Pivotal CRM For Medical Device Manufactures

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					                                                                                                 B U S I N E S S
                                                                                                 P A P E R
Pivotal CRM for Medical Device
Manufacturers
Go to Market the Way You Innovate




       Executive Summary
       Medical device manufacturers need to get the right products into the hands of the right
       customers. Faced with opportunities to capitalize on high growth rates, new markets,
       and increasingly global alliances, forward-thinking organizations are intent on leading
       their markets by pursuing smarter, more disciplined development strategies. The goal
       is to get more profitable and innovative products to market—more cost-effectively—to
       out-run the competition. Effective and innovative product development is thus
       dominating the business agenda.
Go to Market the Way You                                     Share Information Effectively with
Innovate                                                     Distributors and Partners
                                                             Your organization may sell its products directly to
Medical device manufacturers need to get the right           customers, work with distributors, or both. When several
products into the hands of the right customers. Faced        parties are involved in the sales process, it’s essential
with opportunities to capitalize on high growth rates,       to exchange the appropriate information. A system to
new markets, and increasingly global alliances, forward-     manage distributors, the contracts you have with them,
thinking organizations are intent on leading their markets   their volume commitments, and their pricing structures
by pursuing smarter, more disciplined development            makes selling simpler. Your sales teams can better
strategies. The goal is to get more profitable and           manage co-selling opportunities and ensure that the
innovative products to market—more cost-effectively—to       right distributors are involved.
out-run the competition. Effective and innovative product
development is thus dominating the business agenda.
                                                             Integrate Data from Multiple
At Pivotal CRM, we believe there’s an even greater
opportunity for medical device manufacturers. You can
                                                             Organizations Smoothly Through
realize further advantages by investing in technology        Rapid Growth
solutions that inject critical market intelligence into      When your organization grows through acquisition or
the development process and engage your company              consolidation, you often inherit fragmented technology
in instant, two-way dialogues with customers. In fact,       systems and business processes. The challenge is to
incorporating the voice of your customers into product       re-engineer, streamline, and improve as your enterprise
and marketing strategies can transform your organization.    evolves. A system designed to integrate new data and
                                                             business processes helps you gain insight into corporate
You’re already putting a lot of thought and effort into
                                                             performance, which results in better planning. Your
product innovation and development. At Pivotal CRM, we
                                                             sales teams function more efficiently and sales cycles
help you put the same thought and effort into the way
                                                             are shortened.
you get your products to market. We provide you with
the solutions you need to commercialize your products
more quickly than the competition. Developing innovative     Overcome The Limitations of Legacy
sales and marketing processes can shave weeks—or             Systems and Hard-coded Applications
even months—off the time it currently takes to get your
products to your customers. The result? First-mover          As your industry changes, your organization changes
advantage. And first-mover profit.                           with it. New regulations, new markets, and increasing
                                                             competition drive new requirements all the time. Using
                                                             generic technology systems or applications designed
Help Your Organization Present a Single                      specifically for the pharmaceutical industry can constrain
Face to Customers                                            your ability to create and modify unique business
                                                             processes. A system designed with the inevitability of
As a medical device manufacturer, you likely sell a range
                                                             change in mind enables you to adjust more readily,
of products to multiple organizations. For prospects to
                                                             get products to market more quickly, and devote your
become your customers, you need to deliver a smooth
                                                             resources to moving forward.
buying and service experience with professional and
well-informed personnel whose approach is tailored to
meet each facility’s unique needs. When you present
a consistent image to the market, you improve brand
recognition and market profile, enhance the quality of
customer interactions, and shorten sales cycles.




                                                                                                Pivotal CRM | Business Paper   
CHALLENGE ONE: When your competitors get their products to market before you lose market share. You
may even have to wait out the lifespan of competitor contracts before regaining entry into the market.


