The shift from sale to service: How customer insight changed the commercial model
For a global medical device manufacturer, moving from traditional equipment sales towards a managed service model represented a significant change in the customer proposition.
As healthcare providers faced increasing capital constraints and growing pressure to demonstrate operational efficiency, our client wanted to understand how a high-value interventional medical device could move from a one-off capital purchase into a long-term service partnership.
The challenge went beyond changing the pricing structure. The client needed to understand whether customers were prepared to move from owning equipment to buying an ongoing relationship encompassing technology, service, training, software and support.
The challenge
The central question was how to reposition a high-value medical device from a one-off capital purchase into a long-term service partnership that customers perceived as lower risk, higher value and commercially viable.
Understanding this required looking beyond the technology itself to explore how customers evaluated different commercial models, the wider supplier relationship and the evidence they would need before making a longer-term commitment.
Our approach
We designed a multi-market customer insight programme involving hospital decision-makers, clinicians, procurement leaders, finance stakeholders and operational managers.
The research explored:
Current perceptions of capital purchasing versus alternative commercial models
Drivers and barriers to leasing, subscription and managed service agreements
The relative importance of hardware, software, training, maintenance and support services
How responsibility, accountability and risk were evaluated during purchasing decisions
What evidence customers required to justify longer-term commercial commitments
Customers were presented with a range of future-state commercial propositions and asked to evaluate the strengths, weaknesses and trade-offs associated with each model.
Importantly, the research deliberately moved beyond product features and performance to understand how stakeholders assessed the broader supplier relationship.
What we found
The research revealed that customers were not simply evaluating an alternative payment mechanism. Instead, they were assessing whether they could trust the supplier to deliver value consistently over the lifetime of the agreement.
Several important findings emerged.
The buying decision had expanded
While clinical performance remained non-negotiable, decision-makers increasingly evaluated suppliers on their ability to provide ongoing technical support, reliable service responsiveness, software integration, user training and education, and flexibility to adapt as organisational needs evolved.
Risk had shifted
Customers viewed managed service models as reducing financial risk for the provider organisation, but only if the supplier accepted greater responsibility for maintaining performance outcomes. The conversation moved from ownership risk to partnership risk.
Service became a differentiator
Many stakeholders struggled to differentiate competing technologies based on technical specifications alone. However, perceptions of support quality, account management, implementation capability and long-term partnership varied significantly and frequently influenced final purchasing decisions.
Evidence requirements changed
Traditional product-focused evidence was no longer sufficient. Customers required proof that the supplier could deliver operational, financial and clinical value throughout the contract lifecycle.
The impact
The findings directly informed the client’s commercial strategy and value proposition development.
As a result, the client:
Reframed its offer around outcomes and partnership rather than equipment ownership
Developed integrated propositions combining technology, software, support and training
Created new evidence frameworks focused on ongoing value delivery
Equipped commercial teams with messaging that addressed customer concerns around long-term dependency and supplier accountability
Established service-related proof points as a core component of future customer engagements
Most importantly, the work demonstrated that customers were no longer buying a device in isolation.
They were buying confidence in a supplier’s ability to deliver performance, support and value over time.
Conclusion
The transition from selling products to selling partnerships requires more than a new pricing model. Success depends on proving that the organisation can deliver measurable value across the entire customer lifecycle, not simply at the point of sale.
Are you exploring a new commercial model or looking to understand how customers perceive your value proposition?