Hospitals and healthcare providers face growing pressure to cut costs while improving quality of care, and they want to know how a product they are evaluating offers good value, as opposed to simply hearing that a product is being sold at the lowest price or is made with the highest quality. This change in buyer behavior has a major impact on healthcare sales and marketing, requiring many companies to adopt a value-selling approach.
Transitioning to a value-selling approach offers significant opportunities as well as risks, especially for healthcare IT companies, according to a recent article in the Harvard Business Review (HBR).
“As each innovation wave generates more data, disruption-cycle times will shorten, thereby forcing all players in the healthcare ecosystem to address inefficiency as they compete on quality and value creation,” according to HBR. “Those who fail to act will be washed away by the tide that lifts all other boats to greater productivity.”
The choice between action or obsolescence seems clear. But the shift to value selling may be particularly challenging for companies that have long competed on price alone or by selling premium, innovative products without showcasing the impact to the business’ needs and it’s end customers.
To be successful in value selling, “manufacturers need a deep understanding of the value segment’s needs and profit pools,” according to a recent report by the McKinsey Group. To gain that understanding, you need a sense of the value propositions your prospects and customers are using to position themselves in the larger marketplace.
Today’s Healthcare Differentiators: Care, Access And Cost
To differentiate based on care, for example, a hospital is likely to focus either on leading research in a particular clinical area or on best-in-class outcomes for a particular treatment. Those emphasizing research and development aim to attract customers by offering the best treatment and technology available, while others offer a single-minded focus on a specific condition and an excellent track record in that specialty.
Other hospitals and health systems are attempting to differentiate how they provide local access to quality care. Some emphasize convenience, offering a full range of clinical services within community-based facilities. Others improve access by coordinating patient care, creating value by integrating aspects of an often-fragmented healthcare landscape.
Finally, there are three groups of hospitals and health systems that attempt to differentiate on cost, according to Sales Training Connection. Premium facilities appeal to consumers who want “the greatest comfort, privacy, convenience and service levels possible,” while low-price facilities strive for inexpensive procedures at reasonable quality. In between, there are value-conscious facilities that focus on maximizing the overall value of their offerings at the lowest possible cost.
While value-oriented customers are relatively new in the healthcare marketplace, your company’s future may depend on your ability to understand their needs and focus on value when selling your products and services.
Ready to make the switch to value selling? Gain insider tips from Invenio Solutions® by downloading our free guide, Value Selling In Healthcare Sales: 6 Secrets For Success.