As medical supply manufacturers face increasing pressure to bypass wholesalers altogether and turn to ecommerce platforms and big box stores, the industry’s overall growth potential becomes drastically limited. With the industry landscape changing, identifying product slippage and cross sell opportunities will become more important than ever. Utilizing business intelligence software is an easily accessible competitive advantage that companies feeling pressured by big box stores and ecommerce retailers are turning to.
Business Intelligence (BI) and sales analytics software allow companies to access the information normally found by pulling multiple spreadsheets and analyzing hundreds of lines of data from various programs without all the hassle. Instead, BI services provide the information salespeople need in an easily accessible way. Implementing an advanced analytics tool puts sales reps in the best position possible, empowering them to make more informed decisions.
According to Medical Product Outsourcing Magazine, utilizing these types of services can lead to improvements in revenue of between five and 10 percent and sustainable profit improvements of between five and 15 percent annually. A recent ReportLink study found that the U.S. disposable medical supplies market is expected to expand to more than $54 billion in 2020. Even with big box retailers and ecommerce goliaths taking big chunks of the market, smaller wholesalers and distributors can increase their share by utilizing business intelligence software.
Reducing churn and improving sales
Industry experts estimate that customer churn rates are between 20 and 30 percent for medical supply distributors. Utilizing BI software can greatly reduce those numbers. Predictive analytics software alerts users to customer purchase patterns in transaction data and uncovers retention and cross-sell opportunities for all accounts. This gives sales reps information about which products existing customers are buying less of, as well as which products customers may have started buying from a competitor.
Of course, utilizing an improved analytics program will only benefit your business if it’s easy to implement. When looking for a BI tool, make sure to pick one that integrates into your existing ERP to reduce hassle and decrease set up time. Another feature to look for is an integrated CRM tool. By combining CRM with ERP and sales analytics, the program you use will put all relevant information at your salespeople’s fingertips in one central location.
Embracing these new services allows salespeople to become more responsive and, in turn, more competitive. The benefits of Business Intelligence software are numerous, including improved agility, responsiveness, and efficiency. All of these will naturally translate into more profit.
If you’d like to find out more about what modern sales technology can do for your business, get in touch!