Ways Medtech Companies Can Satisfy Industry's Requirement for Omnichannel Engagement

More and more, people who buy medical technology (such as doctors, people who work in hospitals, and others) want easy, personalized, and quick customer service. But most companies that make this technology still rely on sales representatives to interact with the people who buy their products.

McKinsey conducted a survey in July 2022, where they asked over 1,900 leaders from various medtech departments globally about their omnichannel capabilities. The goal was to compare their capabilities against best practices and see how they can improve. The survey revealed that even a small amount of investment in omnichannel development can improve customer engagement and increase revenue for medtech companies. This article explores the omnichannel interactions that customers desire and provides five recommendations for medtech companies to enhance the customer experience and meet their growing expectations for engagement.

Tailored Experiences are Highly Valued by Customers.

Healthcare providers' (HCPs) preferred methods of engagement with medical technology (medtech) companies have been changing over time, even before COVID-19 hit. However, the pandemic sped up this transformation due to temporary closures and heightened scrutiny of vendors' presence. In August and September of 2021, global consulting firm McKinsey conducted a survey of 761 medtech decision makers. The survey revealed that at the height of the pandemic, in November 2020, only 35% of HCPs preferred in-person interactions with medtech companies. By August 2021, that number had risen to 58%, which is still almost 20 percentage points lower than the pre-pandemic norm of 76%.

According to the survey, a significant number of healthcare professionals, up to 60%, prefer using digital or remote methods when examining new technologies, requesting proposals, and buying products. However, they still consider in-person meetings important for certain situations. For example, during product trials, medical technology representatives provide critical product and clinical knowledge and act as thinking partners. Healthcare professionals also value face-to-face meetings to receive training and high-level support in complex cases.

According to our recent survey of medtech leaders, the majority of medtech companies are not quite able to provide a complete omnichannel experience for their customers. However, those that have taken even small steps towards this goal have seen advantages. Our survey of company performance data from 2021-2022 indicates that there is a direct connection between revenue growth and omnichannel capabilities. These companies with more developed omnichannel processes were better equipped to handle the challenges of the pandemic and are bouncing back quicker than other companies in the industry.

The data shows that companies with advanced omnichannel capabilities had significantly higher revenue growth compared to those with limited capabilities in the period from 2021 to 2022. In fact, the revenue growth for companies with the least omnichannel capabilities actually decreased during this time. The top-performing companies with the strongest omnichannel capabilities outperformed their industry average by 12 times, indicating that their success could be attributed to their omnichannel strategies. These capabilities not only helped medtech leaders navigate challenges during the pandemic but also enabled them to continue growing as the world reopened.

"Enhancing Omnichannel Capabilities for Medtech Companies"

Even though having the ability to engage with customers through multiple channels can boost their satisfaction and ultimately result in better financial results, many businesses have yet to effectively implement this approach on a large scale. This fact is evidenced in Exhibit 2.

There are five different methods that medtech companies can utilize to enhance their mature omnichannel capabilities:

for success. 2. Reassessing and Improving Your Time Management Skills. 3. A Beginner's Guide to Investing in the Stock Market. 4. Maximizing Your Productivity at Work: Tips and Tricks. 5. Discovering and Nurturing Your Creativity. 6. The Benefits and Challenges of Working Remotely. 7. Breaking Through Burnout: Strategies for Renewal and Empowerment. 8. Essential Habits of Successful Entrepreneurs. 9. Cultivating a Growth Mindset: Practical Tips and Strategies. 10. From Procrastination to Productivity: Overcoming Common Obstacles.

The majority of medtech leaders want to create omnichannel capabilities for their businesses, but they haven't figured out how to make it happen. A small number of people said that they have a specific plan for how they want customers to experience their products or services, but even fewer of those individuals have shared their ideas with the rest of the company. This information is shown in Exhibit 3.

A top executive in a prominent medical technology consumables company successfully conveyed their omnichannel strategy to their team through a video showcasing their vision of customer interaction, starting from when a customer requests a product to actually using it. This enabled leaders in other departments to imagine a completely different path for customers and encouraged them to fully back the company's development of omnichannel capabilities.

Additionally, a minority of those surveyed stated that their companies have successfully implemented a practical strategy for their omnichannel vision. One explanation for the sluggish pace of progress is the emergence of more pressing issues during the pandemic. However, the majority of respondents claim that their organization doesn't properly motivate top executives and managers to make customer experience a top priority.

"Maximizing the Benefits of Customer Data"

In order for medtech companies to create a unique customer engagement plan, they should start by building a comprehensive understanding of their customers from different perspectives. This can be achieved by combining organized and disorganized data to gain insight into customer habits and preferences throughout various interactions. Organized data encompasses patient claims, practitioner information (like age, location, and specialty), affiliation with medical offices, medical record data that is connected to healthcare practitioners, and purchase history. Disorganized data such as email communication, involvement with promotional material from the company, and feedback from salespeople are added to provide a thorough view of the customer and personalized engagement opportunities.

According to our research, less than half of medtech companies have a grasp of customer behavior beyond basic information like demographics and past purchases. Only one fifth of those surveyed stated that they have accurate data that is ready for analysis with a complete overview of their client base. A mere 16 percent of medtech organizations are currently utilizing data to make instantaneous recommendations for boosting communication with their customers.

