The Legendary Sales Leadership Letter 
 
June 24, 2009

"Adversity does not build character, it reveals it."
~ James Lane Allen ~

 

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


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Mike's Message

Dear Friend,

How is Your Summer?

Busy times from everyone I have spoken with lately. Sandwiched in between all of the personal activities (weddings, graduations, vacations, etc.) there is much to be done professionally. With everything that is going on in our industry, I am finding that the most forward thinking leaders in home care and hospice are placing an even greater focus on how to strategically grow the business. This has kept us very busy, and more importantly, very connected to what is going on out on the front lines.

My family and I are going to embark upon a new adventure in July. Each year we try to couple a vacation trip with a volunteer effort and this year we are headed to Tanzania! We will be helping with the project to set up a clinic that will enable children with AKI (acute kidney injury -- usually secondary to dehydration) increase their survival rate. There are too many children currently dying from kidney failure that do not need to. If you would like some information about this effort or would like to help out, let me know! I will be updating you in future Legendary Sales Leadership Letters and adding pictures and updates on my Facebook page. Are we Facebook friends? If not, please send me an invite and we will be friends soon!

Speaking of Facebook, in case you haven't noticed, social media and networking are HUGE in our society. If you are not LinkedIn, Facebooked, Twittering, etc., then you are missing out. When I have asked many home health and hospice organizations if they use social media, guess what? More and more of you are doing so. Have you considered whether you should employ these channels as part of your marketing and outreach? You should! Much like having a website ten years ago was cutting edge, these are becoming an integral part of your competition's marketing strategies.

Legislative Update:

As you read in the special communication last week (The Time is NOW to Act!), healthcare reform is moving. This will be an historic change to the healthcare system in our country and, regardless of your political views, we must come together to ensure that our industries are major players in the care of the senior segment of our population. There is the possibility that we come out of this with an expanded role, but WE MUST protect our position today. NO ONE will do it for us! Since this legislation impacts all areas of healthcare, there is tremendous pressure being exerted on all fronts. Our associations are working to make sure that the members of the Congressional staffs understand how we can help save money, etc.

A number of you were kind enough to email and say that you had acted. Thank you for taking action and also for the email. How many of you have taken action? Let me know that you have and some feedback on what worked well and any brainstorms you had to get more people involved. I will pass some of those on to the list.

Simply go to the association(s) that represents your organization's website and find the page for advocacy and/or political action, then follow the instructions. It could not be easier!

Click here for a resource to see what the competing proposals look like from all of the different committees in Congress.

Remember that after you take action and let your Member of Congress and two US Senators know how important home care and hospice are to the future of our healthcare system, you should then get TEN others to do the same. If they each then get ten more people, you will have created a groundswell that cannot be ignored.

Thanks for all that you do and HAPPY SELLING!

Best,

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

Feature Article

Marketing in the Age of Prospective Payment
by Mike Ferris

(Note: This is a repeat of an article published after the PPS system was operational. I thought it had a lot of validity in today’s changing market, so it is reprinted for your enjoyment as originally published.)

In all aspects of home care management under PPS, agencies have to focus on employing management best practices. One area of management focus needs to be on the agency's sales and marketing program. When looking outside of the home care industry, you will discover that the sales and marketing programs are central to the financial planning and performance to the company. Why should home care be any different?

The first step to maximizing the effectiveness of your marketing program is to have a written marketing plan. At Simione Consultants, we have found that only about 1% of home care agencies nationally actually have a written marketing plan. It should be a cornerstone of your written financial plan (you do have one of those, don't you?) as all of your assumptions for revenues have to be based on certain expected volume of referrals.

When preparing a marketing plan you should determine several key factors: your goals; your budget; and your target market. Marketing plans require careful preparation that involves all of the management team. You need to have everyone on board and on the same page when it comes to implementing and executing this plan. Make sure that you review the plan at least once a month and have a mechanism in place to regularly communicate results to the others on the management team.

The goals for your marketing program should be well defined if you expect to maximize your effectiveness. Goals should be believable and must be properly constructed to include specific outcomes, milestones and timelines. The goals should be set to exceed the projections upon which your financial plan is based. Specific steps necessary to achieve your goals on time should be defined and delegated to the appropriate staff members. Share these goals with the entire staff and get commitments from the key staffers to achieve accountability. Keep a visible "scorecard" that everyone in your agency can see to keep all informed on where the agency stands in comparison to the goals established. Then be sure to include everyone in the celebration when those marketing goals are surpassed.

