The following is a guest article by Tray Chamberlin, Principal at Alexander Group.
Industry Growth Requires New and Improved HealthTech Commercial Models
As the COVID-19 storm settles, the HealthTech industry has seen a shift to positive growth. The influx of investment into the sector saw a flurry of new technologies and market entrants. As HealthTech companies raced to unite piecemeal offerings into comprehensive solutions through mergers and acquisitions or disrupt existing markets by shifting end-user expectations, they invariably needed to reconsider their organization’s commercial model. Recent research shows more than 60% of HealthTech companies polled cited integration as their greatest challenge. Whether integrating disparate sales and marketing resources, or redefining the buyer journey, HealthTech companies must ensure they understand how best to reach, influence, and prioritize their intended customer base.
Reach a Large and Diverse Market with Limited Funds
The way we receive healthcare is changing and causing the market to become increasingly disaggregated. In the past, addressing health concerns involved either seeing a doctor or going to the hospital depending on the urgency of the condition. Now, we have numerous access points to healthcare such as retail clinics, community centers, at-home care providers, telehealth options, and behavioral clinics. Research suggests the number of Telehealth companies will increase by 29% by 2025. To successfully reach a fragmented and varied market, it is important for the commercial teams within HealthTech companies to be strategic and find cost-effective solutions. A method that sales teams are currently finding to deliver desired results is digital engagement. The new generation of tech-savvy doctors are showing to be increasingly comfortable with this method, enabling sales teams to bypass the traditional face-to-face model which is expensive and inefficient.
Customer Success Roles are More Important than Ever Before
The original purpose of the customer success role was to support the ongoing usage of products and/or the adoption of additional products following the initial sale. The role was created because organizations realized that customer retention was key to sustaining a business. However, as businesses have shifted toward a digital landscape and leveraged mobile apps and intelligent automation for SaaS platforms, the customer service role has also evolved.
It is important for HealthTech commercial teams to follow the lead of the SaaS industry and progress the customer success function from a support resource to a true commercial resource. The role of a customer success manager today can commonly be categorized into five stages: purchase, adoption, retention, expansion, and advocacy. With more customer data and commercial strategy resources, the customer success role can make a big impact on a HealthTech company’s revenue.
The War for Talent is Fierce
Almost every company has been impacted by higher than normal turnover rates in the past few years. No matter the reason for the departures, HealthTech companies were not exempt from the effects. In order to keep pace with the competition, Health Tech companies must adapt in order to hire and retain the best people for sales and commercial teams. Research suggests HealthTech companies with lower than market base salaries saw an increase of approximately 17% in turnover vs. their peers. While not the sole determinant, clearly base salary and total pay matter. Other investment areas cited by leading companies aimed at employee retention include flexible work arrangements, increasing PTO, diversity, equity, and inclusion programs, and the offering of wellness and mental health programs. The pandemic was a catalyst for change in the Healthcare Industry, so as the dust settles, it’s important for HealthTech commercial teams to adapt to the evolved market in order to continue to recruit and retain the best talent.
About Tray Chamberlin
Tray Chamberlin is a principal in the Alexander Group’s Atlanta office and co-leads the Healthcare practice in Pharmaceuticals and Health Tech. During his tenure with the firm, he has worked on projects in sales compensation, business strategy, sales deployment, sales coverage, and quota development. Tray’s experience with Alexander Group spans international markets, as well as companies across several of the firm’s key industries, including medical devices, pharmaceuticals, life sciences, financial services, BPO, and technology services.
Before joining the Alexander Group, Tray worked as a senior manager in a technology sales organization. Tray earned an MBA from the Scheller College of Business, Georgia Institute of Technology, as well as dual bachelor’s degrees from the University of Georgia’s Terry College of Business and the Grady School of Journalism. Tray also holds a Lean Six Sigma Black Belt certification and is a Certified Sales Compensation Professional (CSCP), WorldatWork.
