The Legendary Sales Leadership Letter 
 
January 27, 2009

"Obstacles don't have to stop you. If you run into a wall, don't turn around and give up. Figure out how to climb it, go through it, or work around it." ~ Michael Jordan
 

In This Issue:
Welcome
Feature Article
Sales Training Corner
Sales Tip
Sales Leadership
Ask Polly
Questions and Answers
About Us
Closing Thoughts

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Mike's Message

Dear Friend,

One month down and eleven to go. Where do you stand versus your goals and budget numbers? As you know, I am a big believer in getting ahead and staying ahead as the best strategy. If you are ahead of budgeted admissions in January, congratulations and keep the momentum rolling. If not, what are you going to do to remedy the shortfall? The sooner you address it, the better. Since, in our business, it is difficult to do anything that will generate immediate results, you have to implement short- and long-term strategies.

- Review carefully any existing accounts' relationships for changes in referral patterns. When you see accounts that have been less productive than their historical performance, you should look immediately to find out why. This can be a great source of referrals to pick up and is an essential business practice.

- Make sure that each sales person has the right names on their top five opportunity list and are advancing the process to realize the identified opportunity.

- Fill any open territories. Don't hire until you find the right person, but the sooner you get them into orientation and training, the sooner they will start producing results.

- Cut loose any sales people that are just not going to make it. This can actually increase your referrals if handled properly.

- Leadership -- office managers, administrators, CEOs, COOs, etc. -- no matter what they are called in your office or organization, make sure they are working their contacts as well. Make yourself available to the sales team to help them leverage their time and talent to generate more referrals. Lead by example!

I had an interesting conversation with a physician the other day and asked what they were missing most, given the change in rules for the pharmaceutical companies. The answer was "nice pens." I probed a little further, but the answer stayed the same; of all the stuff that the drug reps were bringing in, the pens were most appreciated and used. The sales tip this issue is all about finding out what is important to the customer.

Finally, one trend I am seeing is the abundance of candidates for sales and customer service positions. With the challenges faced by other industries and the ongoing layoffs, there are more and better qualified applicants out there. I have seen this both first hand when interviewing for a client or second hand accounts from clients. Take advantage of this opportunity to look for great candidates for your open or newly created positions. Remember two things, however. First, that you can teach anyone with the right persona and skill-set our industry and second, they must be passionate about the difference we make in the community to be a long-term viable team member.

I wanted to bring a Hospice Opportunity to your attention:

My good friend, Gregg Hamerschlag of Primary Wave Media, is now able to license the 1800HOSPICE telephone number to one hospice in each market. The success of the 1800HOMECARE phone number has been great for home care agencies that had the vision to license the number and I had been beating on him to get a hospice number for the last few years. Now it is available and he is giving our clients and friends first shot at the number. If you want more information, please email Gregg at Gregg@PrimaryWave.com.

Best,

Mike Ferris
Director
Marketing, Sales and Customer Service Consulting Division
mferris@simione.com

Feature Article

Fuel Your Mission: Team Up Your Sales and Finance to Ensure Success!
by Mike Ferris

The most vital component to success in today's home care and hospice industry is making sure your financial team and sales team are working closely together. There is no room for error when it comes to delivering the number of new patient admissions you need to fuel your agency's mission.

Too few admissions can create havoc in the budgeting, staffing, and scheduling process. When the sales team can deliver a steady increase in the number of admissions, and your financial team steps it up in tandem, your entire agency will run smoothly, efficiently, and with a bigger bottom line.

The sales team must be managed and trained to ensure that they are operating with maximum effectiveness and efficiency. While an agency's greatest need is to deliver more admissions per sales person, this can only be accomplished by having the most professional sales team possible. One way in which an agency greatly benefits from such a sales team is when they are trained to provide information to the financial team that can measure and track the cost of acquisition for new cases. This helps determine the return on investment for the sales and marketing program, which is one of the most important and overlooked aspects of sales and marketing success.

Metrics related to sales, such as benchmarked data, is improving and will be an ever more important element for management of the organization. Other important data elements that should be measured and monitored include market share, referral concentration, trended admissions by referral partner, and hospital discharge patterns. Each year better data becomes available, and organizations need to know how they stack up. An executive dashboard can be developed to keep all of the management team focused on these elements.