The marketing budget will determine, to a large degree, what, when and how you implement the plan. There are many methods that may be used to determine your marketing budget. Some agencies will establish the budget based on a percentage of expected revenues, others will use a comparison with last year's budget and then there are those that will develop a budget based on competitive parity. As more sophisticated PPS management systems are developed, there will be many agencies that base their marketing budget on a fixed amount per budgeted episode.

When determining your budget, you should be calculating your return on investment. Each marketing initiative should be evaluated to see what the return on investment is for that particular program. To attribute revenues to specific marketing efforts, you must have a good tracking system to know where each referral comes from. The other thing that you must know to determine your return on investment is the lifetime value of a client. If you know what the average patient is worth to your agency over the coming years, then you can zero in on your returns and make intelligent informed decisions.

Agencies must know their market and know who their customers are. By determining what your target markets are, you will be able to maximize your marketing budget dollars. Everything that you do to market your agency (or are considering doing) must be reviewed to make sure that it is best designed to impact your target market. Direct mail is an example of one method that allows the agency to truly target every message. Have multiple programs working at all times. When you are trying something new, always test it to see what the return is before committing significant budget dollars. Also remember to keep doing those things that are currently working and not to discard them just to try something new!

Whether you think you need to market or not, or whether you have done so in the past or not, know that your competition is out there marketing aggressively to your referral sources. Home care relationships (the intended result of your marketing program) must be managed, nurtured and protected. One of the ways that you protect these relationships is through your marketing program. So it is important to remember that your marketing efforts and your marketing message need to first be designed to keep your key referral sources and then to bring in new business. The impact of your marketing program on the recruitment and retention of staff should not be overlooked. A well constructed and delivered message will do a lot for the image your agency has with existing and potential staff members.

Under PPS, marketing is essential to ensuring that you exceed your projected revenues. Your marketing program must be managed very carefully and monitored frequently. Focus on Using Best Practices and Happy Marketing!

Sales Training Corner


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%!

". . . keep up the great work in educating and empowering marketing professionals to fulfill their life purpose by making a difference in the lives of others through the wonderful benefits of home health and hospice services."
~ Lisa Castillo -- VNA and Hospice of Southern California

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

Know Your Referral Partner's Vacation Plans

One more thing you must know about your key accounts is what the key player's vacation plans are. There are several reasons for this, but most important is to ensure that you are making it easy for the referrals to continue to come to you -- even if they are out of the office. Part of your job is to make them better at their jobs and make their lives easier. Reassure them that you will take care of all of their home care or hospice referrals while they are out. Ask them how you can make that easy for them. Ask them what they have planned for home care and hospice referrals, information, etc. Find out who will be filling in for them in this role, have your key contact introduce you to that person and let them know that you are able to make it real easy when they have referrals.

Service the account based on what you find out and what you work out with them. Make the person that is covering feel very good about the relationship. Your goal is that upon your key contact's return from vacation they are told by the person covering how great you and your agency were to work with. "I can see why you depend on them." This is what you want them to hear! Make sure to welcome your contact back and make sure that everything went well.

This is your insurance policy against drops in business due to vacation plans for your best accounts!

Sales Leadership

Sales Management Techniques

As the sales manager evaluates the strengths and weaknesses of every member of the sales team, a professional development plan should also be created for each person. These plans should be shared with each individual and then become the basis for future education and sales goals.

Field coaching by riding along with the sales team provides the best method for training and support. Ride alongs should be unannounced until just a day or so before the date. Make sure that the sales team has fully booked their schedules (this should be the case regardless of whether the sales manager is riding along). The sales person should be instructed not to modify their schedule in any way just because they are going to be observed for the day.

Without the element of surprise, it is too easy for sales people to "pad" their schedule with easy sales calls or accounts the sales person has a good relationship with already. The sales manager will be most effective when the sales person is observed under normal conditions. The sales team will probably complain about not having enough time to "prepare" for the outing, but that's the point!

