Healthcare is one industry verticals that are continuing to reform and is quick to adapt to the latest technology and tools like CPQ CRM. Whether it is medical care, equipment, medical insurance or any other healthcare division. Healthcare companies today are finding themselves disrupting the old healthcare purchasing dynamics and benefiting from rising trends impacting the healthcare market. If you are into healthcare insurance or manufacturing medical speciality equipment, it is necessary to operate with a highly refined sales process that simplifies quote generation, renewing contracts, adherence to regulations & compliance and work towards order fulfilment.
With changing medical trends and government regulations, it becomes essential to have a solution in place that can support sales, supply, demand and pricing decisions to apprehend profitability and revenue growth prospects. This is where the CPQ solutions ensure simplifying the most critical processes in the medical industry by delivering accuracy across multiple channels and ensuring flexibility required to automate the digital catalogue & approval process.
In healthcare domain, time is a crucial element. Thus, solutions such as CPQ offers fast and reliable methods to bring new products & services to market, optimize their pricing and making consumers happy. These methods will, in turn, lead to lower costs and better healthcare services for caregivers & patients.
CPQ solution assists in healthcare projects that encompass complex automation and require a reorganization of matrix-based pricing and partnerships; thus, supplying end users with precise and real-time quotations on the basis of plans (for ex-health insurance plans) selected by their subscriber.
Some of the major healthcare trends that lead to the importance of CPQ solutions are:
1. The market requires to deliver additional care at an extremely lower cost:
Comparing healthcare companies with other industries, the healthcare sales cost is almost three times more than the other verticals. Some of the factors like Affordable Care Act, waning insurance compensation and consumerization of the health care have got an increase in patient’s expectations and made healthcare providers endow with affordable solutions. This has created a pressure on healthcare companies to re-analyse their expenses and take a close look at factors that can help to save the cost and delivering utmost care.
2. Healthcare commoditization
With rising patient expectations, from healthcare providers; there is a huge competition among the healthcare companies. Patients look for affordable care at a lower cost and better experience and thus look for the various options available in the market. As the patient’s pay a huge cost for healthcare, they are now active at being consumers.
3. The collaboration of care providers
Healthcare providers are now collaborating with each other to increase the purchasing capabilities. With this, the entire healthcare network becomes centralised, transparent and drives less pricing pressure on hospitals & creating more price burden on suppliers.
4. Value-based healthcare
With value-based healthcare format, healthcare companies need to validate the cost of medical equipment with improved care deliveries. Companies that emphasize more on quality than quantity leave a mark in the market of being a differentiator that delivers the best value to customers.
The above factors drive decisions of the healthcare provider as to what they need to procure, what should be the budget for the same and how would they initiate the purchase. In order to facilitate these healthcare purchasing decisions, there is a serious need to change the existing and internal healthcare systems & processes along with the need for companies to get more connected to each other.
Utilizing enterprise CPQ software assist healthcare companies in addressing the major healthcare challenges enlisted below:
· Inefficiency: Healthcare industry largely suffers due to inflexible contracting and quotation tools that delays the new products & services entering the market. Due to this delay, it becomes difficult for the market representatives to manage the product orders and hence there is a decrease in productivity. Using the CPQ tools, help in bringing the products faster to market and would assist in optimising proposal productivity.
· Lack of pricing awareness: Many small healthcare providers get devices at a much lower cost than the big healthcare giants. This happens because of the pricing inconsistency. The selling process from manufacturers to consumers involve multiple intermediaries such as vendors, sales representatives or direct distributors. Big hospitals tend to have selected vendors for specific items and others may deal with the sales representatives. The lack of insights on pricing and discounts may lead to challenges in purchasing decisions. Thus, having a tool such as CPQ provides visibility to pricing and discounting data making it easier for companies to make smart buying decisions & dropping the likelihood of inaccurate quotes.
· Invoicing Errors & Revenue Leak: Healthcare providers and the connected vendors do not have pricing, discounting and other related data on a single platform earlier and thus the invoicing errors. CPQ solutions provide a single platform to all the connected entities providing the sales reps all the information on the average selling price and contract information. CPQ tools also help in negotiations and error-free invoicing. CPQ allows creating contracts and quotes that serve as case management facility for any particular service or product.
The Concluding Thought
To have CPQ CRM for healthcare industry would help in gaining visibility across consumer purchasing patterns and price consistency that drives profit. CPQ tools provide data-driven guidance in order to empower sales personnel to make confident decisions. Utilizing CPQ tools integrated with the CRM systems would assist in quick quoting, better proposal generation and modernising the business process to achieve quantifiable commercial impact.
IF you are from Healthcare Industry and looking for CPQ CRM Solutions for your organization, you landed at right page! We are having experts team of CRM Developers to address your business challenges.