Why Medtech Companies Should Implement Regionalized Sales Models

Pete Masloski

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Having more flexibility in how sales roles are deployed and allowing more customization in regions represents the next frontier of productivity.

In today’s dynamic healthcare environment, IDN consolidation and centralized medical device purchasing are creating significant pricing pressure on the medical device industry. In fact, on average, prices for costly medical devices have been declining recently, according to the Emergency Care Research Institute. Medtech business leaders, therefore, have to work to find ways to evolve and grow earnings in this highly competitive and challenging environment.

One of the ways in which industry executives have reduced costs has been optimizing the sales model. Medtech companies have been shifting resources from more highly paid sales reps to lower-cost roles. They have also increased sales manager spans of control and have consolidated back-office functions across business units in hopes of finding efficiencies.

However, the desire for earnings growth in this challenging environment means that while the hunt for efficiency isn’t over, it’s getting harder and harder to implement. The low-hanging fruit may be gone in many larger selling organizations. At the same time, customer needs are changing significantly and heterogeneously across geographies.

Now is the time for medtech companies to push the envelope on more flexible regional sales deployment models. Having more flexibility in how sales roles are deployed and allowing more customization in regions represents the next frontier of productivity.

The key to capitalizing on the productivity gains with more regional models without resulting in chaos and loss of manageability is to implement a structured governance process.

Download this article to learn five steps to successfully implement regionalized sales models. ( /-/media/pdfs/flexible_deployment_models_zs.pdf?la=en )

About the Experts




Pete Masloski is a principal in ZS’s Evanston, Ill., office and is a member of ZS’s Medical Products and Services practice. He has experience in an extensive range of sales and marketing issues, such as opportunity assessment, sales process and channel design, and account management. Contact Pete at pete.masloski@zs.com ( mailto:pete.masloski@zs.com ) .