Customer Value Management: Unlocking Growth Potential in Medical Diagnostics and Devices

philip bowler
Jan 2
3 min read

In today's competitive business landscape, companies in the medical diagnostics and medical devices sectors are constantly seeking innovative strategies to drive growth and maximize their market potential. One such powerful approach is Customer Value Management (CVM), a data-driven system that helps organizations have more consistent and impactful value conversations with prospects and customers4.

At Egress Australasia, we've developed a unique CVM model that goes beyond traditional metrics to unlock hidden potential and drive sustainable growth.

The Egress Approach to Customer Value Management

Our CVM model is designed to provide a comprehensive view of each customer's value, considering both current and future potential. Here's how it works:

Share of Wallet Analysis: We examine the potential share of wallet for the market, looking at both current spend and potential future spend.
Lifetime Value Calculation: We assess the total lifetime value of each account, factoring in both immediate and long-term revenue potential.
Strategic Importance Evaluation: We consider intangible factors such as:
- Reference potential
- Prestige value
- Philosophical alignment
- Early adopter status
Market Position Assessment: We analyze the company's position in the marketplace to determine whether an offensive or defensive approach is more appropriate.
Market Potential Mapping: Using a 5x5 grid, we map the market potential and assign each customer or prospect an A, B, C, or D rating.

This comprehensive approach allows us to identify high-value opportunities that might be overlooked by traditional revenue-focused models.

The Power of Potential Revenue

One key differentiator in our approach is the inclusion of potential revenue in our calculations. This forward-looking perspective ensures that we don't solely focus on current large revenue customers, but also identify emerging opportunities with significant growth potential 6.

By considering both current and potential revenue, we can:

Identify emerging market leaders
Allocate resources more effectively
Develop targeted strategies for different customer segments
Ensure your competitors Key Accounts get prospected. Which never will happen if you solely focus on your existing large revenue accounts.

Driving Growth in Medical Diagnostics and Devices

For companies in the medical diagnostics and devices sectors with a turnover of more than 50 million, our CVM approach offers several key benefits:

Optimized Customer Lifetime Value: By understanding the full potential of each account, we can help you maximize customer lifetime value and retention 2.
Targeted Account Expansion: Our model identifies opportunities for upselling, cross-selling, and other account expansion strategies 2.
Enhanced Competitive Advantage: By consistently delivering and demonstrating value, you can differentiate yourself in a crowded market 2.
Improved Customer Loyalty: A focus on delivering value builds deeper emotional connections with your brand, leading to increased engagement and positive word-of-mouth 2.

Measuring Success: CAGR of Revenue and EBITDA

To track the effectiveness of our CVM approach, we focus on two key metrics:

Compound Annual Growth Rate (CAGR) of Revenue
CAGR of Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA)

These metrics provide a clear picture of both top-line growth and profitability improvements resulting from our CVM strategies. Focusing on where the higher potential and your customer mix will ensure you can drive both the top and bottom line simultaneously.

Take the Next Step

Ready to unlock the full potential of your customer base?

Download your free Customer Share of Wallet Template.

This powerful tool will help you start mapping your customer landscape and identifying high-potential opportunities. Don't let valuable growth opportunities slip through the cracks. Partner with Egress Australasia to implement a Customer Value Management approach that drives sustainable growth and maximizes your market potential.