Avoid Paying the Price for                                    Understand Complex Customer
Being Late                                                    Inter-relationships to Target the
                                                              Right Influencers
Research shows that, on average, every month a product
is late to market decreases its gross profit potential by     Your company’s sales teams need to understand the
0%. Automated sales and marketing capabilities can           numerous relationships that exist at customer facilities.
decrease the time it takes to get your products out the       Not only do they sell to a facility’s purchasing department,
door. The impact on your business can be dramatic;            they also need to interact with individual doctors and lab
you’ll capture market share by getting your products to       technicians. Being able to determine easily who the key
customers before your competitors do.                         influencers are at each facility, their departments, their
                                                              specialty areas, and their level of influence on others
                                                              helps your sales teams target the right people to close
Ensure You Have the Right Team                                deals. Any insight that your non-sales employees have
Assigned to Each Account                                      into customers can help, too.
As a medical device manufacturer, you constantly look         Facilities such as hospitals often have committees
for ways to improve the sales process. You likely have        responsible for making decisions about large purchases.
numerous sales teams, each responsible for working            Sales reps who do not have access to this information
within a particular geographic area. Some sales members       may spend too much time trying to uncover details or
may be qualified to sell more than one product line or to     working with the wrong contacts, which reduces their
target more than one facility type. You may segment your      productivity and lengthens the sales process. When
sales force into distinct units based on expertise; you may   you map out existing relationships between contacts,
segment further according to facility type, size,             your sales representatives can target the most influential
or account size.                                              contacts at a facility and sell more effectively. They spend
                                                              less time chasing the wrong people, and they gain insight
When you segment your customers according to criteria
                                                              into which relationships have the most potential. Over
beyond simple geographic boundaries, you refine the
                                                              time, strengthening these relationships with influencers
sales process. You can fine-tune the process further by
                                                              can help close deals faster and increase revenue per sale.
monitoring and controlling the way sales members are
assigned to accounts. When the appropriate personnel          Beyond the inter-relationships within a customer
are in contact with an account, they generate more            facility, your sales teams benefit from understanding
business and shorten the sales cycle.                         the relationships your customers have with other
                                                              organizations, such as Group Purchasing Organizations
Depending on the type of product being sold, you may
                                                              (GPOs), distributors, and industry associations. In some
need to include staff qualified for training, installation,
                                                              cases, groups of facilities form Integrated Delivery
or support with the information surrounding a particular
                                                              Networks (IDNs); understanding the relationships
account. Just as your sales teams may be segmented
                                                              between members is often extremely important. Sales
by role and geographic area, your support staff may be
                                                              representatives should also know which facilities comprise
organized according to similar criteria. When you include
                                                              each IDN; selling to one facility in an IDN may lead to
all supporting staff in your approach to segmenting
                                                              opportunities with other facilities in the IDN.
customers, you extend the efficiency of the sales
process into implementation and support areas.                Understanding and taking advantage of the relationships
When people are assigned to a team for a specific             between facilities gives your sales representatives insight
purpose, being associated with a defined role makes           into channels of influence and new sales opportunities
them more accountable.                                        that may exist outside of an individual customer facility. In
                                                              many cases, understanding these relationships ensures
                                                              accurate pricing and can lead to your products being
                                                              purchased by other facilities in a network.




                                                                                                  Pivotal CRM | Business Paper   
Monitor Contracts for Their Duration to                         Automatically Assign the Right Leads
Ensure that Volume Commitments are                              to the Right People Quickly and
Fulfilled, Expirations are Tracked, and                         Consistently
Renewals are Processed On Time                                  Once a marketing campaign is in progress, leads are
                                                                generated from your target prospects or customer base.
Once a quote has been approved and accepted by
                                                                The question is what to do with them. You don’t want to
a customer, it has to be converted to a contract that
                                                                let hot leads just sit there getting cold. Forwarding them to
reflects the details defined in the quote. This ensures
                                                                the right sales reps immediately keeps up a campaign’s
that the pricing offered when fulfilling orders is correct.
                                                                momentum. Taking advantage of marketing automation
Contract details must always be monitored for volume
                                                                enables you to assign leads to sales representatives
commitments and expiration dates. Volume commitments,
                                                                according to the way customers are segmented and
in particular, often dictate pricing structures, so keeping
                                                                prioritized. After every campaign, your sales team can
track of customers’ progress along these lines is essential
                                                                analyze and track leads throughout the sales cycle.
to maintaining the margins calculated for a given contract.
                                                                From geography to product of interest to customer
When you give your sales representatives tools to keep          characteristics, you can ensure that the right sales
track of numerous contracts and the details they contain,       representative receives every qualified lead—every time.
the entire quote-to-contract process is streamlined to
increase efficiency and minimize costly errors. They
can track competitor and contract expirations to ensure
that existing contracts are renewed and that competitor
contracts are replaced. You maintain market share and can
even gain market share by overtaking your competitors.


