Medical Device Link.

MARKET ANALYSIS

Return to Article: Medtech Revenue Management Practices

To be successful, medtech companies today must invest to make their contracts profitable and competitive on both sides of the deal. Key insights from the 2006 Revenue Management Excellence Survey can be gleaned from both the responses companies gave to key metrics-related questions and the answers they did not give. They are as follows.

• The sales force’s ability to be competitive should be fostered and its objectives aligned with corporate objectives and revenue goals.
  
• Companies should strive to offer better response times and customer service levels relative to contracting and pricing.
  
• Tools and processes to ensure that pricing is current and within approved guidelines must be developed and made available to salespeople.
  
• Decision making by the sales force during contract negotiations should be bolstered through access to current pricing, customer, contract performance, and product performance information.
  
• Monitoring, measurement, and processing of compliance and payments should be made timely and accurate to ensure that contract discounts and customer incentives do not cost the company more than the value of the business they generate.