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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. |