Create Effective, High-impact Marketing
Campaigns to Generate Leads and
Drive Additional Revenue
Your organization likely devotes considerable resources
to advertising and promotions at tradeshows. For many
medical device manufacturers, tradeshows are an
excellent forum for announcing new products and getting
face-to-face feedback from customers.

It’s important that all prospects and customers
know about your company’s presentations well
in advance. Marketing automation systems enable you to
deliver targeted information to specific groups, whether
your goal is to announce an upcoming tradeshow, create
effective Continuing Medical Education (CME) events
to promote products, or distribute clinical research
studies and journal articles. Your marketing teams can
profile customers and prospects, target them with highly
personalized and relevant messages, deliver each
message at the right time via the right channel, and
ensure consistent and effective follow-up. Disseminating
information to target lists is faster and more efficient than
having sales reps send out information to one customer
at a time.




                                                                                                    Pivotal CRM | Business Paper   
CHALLENGE TWO: When your sales representatives misquote or lose track of contract details, they
lose opportunities to cross-sell, up-sell, renew existing contracts, and capitalize on your competitors‘
contract expirations.


Don’t allow profit margins—or your revenue potential—           Gain Management’s Approval on Pricing
to get squeezed. Increased profit margins and revenue
potential is more than a matter of product quality or           Before Sending Quotes to Customers
effectiveness. Centralize the way you manage opportunities      and Minimize the Revisions that Can
to improve the way quotes are handled. Relate essential
quoting functions to the goals of your organization. Develop
                                                                Disrupt a Potential Sale
realistic and appropriate performance standards. Educate        Based on the relationships your sales representatives
and develop opportunities to sustain, improve or build on       have with customers, some proposed discounts or pricing
employee performance.                                           breaks may exceed acceptable limits or margins. If sales
                                                                managers are notified each time a quote is below a
                                                                suggested price, they can investigate the quote further
Ensure Appropriate Pricing for Every                            and propose a new amount consistent with established
Customer to Minimize Fluctuations                               ranges. In these cases, following an approval-process
in Revenue                                                      workflow prior to sharing a quote with a customer can
                                                                prevent over-discounting.
As a routine part of the sales process, sales teams
must provide price quotes for the products customers            When sales managers have a way to review inappropriate
are most interested in. Pricing is based on a number of         quotes before they are sent to customers, they can
factors, so sales representatives need to understand            intervene if necessary. The entire process becomes more
all of the relevant relationships involved to be sure that      efficient because you minimize excessive discounting, and
they are providing accurate and appropriate prices.             customers receive quotes that do not have to be revised.
Limited knowledge about these relationships can lead
to incorrectly priced quotes, which has a direct effect
on sales revenue.
                                                                Products Are Your Lifeblood; Track
                                                                Essential Details for Each and Every
Without fully understanding existing relationships with
GPOs and distributors, the likelihood of misquoting a
                                                                One to Increase Up-Sell Revenue
price is tremendous. This is complicated further when           Your sales teams need to know which required
a facility wants to purchase a large quantity of products       components must be sold along with a product, as
that justifies an appropriate pricing break. Add to this the    well as the optional components that are available, in
dimension of purchase versus lease, and the                     order to take advantage of cross-selling and up-selling
pricing options multiply dramatically.                          opportunities. The most effective way to keep everyone
                                                                informed is through a comprehensive product catalog.
When your sales teams have access to every pricing
option, they can provide quotes that accurately reflect         But creating a catalog is only a first step; keeping it
their knowledge of the customer relationship and the            updated with new product information is often more
products that the customer relies on. Sales productivity        complicated. Not only does the catalog need to include
rises and the revenue fluctuations due to inconsistent          comprehensive product details, it must often be used
quoting are minimized.                                          to track the way product information changes over
                                                                time. Furthermore, you must ensure that your company
                                                                frequently updates important regulatory and coding
Know the Primary Vendor for Each                                and coverage information, enabling sales teams to
Facility to Ensure Valid Price Quotes                           discuss product details and counter objections during
Sales representatives also need to know who the primary         the sales cycle.
vendor is for each facility so they can appropriately
                                                                Tracking product details helps your organization
channel their sales approach and provide appropriate
                                                                understand the relationship between the profitability of
price quotes. Similarly, the representatives’ lack of insight
                                                                products and the sales activities associated with them.
into which distributors the facility works with could result
                                                                Ultimately, streamlining these relationships saves time
in quotes that are incorrect, which increases customer
                                                                and leads to increases in revenue.
dissatisfaction and affects your company’s credibility
when obtaining future business.




