The Financial Value for Companies
- A manufacturing company hires an expensive digital marketing agency and begins putting together a lead-generation strategy for new and existing customers. The price would be lower because no salesman is taking a cut, the bargain being that they wouldn’t have to close as many sales without a sales rep as they did with a sales rep because of the cost savings. (Pretty straight forward, right?)
- The cost savings could either be realized by the company as higher profits OR the company could pass-on some of those savings to its customers creating a more competitive pricing strategy at the customer level. Therefore, giving the customer what they want: cheaper prices. (And in the end completely devastating reimbursement from CMS, which kills the product or therapy in the long run… awesome.)
- The physicians they target can read up about products and learn as much as they can about specs virtually. Companies would also offer more frequent labs/training seminars for physicians. They would have to request shipment of a free demo or ask any questions they have with a tele-sales rep and make a judgement based on these experiences. (If you work with surgeons you are probably rolling your eyes right now, thinking, “yeah right… I can totally see my docs doing just that. Sitting behind their computer listening to some bozo over the phone teach them how to operate.” But, virtual medicine is a reality these days and robots do surgery, so don’t think it’s impossible.)
- The manufacturing company would hope that their digital content is accurate enough to answer most of the questions a physician might have, or customer/technical services can fill the gap. (Big gamble)
However, there are products sold by many medical device reps that are considered commoditized. We’ve all heard it, “A screw is a screw, is a screw.” These are the models where rep-less sales territories are considered first, and in some scenarios considered efficient.