Customer Retention And Competitive Advantage In the Medical Device Industry

The medical devices sale in past decade has been growing more rapidly, at the rate of 9 percent annually.

The complexity and number of medical devices on this fast growing market have risen very significantly.

Customer-Loyalty

This rapid grow and evolution have brought to life huge number of life improving innovations. Automation of certain procedures and a various number of technologies beneficial to health.

But that growing market led the medical device industry to suffer increased pressure caused by cost competitiveness. Supply chain tiering and globalization.

Company or a firm may have to deal with the significant amount of suppliers and sub-suppliers, and each one of them may impact performance or product quality, one way or another.

With that in mind, companies that produce medical devices should consider the satisfaction of patients. Not just the pure business behind the production. Luckily, companies in this area of expertise have shown a significant recognition towards the value of bringing the new. Better products and services that are focused on a patient as a key contributor to the company’s success and growth.

new product

There are four crucial areas which are giving a competitive advantage to a patient/customer-centered medical device companies.

  1. Developing new, better service strategies –most of these strategies are customer-based strategies. This is building channel strategies that efficiently engage the market and takes the business to a higher level. So the customer’s point of view is a way to go if the goal is to become a competitive and innovative medical device company.
  2. Exploiting analytic insight – the subject often referred as the future of growth of companies. It is the enormous amount of data collected on customers experiences. Constantly it is being transformed into a meaningful market and customer need insight.
  3. Customer service centered transformation – meaning that company “grows” around the customer, building itself upon the needs of customers. So, every decision, every incentive in a company is led by a customer.
  4. Studying customer “success science” – this is the study that shows what is making company’s customers prosperous and successful. Knowing this is very important since it will reveal who are the customers with the most success. What took them there and what can be learned and improved from their example.

Transformation of an existing business model is not easy. But sometimes it is necessary action because of the complex. Evolving expanding customer needs which change the definition of “value” for customers on daily basis.

Knowing all this we conclude that a customer retention is gained through competitive advantage and quality of service.