Field Sales Productivity Blog

How Medical Device Companies Can Increase Aftermarket Sales

By Shivya from Toolyt
March 17, 2021

The aftermarket sales market has huge potential, a phenomenon that every Medical Device Manufacturers (MDM) accept. Right from the genesis, it has been a neglected segment, for some unsaid and unstated reasons, it was left in a trifling state. It is a crucial channel to increase sales, revenues, and profitability of a firm, just with little veering away from the traditional after-sales-only service model.

Dwindling margins in original equipment sales, shrinking market, tough competition is forcing the normal MDM to look towards their Aftermarket sales.

Aftermarket sales not only benefit the company but at the same time enhances customer satisfaction and loyalty in the long run, which eventually yields repeat orders and customer recommendations.

Competition From All Angles

Competition is very fierce, as it is a designated market concocted through original equipment sales. This gives the salespersons a precise predefined market, at the same time it comes with a lot of competition. The first and foremost threat comes from other OEM (Original Equipment Manufactures) – in scenarios like where certain spares can be commonly used in any equipment s of the same category or type. There is also a major threat from bait and camouflage hunters in the form of parts brokers, low-cost repair shops, parts manufactures, parts distributors, and Support Service Providers. All these big and small players erode the Aftermarket share of MDMs.

Aftermarket sales require organizations to develop innovative sales programs and achieve service excellence. Intelligent operations enabled by rethinking business processes with advanced technology and analytics. Almost all MDMs admit they could do more, but could not focus on improving the current situation, due to various reasons.

Below mentioned certain time-served and time-tested methods will help in increasing sales in the Aftermarket segment.

Tactical Approach In Sales

Foremost important point is that MDM must understand and recognize that Aftermarket is unique not unlike the primary market. It will be beneficial to create a separate sales force for this segment. Develop productivity analysis to identify potential sales improvement areas based on empirical methodology and Intelligent Information Retrieval of data. Anticipate maintenance and sales requirement based on the holistic performance of their installed base.

MDMs often struggle to sell in the Aftermarket because they approach the service sales market the way they do for original equipment sales. They lack expertise and understanding of service sales concepts.

League Table of Aftermarket Customers

Segregate and rank the service and parts sales customers to identify amorphous market potential. It works on an installed base and is categorized based on the number of units owned and parts consumption factor. Rank parts sales customers separately who do their own maintenance. This valuable information will enable you to build the sales pipeline, and concentrate on the epicenter of the Aftermarket base.

Profile Your Largest Aftermarket Sales Opportunity Customers

Ascertain the key players and Aftermarket purchase influencers. Review the condition of the equipment, work environment, maintenance issues, downtime and emergency service history, current maintenance practice, and payment history. All this information will give you better insight and the likelihood of sales conversions.

Rectification at Sales level

To acquire new sales MDM adopt different tactics, one among them is, to offer a service agreement tied to the equipment order. Service agreement which normally will be multi-year but heavily discounted. The lack of a clearly defined integrated service sales strategy will have a long-term impact on Aftermarket sales. A profit-oriented service agreement could have been achieved if the sales team were had been trained with the right sales strategy and service offers. At present sales staff just focus on equipment sales rather than on parts sales revenue. It has to be rectified right from the grass-root level.

Downtime Cost To Build Up-Time Strategies

It is always advisable and beneficial to make agree on the customer on “Fix before Fail” maintenance sales tactics. It is a little hard to convince, admonish the customer downtime loss and cost. The coaxing sales tactic and analysis will help in closing the deal for the long term.

Apart from parts sales, you are assured of service sales with periodic inspections and full-scale maintenance. This plan will reduce your emergency calls and allow you to schedule your visits well in advance. Thereby saving time and money.

This will give the customer greater satisfaction, and also help you in becoming a strategic partner.

Fix Before Fail – Sales Approach

Maintenance Cost Reduction Strategy should involve your Aftermarket Sales Executives including your Dealers, Service Manager, Sales, and Manager. An in-depth analysis will give you the perfect data of maintenance sales cost history. Details of parts consumed through normal wear and tear, due to poor maintenance practices and by operator abuse. This valuable data will be useful in the strategic sales planning and scheduling. This sagacious and perceptive framework will reduce the maintenance cost of the client and will give you an assured increase in sales. Predict major maintenance needs, which help in sales optimization.

Expand the Horizon of Hunting Grounds

Just like other MDM and OEM are chasing your customer base, even you have to map all the competitor customers and chart out a methodical approach to reach them. Build data area-wise and equipment-wise and approach the Aftermarket clients. The analytic tools like Croston’s intermittent demand model and Monte Carlo simulations can take care of the issue.

Sales Channel Through Service Technicians

The easiest and safest channel to recommend to the customer, the parts and service sales is through your field service technicians. They have the highest level of credibility with customers. Higher than anyone else in your business. Customers will listen to them, and, the implications of this are huge. It is also termed as Track Second Segment sales.

Build Bulwark Around Your Existing Customers

Build high-level product support, customer service, and rapport with your clients. This will work as a bulwark against your competitors. It is the unification of low price, excellent product support, and empathy, which will neutralize your competitor’s move.

Branding Service Sales

Many MDM has not yet branded their service sales. It is an exuberant prospective market that can flourish interdependently and independently of product sales. If the services are not branded then you might be missing the Aftermarket opportunities.

Toolyt is an extension of the CRM system for Medical Device Manufacturing Companies. It is Artificial Intelligent Field Sales Assistant, covering all the sales features of Aftermarket Sales. Right from the lead generation, forecasting, and integrated sales planning. It is like having succinct MRI Spectrometers in your palms, as it is a mobile-based app.

Toolyt can be integrated with any existing system you are using at present. The aspiration of every organization is to mobilize the CRM and Sales Automation, proficiently and logically for the advantage of the company.

Toolyt is used by the world's largest medical devices company across 20+ countries on top of Salesforce CRM to increase CRM adoption and productivity. it gives a divine meaning to the sales team, it is not just sending emails and messages, it is far beyond that. Being a part of Toolyt is the first step towards success. Schedule demo