the MedTech industry all have a wide assortment to sell. Some focus on a few therapeutic areas in which they want to be a global leader, and others want to dominate a specific customer type like hospitals or homecare with a wide assortment. All have hundreds or even thousands of products, packed in therapy solutions for an individual user group. All have hundreds of sales reps
2:
Nurses have minimal time to talk to company representatives, and often bans have been implemented to avoid inappropriate time spent on armies of Sales Reps. Hence, messages must cover a therapy area and be highly relevant to get any attention
4:
The chance of succeeding with a one-product approach is limited, and the cost of a noticeable sales force is more than likely to outgrow revenues
Solution:
You need to join forces to be able to present a product package