B U S I N E S S P A P E RPivotal CRM for Medical DeviceManufacturersGo to Market the Way You Innovate Executive Summary Medical device manufacturers need to get the right products into the hands of the right customers. Faced with opportunities to capitalize on high growth rates, new markets, and increasingly global alliances, forward-thinking organizations are intent on leading their markets by pursuing smarter, more disciplined development strategies. The goal is to get more profitable and innovative products to market—more cost-effectively—to out-run the competition. Effective and innovative product development is thus dominating the business agenda.
Go to Market the Way You Share Information Effectively withInnovate Distributors and Partners Your organization may sell its products directly toMedical device manufacturers need to get the right customers, work with distributors, or both. When severalproducts into the hands of the right customers. Faced parties are involved in the sales process, it’s essentialwith opportunities to capitalize on high growth rates, to exchange the appropriate information. A system tonew markets, and increasingly global alliances, forward- manage distributors, the contracts you have with them,thinking organizations are intent on leading their markets their volume commitments, and their pricing structuresby pursuing smarter, more disciplined development makes selling simpler. Your sales teams can betterstrategies. The goal is to get more profitable and manage co-selling opportunities and ensure that theinnovative products to market—more cost-effectively—to right distributors are involved.out-run the competition. Effective and innovative productdevelopment is thus dominating the business agenda. Integrate Data from MultipleAt Pivotal CRM, we believe there’s an even greateropportunity for medical device manufacturers. You can Organizations Smoothly Throughrealize further advantages by investing in technology Rapid Growthsolutions that inject critical market intelligence into When your organization grows through acquisition orthe development process and engage your company consolidation, you often inherit fragmented technologyin instant, two-way dialogues with customers. In fact, systems and business processes. The challenge is toincorporating the voice of your customers into product re-engineer, streamline, and improve as your enterpriseand marketing strategies can transform your organization. evolves. A system designed to integrate new data and business processes helps you gain insight into corporateYou’re already putting a lot of thought and effort into performance, which results in better planning. Yourproduct innovation and development. At Pivotal CRM, we sales teams function more efficiently and sales cycleshelp you put the same thought and effort into the way are shortened.you get your products to market. We provide you withthe solutions you need to commercialize your productsmore quickly than the competition. Developing innovative Overcome The Limitations of Legacysales and marketing processes can shave weeks—or Systems and Hard-coded Applicationseven months—off the time it currently takes to get yourproducts to your customers. The result? First-mover As your industry changes, your organization changesadvantage. And first-mover profit. with it. New regulations, new markets, and increasing competition drive new requirements all the time. Using generic technology systems or applications designedHelp Your Organization Present a Single specifically for the pharmaceutical industry can constrainFace to Customers your ability to create and modify unique business processes. A system designed with the inevitability ofAs a medical device manufacturer, you likely sell a range change in mind enables you to adjust more readily,of products to multiple organizations. For prospects to get products to market more quickly, and devote yourbecome your customers, you need to deliver a smooth resources to moving forward.buying and service experience with professional andwell-informed personnel whose approach is tailored tomeet each facility’s unique needs. When you presenta consistent image to the market, you improve brandrecognition and market profile, enhance the quality ofcustomer interactions, and shorten sales cycles. Pivotal CRM | Business Paper
CHALLENGE ONE: When your competitors get their products to market before you lose market share. Youmay even have to wait out the lifespan of competitor contracts before regaining entry into the market.Avoid Paying the Price for Understand Complex CustomerBeing Late Inter-relationships to Target the Right InfluencersResearch shows that, on average, every month a productis late to market decreases its gross profit potential by Your company’s sales teams need to understand the0%. Automated sales and marketing capabilities can numerous relationships that exist at customer facilities.decrease the time it takes to get your products out the Not only do they sell to a facility’s purchasing department,door. The impact on your business can be dramatic; they also need to interact with individual doctors and labyou’ll capture market share by getting your products to technicians. Being able to determine easily who the keycustomers before your competitors do. influencers are at each facility, their departments, their specialty areas, and their level of influence on others helps your sales teams target the right people to closeEnsure You Have the Right Team deals. Any insight that your non-sales employees haveAssigned to Each Account into customers can help, too.As a medical device manufacturer, you constantly look Facilities such as hospitals often have committeesfor ways to improve the sales process. You likely have responsible for making decisions about large purchases.numerous sales teams, each responsible for working Sales reps who do not have access to this informationwithin a particular geographic area. Some sales members may spend too much time trying to uncover details ormay be qualified to sell more than one product line or to working with the wrong contacts, which reduces theirtarget more than one facility type. You may segment your productivity and lengthens the sales process. Whensales force into distinct units based on expertise; you may you map out existing relationships between contacts,segment further