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MedTech Outlook | Wednesday, April 12, 2023
By addressing customer needs more successfully and enhancing business performance, medtech companies can achieve better health outcomes by adopting a customer-centric approach.
FREMONT, CA: Investing in understanding the expectations of customers and the healthcare ecosystem early in the innovation process can improve performance and lower the chance of failure. Although customer centricity in product design is mandated by regulatory processes in medtech, its significance is growing as businesses improve the way they deliver care to their patients in order to pay closer attention to what those patients need and as they experience breakthrough growth by meeting unmet needs.
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Many medtech businesses concentrate on customer-centricity from a marketing and business standpoint. In doing so, they seldom pay enough attention to one component of client centricity, the role it should play in fostering innovation.
An iterative approach for providing value to end consumers throughout the life cycle of a good or service is called customer centricity. Customer centricity and customer have broad implications in the medtech industry, encompassing not only patients but also healthcare professionals, doctors, and caregivers. The term customer can also refer to someone who uses a device for various purposes. Companies should consider their reliance on other healthcare players, such as payers, providers, and governments, as healthcare is an ecosystem.
Patient outcomes improve when customer-centric innovation is led correctly. Additionally, it may result in increased patient treatment, accelerated product launches, lower costs and enhanced sustainability. For instance, some medtech businesses create devices with pricey features that are used by fewer than ten per cent of consumers.
Innovating in a customer-centric manner takes more than good processes. It necessitates a fundamental shift in perspective for many medtech companies regarding how to add value for clients. Although it is not easy, the benefits of greater customer happiness and stronger financial performance can be substantial.
Lifting Customer Satisfaction and Corporate Performance
Corporate performance is supported by customer-centricity in two ways. First, solving unmet needs promotes growth by boosting adoption and customer retention. Products are improved by ongoing testing, learning, and iteration with customers, increasing user-friendliness and satisfaction. Second, focusing on the needs of the consumer might lower R&D expenses as well as selling prices. Companies that test early prototypes on clients in R&D can better define their products and avoid expensive revisions. More market share is typically attained by businesses that develop focused solutions catered to the specific needs of clients. Additionally, customer-focused goods typically have less complexity, which translates into cost-effective production.
Although a customer-centric approach has clear advantages, implementing customer-centricity in innovation is challenging. Successful implementation frequently entails a shift in leadership attitude, and it necessitates support from coworkers in tech and design, among other departments of the company. More than half of respondents in a recent Harvard Business Review poll of more than 400 executives said that their organisations lacked the internal processes to support customer experience programs. Only 36 per cent of respondents claimed that their businesses were proactive in managing the customer experience.
Addressing Challenges in Implementing Medtech Innovation
Customer-centric innovation in medtech might have several consequences. In this piece, we specifically address three of the most typical ones we have seen.
Primarily, addressing only certain customers' needs may result in utility gaps. Several organisations don't perform customer research before coming up with their initial design concepts and requirements. Medtech players frequently replace input from broader stakeholders with that from prominent opinion leaders and power users. By doing so, they might miss what typical users need. However, having a technical-feasibility attitude while addressing scientific problems can result in inadequate product descriptions.
Examining scientific gaps might result in new therapeutic approaches and scientific breakthroughs, but it might not necessarily address the gaps in healthcare and the contribution of social issues. For instance, just 10 to 20 per cent of health outcomes in the United States are often attributed to medical care involving physicians, medications, and technological advancements. Significantly more important factors are social situations, environmental effects, conduct, and habits. Beyond the scientific divide, customer-centric innovation takes the entire care ecosystem into account.
One company's attempt to introduce a remote electrocardiogram (ECG) gadget in a middle-income nation provides an interesting example. Although the gadget allowed users to perform an ECG at home, it was still necessary for someone to read and interpret the ECG results and for the patient to receive rapid medical attention. Although this gadget-filled a scientific gap, it was not successful since it did not meet all of the needs of the care environment.
Eventually, there is a chance that client centricity will lead to the over-specification of products. Sometimes, coming up with ground-breaking solutions that satisfy patients' demands can be constrained by a feature-oriented approach. Additionally, it could result in the production of an unnecessarily expensive product when a simpler, less expensive product might offer the buyer a better deal.
The World Health Organisation identified several factors, including a lack of high-quality information about which approach yields the best result, the cost-effectiveness of novel technologies, and a desire to offer the most recent technology for its own sake, as reasons why some medical devices do not meet the needs of customers.
Customer-centric innovation is an ongoing process. It is crucial to begin on a small scale and increase based on knowledge, ability, and the qualities of each product. Companies must evaluate and comprehend how much unmet consumer and medtech ecosystem demands are satisfied by presenting products or product ideas at each stage of the development process. Additionally, they must have a realistic assessment of their performance. When embarking on a journey, it is frequently advisable to start small with pilot programs before deciding whether to expand throughout the organisation or the product portfolio.
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