Business Issue
Medtronic faced increasing competition in the cardiac rhythm management (CRM) device market, leading to slowing top-line growth as product differentiation became more challenging.
With competitor devices offering similar features, Medtronic needed a novel approach to drive product pull-through, meet growth targets, and maintain investor confidence.
To regain momentum, the company required a value-added services strategy that would complement its core medical devices and enhance physician engagement.
Action Taken
Mr. Strunk conducted a comprehensive market analysis to identify unmet needs among physicians performing implant surgeries for cardiac rhythm management devices. This research led to the development and launch of wraparound services that strengthened Medtronic’s market position:
- Physician-Centric Service Innovation: Identified and developed educational resources and patient-reported outcomes (PRO) software services to support physicians in optimizing patient care.
- Device Pull-Through Strategy: Positioned the value-added services as a competitive differentiator, ensuring hospitals and physicians preferred Medtronic devices over competitor offerings.
- New Recurring Revenue Streams: Introduced subscription-based service offerings, establishing recurring revenue models in a traditionally product-driven division of the company.
Impact Delivered
Medtronic successfully leveraged complementary services to regain growth momentum and enhance financial performance:
- Increased device product pull-through, helping the company achieve its growth targets despite a competitive landscape.
- Established new recurring revenue streams, a first for the division, which was well-received by shareholders and investors.
- Strengthened competitive differentiation, positioning Medtronic as an innovator in both device technology and patient care services.
By integrating strategic service development with its core device business, Medtronic successfully boosted revenue, improved customer retention, and reinforced shareholder confidence, demonstrating the power of a holistic, service-driven approach to medical device sales.
