Leveraging SugarCRM in the Medical Device Industry: Transforming The Purchasing Experience

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The document discusses the challenges medical device companies face in selling to providers in a changing healthcare landscape. It notes consolidation of providers and group purchasing organizations, centralization of decision makers, and commodification of products. It recommends differentiating sales through value-based selling, team selling, key account focus, contract and price optimization enabled by customer relationship management software. The demonstration shows how SugarCRM provides visibility into accounts, pipelines, and forecasts as well as intelligence on contract impacts, revenue performance, and pricing to help sales teams meet these challenges.

Technology

© SugarCRM Inc. All rights reserved.
06/08/
2016 © SugarCRM Inc. All rights reserved.
06/08/
2016
Transforming the Purchasing Experience
Selling Medical Devices to Providers in a Changing Landscape

© SugarCRM Inc. All rights reserved.
06/08/
2016 © SugarCRM Inc. All rights reserved.
06/08/
2016
Agenda
• Introductions
• The Rising Challenges in Med Device Sales
• CRM Demonstration
• Q&A

© SugarCRM Inc. All rights reserved.
06/08/
2016 © SugarCRM Inc. All rights reserved.
06/08/
2016
SELLING TO PROVIDERS HAS CHANGED

© SugarCRM Inc. All rights reserved.
06/08/
2016
Consolidation of Providers & GPOs
Source: Bain & Company

© SugarCRM Inc. All rights reserved.
06/08/
2016
Centralization of Decision Makers
Source: Medical Group Management Association
10%
20%
30%
40%
50%
60%
70%
80%
90%
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Physicians in Hospital Owned Practice Physicians in Private Practice

© SugarCRM Inc. All rights reserved.
06/08/
2016
Commodification of Products
Source: FDA
Percent of Class II Device Submissions with Additional
Information Request on 1st FDA Review Cycle

© SugarCRM Inc. All rights reserved.
06/08/
2016
How Will You Meet the Challenges?
Create differentiation in sales
• Value-based selling
• Team selling
• Key account focus
• Contract & price optimization
• Enabled with CRM
“When companies excel in articulating the overall economic value of
a medical product or service, they have significantly higher customer
retention, market share, revenues, and profits.”
ZS Associates & Aberdeen Group

© SugarCRM Inc. All rights reserved.
06/08/
2016
UHS Adoption of SugarCRM
Enabling a value-based, customer-centric approach with
customer, contract and forecast management.
“Sugar lets our sales teams focus more on
selling and less on finding and reporting data.”
Kate Standa, Sales Operations Manager

© SugarCRM Inc. All rights reserved.
06/08/
2016
DEMONSTRATION

© SugarCRM Inc. All rights reserved.
06/08/
2016
Chris - Account Executive
Beyond Visibility to Intelligence
VISIBILITY
• Hospitals, IDNs, GPOs, Physicians
• Pipeline & Forecast
• Team Selling
• Sales Activity
INTELLIGENCE
• GPO & IDN Contract Impact
• Revenue Performance
• Suggested Actions
• Intelligent Pricing

© SugarCRM Inc. All rights reserved.
06/08/
2016
Demo Flow
Analyze & Respond
Contracts & Revenue
2
Connect
Anywhere
Mobile
4
5
Drive Opportunities
Pricing & Forecast
Work Intelligently
Dashboard
1
3 Tailored Approach
Account Insights

© SugarCRM Inc. All rights reserved.
06/08/
2016
Successful Customers
More Than 1.5 Million Users
Business Services
Consumer
Goods/Retail
Financial Services
& Insurance
Government/
Non-profit
Education
Healthcare ManufacturingTechnology
TransportationTravel & Leisure

© SugarCRM Inc. All rights reserved.
06/08/
2016
Transforming the Purchasing Experience
Create differentiation in sales
• Value-based selling
• Team selling
• Key account focus
• Contract & price optimization
• Enabled with CRM
“When companies excel in articulating the overall economic value of
a medical product or service, they have significantly higher customer
retention, market share, revenues, and profits.”
ZS Associates & Aberdeen Group

© SugarCRM Inc. All rights reserved.
06/08/
2016
QUESTIONS

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5. © SugarCRM Inc. All rights reserved. 06/08/ 2016 Centralization of Decision Makers Source: Medical Group Management Association 10% 20% 30% 40% 50% 60% 70% 80% 90% 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Physicians in Hospital Owned Practice Physicians in Private Practice

