Aftershock: Are Med Device Sales Teams Ready?

Aftershock: Are Med Device Sales Teams Ready?

By the time you say “new normal”, the new normal is already outdated.  Covid-19 has been and will be a catalyst for compressing long-awaited commercialization and operational playbook strategies that were designed for maturing market realities. Under the real challenges as well as the guise, buyers and sellers will adopt opportunistic strategies (e.g. seller organizations will reduce or expand certain sales and service elements in order to bring margins back in alignment, and buyers will accelerate limiting the sales person’s ability to influence their larger organization). 

This will all occur as the market starts adjusting to a Darwinian “shakeout” of certain product segments.   That trumpet you hear is an announcement of the market winners and losers for both Med Device companies and healthcare facilities. The traditional buyer-seller tension will be amplified and will lead to poor decision making from both sides of the table. Your customer and prospect “winners” will passively and actively reshape all of their vendor’s sales organizations and pressure realignment of the vendor’s overall human capital (perhaps requiring more support to reduce hospital FTE’s?). This may be the first path forward for large Med Device companies to start owning facilities (especially in the current Fed environment of “most anything will be considered”) and creating the ultimate verticalization.

When the small to medium size competitors go out of business, it will leave a white space to be filled.  That white space will mistakenly be viewed as the proverbial low fruit; but if we have learned anything, we can’t take anything for granted. In the beginning (like 10 minutes ago?), it will be first movers and shakers (offering discounting and newly packaged programs/services rather than just products) that will win, then it will be a shark feeding frenzy, but then it will give way to a market battle akin to an organized boxing match. In addition, as is in any market, the first movers and shakers need to brace themselves for variable results (e.g. lack of profitability) on the initial deals and find themselves asking if their objective is market share or margin or long term strategery?

An organization’s anticipation of the buyer-seller relationship will create new competitive positioning, market share shifts, and overall margin impact. The new meaning of “time to market” will not be related to a product launch but related to implementing multiple agile strategies to respond to local market conditions that are in fact a reflection of the negative economic impact that Covid 19 is leaving in its wake.

At Matrix, we believe that there will be 11 key pressure points to the buyer/seller relationship.

Give us a call, we can prepare your team for the Aftershock.

Contact our Performance Consultants Today