Sales meetings are another way to practice good sales management. Beware that there is a fine line between having too many meetings which pull your team out of the field, and having too few, which make the team feel isolated and unsupported. Strive to achieve a balanced approach to sales meetings. The sales team should feel supported, communicated with and motivated.

Create the sales agenda in advance and share with the team so that they can prepare for the meeting, if necessary. The meeting should include important agency and industry information, new sales initiatives, sales tips and techniques, as well as success stories from the field. Recognize the achievements of any individuals in addition to those of the entire team. Remember that favoritism has no place in home care and hospice sales teams!

Bring in guest speakers whenever appropriate and available. Make sure that you review the material that they will cover, the message to be delivered and the intended result. Educating the sales team on a variety of items will pay long-term dividends. Be wary of wasting the team's time because they have more productive things to do!

Take turns leading the meeting with other members of the sales team and members of the management team. Again, planning and coordination is key! If the sales manger is going to be absent from a meeting, make sure that the meeting is even better than if they were there to conduct it.

Every sales manager has a responsibility to recognize the contribution of the individual team members and acknowledge any items learned from them. Humility is a virtue for the sales manager -- no one likes a know-it-all, especially from leadership.

Take care of the sales team and demonstrate that you are there to provide support. Everyone on the team must know that they can count on the sales manager to back them up. This is the best way to earn respect. Once you have gained the respect of your sales team, they will produce greater results and do what it takes to make the entire team look good.

The old saying that people don't care how much you know until they know how much you care is very true in their relationships between sales person and sales manager.

Ask Polly

You Snooze, You Lose
See the Referral Today!

by Polly Rehnwall

So you get the call from the hospital and the discharge planner says that the patient is scheduled for discharge in a couple of days. Since she doesn't express a lot of urgency and it's 3 in the afternoon, you decide that it's okay to schedule a visit for tomorrow or the next day. Wrong! Why? Just because the referral source isn't urgent doesn't mean that you don't have to be! Here's a few reasons why:

"Same dollar" competition. As patients and familes become more informed about post-acute options and benefits, it not only helps hospice, but everyone else who is competing for the same Medicare dollar, including home care and skilled care in nursing homes.

Home care. Here's the scenario: A good home care liaison is always talking to discharge planners and physicians to recommend home care as an option if patients aren't comfortable going home with hospice care.

If you haven't seen the patient yet, the referral source might suggest that the liaison drop in and give the patient a brochure "just in case." It happens a lot, and all of a sudden you could be on the losing end.

If you had shown up on the same day, it may have deterred the discharge planner from suggesting that home care see the patient. And even if home care did drop by, your visit would hopefully have convinced the patient that hospice is the preferred option.

Skilled care. The same is true with skilled care in rehab facilities. More nursing homes today are actively going to the hospital to meet with discharge planners, patients and families, and so the competition grows.

The hospital. While the discharge planner may not have sounded urgent, they always are. Good DCPs want to get things tied up as soon as possible, so getting hospice consents and transfer plans in place before the day of discharge is one more thing off their to do list.

The physician. Let's not forget the physician in all this. The heat is on them to get the patient out of the hospital. You may be able to facilitate an earlier discharge by reassuring the family that they can handle this at home and getting a good care plan ready now.

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:

I have a referral source that is a country doctor and claims his patients are too independent to accept home care coming into their homes. How do I handle that?

Answer:

Just like any other objection, you need to find out what he means by this and whether the doctor is serious, or just blowing you off. Assuming he is serious then you want to make sure he knows your agency is a specialist in dealing with exactly these situations. Tell him one of your nurses is from the area and understands the independent attitude of her neighbors. Let the doctor know you will handle that part; all he needs to do is identify those patients that would benefit from your services. Ask him to refer as if that objection didn't exist, and the patients will receive the care they need and have paid for (in taxes) all of their lives.

Question:

How do you maintain your business growth?

Answer:

By getting ahead and staying ahead. When things are going really well is when you should be pushing for greater results. Don't get complacent and don't take success for granted. Continue to focus on opening new accounts.

Manage, develop and PROTECT your existing accounts. Get your best accounts to expand the use of your services. Ask your best accounts, "Who else should we be working with in your practice (at the hospital, etc.)"? Always be networking, asking staff who they know, etc. Basically, never take your eye off the ball, keep your ear to the ground and be a superstar!

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.

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

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