according to facility type, size, your sales representatives can target the most influentialor account size. contacts at a facility and sell more effectively. They spend less time chasing the wrong people, and they gain insightWhen you segment your customers according to criteria into which relationships have the most potential. Overbeyond simple geographic boundaries, you refine the time, strengthening these relationships with influencerssales process. You can fine-tune the process further by can help close deals faster and increase revenue per sale.monitoring and controlling the way sales members areassigned to accounts. When the appropriate personnel Beyond the inter-relationships within a customerare in contact with an account, they generate more facility, your sales teams benefit from understandingbusiness and shorten the sales cycle. the relationships your customers have with other organizations, such as Group Purchasing OrganizationsDepending on the type of product being sold, you may (GPOs), distributors, and industry associations. In someneed to include staff qualified for training, installation, cases, groups of facilities form Integrated Deliveryor support with the information surrounding a particular Networks (IDNs); understanding the relationshipsaccount. Just as your sales teams may be segmented between members is often extremely important. Salesby role and geographic area, your support staff may be representatives should also know which facilities compriseorganized according to similar criteria. When you include each IDN; selling to one facility in an IDN may lead toall supporting staff in your approach to segmenting opportunities with other facilities in the IDN.customers, you extend the efficiency of the salesprocess into implementation and support areas. Understanding and taking advantage of the relationshipsWhen people are assigned to a team for a specific between facilities gives your sales representatives insightpurpose, being associated with a defined role makes into channels of influence and new sales opportunitiesthem more accountable. that may exist outside of an individual customer facility. In many cases, understanding these relationships ensures accurate pricing and can lead to your products being purchased by other facilities in a network. Pivotal CRM | Business Paper
Monitor Contracts for Their Duration to Automatically Assign the Right LeadsEnsure that Volume Commitments are to the Right People Quickly andFulfilled, Expirations are Tracked, and ConsistentlyRenewals are Processed On Time Once a marketing campaign is in progress, leads are generated from your target prospects or customer base.Once a quote has been approved and accepted by The question is what to do with them. You don’t want toa customer, it has to be converted to a contract that let hot leads just sit there getting cold. Forwarding them toreflects the details defined in the quote. This ensures the right sales reps immediately keeps up a campaign’sthat the pricing offered when fulfilling orders is correct. momentum. Taking advantage of marketing automationContract details must always be monitored for volume enables you to assign leads to sales representativescommitments and expiration dates. Volume commitments, according to the way customers are segmented andin particular, often dictate pricing structures, so keeping prioritized. After every campaign, your sales team cantrack of customers’ progress along these lines is essential analyze and track leads throughout the sales cycle.to maintaining the margins calculated for a given contract. From geography to product of interest to customerWhen you give your sales representatives tools to keep characteristics, you can ensure that the right salestrack of numerous contracts and the details they contain, representative receives every qualified lead—every time.the entire quote-to-contract process is streamlined toincrease efficiency and minimize costly errors. Theycan track competitor and contract expirations to ensurethat existing contracts are renewed and that competitorcontracts are replaced. You maintain market share and caneven gain market share by overtaking your competitors.Create Effective, High-impact MarketingCampaigns to Generate Leads andDrive Additional RevenueYour organization likely devotes considerable resourcesto advertising and promotions at tradeshows. For manymedical device manufacturers, tradeshows are anexcellent forum for announcing new products and gettingface-to-face feedback from customers.It’s important that all prospects and customersknow about your company’s presentations wellin advance. Marketing automation systems enable you todeliver targeted information to specific groups, whetheryour goal is to announce an upcoming tradeshow, createeffective Continuing Medical Education (CME) eventsto promote products, or distribute clinical researchstudies and journal articles. Your marketing teams canprofile customers and prospects, target them with highlypersonalized and relevant messages, deliver eachmessage at the right time via the right channel, andensure consistent and effective follow-up. Disseminatinginformation to target lists is faster and more efficient thanhaving sales reps send out information to one customerat a time. Pivotal CRM | Business Paper
CHALLENGE TWO: When your sales representatives misquote or lose track of contract details, theylose opportunities to cross-sell, up-sell, renew existing contracts, and capitalize on your competitors‘contract expirations.Don’t allow profit margins—or your revenue potential— Gain Management’s Approval on Pricingto get squeezed. Increased profit margins and revenuepotential is more than a matter of product quality or Before Sending Quotes to Customerseffectiveness. Centralize the way you manage opportunities and Minimize the Revisions that Canto improve the way quotes are handled. Relate essentialquoting functions to the goals of your organization. Develop Disrupt a Potential Salerealistic and appropriate performance standards. Educate Based on the relationships your sales representativesand develop opportunities to sustain, improve or build on have with customers, some proposed discounts or pricingemployee performance. breaks may exceed acceptable limits or margins. If sales managers are notified each time a quote is below a suggested price, they