The rise of digital marketing in medtech (2022)

Article (8 pages)

Healthcare professionals (HCPs), like many others, have been profoundly affected by the shift to remote work triggered by the COVID-19 pandemic. As they have become more comfortable with remote work and digital communications, medtech companies have realized the importance of adapting to digital to better engage with HCPs, including digital marketing, e-commerce, and virtual sales channels. This important shift to omnichannel engagement in medtechwas highlighted in an earlier McKinsey article where we reported that 45 percent of HCPs expect few in-person interactions with sales reps. Here, we explore how leading medtech companies are using digital-marketing and analytics tools to tailor the content, timing, and format of their interactions with HCPs to improve the quality of engagement and the returns on their marketing investments.

(Video) How to rise of digital marketing in medtech

The growing role of digital

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In the past few years, medtech companies have been ramping up their digital-marketing capabilities to serve HCPs and healthcare systems more effectively. They have built skills in designing and implementing marketing campaigns via email, social media, and other channels. They have developed expertise in search engine optimization (SEO) and search engine marketing (SEM). And they have embraced digital-channel management, web-platform and app management, and other new commercial disciplines.

To understand how digital marketing is evolving in medtech, McKinsey conducted a survey of 100 companies (44 in the United States and 56 from the EU5 1) in early 2021. As recently as five years ago, the majority of medtech companies (65 percent of the survey sample) spent no more than 20 percent of their marketing budget on digital marketing. However, by 2020, most of the companies surveyed (84 percent of those based in the United States and 74 percent in the EU5) had shifted more of their budget to digital marketing. What’s more, about one in five of this group had redirected at least 50 percent of their marketing budget to digital marketing (Exhibit 1).

The rise of digital marketing in medtech (1)

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More than 90 percent of surveyed companies reported that the success of their digital marketing had improved by 10 percent or more.

We expect this shift to continue in the next few years, with the average medtech company dedicating 40 percent of its marketing budget to digital marketing. Most of the companies in our survey felt the shift has been productive: more than 90 percent of the sample reported that the success of their digital marketing had improved by 10 percent or more, as manifested in higher returns on investment, particularly for US medtech companies, where 50 percent of respondents in our survey reported a 20 percent or greater ROI (Exhibit 2).

(Video) Introduction to Medical Marketing

The rise of digital marketing in medtech (2)

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As resources are reallocated to digital marketing, how are medtech marketing teams using these increased budgets? Success stories from medtech leaders have indicated that the funding is mainly being allocated to four key areas: product launches, lead generation, “next-best-action” analytics, and omnichannel campaigns.

Product launches. With most trade shows and conferences canceled because of the pandemic, medtech product launches have largely shifted to digital channels. Among the companies in our survey, 80 percent reported having used email and social-media campaigns to launch a new product in 2020, while 65 percent had launched products at online conferences. US and EU5 companies used much of the same digital platforms to launch their products, except that US companies were more likely to use online conferences than their peers in the EU5 (Exhibit 3).

The rise of digital marketing in medtech (3)

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Lead generation. As HCPs embraced remote interactions, medtech companies intensified to use digital marketing for lead generation. Among the companies in our survey, 45 percent believed that email campaigns were the most effective digital channel for generating new opportunities during launch, while another 40 percent favored social-media campaigns. Also, for post-sales communication, the use of personas to personalize messaging and tailor the relevant digital channels, as one global medtech player has implemented, can be very effective (Exhibit 4).

(Video) The New Medical Device Sales Model

The rise of digital marketing in medtech (4)

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‘Next-best-action’ analytics. In recent years, it has become important to convey a value proposition that goes beyond a single product to the broader portfolio of solutions. “Next-best-action” analytics can help enhance digital-marketing campaigns to work closer together with other marketing and sales channels. There is a strong need for that, highlighted by 74 percent of respondents. The impact is a better coordination between channels. Additionally, analytics can help medtech companies to reach HCPs with additional product solutions that can complement their current purchases and create value for the HCP, the healthcare facility, and the patient. In more advanced applications, some life-sciences companies are incorporating machine learning to build integrated data pipelines and dashboards that can help sales reps segment and prioritize each account, and enable a more customer-centric approach to engaging with each HCP, including next-best-action solutions to meet each HCP’s needs.

Omnichannel campaigns. By using a coordinated, multichannel approach to marketing campaigns, medtech companies are able to engage with HCPs at the right time with the right message in the right format. Successful companies are including digital campaigns along with more traditional channels, such as inside sales and face-to-face rep visits, as an important component of their omnichannel strategyto reach HCPs. Also, while more than half (55 percent) of the companies in McKinsey’s survey sample, regardless of location, indicate they run multichannel campaigns, more US companies also run cross-division campaigns (30 percent, compared with 20 percent in the EU5), often using multichannel and cross-division campaigns in combination.

