As we set our sights on 2023, digital product innovation offers an area of opportunity for B2B health and life sciences (HLS) businesses. Building relevant digital products that support your strategic roadmap will create a better buying experience and set your business apart in a rapidly evolving industry.
HLS buyers value innovation. According to our 2022 B2B Buyer Report, 94% of B2B buyers say their company prefers to work with suppliers that continuously evolve their digital capabilities and experiment with offerings.
Now is not the time to remain stagnant. Start by taking a closer look at how digital product innovation fits into the health and life sciences industry.
Why is digital product innovation important?
Digital is revolutionizing the HLS industry – and the industry is constantly evolving and expanding. In fact, global HLS eCommerce is set to reach $643 billion by 2025. With this continuous evolution, HLS businesses have a special need (and challenge) to stay relevant.
Digital product innovation is your business’s opportunity to be an industry leader. The proof is in the bottom line: In recent years, companies that are leaders in digital transformation have experienced more than double the revenue growth and compound annual growth rate than that of the digital laggards.
Digital innovation is crucial as buyer expectations continue to rise rapidly. In fact, 61% of HLS buyers said that their standards for how companies interact with them are higher than ever before. Your business’s success will depend on whether you are able to meet the unique needs of HLS buyers. For that reason, digital product marketing has to start with a customer-centric approach — including a deep understanding of customers’ digital needs.
In HLS, these needs include convenient ordering options, product content specificity, and always-accessible customer support. Because their work involves health and science, HLS buyers prioritize accuracy to ensure they purchase the correct product. They can see how the industry is evolving and as such, value those proactive, innovative businesses that are leading the way.
Once you learn about who your customers are, their preferences, and their pain points, your business can use digital product design to make the buying experience better — and keep your customers coming back for more.
Benefits of digital product development in HLS
In the face of changing market conditions, digital product marketing provides a way to future-proof your business. Creating digital products that truly provide value help your business gain a competitive advantage.
HLS is a complex industry in which many companies have faced unprecedented challenges. These external factors can make it difficult to do business – but these challenges open up space for innovation. Digital products, especially those that promote accuracy and efficiency, are key in setting your business apart within the HLS space.
Digital product innovation also allows you to better reach your customer. Right now, B2B buyers in the HLS industry face complicated dynamics within the buying journey. Building customer-centric digital products will show you are listening and you understand those dynamics. Use customer data and insights to evolve your digital capabilities and respond with solutions that make the buying experience better. When customers see the value you’re providing, those products will help build loyalty and generate repeat purchases.
Digital products require the right people, processes, and technology. When digital product development is rooted in strategy, it will help maximize those assets, identify the right places to invest and integrate, and create the potential to scale in the future.
When an HLS business taps into digital product innovation, they’ll be better positioned to be a leader in the industry and build long-term customer relationships — which ultimately translates to business growth.
Examples of digital product innovation in HLS
There are many great examples of digital product innovation in HLS. Those examples often fall into the buckets of ecommerce, self-service, and personalization with a common goal of improving the customer experience.
Digital products provide HLS buyers with the information they need to make informed purchase decisions, including accurate, up-to-date product and pricing information. Innovative ecommerce tools can help them compare different product options using a common selling unit of measure, learn about packaging options, and easily select license or authorization affiliations or limit drop shipments based on items in cart & ship-to location.
Using technology like customer relationship management (CRM) software, HLS businesses are also able to build and track individual customer accounts. Having a centralized space for customer data ensures everyone has the same information. When a customer also has real-time access to their account data, it helps create a seamless buying experience. It can also offer more transparency in the fulfillment process, delivery & shipping tracking, order history, and the ability to easily reorder for future purchases.
By incorporating digital products along the buying journey, businesses are able to offer customers a customized experience, personalized messages, and the opportunity for a stronger supplier-customer relationship. It also helps internal teams boost sales — including upselling and cross-selling — with higher customer engagement and a faster sales cycle.
As an example, an HLS company could build a digital quiz that asks different questions about the person’s skincare routine to help consumers decide which product is best for their unique skincare needs. The product creates a personalized experience, encourages engagement, and drives the customer to purchase. The key is connecting on a one-to-one level, providing tailored content and creating a relevant experience that leads customers through the buying journey.
As you finalize your 2023 digital strategy, it’s more important than ever to place your customer at the center of your business and make sure your brand stands out from competitors. Digital product innovation has the power to do just that, accelerating your HLS business into the year ahead.
Ready to get started? Contact a digital transformation team member, or download our “How To Prioritize Customer-Centric Digital Transformation” white paper.