can investigate the quote furtherEnsure Appropriate Pricing for Every and propose a new amount consistent with establishedCustomer to Minimize Fluctuations ranges. In these cases, following an approval-processin Revenue workflow prior to sharing a quote with a customer can prevent over-discounting.As a routine part of the sales process, sales teamsmust provide price quotes for the products customers When sales managers have a way to review inappropriateare most interested in. Pricing is based on a number of quotes before they are sent to customers, they canfactors, so sales representatives need to understand intervene if necessary. The entire process becomes moreall of the relevant relationships involved to be sure that efficient because you minimize excessive discounting, andthey are providing accurate and appropriate prices. customers receive quotes that do not have to be revised.Limited knowledge about these relationships can leadto incorrectly priced quotes, which has a direct effecton sales revenue. Products Are Your Lifeblood; Track Essential Details for Each and EveryWithout fully understanding existing relationships withGPOs and distributors, the likelihood of misquoting a One to Increase Up-Sell Revenueprice is tremendous. This is complicated further when Your sales teams need to know which requireda facility wants to purchase a large quantity of products components must be sold along with a product, asthat justifies an appropriate pricing break. Add to this the well as the optional components that are available, indimension of purchase versus lease, and the order to take advantage of cross-selling and up-sellingpricing options multiply dramatically. opportunities. The most effective way to keep everyone informed is through a comprehensive product catalog.When your sales teams have access to every pricingoption, they can provide quotes that accurately reflect But creating a catalog is only a first step; keeping ittheir knowledge of the customer relationship and the updated with new product information is often moreproducts that the customer relies on. Sales productivity complicated. Not only does the catalog need to includerises and the revenue fluctuations due to inconsistent comprehensive product details, it must often be usedquoting are minimized. to track the way product information changes over time. Furthermore, you must ensure that your company frequently updates important regulatory and codingKnow the Primary Vendor for Each and coverage information, enabling sales teams toFacility to Ensure Valid Price Quotes discuss product details and counter objections duringSales representatives also need to know who the primary the sales cycle.vendor is for each facility so they can appropriately Tracking product details helps your organizationchannel their sales approach and provide appropriate understand the relationship between the profitability ofprice quotes. Similarly, the representatives’ lack of insight products and the sales activities associated with them.into which distributors the facility works with could result Ultimately, streamlining these relationships saves timein quotes that are incorrect, which increases customer and leads to increases in revenue.dissatisfaction and affects your company’s credibilitywhen obtaining future business. Pivotal CRM | Business Paper
CHALLENGE THREE: When you have trouble managing distributors, their pipelines, and their contracts,your bottom line suffers.Keep track of distributor relationships—and capitalize on Monitor and Manage Distributor Volumethem—to boost revenues for the long term. In dealing withyour distributors, it’s essential to be flexible. Collaborate Commitments, and Gain Insight Intowith your distributors during the selling process, and build Relationships Between GPOS, IDNS,a methodology for managing partners. and Individual Facilities It is often difficult to track the complex relationshipsAssociate Distributors With the between distributors, GPOs, IDNs and individual facilities.Appropriate Sales Team to Streamline For a start, you can monitor the way your distributorsthe Sales Process fulfill their contracts to ensure that they price products accurately when giving volume discounts. Non-performingYou may be working with one or more distributors who distributors can be charged penalties and you’ll have ahave exclusive rights to sell one of your company’s way to evaluate each distributor for future contracts.products; in some cases these distributors may evenco-sell a product with your own sales team. In these A system that can track all of these inter-relationshipssituations, it is important to make sure that the appropriate minimizes the chance of pricing your productsdistributor is connected with your sales team so that a inappropriately; you understand the agreements that aresales member working on that account knows which already in place. Furthermore, your company may createdistributor should be involved, in what capacity, and for GPO- and distributor-specific pricing based on contractswhich products. that you have with each individual GPO or distributor. These pricing options may be made to match the effectiveAssociating relevant third parties with your sales teams period of the contract. Your company needs to be ableextends the efficiency of the sales process beyond your to place timeframes around individual pricing options toorganization—to complement the processes of outside ensure compliance with contracts, and also to allow forpartners involved with a given customer account. Your promotional time periods. Incorrect quoting can lead toorganization benefits further by extending process rebates for frustrated customers, which damages theefficiency to everyone involved with an account, both credibility of your company.inside and outside your company. You also improveyour ability to identify potential distributor deals andco-selling opportunities. Pivotal CRM | Business Paper
