Dallas, TX, United States, 10/06/2021 / Top Wire News /
Healthcare professionals (HCPs) like those from other industries have been profoundly affected by the shift to remote work after the onset of the Covid-19 pandemic. Due to this shift, HCPs have become more comfortable with remote work and digital communications and MedTech companies have also realized the importance of adapting to mediums such as digital marketing, virtual sales channels, and e-commerce to better engage with them.
This shift to an omnichannel engagement in the Medtech sector was recently highlighted in a McKinsey article in which McKinsey reported that a whopping 45% of HCPs expect a lower number of in-person sales interactions with sales reps. In this article, we will explore how leading MedTech companies are using digital marketing and data analytics tools to tailor the content, timing, and format of their interactions with the HCPs to improve the quality of their engagements and increase the return on their investment.
The Growing Role of Digital
MedTech companies have been ramping up their digital marketing capabilities to serve HCPs and healthcare systems more effectively over the last few years. As a result, MedTech companies have developed the skills needed for designing and implementing marketing campaigns via social media, email, and other digital channels. The companies have also developed expertise in Search Engine Optimization (SEO), and Search Engine Marketing (SEM) and have embraced digital-channel management, web-platform, and app management along with other newer commercial disciplines.
McKinsey conducted a survey of 100 companies (44 in the US and 56 in the EU5) to understand how digital marketing is evolving in MedTech in 2021. Just as recently as 5 years ago, the majority of the MedTech companies or 65% of the sample spent less than 20% of their marketing budget on digital marketing. However, by 2020 most of the companies have devoted additional resources and budget to digital marketing channels (84 percent of the companies based in the US and 74 percent of the companies based in the EU5). About one in five of the companies in this group has diverted more than 50% of their budget to digital marketing.
While more than 90 percent of the companies reported that the success of their digital marketing had improved by more than 10% or more. One can reasonably expect this shift to digital marketing to continue for the next few years, with the expectation that an average MedTech company will dedicate 40% of its marketing budget to digital marketing. Most of the companies included in the McKinsey survey feel that the shift has been productive and 50 percent of the respondents in the survey reported a 20 percent or greater ROI.
This shift poses another question as to how are Medtech teams using the increased budgets as more and more resources are allocated to digital marketing. Answers from respondents in the survey indicate that the funding is mainly being used in four key areas: product launches, lead generation, next best action analytics, and omnichannel campaigns.