by Jim Poggi
What was once a product category managed by an account manager, sales manager and lab suppliers now has an increasing number of specialists.
Have you ever wondered why the number of players on sports teams varies so much? Basketball has five, hockey six, baseball nine and soccer and football teams each have 11. My personal conclusion is that the reasons involve the size of the playing field, the way a point is scored and the type of equipment used. There may be more to it, but those factors seem to be the fundamentals.
So how does this relate to the business of selling lab products? What was once a product category managed by the account manager and their sales manager along with their trusted lab suppliers has now become a business with an increasing number of laboratory specialists employed by major distribution companies. Specialists are not truly a new type of sales team resource. Well before there were lab specialists, there have been sales representatives devoted to specific markets and customer types, including corporate accounts, government customers, group purchasing organizations and others. In the early going in the development of lab specialists’ roles, they were dedicated to general lab sales rather than for specific technologies or products.
But recent trends in the distribution business of selling lab products include a proliferation of lab specialist roles, including those of specialists dedicated to specific lab products and technology. The growth in specialists devoted to molecular products is a good example. It seems that more complex technologies and those trickling down from the tertiary care hospital market are believed to lend themselves well to hiring specialists and deploying them as a consultative resource. In this article I plan to examine the increase in specialist roles and how lab specialists impact the distributor account manager’s role and responsibility as the person most responsible for customer satisfaction and management.
The role of lab specialist
First, why have lab specialists at all? In the world of distribution, it’s been widely believed that to effectively sell lab products, specialized knowledge of the products, how and why clinicians use them and factors such as reimbursement and management of the patient and quality control data was needed. For a long time, distributors relied on their trusted key manufacturing partners to develop and deliver this information. But the availability of increasingly sophisticated products and technology marketed to the physician office has given rise to an increasing number of specialist roles. Whether we needed these roles in the earlier days of selling lab or not, I do believe this trend has significant advantages for distribution companies. They enhance the distributor’s reputation as a knowledgeable consulting resource, provide more control over product preference and allow distributors to consider offering products from early stage companies that may lack field sales resources. Specialists also deepen relationships between the distributor and the end user customer. Specialists can be particularly useful in business reviews with large IDNs, retail convenience clinics and urgent care chains who have their own specialist roles. I believe specialists also foster adoption of newer technologies in the physician office market.
These advantages do come with a cost since they complicate role definition and communication within the growing team and may create concern and anxiety on the part of lab suppliers. This team dynamic creates additional responsibilities for the successful distributor account manager and as a result provides opportunities for personal and professional growth as you take on a more challenging role in directing the larger team and the sales process in front of your customers. You are still the quarterback in the sales process and most intimately responsible for knowing every element of your customers’ needs, preferences, personnel capabilities and purchasing requirements. This is a significant responsibility all by itself. Added to it is the need to understand the basics of the newer technology to understand how it fits into the customer’s needs and whether it is a solution appropriate for them.
Discussions among you, your lab specialist and your key lab supplier need to be effectively managed to make sure all parties are on the same page and providing a consistent customer value proposition. More players on the field means more time coaching the team and more detailed team interaction. The roles of each team member need to be established, respected and consistently followed to avoid team conflict or confusion by the customer. This is a more sophisticated sales process that requires more intense management.
Keys to success
What are the keys to success for the account manager as lab specialist roles become more common and more specific to individual products and technologies? My recommended first step is to pay attention and stay informed regarding emerging technologies and products. You need to understand their overall customer fit and how they could be integrated into the clinical practices of your current customers and prospects. Do they open doors to customers you have not been able to successfully sell to before? Do they expand testing opportunities for your current customers?
A few years ago, technology for confirmation of toxicology screening results was popular and led to a new class of laboratories emerging. While this was perhaps not a long-term trend, molecular and immunoassay tests in particular are growing in acceptance and are commanding a far larger audience than ever before due to increased clinical utility and better management of the patient treatment program. The savvy account manager keeps an eye on these trends and asks how they can impact their business.
The account manager needs to be a better coach than ever before and needs to know which resource, supplier or specialist to deploy, when and why. For simpler waived tests, there is likely to be little change. But for more complex technologies with a more sophisticated customer value proposition the sales process will more likely include a broader range of sales personnel.
As you work in this more complex environment with a broader range of specialists and product offerings, the successful account manager can grow in coaching, communication and project management skills improving their territory management and even future professional growth prospects. The future is bright for the distributor account manager who takes the time and effort to learn how to thrive in this more complex selling environment not just for increasing sales but also for personal and professional growth. Learn to effectively work in this new environment and reap the benefits.