Last week we examined how medical device and technology companies can use master data management to reduce costs. Today I’d like to talk about how effectively managed master data can also drive faster growth.
In addition to dealing with the stiff competition in mature markets, the cost savings generated by master data management can position medical technology companies for success in the quickly growing emerging markets. Let me expand on that a bit. Established companies can often find that products that are widely accepted in mature markets are too costly for hospitals and other potential customers in emerging markets. Cost efficiency cost efficiency is ever more important and is becoming a key requirement to enter emerging markets. Or, put another way, those cost reductions achieved through master data management that we discussed last week could open the door to enter an emerging and high growth market.
Let’s consider sales and marketing. Customer purchasing decisions are driven by countless factors but it is essential to understand target segments and customers in order to pursue and retain customers effectively. Successful master data management improves a company’s ability to accurately and efficiently categorize customers, analyze customer behavior, and assess customer value. It is this customer analysis leads to more effective and efficient marketing and sales campaigns by enhancing the ability to target specific segments to foster growth in a highly competitive environment.
More concretely, by providing the necessary information, master data management acts as the basis for successful analytics. By enabling companies to divide their customer segments into target customer groups and to classify the customers by their sales potential, profitability and strategic importance it helps them define a customer-specific marketing and sales approach based on the customer’s buying behavior, campaign responses and sales potential. This enables more efficient up and cross-selling and fosters revenue growth.
Next week we’ll look into how master data can help medical device and technology companies navigate the complex regulatory environment.