                                                                                                   Pivotal CRM | Business Paper   
CHALLENGE THREE: When you have trouble managing distributors, their pipelines, and their contracts,
your bottom line suffers.


Keep track of distributor relationships—and capitalize on       Monitor and Manage Distributor Volume
them—to boost revenues for the long term. In dealing with
your distributors, it’s essential to be flexible. Collaborate   Commitments, and Gain Insight Into
with your distributors during the selling process, and build    Relationships Between GPOS, IDNS,
a methodology for managing partners.
                                                                and Individual Facilities
                                                                It is often difficult to track the complex relationships
Associate Distributors With the                                 between distributors, GPOs, IDNs and individual facilities.
Appropriate Sales Team to Streamline                            For a start, you can monitor the way your distributors
the Sales Process                                               fulfill their contracts to ensure that they price products
                                                                accurately when giving volume discounts. Non-performing
You may be working with one or more distributors who            distributors can be charged penalties and you’ll have a
have exclusive rights to sell one of your company’s             way to evaluate each distributor for future contracts.
products; in some cases these distributors may even
co-sell a product with your own sales team. In these            A system that can track all of these inter-relationships
situations, it is important to make sure that the appropriate   minimizes the chance of pricing your products
distributor is connected with your sales team so that a         inappropriately; you understand the agreements that are
sales member working on that account knows which                already in place. Furthermore, your company may create
distributor should be involved, in what capacity, and for       GPO- and distributor-specific pricing based on contracts
which products.                                                 that you have with each individual GPO or distributor.
                                                                These pricing options may be made to match the effective
Associating relevant third parties with your sales teams        period of the contract. Your company needs to be able
extends the efficiency of the sales process beyond your         to place timeframes around individual pricing options to
organization—to complement the processes of outside             ensure compliance with contracts, and also to allow for
partners involved with a given customer account. Your           promotional time periods. Incorrect quoting can lead to
organization benefits further by extending process              rebates for frustrated customers, which damages the
efficiency to everyone involved with an account, both           credibility of your company.
inside and outside your company. You also improve
your ability to identify potential distributor deals and
co-selling opportunities.




                                                                                                   Pivotal CRM | Business Paper   
CHALLENGE FOUR: When your sales managers can’t keep track of their sales representatives‘
activities, opportunities, and price quotes, the effectiveness of your entire sales force and marketing
efforts is compromised.