We have discussed the importance of the sales team delivering on their budgeted admissions; what can finance do for the sales team?

First and foremost, make sure sales representatives are paid on a timely basis. Their salary, incentives, and expense reimbursement should be a high priority. In any industry, one of the worst disincentives for sales people is to mess with their cash. Incentive plans should be crafted to be easy to understand, directly tied to performance, and as immediate as possible. Expense policies should be set up to make it easy for the sales person to comply, and with quick turnaround on the payments.

There should be a clear understanding of the organization's policies and procedures related to expenses for sales and marketing purposes. Finance should be a part of the orientation of every new sales person. The better they understand, the better they will comply. Start with the organization's philosophy regarding these expenditures, and then the rules and regulations. Policies should be reviewed frequently by legal counsel to ensure corporate compliance. Compliance is an extremely important element and is another area where the two departments need to have a close, synergistic working relationship.

With finance and sales on the same team, success is certain to follow. Both must support each other, and in doing so they will afford the rest of the organization what is most important: providing extraordinary care to the patients served.

Sales Training Corner

Still Time to Register for February Square One Bootcamp! 

There is still time to make plans to join us in Chapel Hill for the first Square One Boot Camp of 2009:

February 9 - 11, 2009
Courtyard Marriott Chapel Hill
Chapel Hill, North Carolina

CLICK HERE to reserve your seat NOW!

To view a brief video of what makes the Square One Bootcamp experience so special, click here!

"The information was presented in a refreshing format. Even though I've been in the hospice field for 24 years, I learned many valuable tools to use as a Regional Manager of Community Awareness."
~ Marilyn Morenz, Hospice & Palliative Care Charlotte Region

First AdmitRight Boot Camp of 2009 Announced!

March 3 - 4, 2009
Pointe Hilton Squaw Peak Resort
Phoenix, Arizona

Michael Ferris and Polly Rehnwall of Simione Consultants are the nation’s leading experts on hospice sales, referral center management, and admission team best practices. Now you and your agency have the chance to attend two jam-packed days of skills learning and building, as well as never revealed before tips on how to supercharge your hospice referrals and admissions!

Who Should Attend:

Only the most progressive Hospice team members that are interested in increasing referrals, admissions, census, efficiency, profitability and beating the competition! (CEOs, COOs, Marketing, Sales, Referral Center, Clinical and Outreach)

This is the first program of its kind, specifically created to empower you to blow your revenue goals out of the water for 2009 and beyond!

Attendance is limited -- Sign up today -- THIS PROGRAM WILL SELL OUT!

52 Week eSales Training Course

Our groundbreaking and highly-acclaimed 52 Week eSales Training Course is available for one to one hundred students. It provides a weekly lesson (takes about 30 minutes to complete) that will keep your sales team members' skills sharp. Students have said that the course supported them in becoming better at their profession, increased their referrals and forced them to review the basics. On average, our 52 Week eLearning participants have increased their referrals by over 31%!

"With the help of the 52 Week eSales Training Course, I have been able to increase our accounts by approximately 20% and have increased referrals and admits by an even greater percent. Thank you, and my company also thanks you!"
~ Barbara Edmisten, Highland Hospice

Special offer for Sales Leadership Letter subscribers: Enroll up to 10 students for one low price of $599 (does not include audio CDs)! Click here to take advantage of this offer.

Sales Tip

Give Them What They Want

How do we know what our referral partners want and value? Ask them! As I referenced in the opening section of this edition, a physician said that they needed and wanted nice pens -- to replace the ones that they used to receive from pharmaceutical reps. My purpose in pointing this out is not to encourage the use of giveaways as a sales strategy or philosophy, but rather to point out that you should never make any assumptions about what your referral partners want or need.

Don't let your sales team members give you feedback from the field that they have not obtained, without prejudice, from your accounts. It is very common for sales people to talk about what their customers want and need as though it is fact, when they are actually giving you their "read" of the situation. Don't accept as fact everything that comes in as what "we have to do" for the customer. Caution your sales people and train them to leave their expectations and assumptions at the door.

