It still counts, especially in an e-commerce world
Why is it that, 20 or 25 years after the introduction of e-commerce, successful sales reps still spend so much time out of their offices for face time with existing and potential customers? And why do so many manufacturer reps continue to seek ride-days with their distributor counterparts? First of all, it works.
“There is a lot of information that can be obtained on websites and business done via phone or email,” says Jim Macholz, president, Atlantic Medical Solutions, Charlotte, North Carolina. “However, in-person calls on a medical office are extremely valuable. A face-to-face call really helps enhance the relationship. Some might call that ‘old-fashioned’ type of selling, but we find it very effective.”
Second, it’s what providers want.
“Customers expect reps to be knowledgeable and to bring them value,” says Macholz. “The day of the ‘milk run’ type of sales calls is gone. I don’t think customers need a rep to pick up orders as much as they look to reps for information and new ideas in the industry. They look to our reps to bring ideas to help generate additional revenues to their practices.”
And third, it’s what manufacturers want.
“Everybody is trying to figure out how they can incrementally grow their business and achieve their sales goals,” says Steve Martin, senior vice president of supplier management for NDC. “Manufacturers’ expectations of distribution have always been around the question, ‘How can you help me grow vs. share shift?’ They really want to figure out how the distributor can help them grow their business. If they come out with a new product or technology and there’s value for healthcare providers, they expect distributors’ field salespeople to help entrée that product into accounts and communicate the value proposition of that new technology.”
What’s more, says Martin, manufacturers rely on distributors and their field reps for increased efficiencies. “Manufacturers are relying on distributors to be their go-to-market channel for growth and efficiency in their operations,” he says. “They often lack the ability to service all their customers, particularly in the non-acute market.”
Balance: An art form
Atlantic Medical Solutions continues to add field reps to its team. “We are always looking for good, qualified field sales reps,” says Macholz. “It’s a difficult job, being on the front line in a sales position, and we have a lot of talented people on our team. We have both outside and inside sales reps, and they all do an outstanding job.”
Face-to-face visits are an essential part of that job, he says.
“We are a regional distributor. We’re not small, but we’re not one of the nationals. We can’t afford to sit back, because we’re not necessarily going to be on the big group contracts. We won’t have orders pushed our way. That’s why the sales rep is integral to what we do. And that’s why I tell [prospective reps], ‘If you are not comfortable with a face-to-face, it’s going to be a tough road.”
That’s not to say that every customer wants a regularly scheduled in-person visit from their distributor rep, he says. But reps won’t know how to interact with their customers until they ask each one. That said, they should be wary of the answer.
“Ask a customer, ‘How do you want me to work with you?’ and they’ll often say, ‘I never want to see you. Just email me,’” says Macholz. “But if you do that, you can make yourself obsolete quickly.”
In fact, many customers do want to see their reps face to face, says Macholz. Many depend on reps to introduce them to new, exciting technologies. But at the same time, they demand rapid responses to their questions, and that calls for text and email messaging.
“It calls for balance,” says Macholz. “It’s an art form.”
What manufacturers want
And manufacturers? What do they want from their distribution counterparts?
Steve Martin began his medical sales career in 1992 for a manufacturer (Kodak), but has been working in distribution for the past 25 years, including more than 17 years in vendor relations – first with PSS, and, since 2014, NDC.
“When I started in the industry, the typical go-to-market strategy for many manufacturers was a heavy reliance on distributor field reps, well supported by outside manufacturer field reps,” he says. The 1990s saw the growth and development of telesales among distributors. “These weren’t just order-takers, but people who were making outbound, proactive sales calls.”
Since the early 2000s, the Internet – and e-commerce – have gained prominence. Consequently, go-to-market strategies aren’t as simple as they were 25 years ago, says Martin. Nevertheless, field reps remain an important component of most of those strategies.
As efficient as e-commerce can be, the fact is, busy healthcare providers don’t always have time or energy to stop what they’re doing, log onto a website, and begin a search for new technologies, says Martin. Nor are they well-suited to handle the complexities of returns.
A valued rep, however, has a history with the customer, knows what he or she has purchased in the past, and often can anticipate what he or she wants or needs. “A rep can shorten the order cycle for the customer, who is typically not a professional buyer, and take away the burden of creating and placing orders.”
Perhaps even more important, a field rep can present opportunities for customers to improve their practice or healthcare facility, he continues. Those opportunities can come in the form of equipment, devices or business practices that can lead to improved patient care and outcomes.
“E-commerce is great when you know exactly what you want,” says Martin. “But not if you don’t.”
Smaller or new manufacturers that lack name recognition among providers find it difficult to break into the market with an e-commerce-only strategy, he continues. And without support from distributor salespeople, neither big nor small manufacturers can grow market share or service accounts in a very fragmented market.
Successful distributors employ multiple go-to-market strategies, says Martin. NDC has done the same, using inside sales reps, field reps and e-commerce to deliver what their distribution customers expect.
“They don’t always need a live body to show up,” he says. “What they need are solutions to their problems, and answers to their questions.”
Solving pain points
Mark Kline
For 15 years, Mark Kline worked for Invacare, first as vice president of national accounts and international accounts, and later, as vice president of homecare and long-term care. In 2016, he joined NDC where, as chief commercial officer, he leads the sales department and oversees all sales-related activities. Repertoire asked Kline for his perspective on manufacturer/distributor relationships, particularly the role of the distributor field rep.
Repertoire: Since 2000, have manufacturers changed their expectations of med/surg distributors in light of the rise of e-commerce?
Mark Kline: Manufacturers have come to expect that distributors will provide effective downstream communication to the end-user about their product line, using resources and information provided by the manufacturer or available on their website, etc. They also expect distributors to be flexible and agile, which is what it takes to succeed in the fast-moving marketplace. Distributors are expected to be knowledgeable about the channels they can sell product into and the compliance factors for specific products, and they are also expected to adhere to Minimum Advertised Price (MAP) programs.
Repertoire: In the past 20 years or so, have manufacturers changed their expectations of distributor field reps?
Kline: Many manufacturers have reduced their field sales teams, putting more responsibility into the hands of med/surg distributor field reps. There is the expectation that field-based sales teams remain important, but technology has also enabled new ways to connect with the customer. For example, NDC has realized positive results by establishing an inside sales team to supplement existing relationships
Repertoire: How have successful distributors made the changes that manufacturers are asking for?
Kline: Distributors who have embraced technology to expand their online services and capabilities have been the most successful at making the changes manufacturers are looking for.
Repertoire: Without using the word “relationship,” how would you describe the advantage that distributor field reps bring to the table (versus e-commerce sites) for customers and/or for medical manufacturers?
Kline: Distributor field reps can provide value by applying specific selling techniques, such as:
- Teaching unique insights that are tailored to the customer’s needs.
- Sharing their in-depth knowledge of products and the industry.
- Seeking out opportunities in an assertive and authoritative way.
- Anticipating the customer’s needs and proactively providing solutions.
- Offering new, innovative solutions to solve customer pain points.