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January 10, 2005

Turning Sales Calls Into Effective Referrals
By J. K. Bucsko
Radiology Today

Vol. 6 No. 1 Page 10

An industry expert offers sales tips for developing your imaging facility’s referral base.

Do you know the difference between sales and marketing? How much is a good salesperson worth to your diagnostic imaging center or radiology department? How can you tell whether or not your salespeople are doing a good job?

“If you don’t know, can’t find out, or believe there’s no way to answer those questions, your competition is probably going to eat your lunch,” said Deborah Mourey, northeast regional director of sales and marketing for Radiologix. She spoke on the topic of “Sales Effectiveness: Driving Referrals,” addressing a packed and lively session at an American Healthcare Radiology Administrators conference in Philadelphia this past October.

With more than 20 years in the business, including 17 years with Eastman Kodak plus a five-year stint as an independent consultant, Mourey has plenty of experience to draw on. She currently manages a sales force of 10 in Rochester, N.Y.

The thrust of Mourey’s message: “Sales is about who you are on the street. It’s how we present ourselves. And it’s [the administrator’s] job to make sure the salesperson has the training and tools to be effective in your market.”

In large organizations, salespeople typically report directly to the facility administrator or department manager; in smaller, entrepreneurial businesses, she said, “salespeople can report to anybody,” including the owner. The difference can be important because “you can influence how the salesperson spends [his or her] day, so how this person grows your business is your challenge and opportunity.”

Getting to the Decision Maker
“Referring a patient is often an emotional decision, just as it is in any other buying behavior,” Mourey pointed out. “It’s not necessarily rational; it’s based on the relationship the physician has with the service provider. Building relationships is the job of the salesperson.” Unfortunately, she admitted, too many salespeople are still what she terms “donut dropper-offers,” who cultivate physician front-desk staff through various small bribes and personal gestures instead of taking advantage of the opportunity to provide educational information.

In fact, a number of audience members said their own salespeople claimed just such an arrangement was standard operating procedure in many practices because those front-desk staff were actually the ones making referrals. “The way to get past that situation is to add value to each sales call,” responded Mourey.

“First, make it the No. 1 job of the salesperson to find out if the doctor or a clinician is actually writing the scrip,” she said. Diagnostic imaging can take a page from the pharmaceutical industry’s playbook and direct the call toward the physician by adding value in the form of case studies, graphs and charts, image samples, and similar items. The focus of every sales call should “get past the front desk and help [doctors] help their patients.”

Create a Sales Tool Kit
Mourey said these types of leave-behind materials are an essential part of every diagnostic imaging salesperson’s tool kit. “You can combat the donut-drop-off mentality with technical training for the sales force that helps them differentiate your business from your competitors’. Radiologists especially are ‘show me’ types, [so] this is your ‘collateral’—the keys to the kingdom.” Your physical tool kit should include useful informational brochures and sell sheets, along with premiums such as pens, pads, and other items with your center’s name.

Even if you need to start small, be thorough; for example, select one modality, (eg, MRI) and be sure the salesperson completely understands the materials you provide and can explain any sample images clearly. “Nothing says ‘I believe in you’ more than investing in [an employee’s] education,” Mourey noted.

Make sure, too, that all your sales materials are user-friendly; for example, she suggested revising referral forms if necessary to make them easier for both referring physician staff and patients to find the center’s name and address and the appointment date and time.

Beyond the leave-behind, give your reps a reason to call regularly. Your sales investment should include events such as hosting lunches, dinners, and receptions; sponsoring training and seminars, perhaps jointly with the state medical association; and CME programs directed at office managers and clinicians. Also consider having your sales rep host the accounts’ IC managers or radiologists on individual visits to your facility.

You don’t need to spend outrageous sums trying to outdo the other guy, she stressed. Radiologix, for instance, limits spending to less than $300 per physician per year on ads, physician dinners, premiums, and other outlays, not including patient and physician education.

Referral Database
Even if you’re starting from scratch, you should be able to arm your salesperson with the most essential information: names, addresses, specialty, and numbers of referrals by site. You’ll be able to refine the information as your new sales rep brings back more. Ideally, you want to build a database that allows extracting the following:
• referrals listed by sales call date (including referral history), modality, site/center, zip code, doctor, and specialty;
• sales visit history by call rotation;
• histories of what each doctor said; and
• trending data over six, 12, and 18 months.

“It can be painful the first time you try to track sales calls and referrals by zip code [or] by specialty [or] modality,” Mourey admitted. “But we all know you can grow volume and not grow revenue, and you can grow revenue and not grow profit. You need to know where you are gaining market share.”

Bringing in Data
Sales is a very effective way to bring data into your organization, said Mourey. Anytime you hear something good about your company, you want to document it in a patient newsletter or memo to your referrers and employees. Conversely, encourage your sales reps to get the full details on any customer complaints.

