Let sales professionals sell your program
April 1, 1999 7 minutes read
Guest Column
Let sales professionals sell your program
By Mike Grosh
President
Span Corporation
Ann Arbor, MI
Health care has come a long way in its acceptance of marketing as a necessary component of a complete business package. Still, we find that the marketing and sales functions of occupational medicine practices are often handled by individuals trained in health care vocations rather than in business, marketing, or sales. Often these individuals have additional operational or clinical responsibilities.
It is much better for occupational medicine sales representatives to be recruited from the ranks of experienced sales professionals — preferably health care sales professionals. These individuals should be exclusively focused on acquiring new business for the clinic. Other duties, whether operational or clinical, should be avoided or kept to an absolute minimum. The same holds true for committee memberships. A sales representative cannot sell if he or she is involved in other activities. And new business is the lifeblood of the clinic.
Sales representatives should be tasked with concrete, ambitious but achievable goals, and their successful attainment should be financially rewarded through a commission or bonus structure. Goals should be measurable and should include "activity" components such as the number of first contacts, number of face-to-face meetings, and number of closed deals. Profit, while desirable, is only partially under the control of the sales representative, so it is more productive to incorporate some measurement of how much the client uses your clinic. The commission or bonus plan itself should be uncomplicated and easy to calculate. It is essential that bonuses or commissions be paid frequently — monthly if possible, and not less often than quarterly. Commissions cease to drive representatives when they have to wait too long to collect them.
Software can help organize sales effort
To be successful, the occupational medicine salesperson must be able to juggle a multitude of prospects over long periods of time, yet must always follow up when promised. We have found that the best way to accomplish this is through the use of contact-tracking software, specially configured for occupational medicine. This database contains a history of all account activity, provides regular reminders of all required follow-up activity, and generates all regular reports necessary to ensure representative compliance with goals and objectives.
The sales process we recommend is one of gentle, continuous pressure rather than the hard sell. We believe far better results will be achieved through the application of such an approach than the "go for the jugular" technique, or even worse, the "let the service sell itself" fantasy.
The best approach is a gradual yet persistent effort through the use of three principles: survey, acquisition, and services (SAS).
1. Survey
The survey effort divulges the specific information necessary to begin a meaningful sales process. First, a thorough competitor analysis should be performed before any foray into the marketplace. This can be accomplished through formal or informal contacts with area employers, "shopping" the competition, and in many cases, direct conversation with competing providers. Well-informed sales representatives know the strengths and weaknesses of their own program as well as those of their competitors.
The competitor analysis determines competitor hours, pricing, service mix, staffing patterns (i.e. doctors, physician assistants, and nurse practitioners), their degree of commitment to occupational medicine, and most importantly, their reputations in the community.
The competition may be "shopped" in a number of ways — directly, by posing as a potential client, or indirectly through local employers who may be willing to support your information-gathering agenda. Surprisingly, we find that an open approach to competing providers often appeals to their own sense of self-worth and leads to willing discussions of their operations. While they may be less than 100% forthcoming, an educated sales representative still can obtain significant information.
Armed with global knowledge of the marketplace, the survey continues with a focus on the individual client. The sales representative needs to know:
• Company demographics.
• Appropriate contact person(s).
The initial contact depends on the company’s size and type, and can range from a floor supervisor to the vice president of human resources.
• Number of employees working at the location.
• Type of industry.
Manufacturing, transportation and assembly tend to require a more detailed and formal approach than service or other types of industries because of regulatory requirements and other safety considerations.
• Number of annual reportable work-related injuries.
• Annual estimated number of examinations, drug screens, and other requested services.
• The client’s current provider and their degree of satisfaction with that provider.
Much of the above information can be obtained through research of available publications, such as R.L. Polk, Harris Industrial Guide, and Chamber of Commerce studies. Much can also be gleaned through informal "front talk," which occurs during a pre-interview phone conversation or at the sales interview itself. All of the information is entered into the sales database for further analysis and as a starting point for each prospect.
2. Acquisition.
Once the survey is complete, the process of acquisition begins. As we consider "going for the close," common mistakes are either rushing — or avoiding altogether — asking for business.
A good salesperson should work toward success in small, gradual increments. It is better to have the prospect agree to a clinic tour or a meeting with the medical director, accept a written proposal, or introduce us to the next person in the line of communication than to hear an outright, "no" to the big question, "Will you use our facilities?" At Span, we insist each encounter produce some forward momentum. The trick is to capture the small advances, own them, and leave the door open for further sales opportunities.
An example of this occurs when dealing with employers who are particularly entrenched with the competition. The representative may ask the employer to consider adding the clinic as a secondary facility to be used only in those instances when the employee has a definite preference. Alternately, the representative may offer to provide a "special service" the competition does not provide. When a visit occurs under this format, the representative must be immediately informed and begin to apply the next degree of gentle persuasion toward bringing the employer further into the fold.
A formal contract or other legal relationship is relatively uncommon in the marketing of occupational health services. Thus, the "close" as such, never really occurs. Instead, we advise Span representatives to make a small ceremony out of the process of setting up the account. This can include a detailed documentation of administrative procedures on a pre-printed "employer data form" or other similar vehicle. It may also include a welcome letter from the medical director, a follow-up meeting with the operational staff to go over administrative procedures, a tour of the clinic facilities or plant, contact with the employer’s insurance company to solidify procedures, and other efforts which tend to reinforce the employer’s commitment. Thus subdued, the client now shares the representative’s view that he or she is an active client of the program.
3. Service.
Once the employer is fully integrated into the client list, the process of extracting all possible value for the provider begins. This activity works best when it is automatic and nearly transparent. The service phase of the SAS system is designed to accomplish two major functions — secure the account and develop further sales opportunities.
At the time of closure, the representative assigns a value to the account, which is driven by potential utilization. At Span, we rely on a technique that ties a follow-up time line to anticipated activity. For example, an account that is likely to use your services several times a month should be scheduled for review and follow-up at least monthly. An account that may use your services only quarterly should be contacted quarterly, and so on. In addition, all new accounts should be flagged so the representative is contacted immediately after the first patient visit. He or she may use this opportunity to dialogue with the employer to determine the level of satisfaction. Further, any comments, pro or con, between the new client and the operational staff should be immediately communicated to the representative for his or her action.
But don’t allow the word, "service," to mislead you. It is in the context of the service follow-up, when the client confidence level is at its highest, that the astute representative can learn of other sales opportunities. Does the employer’s injury history reveal a need for certain preventative services? Does the employer maintain a file of ongoing disability cases that could benefit from the program’s specialty component? Is the employer subject to new regulation that may generate the need for a service? Simple conversations, which on the surface are meant only to determine the employer’s level of satisfaction, will reveal further service needs not only to the representative, but also to the employer.
Finally, we recommend that occupational health clinics follow these simple guidelines:
• Hire professional sales staff, and keep them focused on the acquisition of new business.
• Set goals, measure performance, and reward sales staff promptly through a bonus or commission program.
• Utilize contact-tracking computer software for sales activities and reporting.
• Follow the principles of S.A.S. to achieve the best results: Through survey, know your program, competition, and target clients.
• In acquisition, go forward in small, manageable, and almost imperceptible increments, but always go forward.
• Conclude the acquisition of new business with flair and ceremony.
• Continue to sell, through service, throughout the entire life of the relationship between the client and the provider.
Sources
For more information, contact:
• Mike Grosh, Span Corp., 2621 Carpenter Road, Ann Arbor, MI 48108. Telephone: (734) 973-7717. Fax: (734) 769-6268. E-mail: [email protected]. Web site http://www.spancorp.com.
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