Digital health has become a promising, growing place in the last decade. And with the epidemic placing new demands on the healthcare system, the demand for digitally-enabled care and services spikened the night. A light has also appeared at the end of the epidemic tunnel, but there is no sign of a slowdown in digital health. More than 1 $ B Investments in private US digital healthcare companies were made in 2020, with the number likely to dwarf by 2021. . 6.7B Already employed Q1 2021. With Toma Lots of Fundy With, many companies are in the process of making the promise of digital change meaningful and achieving meaningful measurements.
To help overcome the challenges of scaling in digital health, Rock Health member ZS Associates attracts over 0 years of expertise to guide companies through the complex process of developing sustainable commerce strategies. We spoke with ZS Associates Principal Vijesh Unnikrishnan and Consultant Dan McLeod about how companies can chart the right commercialization path for profit measurement.
What does it mean to build a coherent go-to-market strategy in digital health?
This means answering a major set of commercialization questions in a logical and clear fashion. In practice, the first step is usually to define your value proposition and customer archives: what is your value, and for whom? So, based on the value created, who should pay, with what payment model and what level of pricing? And finally which revenue models, pricing, and other important factors such as channel economics and measurements are effectively supported by direct and indirect channels to reach your target customer after accounting?
Fitting the pieces together is easier said than done, and we’ve seen companies make mistakes on the spectrum. These underlying pricing range from creating offers that provide a clear benefit to the end user but not to the paying customer; Focus on back-end-risk payments in revenue models that cannot support the high-forward costs of customer acquisitions and onboarding; In channel strategies where the direct approach to high cost cannot be supported by total opportunity per customer. These missteps make it easier to create when it comes to digital health solutions, and they can be reduced to achieving even the best designed products.
What steps can companies take to create their own consistent GTM strategy?
ZS tracks the choices of GTM (go-to-market) digital healthcare companies in product / market segments to track the success of those choices. Digital disease management solutions therefore provide the best method for success in GTM strategy and implementation, with a sickening impact on scale and stellar company valuations. Lessons from these companies offer some obvious steps to create a consistent GTM strategy.
The first thing to get right is proving that you have a product / market fit, for which you need to verify that your product not only improves clinical results for end users, but also sees strong adoption and continued engagement engagement scores. Without the support of end users, any value to the paying customer will fall flat.
You also need to ask the clinical and economic value of your product: how does my product compare to another great alternative to the economic buyer – current care standards, competitive offers, etc. – and how easy am I making it for buyers? Try the product?
Next, your revenue model needs to balance the needs of your company and the needs of your customers. You should consider factors such as: barrier to adoption (taking more risk = easier to step on the doorstep), your company’s operating costs and related requirements for consistent or forward-load revenue, and reimbursement such as the possibility of following traditional healthcare revenue models.
When it comes to pricing, you should clearly tie it to the value created for your customers. This could either be the clinical value of proposing substantial improvements to the current care standard, or to support a more powerful, higher value, economic value that provides clear ROI through increased revenue generation or reduced costs.
Finally, you need to create a channel strategy that matches customer preferences with the revenue model and pricing of your solution. To do this, you can evaluate channels from two lenses: opportunity and probability. 1) Opportunity: Does the channel offer the necessary solutions to measure your solution with customer decision-makers regarding accessibility, accessibility, and reliability? And 2) Feasibility: Does the channel offer economics that work with your revenue model and pricing, and is this channel an example to partner with companies like yours?
What should companies focus on after creating a compatible GTM?
To successfully measure digital health solutions, you can’t hit the pause after creating a consistent GTM strategy. You need to skillfully implement conversion and retention funnels, develop land-and-expand growth strategies to enter the addressable user base, and develop capabilities (individuals and technology) to support GTM operations.
Rock Health is honored to work with organizations such as ZS Associates to support meaningful innovation in healthcare. Learn more about becoming a Rock Health member.