7. © SugarCRM Inc. All rights reserved. 06/08/ 2016 How Will You Meet the Challenges? Create differentiation in sales • Value-based selling • Team selling • Key account focus • Contract & price optimization • Enabled with CRM “When companies excel in articulating the overall economic value of a medical product or service, they have significantly higher customer retention, market share, revenues, and profits.” ZS Associates & Aberdeen Group

8. © SugarCRM Inc. All rights reserved. 06/08/ 2016 UHS Adoption of SugarCRM Enabling a value-based, customer-centric approach with customer, contract and forecast management. “Sugar lets our sales teams focus more on selling and less on finding and reporting data.” Kate Standa, Sales Operations Manager

10. © SugarCRM Inc. All rights reserved. 06/08/ 2016 Chris - Account Executive Beyond Visibility to Intelligence VISIBILITY • Hospitals, IDNs, GPOs, Physicians • Pipeline & Forecast • Team Selling • Sales Activity INTELLIGENCE • GPO & IDN Contract Impact • Revenue Performance • Suggested Actions • Intelligent Pricing

11. © SugarCRM Inc. All rights reserved. 06/08/ 2016 Demo Flow Analyze & Respond Contracts & Revenue 2 Connect Anywhere Mobile 4 5 Drive Opportunities Pricing & Forecast Work Intelligently Dashboard 1 3 Tailored Approach Account Insights

12. © SugarCRM Inc. All rights reserved. 06/08/ 2016 Successful Customers More Than 1.5 Million Users Business Services Consumer Goods/Retail Financial Services & Insurance Government/ Non-profit Education Healthcare ManufacturingTechnology TransportationTravel & Leisure

13. © SugarCRM Inc. All rights reserved. 06/08/ 2016 Successful Customers More Than 1.5 Million Users Business Services Consumer Goods/Retail Financial Services & Insurance Government/ Non-profit Education Healthcare ManufacturingTechnology TransportationTravel & Leisure

14. © SugarCRM Inc. All rights reserved. 06/08/ 2016 Transforming the Purchasing Experience Create differentiation in sales • Value-based selling • Team selling • Key account focus • Contract & price optimization • Enabled with CRM “When companies excel in articulating the overall economic value of a medical product or service, they have significantly higher customer retention, market share, revenues, and profits.” ZS Associates & Aberdeen Group

Editor's Notes

20% of hospitals were involved in M&A activity in the last year Pricing & contracting is growing more complex
Physician preference in purchasing decisions is declining Decisions are increasingly made by or constrained by executive leaders in a provider network Decisions are based more on therapeutic value and financial efficiency
Regulation has increased significantly since 2007 (FDA Amendments Act), 2011 (medical device 2b classification) and 2013 (Unique Device Indentifier final rulebook) Pre-market submissions for device approval has declined 30% over the past 10 years With the cost and time to bring products to market going up, product innovation and differentiation is down and differentiation through other means—service, price, model—is needed
Value-based selling & differentiation requires up-skilling and/or onboarding in sales team Team-based, collaborative selling combines multiple clinical specializations with financial modeling and C-level selling skills Key account management focused on GPOs and IDNs handles complex pricing and contracting and communicates with the larger sales team to coordinate impact sales opportunities Contract & price management that enables effective sales, provides sales efficiency by removing manual contract research and coordination, and reduces errors Looking at client needs in a holistic way using CRM
National Account Management – 100s of identified opportunities Team Collaboration – alignment of clinical and financial specialists Forecast Accuracy – increased forecast accuracy to within 1% Visibility Between Divisions – merged acquired business units into a single consolidated view for cross-sell and collaboration
National Account Management – 100s of identified opportunities Team Collaboration – alignment of clinical and financial specialists Forecast Accuracy – increased forecast accuracy to within 1% Visibility Between Divisions – merged acquired business units into a single consolidated view for cross-sell and collaboration
From sales and marketing automation to cross-departmental processes and custom integrations, here are some of the more than 1.4 million SugarCRM users who are building their successful businesses on SugarCRM.
From sales and marketing automation to cross-departmental processes and custom integrations, here are some of the more than 1.4 million SugarCRM users who are building their successful businesses on SugarCRM.
Value-based selling & differentiation requires up-skilling and/or onboarding in sales team Team-based, collaborative selling combines multiple clinical specializations with financial modeling and C-level selling skills Key account management focused on GPOs and IDNs handles complex pricing and contracting and communicates with the larger sales team to coordinate impact sales opportunities Contract & price management that enables effective sales, provides sales efficiency by removing manual contract research and coordination, and reduces errors Looking at client needs in a holistic way using CRM

Leveraging SugarCRM in the Medical Device Industry: Transforming The Purchasing Experience

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Editor's Notes