What is HealthTech transformation?
The biggest story that is not being told is that medtech companies are transforming themselves in ways that more closely resemble wholesale reinvention. From product development, to sales and organizational models, more internally focused disruption is taking place than ever before.
These changes are helping to drive new go-to-market strategies. Widget companies are becoming software companies. Diagnostics companies are becoming analytics companies. Many are figuring out how to sell value-added services and even become consultants. Others are looking to own every step of a disease-state care pathway. The traditional company swim lanes are going away—causing uncertainty, chaos, and opportunity.
What is causing companies to transform?
Their customers are reinventing themselves! Providers are becoming entrepreneurial. They are letting go of the status quo. They are scrutinizing every aspect of their clinical practice. They are looking for aggressive change. They have to produce better outcomes at a lower cost, fast!
In this environment, the traditional HealthTech business model, which is largely vertical, incrementally innovative, product-centric, and safe, no longer works. The days of adding a new feature to a widget, charging 5% more for it, hitting revenue targets, and doing it all over again are over. In fact, it’s creating commoditization. Our win/loss interviews with providers show that over 70% of sales now go to the lowest bidder.
How must marketing strategies adapt?
Start by recognizing that inwardly focused, product-centric medical device marketing is part of the problem. Instead, turn your marketing strategy outward. Focus it 100% on providers and administrators. Acknowledge their challenges. Show them how you uniquely solve them. Stop the feature dump. Market your portfolio less like a bunch of widgets and more like a cohesive, integrated solution. Demonstrate how your solution can work to enable a better outcome.
Remember, healthcare providers are in triage mode. Their hair is on fire. They are overwhelmed with transforming their clinical practice. If you’ve been transforming your company to better address their challenges, congratulations! But you are only halfway there. Now, your marketing needs to transform, too.