Recent successes give a sense of the promise of digital marketing for medtech companies. One global medtech company optimized its paid search, launched and refined new social-media ad campaigns, and used A/B testing to inform weekly landing-page updates—thereby increasing qualified leads more than fivefold within four months. By deploying agile marketing and digital channels, a smaller medtech company went from launching one or two new messages for professionals and patients every two to three months to market-testing more than 50 messages in three months, resulting in a 20-fold increase in average lead volumes for prioritized product families. And when a global medical-device company purchased licenses for a social-media marketing platform, it saw the digital connections of a hundred of its staff soar from 1,500 other users to 70,000 in just six months.

Five pitfalls to avoid

It is clear, then, that digital marketing can help medtech companies address the recent shifts in HCP engagement, whether as part of a focused marketing campaign or as an ongoing “always on” means of communication. However, we have seen a number of pitfalls that companies should take care to avoid if their efforts are to be successful in digital marketing:

Implementing digital marketing in isolation. The move to an omnichannel approach requires companies to link digital marketing to other channels, including inside sales and face-to-face sales reps. Proper change management should be implemented to ensure the onboarding of sales teams, customer service, and other commercial functions on digital-marketing tactics and agile ways of working. Effective communication with HCPs depends on a clear understanding of the purpose, timing, and method of engagement for each interaction.

(Video) Digital Marketing For B2B Healthcare Software Businesses

Failing to define clear ownership. To present a globally unified message, digital-marketing content needs its own “home” in the organization, as well as its own budget. Best-practice companies set up a center of excellence (CoE) or other central unit charged with driving the overall strategic vision and creating content tailored to the digital-marketing strategy and stored in a centrally available library. Individual regions can then draw on this content and adjust it to reflect regulatory requirements and other local circumstances. Exhibit 5 illustrates the interplay between the central organization and regions in a hypothetical product launch. However, companies need to avoid making too many regional modifications, as this can dilute the intended messaging. Putting guardrails in place helps to ensure the type and extent of local tailoring stays within acceptable limits. For the CoE, meanwhile, high-impact activities include HCP prioritization and recommending the next best actions for sales reps. By demonstrating quick wins from steps like these, the CoE will build confidence in its effectiveness in the rest of the organization.

The rise of digital marketing in medtech (5)

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Neglecting digital capabilities and tools. Building a digital-marketing channel requires the right talent. A CoE typically consists of a digital-marketing lead, product owners, user-experience and user-interface designers, campaign and channel experts, and data analysts. The regional teams responsible for implementation usually include campaign managers and content managers who tailor the strategies and content developed by global teams to fit local needs. Alongside talent, companies also need to invest in a digital-marketing platform that is integrated into their CRM system. They can start with basic digital tools (for example, optimize campaigns; dynamically improve digital-marketing channels like search engine advertising key-word selection; analyze click-through, conversion rates) and data-integration initiatives and move on to more advanced capabilities such as digital analytics (for example, cross-channel attribution modeling) and A/B channel–campaign testing as their experience matures.

Overlooking performance metrics. Without rigorous monitoring, a company won’t be able to assess the impact of digital marketing at the regional level or manage incentives and resource allocation effectively. Having a central team define and track key performance indicators (KPIs) helps to ensure that efforts achieve their intended goals and have a positive return on investment. Commonly used KPIs include cost per conversion and purchase volume. Additionally, a CoE can track more advanced KPIs (for example, channel impact using attribution models instead of “last-click attribution” and cross-region impact comparison). A sound governance structure is needed too, with results routinely reported to leadership and global teams deployed to support regions if the expected impact fails to materialize.

Underestimating the power of digital engagement. Today’s HCPs are heavily invested in digital in general, and in particular, social-media business and networking platforms, physician-to-physician online communities, and search engines. The CoE or centralized unit overseeing digital strategy can ensure their company is benefiting from the power of digital engagement, identifying trends across channels, and designing a strategy for HCP prioritization with a message that addresses their unmet needs at theright moment via the right channel.

Developing a strong digital-marketing function takes time and effort and requires visible support from senior leaders. How effective it will be as a driver of HCP engagement depends on how well—and how quickly—medtech companies can embed it in omnichannel customer journeys, build internal capabilities, and use data and analytics to personalize communications to meet individual healthcare professionals’ needs.