CHALLENGE FOUR: When your sales managers can’t keep track of their sales representatives‘activities, opportunities, and price quotes, the effectiveness of your entire sales force and marketingefforts is compromised.Ensure That Managers Have Tools to When you store the collective knowledge gained through numerous relationships that change overMeasure the Effectiveness of Sales time, your organization retains valuable information onTeams and Distributors every customer, developing a “corporate memory” that transcends individual employees and supports lastingWhen you take advantage of tools that provide insight relationships. When new sales representatives areinto the quality of generated leads and their progress assigned to long-term accounts, they can take advantagethrough your sales process, you give your account of the knowledge gained by others to maintain existingmanagers and executives a complete picture of the sales customer relationships, which minimizes disruptions.activities and revenue potential. Managers can monitoreach sales representatives‘ call reports, interaction historywith customers, and price quotes; they can also monitor Track and Measure the Effectivenesscontracts and competitor contract expirations at each of Marketing Campaigns to Minimizefacility. With a comprehensive view of sales forecasts andpipelines, your managers can plan and allocate resources Guesswork—and Coststo increase sales efficiency. Your marketing department always needs to do more with less. Campaign budgets are tight and it’s difficultIntegrate Sales Teams and Territories in to determine where to invest unless you understand the performance and return on investment of previousAdvance Of Consolidation to Minimize campaigns. With marketing automation tools, you can runTransition Headaches “nurturing” campaigns for your prospects and customers. You learn which campaigns have been most effectiveIf your organization is growing through acquisition or by asking your prospects what they have heard aboutconsolidation, you’re likely faced with the challenge your company and products. You can reduce marketingof merging customer databases, sales teams, and costs by determining what works and refining successfulother employees to make sure that the right resources techniques. And you will generate more high-qualityare assigned to the right accounts. Depending on the leads by testing marketing messages and improvingcircumstances of consolidation, you may be hiring new them over time.employees or aligning people with similar expertise towork on teams. You may also be aligning people to workwith additional distribution channels. When you add new Track Which Invitees Attend Your Eventsstaff to the appropriate teams in advance of organizational and the Costs You Incur for Each Onechanges, you ensure that the right people are added toor removed from relevant account teams to make territory When your sales team organizes Continuing Medicalalignment less time-consuming. Education (CME) events to launch or promote your company’s products, there is always a cost attached. For every event, your organization needs to track whichMaintain a History of Every Sales Rep’s sales representatives are involved, which speakers areActivities and Gather Knowledge About employed to help promote products, and which literature or product sample is given away. And as you well know,Your Customers Over Time your organization is federally regulated to monitorOver the lifetime of an account, many employees or the amount of money you spend on each physiciandistributors may interact with a customer. In cases where every year.new sales representatives are assigned to long-termcustomers, you may need to tap into the experiences of Systems that track event information to ensure that youother employees who are, or were, responsible for the are not over-spending enable you to automate andaccount to learn as much as possible about it. You may monitor each event so that your sales representativesalso want to track which sales representatives have been spend less time managing lists and tracking attendanceinvolved with customers over time to better understand records, and they spend more time selling. Yourthese relationships. representatives can create CME events that are more effective, using luminaries as speakers, inviting target prospects, and sharing clinical research studies, journal articles, product literature, and samples. Pivotal CRM | Business Paper
Pivotal Medical Devices For more information, contact us today to learn more about Pivotal CRM for Medical Device Manufacturers.When you plan your customer relationship strategy, Visit http://www.pivotal.com or call + 8-PIVOTALit is important to select a CRM solution that is (+ 8-8-8).designed specifically to accommodate the distinctcharacteristics of your industry: complex distribution Pivotal CRM for Medical Device Manufacturers—go tochannels, influential relationships, and complicated market the way you innovate.contracts and pricing structures.Based on years of experience implementing anddeploying solutions for medical device manufacturers,Pivotal CRM for Medical Device Manufacturers isdesigned to address the key business drivers andchallenges you face every day. The Pivotal CRM solutioncurrently includes capabilities for territory and rolemanagement, relationship management, quotingand contract management, event management,and marketing automation.Pivotal Medical Devices includes % of the functionalitytypically needed by medical device manufacturers—outof the box. We also understand that every business isunique; your organization can take full advantage of theflexibility of the Pivotal CRM toolkit to customize yourCRM solution to adapt to the way you do business. Thecombination of industry-tailored and custom components,along with the inherent flexibility of the Pivotal CRMplatform, leads to a lower total cost of ownership anda competitive edge for your company.Take the Pivotal StepAt Pivotal CRM, we work in partnership with medicaldevice manufacturers and their peers to build technologysolutions that help you commercialize your products morequickly. Our solutions are designed specifically for yourindustry—to work the way you work.We understand your challenges because we listen. Wedraw upon the shared knowledge and experience of ouruser base to continue improving our products over time.As we gain feedback, we respond, we refine, and we seekadditional input.With every new customer, our knowledge of medicaldevice manufacturing grows. All of our customers cantake advantage of the collective industry knowledge builtinto our technology. After all, you’re the experts. That’swhy we apply to our technology what we learn fromcustomers like you every day. Pivotal CRM | Business Paper