“You are selling a service,” she emphasized. That means you must be willing to resolve problems to retain customers. “Your business is not just about doing one scan one time. Joint ownership operation of issues—along with clinical operations—is critical to success.” So make certain your reps always ask, “What can we do to satisfy you?”

Moreover, remember that even complaints provide “continuous information on your competitors’ performance. If you ask, ‘Why are you using ABC?’ you can be sure they will be willing to tell you,” she noted. Constant feedback—even if negative—improves your competitive advantage if you take the time to listen and act.

Of course, sales reps need to know how to act on the information they gather. Train them to respond to criticism and complaints by resolving issues and then asking, “What will it take for us to get your business?”

The Right Stuff
It’s this last question that most frequently throws both salespeople and their supervisors, according to Mourey. “Selling is a process [that relies on] the steady repetition of the advantages of your center. But the salesperson also has to be able to directly ask, ‘Can we have your business?’”

Because of that requirement, many administrators and managers assume that salespeople must have aggressive personalities, but Mourey sharply disagreed with that stereotype: “Outgoing may not mean effective. Use your common sense and trust your experience from other hires.”

There is no specific personality type for diagnostic imaging sales, although if you are hiring from outside for the first time, you will likely do better by hiring a sales professional. “You can teach diagnostic imaging and healthcare, and you can structure your message for your facility if you hire a professional.” However, don’t overlook enthusiastic “naturals” within your existing staff.

To illustrate, Mourey contrasted two very different success stories: a young CT technologist who turned out to have a flair for sales and an administrative person selling real estate on the side who quickly translated her skills to selling the company. “You’re looking [for people with] a sense of urgency [about their work and] a passion for closure… Most importantly, look for people who want to share their experiences. This is a dialog. The most effective sales come from working to resolve issues raised by customers.”

Cost-Effective Return on Investment
According to Mourey, “As a rule of thumb, calculate roughly two to three times the revenue you need to justify what the salesperson will cost you. So, if you spend $75,000 per year to bring on that person, expect over time a $150,000 to $200,000 increase in sales per year.”

She gave the following rough annual figures for reckoning the average outlay of hiring:
Salary: $40,000 to $50,000
Incentive Bonus: $10,000
Benefits: $4,000
Selling Costs: $5,000
Sales Collateral,
Premiums, etc.: $5,000

To determine whether or not your sales staff is performing as expected, create an annual sales plan month by month, advises Mourey. Set specific goals by modality by month, as well as overall 30-, 60-, and 90-day targets. And if you’re going to use an incentive plan, be sure to design one that accounts for what you can easily and readily measure. “Incentives can be complicated, but they can make a difference if you have good, easily measurable data,” she added.

Revisit your sales goals and incentive plan at least annually, but review your salesperson’s performance more often: “Hold their feet to the fire, make them accountable. For instance, if they didn’t make their call quota this quarter, find out why not. And ask them what they are going to do about it. Professional sales people expect that.” For example, Radiologix reps are expected to make 10 calls per day, completing their entire roster roughly every month by calling on “A-list” doctors at least once every four weeks and on “B-list” practices approximately once every five to six weeks. Sales managers also call on the practices themselves to check on the reps’ rotation. Above all, said Mourey, don’t hesitate to pay the right scale for your area, but also don’t be afraid to fire a salesperson who fails to perform. If after four to five months you’re not seeing referrals and revenues trending upward, take action.

“Progress can be measured by intangibles, but the calls need to be made,” Mourey said. “If you never fire a sales rep who’s not doing a good job, you’re losing your single most valuable motivational tool.”

— J. K. Bucsko is freelance healthcare writer and editor based in Westville, N.J. She is a frequent contributor to Radiology Today.


Key Questions for Effective Sales Calls
Mourey emphasized that sales is 90% preparation and 10% presentation. Here are her three steps for effective sales calls and the questions associated with each.

1. Precall planning should focus on who, what, and why the call is being made. Salespeople should ask the following:
• Where is this office in our call cycle?
• What is the status (resolved/unresolved) of previous issues?
• What information do I need to gather today?
• What’s the competitive situation here?
• What’s my objective today?
• What objections am I likely to encounter?
• Who am I looking to speak with?
• How will I deal with resistance?
• What resources do I need for this call? Do I have them available?

2. Call execution focuses on the frequency and types of sales calls. The keys are the following:
• What will I leave behind today?
• Have I closed by asking for or confirming the business?
• What documentation do I need from this visit?

3. Postcall planning means following up on problems or comments that arose during the call. Be sure sales reps can answer the following:
• What is my key take-away from this call?
• What did I learn that I need to communicate with others?
• What’s my next follow-up step?
• Do the customer and I agree on the next steps?
• What’s the objective of my next call in the cycle?

— JKB

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