Technology companies in the medical field do not have to wait until they obtain all of the data they need before they start utilizing the information they currently have. They can begin by utilizing the data they have to develop ways to enhance the experience of their customers. By conducting ethnographic research, where they observe and interview customers to understand their thoughts and reactions to different situations, it can provide medtech firms with a deeper understanding of healthcare professionals' unmet needs. The use of external-claims data sources can offer insights into the practices of healthcare professionals. Once they have compiled customer insights through internal and external sources, medtech firms can apply design thinking techniques to create and optimize customer journeys from initial contact through the purchase and post-purchase stages, which can be segmented by products and stages.

A major provider of capital equipment used customer research to change its approach to marketing its services. They put together a small group of researchers to analyze customer accounts and figure out how well they were meeting the clients' requirements, even the ones they didn't express directly. Using this data and feedback from customers, the team revamped their services portfolio and changed how they presented it to better appeal to their customers' priorities. This resulted in better profits and loyalty from the customers.

"Make a Smart Investment: Upgrade Your Technology Infrastructure"

Investing in technology infrastructure is needed for effective customer engagement across multiple points. However, currently only a small number of medtech companies have implemented the technologies required for supporting commercial activities, including customer relationship management (CRM), martech and adtech. Additionally, those with CRM systems in place are not utilizing them to their fullest potential.

Less than 50% of people who participated in the survey stated that their organizations have dependable technology systems. Just 17% declared that their companies have introduced modular systems, and less than 20% consider their technology structure to give them a better edge over competitors. Around 75% of those surveyed stated that they have no digital centers of excellence that could help enhance their omnichannel usage.

By making a strong effort and staying determined, businesses are able to better their technology know-how and enjoy the advantages. Take for example a medical technology company which had numerous Customer Relationship Management (CRM) systems that could not work together due to recent acquisitions. The company's top management knew that it would be very difficult to employ a marketing campaign with multiple CRMs. For that reason, they acted quickly and transitioned to using only one CRM by encouraging the whole organization. As a result, this allowed them to speed up the development of a comprehensive collection of marketing strategies, in addition to cutting down on costs which they used to further invest in the business.

How to Attract Talented Individuals in Digital and Analytics Fields

Many companies in the medtech industry still view IT as a function that only supports the main business processes, and not as a key player in promoting growth. Shockingly, a little over one-fifth of respondents have stated that their organization utilizes IT to enhance customer engagement. If companies make the necessary changes to their operating models and give technology and digital teams a more substantial role in making decisions, they can significantly advance their efforts to achieve true omnichannel excellence.

Numerous sectors have found it challenging to attract and keep employees who possess digital and analytics expertise, including medtech. A mere 20% of individuals who partook in a survey expressed that their respective companies possess the essential talent and abilities to utilize data with the help of advanced analytic tools like artificial intelligence and machine learning. Although these businesses are conscious of this deficit, just 35% of them make an effort to recruit the correct digital and analytics staff members in all positions to bolster their workforce consistently.

Companies in the field of medical technology might want to emphasize the noble mission behind their work. Those who promote adaptable work arrangements, equitable work-life ratios, clear career trajectories, and distinctive corporate identities might possess an edge in attracting skilled job seekers.

"5 Ways to Facilitate Agile Work Methods"

Many leaders in the medical technology field are well-versed in agile principles and have used them effectively in certain areas, such as creating software. Nonetheless, most medtech companies have not emphasized agile principles in developing omnichannel customer engagement because of their traditional culture.

When teams are made up of people from different departments like field sales, inside sales, marketing, commercial operations, service, analytics, IT, and design, they can work together to come up with new ways to engage customers across multiple channels. This is important for businesses that want to offer a seamless customer experience. The survey found that over 50% of people already work in this kind of team, but only a third of them follow agile principles all the time.

Due to this, just a small portion of medtech companies, specifically 20%, are profiting from implementing trial-and-error strategies as a means to quickly adapt to the changes in the market. When combining a flexible approach with the already established teams composed of various experts, medtech companies can significantly speed up their comprehension of how to enhance customer interactions in order to achieve favorable outcomes at an early stage.

A well-known orthopedic provider formed teams with experts in different fields ranging from product marketing to medical education to develop compliant omnichannel strategies aimed to prioritize certain customers in chosen segments. By launching these strategies, the teams quickly achieved success in the pilot segments, resulting in increased customer satisfaction. This achievement drew the attention of higher-ups who gave the teams the necessary resources to expand their efforts to all customer segments within the business unit.

Companies who have adopted a flexible and multi-disciplinary strategy similar to this have revolutionized the way they interact with their clientele. They have taken advantage of their current data and technology to boost sales through fresh digital and distant means, illustrate the importance of channel teamwork (especially between sales representatives and marketers, backed up by internal sales), and achieve growth with added value. Furthermore, they typically execute these tasks in a timeframe measured in weeks or months, rather than quarters or years.

Minimal Investments can Exert a Huge Influence

Providing a seamless and cohesive customer experience across various channels might appear overwhelming. However, business heads can take comfort in the fact that even minor investments can result in enhanced customer involvement and improved business outcomes. The majority of the medtech sector is currently enhancing their omnichannel abilities, so prompt actions from leaders in providing customers with effortless, personalized, and instant experiences could result in stronger connections and higher revenue.

Ralph Breuer works in McKinsey's Cologne branch as a partner, while Delphine Nain Zurkiya is a senior partner in the Boston branch. Additionally, Karen Passmore functions as a partner in the Chicago location, and Maria Strom serves as an associate partner in the Ohio office.

The writers want to express their appreciation to Monica Cowper, Geoffrey Gao, Berenika Hengstebeck, Alice Lin, Erika Manzi, Matthew Martin, Marcel Meuer, Abhi Patangay, Julia Samorezov, Sarthak Soni, and Christian Zerbi for their help in completing this project.