One of the critical aspects of launching a successful medtech product is understanding who will be footing the bill. Whether it’s patients, payers, or providers, each customer type has unique needs and priorities that must be addressed through tailored marketing strategies. Here’s a closer look at these customer types and how to effectively market your medtech product to each.
Patients: Self-Pay Market
Promotional Marketing and Value for Money
When targeting patients who will be paying out-of-pocket for your medtech product, promotional marketing and demonstrating value for money become paramount. These patients are likely to be more selective and sensitive to price, so it’s essential to highlight the direct benefits they will receive.
Take the example of the Freestyle Libre wearable glucose monitor by Abbott. The company used a robust digital marketing strategy that included social media campaigns and partnerships with health influencers to reach potential users directly. By sharing real-life success stories and testimonials, they effectively communicated the product’s value, leading to increased sales and a loyal customer base. Promotions and discounts for new users also played a critical role in making the product more accessible and appealing.
Patients are the easiest customer type when it comes to procurement because they are the sole decision-makers for the purchase. This direct decision-making process simplifies the marketing and sales approach, allowing for a more straightforward transaction.
Payers: Insurance Companies and Government Programs
Health Economic Benefits and Cost Comparison
For payers, such as insurance companies and government programs, the focus should be on health economic benefits and how your product compares in cost to the current standard of care. Payers need convincing evidence that your product will lead to cost savings or improved outcomes that justify its price.
A good example is the Zio Patch by iRhythm Technologies. This wearable heart monitor demonstrated through rigorous health economic studies that it could reduce hospital readmissions and long-term healthcare costs by providing earlier and more accurate detection of cardiac arrhythmias compared to traditional Holter monitors. These findings were presented to insurance companies, leading to the product being covered under several major plans and significantly boosting adoption rates.
Marketing to payers involves a complex procurement process, including tendering, contract negotiations, and evaluation as a vendor. Ensuring your product meets all necessary requirements and demonstrating its economic value is essential to successfully navigate this process.
Providers: Hospitals and Clinics
Clinical Evidence, Ease of Use, and Cost/Time Savings
When marketing to providers, the key elements are robust clinical evidence, ease of use, and cost/time savings. Providers are looking for products that improve patient outcomes, are straightforward to implement, and offer tangible savings in terms of time and resources.
Consider the success of the Da Vinci Surgical System by Intuitive Surgical. This robotic surgical system focused on demonstrating its clinical effectiveness in reducing surgery times and improving patient recovery rates. The company organized hands-on demonstrations and training sessions for surgeons and operating room staff, allowing them to experience the system’s benefits firsthand. This approach garnered strong support and rapid adoption in hospitals due to the clear clinical and operational advantages.
Selling to providers requires navigating a multi-layered procurement process. This includes tendering, clinical and administrative review, and, depending on the product, being listed in a group purchasing organization’s (GPO) approved list, which has corresponding implications for pricing strategy. Providers require a thorough demonstration of both clinical efficacy and cost-effectiveness to justify the purchase.
Crafting Your Marketing Strategy
Understanding these different payer types and their priorities allows you to tailor your marketing strategies effectively:
- For Patients: Leverage digital marketing channels, social proof, and clear messaging on the product’s benefits and value for money. Consider offering financing options or payment plans to make your product more accessible.
- For Payers: Invest in comprehensive health economic studies and cost-benefit analyses. Prepare detailed reports and case studies that clearly demonstrate the financial advantages of your product compared to existing alternatives. Be prepared for tendering, contract negotiations, and vendor evaluations.
- For Providers: Develop and present strong clinical evidence. Highlight ease of integration into existing workflows, and emphasize how your product can save time and reduce costs in the clinical setting. Organize demonstrations and training sessions to showcase the practical benefits of your product. Ensure you are ready to undergo a thorough procurement process including tendering, clinical and administrative review, and possibly getting listed with a GPO.
Conclusion
Identifying and understanding who will be paying for your medtech product is crucial for developing a successful marketing strategy. By focusing on the specific needs and priorities of patients, payers, and providers, you can create targeted campaigns that resonate with each group, ultimately driving adoption and success in the marketplace.
Are you ready to refine your marketing strategy and boost your medtech product’s success? Contact SY Health Advisors today to learn how we can help you navigate the complexities of the medtech market and connect with your target customers effectively.