(Video) HBS: A Conversation About Careers & Markets in Digital Medtech

FAQs

Why digital marketing is on the rise? ›

Customers are now spending more time and resources on owned-media channels such as websites, mobile apps, and customer-service channels. There is also a noticeable increase in customer-conversion rates, with social and digital video channels driving the highest ROIs.

Why digital marketing is important for hospital? ›

Digital marketing allows hospitals to segment campaigns to target local areas, suburban, and certain healthcare territories which make it easier to reach out to the target audience.

What is medical digital marketing? ›

What is Healthcare Digital Marketing? Healthcare digital marketing refers to the process of promoting your services to healthcare aspirants through online platforms. Digital marketing is a lucrative investment option for your online healthcare services.

How do you market a medical device? ›

Four steps to bring a device to the market:
  1. Step One: Classify Your Device and Understand Applicable Regulatory Controls.
  2. Step Two: Select and Prepare the Correct Premarket Submission.
  3. Step Three: Send your Premarket Submission to the FDA and Interact with FDA Staff During Review.
7 Jun 2022

Why is digital marketing important for business? ›

The ability to reach out to anyone and anywhere as there are no geographical boundaries with digital. Target the right audience at the right time - personalization is simpler with digital marketing. Communicate with your prospects at every stage of the buying process. Save money and reach more customers for less.

What is health care marketing and what is its role in today's health care industry? ›

Healthcare marketing is a process of strategic outreach and communications designed to attract healthcare consumers, guide them through their healthcare journey, and keep them engaged with the health system.

Why is big data analysis important in hospitals? ›

Big data in healthcare is a term used to describe massive volumes of information created by the adoption of digital technologies that collect patients' records and help in managing hospital performance, otherwise too large and complex for traditional technologies.

What are the key important strategies for medical devices marketing? ›

Five marketing strategies to help you increase brand recognition to generate more sales
  • Strengthen your brand. ...
  • Schedule impactful webinars often. ...
  • Keep brand top of mind via online advertising and social media. ...
  • Identify brand purpose and include it in your brand strategy. ...
  • Integrate your brand in video.

How can medical devices improve sales? ›

Medical Device Sales Strategy & Tips
  1. Build a Strong Network. ...
  2. Never Miss on Follow-Ups. ...
  3. Make the Most of Email Marketing. ...
  4. Adopt the Storytelling Method. ...
  5. Don't Be Shy to Ask for Referrals. ...
  6. Be Ready for Complex Conversations. ...
  7. Empower Your Medical Sales Representatives with Resources. ...
  8. Consider a Reliable HIPAA Compliant CRM.
27 Apr 2020

What is the time to market for medical devices? ›

According to recent estimates (1), the global medical device market is expected to grow from over $455 billion in 2021 to almost $658 billion in 2028. That means it's a lucrative industry with limitless potential for new technologies and heavy competition.

What is interesting about digital marketing? ›

It's the fastest-growing and most active marketing technique used today and is expected to grow further in the coming years. Marketing online reaches customers online immediately. It's also an easy way for companies to tell their brand's story and brings these companies to life in an online social setting.

What is digital marketing and its benefits in future? ›

Digital marketing is the process of marketing products or services to potential customers via digital channels and the internet. Digital marketing has the same goals as traditional marketing, the only difference is the medium used to convey the marketing message.

What can we learn from digital marketing? ›

Digital Marketing helps to build a better relationship with your customers/prospects. Better ROI (Return of Investment). Has wide and dynamic career opportunities. It helps your company to appear on the Search Engine Result Pages (SERP).

What is digital marketing explain with examples? ›

Digital marketing is the marketing and advertising of a business, person, product, or service using online channels, electronic devices, and digital technologies. A few examples of digital marketing include social media, email, pay-per-click (PPC), search engine optimization (SEO), and more.

Why is digital marketing important for students? ›

Digital Marketing helps generate Engagement with Prospective Students Using the Right Content. In addition to SEO activities, creating compelling content that is also SEO compatible will help drive the right results for your College.

Is digital marketing a good business to start? ›

Certainly, Yes. A business from any category that approaches digital marketing to reach its audience online and wants to turn into profitable can get benefits with time.

How do healthcare professionals advertise? ›

6 Effective Tactics for Marketing to Healthcare Professionals and Organizations:
  1. Prioritize Personalization.
  2. Build Trust Through High-Quality Content.
  3. Enhance Your Digital Experience.
  4. Create Multiple Touchpoints.
  5. Incorporate Social Media Advertising.
  6. Learn From Your Analytics.
17 Aug 2022

What does Digital Health do? ›

Digital health technologies use computing platforms, connectivity, software, and sensors for health care and related uses. These technologies span a wide range of uses, from applications in general wellness to applications as a medical device.

