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Unlocking Business Potential: Utilizing Maturity Models for Customer Targeting in MedTech
- philip bowler
- Jan 2
- 3 min read
In the dynamic world of medical technology, understanding and optimizing customer relationships is crucial for sustainable growth. As a consultant at Egress Australasia, I've seen firsthand how leveraging maturity models can transform customer targeting strategies, particularly for mid-sized MedTech companies with annual revenues between $50-100 million USD. Let's explore how this approach can significantly boost your bottom line.
The Power of Share of Wallet
One of the most potent metrics in customer targeting is Share of Wallet (SOW). This concept quantifies the percentage of a customer's spending that your company captures within a specific category[6]. For MedTech companies, this could represent the portion of a hospital's budget allocated to your devices or services.
Consider this: if a hospital spends $1 million annually on medical devices, and your company accounts for $250,000 of that spend, your share of wallet is 25%. The goal is to increase this percentage, tapping into the untapped potential within your existing customer base.
Maturity Models: Your Roadmap to Growth
Maturity models provide a structured approach to assess and improve various aspects of your business. In the context of customer targeting, they can help you:
1. Evaluate Current Capabilities: Understand where your company stands in terms of customer engagement and data utilization[1].
2. Identify Growth Opportunities: Pinpoint areas where you can enhance your customer targeting strategies[5].
3. Guide Strategic Investments: Prioritize initiatives that will yield the highest return on investment[3].
Applying Maturity Models to Customer Targeting
Step 1: Assess Your Digital Readiness
Start by evaluating your company's digital capabilities. A McKinsey survey of over 1,900 MedTech leaders revealed that even small investments in omnichannel capabilities can significantly improve customer engagement and topline performance[1].
Step 2: Develop a Multidimensional Customer View
Integrate structured and unstructured data to create a comprehensive customer profile for pathology departments and hospital purchasing departments. This includes:
Department size and annual testing volume
Equipment inventory and age
Budget allocation and spending patterns
Decision-making structure and key stakeholders
Procurement processes and preferences
Affiliation with larger healthcare networks or Group Purchasing Organizations (GPOs)
Quality metrics and accreditation status
Research activities and clinical trial participation
Adoption rate of new technologies
Pain points and unmet needs in current workflows
By focusing on these data points, MedTech companies can better understand the specific needs and behaviors of pathology and purchasing departments, enabling more targeted and effective Value Segmentation
Step 3: Implement DataDriven Segmentation
Utilize advanced analytics to segment your customers based on their potential value and specific needs. This approach allows for more personalized and effective targeting strategies [5].
A Simple A to D rating system that is easy for everyone within the company to understand can help align the entier organisation on the most valuable customers.
Step 4: Tailor Your Approach
With a clear understanding of your customers, you can now customize your offerings and engagement strategies. This might include:
Personalized product recommendations
Targeted educational content
Customized pricing strategies[2]
Setting sales reps visit targets for face to face and virtual visits, number of touch points etc.
The Impact on Revenue and EBITDA
By focusing on high potential, high profit customers, you can drive significant improvements in both revenue and EBITDA. Here's how:
1. Increased Revenue: By capturing a larger share of wallet from your most valuable customers, you can boost overall revenue without the high costs associated with new customer acquisition [8].
2. Improved EBITDA: Targeting higher profit customers and optimizing your engagement with them leads to more efficient use of resources and higher margins [4].
3. Compounding Growth: As you grow with these high value customers, you establish stronger relationships, leading to increased loyalty and even more opportunities for expansion [7].
Conclusion
Utilizing maturity models for customer targeting is not just about incremental improvements; it's about transforming your approach to customer relationships. By focusing on share of wallet and leveraging data-driven insights, MedTech companies can unlock significant growth potential within their existing customer base.
Ready to take your customer targeting to the next level? Visit www.egressaustralasia.com to learn how we can help you implement these strategies and drive your business forward.
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