While you might be sick of Amazon telling you that customers who bought product X also often bought product Y, Amazon knows what sells more products. I’ve used the same technique in medical device markets. Last year I wrote about medical device market segmentation using procedure data – finding prospects for your procedure X based on customers who perform procedure Y. Why target interventional cardiology as a whole, or so-called “early adopter interventional cardiologists,” or community hospitals versus academic medical centers, when you can specifically target sub-segments based on actual device use, e.g. IVUS users, chronic total occlusion specialists, or high volume stenters?
In 2014, big data powers marketing in consumer and tech, and it’s coming to medical device marketing and sales. Applied well, big data can focus sales efforts on the likeliest adopters, identify prospects that you never knew existed, and uncover market segments with unique product needs. If you don’t already know the power of big-data-driven marketing in the consumer world, read the recent (chilling) US Federal Trade Commission report on data brokers.
Medical device customers are consumers too. Here’s how I used big data at Candela in 2009 to re-imagine our marketing and sales approach.
I’ve again included some non-VC firms in the list, as financing can sometimes come as debt, private equity and/or sales-of-future-royalties. I’ve also included some announcements from firms that are no longer investing, as it’s best to identify those firms early.
According to PWC’s recent quarterly MoneyTree report, no new medical device companies achieved Series A fundings in New England in either Q2 or Q3 2013. Zilch, zip, zero, nothin’, no, nada.
I’ve been tracking first-time venture financing of medical device companies in Nw England since 2005. You’ll find the link to my latest list of these companies at the bottom of this post. I wish I had a better update to offer.
About two years ago I noted “The Looming Impact of Healthcare Service Consolidation.” That consolidation ramped up this week, as the second-largest U.S. hospital chain, Community Health Systems, announced it would buy Health Management Associates (which operates 71 hospitals) in the largest hospital acquisition since 2006.
Consolidated systems standardize practices across hospitals and centralize purchasing of new technologies. Yesterday’s physician-champion-decision-maker is being replaced by tomorrow’s hospital-exec/technocrat-decision-maker. Medical device companies can learn a lot from enterprise IT sales. Will your medical device sales methodology adapt?
Like virtually all cataract surgery patients, my parents were thrilled with their cataract procedures. Why not? After a quick office procedure, their new intraocular lenses (IOLs) gave them better vision than they had experienced for more than a decade.
Now imagine a world with no devices for cataracts, only drugs. Imagine taking one or more medications every day for the rest of your life – drugs which could not cure cataracts, but which slow the inevitable progression towards blindness. Imagine the typical chronic-medication side effects: somewhere between minor discomfort and an increased risk of cardiovascular mortality. How does that sound?
When given a choice, I’ll take medical devices over drugs every time. Here’s why.