Many hospitals and healthcare providers are expanding their decision-making units when it comes to procurement, with both clinical and administrative staff involved in deciding which products and devices are purchased.
Having multiple departments involved in the decision-making process means that your device needs to appeal to different stakeholders, who might have different motivations and priorities.
This complex procurement process makes it more important than ever to develop a clear value proposition for your medical device. This proposition should highlight the distinct advantages of your product and illustrate how it helps improve patient outcomes and experience.
Developing a compelling value proposition is essential to help ensure that your medical device stands out in a competitive market and clearly communicates your product benefits to diverse stakeholders.
At IDR Medical, we always recommend that medical device manufacturers take the following elements into account to help develop a successful value proposition:
Before you can develop a value proposition that really resonates with the various stakeholders in the healthcare sector, you first need to understand their challenges and needs that aren’t currently being met by incumbent products.
Unmet needs analysis can help you achieve this by using a combination of qualitative and quantitative research methods to identify the limitations of existing products and pinpoint where your product can truly deliver value.
Not all groups of users are going to have the same needs or face the same challenges. This is where effective market segmentation is important for helping to isolate the specific requirements and pain points of different groups of stakeholders who are likely to use your product.
Ethnography and focus groups are two common healthcare market research methodologies that are useful for identifying unmet needs in different market segments.
Ethnography allows you to observe how devices are used in real-world environments, providing insights into how your product can improve patient experience and efficiencies in healthcare professionals' daily routines.
A well-administered focus group can also help you gather feedback and opinions from your different market segments, helping you gain an in-depth understanding of pain points and opportunities to help you refine your value proposition.
In recent years, there has been a shift towards value-based payments in the healthcare industry, which ties payments to the quality of care and the efficiency of services provided.
With this in mind, it’s important that any value proposition for your medical device communicates how your device helps support hospitals in reducing costs, improving the quality of care, enhancing efficiency, and achieving better patient outcomes.
A good market research methodology is patient flow analysis, which helps identify the areas where your device can have the most impact.
This approach to healthcare market research helps you understand the patient journey through their treatment pathway, helping you really pinpoint where your device can add the most value and deliver improvements to incumbent solutions.
Your medical device is likely to sit in one of two categories - innovative or equivalent.
Understanding the difference between these two types of products is really important for delivering a well-developed value proposition.
An innovative device has unique features, advanced technology, or superior performance compared to existing products in the market. If you’re developing a value proposition for an innovative device, it’s important to clearly communicate how your product's benefits can improve patient outcomes and address any unmet needs.
If your device is equivalent, and is similar to other products in the market, the best approach for how to develop a value proposition is likely to shift towards emphasizing the cost benefits and how your product helps minimize risk. It’s important to provide data and studies that address any concerns that decision makers might have about switching products, and illustrate how your device provides better value for money than incumbent devices.
If you’re looking for a way to gain an in-depth understanding of how customers perceive your brand and products, the approach we take at IDR Medical is the Brand Equity Wheel. This wheel gives you insight into your brand awareness, positioning, customer loyalty, and perceived quality.
When it comes to crafting your value proposition, it’s important to keep it brief, impactful and easy to understand.
A well-crafted value proposition should demonstrate a deep understanding of your target audience and clearly communicate how your product solves their problems and meets their unmet needs.
In the healthcare market, it’s important to back up any claims you make about your device with reliable data and the results of any clinical trials. In the UK, for example, the NHS advocates evidence-based commissioning as part of the procurement process, which means providing evidence about the quality and reliability of your device is important.
If you’re confused about how to develop a value proposition, you don’t have to go it alone. Medical research partners like IDR Medical have decades of experience helping manufacturers launch medical devices across the globe and can help you put together a value proposition that focuses on the following three areas for success in the value-based healthcare era:
It’s important to communicate how your device improves quality of care, aids in achieving successful patient outcomes, and improves recovery times. Focusing on how your device can result in fewer complications and shorter hospital stays can be a compelling message to encourage stakeholders to consider your product.
Another important aspect of your value proposition is illustrating how your product can improve the patient experience - especially if your product helps to improve patient compliance and adherence to home treatments.
Highlighting how your medical device can streamline processes and save time for healthcare professionals can also be effective in your value proposition. However, some decision-makers might feel threatened or apprehensive about the risk of switching products, which is why it’s important to back up your claims with reliable data and clinical studies.
Once you’ve developed your value proposition, it’s important to communicate it clearly and consistently across all your customer touchpoints. This means making sure your value proposition is aligned and delivers the same message across your website, printed brochures, marketing materials, and sales approaches.
Once your product is launched, it’s also important to conduct ongoing healthcare market research with your target audience. By having a continuous feedback loop, you’re able to refine your product and value proposition based on the changing needs of the market.
In the modern healthcare market, developing a value proposition that connects with a diverse range of stakeholders is crucial for ensuring the success of your medical device.
Healthcare market research is the only way to effectively segment your audience, identify your end users' pain points and unmet needs, and craft a value proposition that delivers maximum impact.
IDR Medical is a leading healthcare market research company with decades of experience, having launched medical devices in more than 30 countries.
We have the expertise to help you understand your audience and competitive landscape and develop a value proposition that effectively communicates your product's benefits to the market.
Let us help you navigate the complexities of the modern healthcare industry and launch your medical device successfully.
Book a consultation with IDR Medical today.