Medtech Executive Summit Explores CRM Strategies

Medical device companies looking to gain a competitive advantage should focus on improving their customer-facing processes, says Dale Hagemeyer, research director for the manufacturing sector of industry advisory services at Gartner Inc. (Stamford, CT).

Speaking to a group of medtech executives at the Medical Products Customer Strategy Summit, in January, Hagemeyer outlined the benefits to medical device companies of implementing a complete customer relationship management (CRM) strategy. “Medtech companies are often so product focused that they forget the other key lever they have in the marketplace: being customer-centric and executing in such a way that they become the vendor of choice,” he says. “Having great products means nothing if they can't execute well.”

The two-day summit, held in Marina del Rey, CA, featured more than a dozen speakers, including representatives from medtech manufacturers that have or are in the process of devising CRM initiatives of their own. Presentations were also made by representatives of analyst companies, industry institutions, and academia.

“Overall, what these medtech companies took away from the summit was a sense that they need to pursue customer-centric capabilities that enhance their competitive strengths,” Hagemeyer says. “We saw one case where the strength was an enhanced field-service and intimacy model, and another where it was nimbleness to reinvent the company and change product lines. In yet another, it was having better analytical capabilities to better understand customers. Companies must focus on their strengths, but also ensure a balance between sales, marketing, and customer.

John Zimmer, vice president of marketing at Toshiba America Medical Systems Inc., recounted his firsthand experience with implementing a new CRM strategy at Toshiba. The initiative, he told attendees, was driven by a need to improve the company's customer retention and satisfaction ratings, with the underlying goal of growing Toshiba's U.S. market presence. “It's absolutely critical that CRM activities be tied to the financials of the company,” he said.

According to Zimmer, shifting the culture of Toshiba to one focused on improving the customer experience has not only driven improved customer retention and satisfaction ratings, but has also enabled Toshiba to consistently outpace overall market growth rates.

Other speakers at the Thought Leadership Summit, sponsored by Pivotal Corp., included the following.