Rule #1: Every account is different.

Rule #2: When in doubt, refer back to rule #1.

Don't use any data that was obtained by anything other than good, unbiased, probing questions.

Sales Leadership

Qualifying

One the most important attributes of the successful home care sales person is the ability to qualify prospects and customers. There should be in each agency a list of questions that you will want to know about every referral source. This list should be compiled by the entire team at the agency as the attributes of the ideal referral source will hinge on these items. The reason your most successful "A" accounts are your best accounts is because your agency best serves their needs.

You must uncover the referral sources' needs and special interests by properly qualifying them.

Some questions to add to your list:

- Do you refer to home care?
- Do you have Medicare patients?
- What time of the day or week is it most convenient to catch Dr. Bob?
- Will you be sending the home care referrals or would I need to speak to someone else?
- What type of special needs do your private pay referrals need?
- How do you determine which home care agency you will use for each referral?
- What is the best way to communicate with your group?
- How would you like us to get the orders to you for signature?
- When is the best time to call to discuss specific issues with one of your patients?
- Do any of your patients go home needing some private pay assistance?
- Why haven't you sent us a patient in over a year? Was it something that we did to alienate you?
- What would it take to provide you with the level of trust necessary to entrust one of your patients to my agency for care?
- When can we count on getting some referrals?
- If you could change home care for the better, what would you change?
- Can you tell me about difficulties that you have had in the past with other agencies?
- Will you ever send us a patient referral? If so, what will it take to make it happen?

This list is by no means complete, but it should give you some direction with your qualifying. If you know what the customer wants, then you are half of the way home.

Ask Polly

A Word of Caution: Hire the Right Customer
by Polly Rehnwall

It seems like a great idea: Hire the hospital discharge planner as your liaison and lock up the hospice referrals. Or hire the nursing home nurse to be on your long-term care team so that she can build your census.

Great idea, but it doesn't always work. First, we assume that they've applied for the job because they "love hospice." But it could be that their real passion is for what they perceive is a much easier job. Second, can these former customers really sell your service? Will they ask for (and get) referrals? Or are they just well connected and friendly but don't really want to sell?

The worst case scenario: The real reason they left is that they weren't doing a good job, weren't a team player or didn't like their supervisor. While any new hire can bring this baggage, it's a bigger problem when they'll be back on old turf asking for new business. Or, they were highly valued and the facility gets mad at you for having 'stolen' their employee.

Minimize the risk: specify skills and expectations in the job description. Hospital liaisons must have some sales or customer service experience. They're expected to increase referrals and admissions by a certain percent and meet specific productivity goals. Nursing home team member expectations are less precise because the team (not the individual) is responsible for growing the census. Having vendor service experience (i.e., working in an off-site setting) is key. Then there's the "sweetness" factor. Beware the task master who may be a great facility nurse but will have difficulty negotiating the murky waters of joint care plans and expectations. What worked in her old role could easily backfire in her new one.

Caution: You cannot be perceived as having recruited staff from the referral partner. This rarely works well unless you have a very tight policy that requires that they approach your hospice and apply for a job. They must notify their employer that they are interviewing with you before being considered for the position. This is only common courtesy and very professional.

Questions & Answers

In each Legendary Sales Leadership Letter, we answer your questions. Send them to us or call (800) 653-4043 and we'll make sure that yours are answered in a future issue.

Here are this week's questions answered:

Question:

What physician specialties would you recommend calling on and think are the most fruitful?

Answer:

Top Six Specialties - Home Health

1) Internal Medicine
2) Family Practice
3) Orthopedics
4) Cardiology
5) Pulmonology
6) Nephrology

Top Six Specialties - Hospice

1) Internal Medicine
2) Family Practice
3) Cardiology
4) Pulmonology
5) Oncology
6) Nephrology

Question:

A new hospice competitor is starting up business in our area. They are owned by the same corporation that owns several nursing homes. Do you have any tips on competing with agencies that have "inside tracks?"

Answer:

This scenario would be applicable to any situation where there is a common ownership issue involved.

First off, much like in life, blood is thicker than water. If there is a financial interest (such as in this example), it is not reasonable to expect that this will have no bearing on referral patterns. They naturally have an "inside track."