Ensure That Managers Have Tools to                              When you store the collective knowledge gained
                                                                through numerous relationships that change over
Measure the Effectiveness of Sales                              time, your organization retains valuable information on
Teams and Distributors                                          every customer, developing a “corporate memory” that
                                                                transcends individual employees and supports lasting
When you take advantage of tools that provide insight
                                                                relationships. When new sales representatives are
into the quality of generated leads and their progress
                                                                assigned to long-term accounts, they can take advantage
through your sales process, you give your account
                                                                of the knowledge gained by others to maintain existing
managers and executives a complete picture of the sales
                                                                customer relationships, which minimizes disruptions.
activities and revenue potential. Managers can monitor
each sales representatives‘ call reports, interaction history
with customers, and price quotes; they can also monitor         Track and Measure the Effectiveness
contracts and competitor contract expirations at each           of Marketing Campaigns to Minimize
facility. With a comprehensive view of sales forecasts and
pipelines, your managers can plan and allocate resources        Guesswork—and Costs
to increase sales efficiency.                                   Your marketing department always needs to do more
                                                                with less. Campaign budgets are tight and it’s difficult
Integrate Sales Teams and Territories in                        to determine where to invest unless you understand
                                                                the performance and return on investment of previous
Advance Of Consolidation to Minimize                            campaigns. With marketing automation tools, you can run
Transition Headaches                                            “nurturing” campaigns for your prospects and customers.
                                                                You learn which campaigns have been most effective
If your organization is growing through acquisition or
                                                                by asking your prospects what they have heard about
consolidation, you’re likely faced with the challenge
                                                                your company and products. You can reduce marketing
of merging customer databases, sales teams, and
                                                                costs by determining what works and refining successful
other employees to make sure that the right resources
                                                                techniques. And you will generate more high-quality
are assigned to the right accounts. Depending on the
                                                                leads by testing marketing messages and improving
circumstances of consolidation, you may be hiring new
                                                                them over time.
employees or aligning people with similar expertise to
work on teams. You may also be aligning people to work
with additional distribution channels. When you add new         Track Which Invitees Attend Your Events
staff to the appropriate teams in advance of organizational     and the Costs You Incur for Each One
changes, you ensure that the right people are added to
or removed from relevant account teams to make territory        When your sales team organizes Continuing Medical
alignment less time-consuming.                                  Education (CME) events to launch or promote your
                                                                company’s products, there is always a cost attached.
                                                                For every event, your organization needs to track which
Maintain a History of Every Sales Rep’s                         sales representatives are involved, which speakers are
Activities and Gather Knowledge About                           employed to help promote products, and which literature
                                                                or product sample is given away. And as you well know,
Your Customers Over Time                                        your organization is federally regulated to monitor
Over the lifetime of an account, many employees or              the amount of money you spend on each physician
distributors may interact with a customer. In cases where       every year.
new sales representatives are assigned to long-term
customers, you may need to tap into the experiences of          Systems that track event information to ensure that you
other employees who are, or were, responsible for the           are not over-spending enable you to automate and
account to learn as much as possible about it. You may          monitor each event so that your sales representatives
also want to track which sales representatives have been        spend less time managing lists and tracking attendance
involved with customers over time to better understand          records, and they spend more time selling. Your
these relationships.                                            representatives can create CME events that are more
                                                                effective, using luminaries as speakers, inviting target
                                                                prospects, and sharing clinical research studies, journal
                                                                articles, product literature, and samples.




                                                                                                   Pivotal CRM | Business Paper   
Pivotal Medical Devices                                      For more information, contact us today to learn more
                                                             about Pivotal CRM for Medical Device Manufacturers.
When you plan your customer relationship strategy,           Visit http://www.pivotal.com or call + 8-PIVOTAL
it is important to select a CRM solution that is             (+ 8-8-8).
designed specifically to accommodate the distinct
characteristics of your industry: complex distribution       Pivotal CRM for Medical Device Manufacturers—go to
channels, influential relationships, and complicated         market the way you innovate.
contracts and pricing structures.

Based on years of experience implementing and
deploying solutions for medical device manufacturers,
Pivotal CRM for Medical Device Manufacturers is
designed to address the key business drivers and
challenges you face every day. The Pivotal CRM solution
currently includes capabilities for territory and role
management, relationship management, quoting
and contract management, event management,
and marketing automation.

Pivotal Medical Devices includes % of the functionality
typically needed by medical device manufacturers—out
of the box. We also understand that every business is
unique; your organization can take full advantage of the
flexibility of the Pivotal CRM toolkit to customize your
CRM solution to adapt to the way you do business. The
combination of industry-tailored and custom components,
along with the inherent flexibility of the Pivotal CRM
platform, leads to a lower total cost of ownership and
a competitive edge for your company.


Take the Pivotal Step
At Pivotal CRM, we work in partnership with medical
device manufacturers and their peers to build technology
solutions that help you commercialize your products more
quickly. Our solutions are designed specifically for your
industry—to work the way you work.

We understand your challenges because we listen. We
draw upon the shared knowledge and experience of our
user base to continue improving our products over time.
As we gain feedback, we respond, we refine, and we seek
additional input.

With every new customer, our knowledge of medical
device manufacturing grows. All of our customers can
take advantage of the collective industry knowledge built
into our technology. After all, you’re the experts. That’s
why we apply to our technology what we learn from
customers like you every day.




                                                                                              Pivotal CRM | Business Paper   
For more information or a complete list of our worldwide offices, please visit www.pivotal.com.
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The CDC Software logo and Pivotal CRM logo are registered trademarks and/or trademarks of CDC Software.

				
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Description: Medical device manufacturers need to get the right products into the hands of the right customers. The goal is to get more profitable and innovative products to market—more cost-effectively—to out-run the competition. Effective and innovative product development is thus dominating the business agenda.