Why marketing is important to the success of the healthcare industry? ›

Marketing plays an important role in helping healthcare professionals to create, communicate, and provide value to their target market. Modern marketers start from customers rather than from products or services. They are more interested in building a sustainable relationship, than in ensuring a single transaction.

Why has marketing become important in healthcare? ›

Healthcare marketing allows you to increase your patient connections and nurture those relationships to form long-term, loyal patients. Successful healthcare marketing leads to successful patient engagement, and successful patient engagement leads to a booming practice.

How Social Media Promote doctors? ›

3 social media marketing strategies for doctors
  1. Promote your accounts. A growing number of patients are using online channels to manage their healthcare, but that doesn't mean they're going to immediately start following you on Facebook or Twitter. ...
  2. Share valuable content. ...
  3. Monitor your pages regularly.

How can I promote my clinic in India? ›

Different methods of advertising and their benefits
  1. All India Radio.
  2. FM radio – the most preferred and highly influential nowadays.
  3. Local TV Channels.
  4. Newspapers.
  5. Newspaper Boy (distributing notices)
  6. Cinema theatres – as slides.
  7. Souvenirs of local religious or pubic functions.
22 Mar 2016

How can data improve healthcare? ›

Health professionals can now generate data-driven healthcare solutions to improve patient outcomes in many ways: Empowering patients to engage with their own health histories with easy-to-access medical records. Informing providers of patients' ongoing health status so they can in turn assess treatment methods faster.

How is data used to improve healthcare? ›

Data analytics in clinical settings attempts to reduce patient wait times via improved scheduling and staffing, give patients more options when scheduling appointments and receiving treatment, and reduce readmission rates by using population health data to predict which patients are at greatest risk.

How is big data improving healthcare? ›

Benefits of Big Data in Healthcare

Improve care personalization and efficiency with comprehensive patient profiles. Identify geographic markets with a high potential for growth. Inform physician relationship management efforts by tracking physician preferences, referrals, and clinical appointment data.

Which industry needs digital marketing? ›

Top 5 Industries Using Digital Marketing To Grow [And Why They Use Digital Marketing]
  • Health. In-demand Digital Marketing Skills.
  • Fitness and Nutrition. Digital Marketing Free courses to Learn.
  • Food Industry.
  • Entertainment.
  • Education.
19 Dec 2020

Why does digital marketing focus on reaching potential customers select two? ›

Because a lot of potential customers will enter the top of the funnel, but only some of them will reach the bottom to become loyal customers. Because most customers are familiar with a company's brand, but only a handful of customers are actually knowledgeable about the products once they reach the bottom.

What is digital marketing explain with examples? ›

Digital marketing is the marketing and advertising of a business, person, product, or service using online channels, electronic devices, and digital technologies. A few examples of digital marketing include social media, email, pay-per-click (PPC), search engine optimization (SEO), and more.

Is digital marketing a growing industry? ›

The digital marketing sector is booming and expecting to grow at 27% in 2020 to cross the 17,000 crores mark. In 2020, India has around 700 million internet users, and the numbers are expected to grow to over 970 million users by 2025.

Why is digital marketing important for students? ›

Digital Marketing helps generate Engagement with Prospective Students Using the Right Content. In addition to SEO activities, creating compelling content that is also SEO compatible will help drive the right results for your College.

How can digital marketing strategy be improved? ›

5 Ways to Improve Your Digital Marketing Strategy
  1. Focus on Conversion, Not Just Leads. One of the most important pillars of a winning digital marketing strategy is data. ...
  2. Set the Stage for Long-Term Value. ...
  3. Double Down on Customer Service. ...
  4. Create the Ultimate Buying Journey. ...
  5. Know When and How to Go Back and Refine Processes.
28 Apr 2017

Which of the following is the most important for the success of digital marketing? ›

The customer experience is the most important for the success of Digital Marketing.

Is digital marketing a good business to start? ›

Certainly, Yes. A business from any category that approaches digital marketing to reach its audience online and wants to turn into profitable can get benefits with time.

Videos

1. Social Media Marketing Explained by MedTech Momentum | Medical Marketing Agency
(MedTech Momentum Video Production Studio)
2. A New Era in Healthcare Marketing: How Healthcare Marketers Can Adapt and Advance
(Perficient, Inc.)
3. The Future Of Venture Capital; Investing In MedTech
(Consilience Ventures)
4. Digital Marketing for the Healthcare Business
(LeadSquared)
5. Webinar: How to make digital work in medtech
(Agnitio - a Bigtincan company)
6. International Business Development for Medtech Startups in the post-covid19 era
(Experts Medtech Webinars and Trainings)

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