The first thing you have to do is to analyze the agency that is owned by the same corporation. How do you stack up against them? What do you do that they do not? How are you able to effectively compete with them outside of this facility? To the extent that there are differentiating factors, you can get those referrals for which this would make the difference. The key is to give the social worker (whoever the referral source is) something that they can hang their hat on. When or if they are "brought on the carpet," they need to be able to point to their reason.

For hospice, you have the extra element of needing a contract to provide hospice care in their facility. So this process is one that you have to embark upon in order to be positioned to provide care for some of the residents.

In a facility, the staff can be your best advocate as well. They are like family to many of the long-term residents and will offer their opinions to the patient and their family. Most facilities will honor patient choice and your community outreach and marketing campaigns will help to gain you some patients.

Since the other agency will enjoy that inside track, you have to take that into your analysis when prioritizing your time and resources.

In all situations (and especially in the case where there is a competitor with financial ties), it must be easiest to use your agency. Deliver exceptional service with rapid response time and you will not lose any opportunities based on service.

About Us

Marketing, Sales and Customer Service Consulting Division

Supercharge Your Referrals, Revenues and Profits!

Headed by two industry powerhouses -- Michael Ferris and Polly Rehnwall -- Our Marketing, Sales and Customer Service Consulting Division is designed to give you the easiest experience possible by providing the most comprehensive solutions to supercharge your referrals, revenues and profits!

If it only took one phone call to deal with all your marketing and sales needs, would you make it?

In an environment of growing competition and shrinking margins, you have to increase volume and improve market share in order to be successful. That means having a skilled sales team, quality marketing strategies and a customer service model that improves your conversion of referrals to admissions.

With every type of solution we provide, you won't just beat the competition -- you'll establish your competitive advantage for years to come!

Our Proven Process:

- Evaluate and assess talent, model and process
- Design customized solutions
- Assist with implementation
- Coach your staff
- Train your sales people
- Support your organization's continued success

Delivering optimal results begins with an evaluation of your sales, marketing and customer service program in order to design solutions custom tailored to your agency and your area. Our experts know home health and hospice, bringing years of marketing and sales experience and best practices to you.

Customized Solutions:

Have one or a few specific needs? We can guide you through creation and implementation quicker and with more success than anyone else. Below is just a small sample of our capabilities:

- On-site Sales, Marketing, or Customer Service Consulting and Training
- Referral and Admission Management Consulting and Training
- Square One Sales Boot Camp
- Marketing Program Development
- Interview Sales Candidate Video Training / Corporate Videos
- Collateral Materials, Sales Letters, and Advertising Consulting
- Mystery Shopping / Market Analysis

With just one phone call, you can tap into all the resources and knowledge of the home care industry's touchstone consulting powerhouse -- Simione Consultants.

We have an ability no other company can offer -- the only one-stop shop to handle all your marketing and sales needs.

Simione Consultants, LLC was the first organization of its kind dedicated entirely to home care -- a commitment we continue to maintain today. For more than 40 years, we have demonstrated we understand and are responsive to the changing and diverse business needs of home care and hospice organizations.

Value Driven, Success Outcomes

More than 800 home care organizations have trusted the team of experts at Simione Consultants, LLC to get them through the challenges of yesterday and today, and to gain the leading edge for tomorrow. We provide expert assistance to hospital-based and hospital-affiliated agencies, visiting nurse associations, hospices, small proprietary agencies, and large national chains. The size, capabilities and commitment of our uniquely qualified consulting staff offer unparalleled industry insights and innovative yet practical solutions. Our track record of engagements with successful client outcomes is unmatched.

Closing Thoughts

Watch for many more exciting announcements from Simione Consultants Marketing, Sales and Customer Service division. We will be offering additional sales training programs that you have been requesting and enhanced support for sales management.

Let me know of your questions, comments and successes.

Thanks and Happy Selling!

This newsletter and all content and information contained herein are the property of Simione Consultants, LLC and may not be reproduced in any form without the express written consent of the publisher.

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(508) 870-5587 FAX

Copyright 2009 | Simione Consultants, LLC | All rights reserved.

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