An effective value proposition communicates three points: product relevancy,industry knowledge, and a picture of what success looks like.
When selling into a market as competitive anddynamic as healthcare, it is vital that your entire sales team understands what you’re bringing to market and the myriad of ways you can impact the bottom line of hospitals and care facilities. Sales and marketing in the pharmaceutical industry is particularly complex. You need to know the diagnosis and procedure codes relevant to your treatment,map where they’re most prevalently reported, and identify the care providers diagnosing and treating these illnesses – all before you can even customize your sales pitch.
In our recent webinar on How Pharma and Biotech Firms Apply Data-Driven Strategies to Sell into Healthcare, Maggie Fortune—an Enterprise Account Executive at Definitive Healthcare—outlined her preferred strategy when working with high-value clients. Here, we’ve gone a little deeper into crafting a value proposition that works best for your organization.
What is a value proposition?
Once you’ve finally reached your ideal influencer, decision-maker, or other point of contact at a prospective company, it’s time to offer your value proposition. The value prop is how you communicate the return on investment (ROI) of your product or treatment to your potential buyers. This is your opportunity to earn their trust and show the client exactly how you’ll help solve their unique pain points and improve their performance.
In your conversations, you should provide clear, demonstrable benefits backed by data. If you claim your treatment can “improve care,” that is less effective than saying “reduce readmission rates.” In the best case scenarios, you have hard numbers based on existing client success stories – i.e. “this treatment has been shown to reduce readmission rates by 13 percent in 6 months.”
Your value proposition and exact messaging should change slightly depending on who you’re speaking with – you wouldn’t repeat the same use case to a physician leader as to the CFO. When you’re demonstrating the value of your product or treatment to a healthcare organization, you need to know the ways it will impact everyone in the organization. This is particularly true for new and experimental treatments or delivery methods.
Writing a unique value proposition
In healthcare, many network and facility leaders are focused on two goals: cost reduction and improved care quality. There is no single solution to these issues, and what works for one hospital may not work for another. When selling into healthcare, it is essential that your team members conductextensive research on each target facility in their market segment. This is made easier through intelligence on financial, clinical, and quality performance.
To craft a value prop distinct from your competition, you’ll need to answer a few questions:
What is your therapy or pharmaceutical?
What is the end benefit of using your product over biosimilars?
Which patient groups will most benefit from this therapy?
How is yours different from other available treatments?
i.e. delivery method or side effects
Without a comprehensive understanding of these questions for each product and target demographic, it will be difficult to deliver a clear, targeted value proposition to your prospective clients.
Components of a value proposition
There are four key components in an effective value proposition, which will help you make the most of conversations with key influencers and decision-makers.
In one sentence, what is the biggestbenefit or differentiatorof yoursolution?The headline should be catchy and meaningful – try to avoid using buzzwords thatleave your clients confused about what exactly you’re offering.
2. Short paragraph
After the headline comes two to three sentences about exactly what you’re offering, who your treatment is for, and why it matters. Be concise in your phrasing – this is a brief descriptor, not a replacement for your full sales conversation and demo.
3. Bullets with key features
What are the standout features or benefits of your treatment? List them in bullet form so your clients can skim them and assess your product at a glance. This can also include brief use cases from existing clients already using your drug.
4. A graphic or other visual
Make your drug or therapy interesting – show us what you can do! Grab your prospects’ attention with graphs or charts showing success rates, quality improvements, or other performance data. This helps break up the text while demonstrating what your treatment can do.
A value proposition is just the beginning of a sales conversation. When you’re trying to get in the door of a health system or hospital, and have the attention of someone like a physician influencer, you need to hold their interest long enough to make contact with an upper-level decision maker.
Still intimidated by the complex healthcare industry? Access comprehensive insights to help your organization penetrate this lucrative market. By partnering with Definitive Healthcare, you and your team will be able to:
track current and historical hospital financial performance
compare quality metrics between hospitals and care facilities
map physician referral patterns and network affiliations