Jim Poggi
By Jim Poggi
OMG it’s PT
So, the boss called and said you need to increase your lab sales – NOW. With flu kit season over, it’s time to get back to selling.
Sound familiar? It does to me. I heard it pretty much every year for a decade or so.
So, what do you do? Where is the low hanging fruit? Inevitably it always starts with selling more product to current customers. They know and trust you and are familiar with your product lines, delivery schedules and ways you do business. So, they are natural candidates.
Last month, we covered LIS systems, which, with careful planning, are an excellent customer penetration strategy. Hopefully, I gave you some thoughts to help you take a step or two in the direction of looking at opportunities to sell LIS to current customers and, more likely, with new lab instrument sales as well.
Now it’s time to look at proficiency testing as an opportunity. Proficiency testing has been dominated by direct companies in the past, and remains one product category where distribution has truly not flexed its muscles yet. There is no point in naming direct company names, but the “big brands” in proficiency testing hold the lion’s share of market in primary care and the hospital business as well.
The importance of PT to customers and their one big misconception
Proficiency testing is not just a regulatory requirement. It is an important element of managing a well-run lab. But, in this case, it is usually customers that are warier than the account manager.
What I hear most often is: “We do not like folks looking over our shoulder” and “they might fail our lab.” Both of these statements probably stem from insecurity and miss the point. It’s worth your time to remind your customers that proficiency testing and QC testing are the only tests that are not patient results. From that perspective, they are not a threat, but truly a safety check for your customers. To the extent you can convey that message, you are half way to the sale.
The reality is, whether your CLIA moderate complexity customers like it or not, they need to run proficiency testing.
So, how does PT fit into your lab product portfolio and customer value? What are the pitfalls? What do I suggest you do? Let’s take this one question at a time.
PT and your product portfolio
There are certain products and services that make account managers (and customers) cringe. PT is one. LIS is another. But, a well-run lab needs more than just instruments and reagents. It needs the right PT service, a good LIS system and a range of other products and services designed to keep the lab efficient, accurate, productive and profitable. Your CLIA moderate complexity customers need PT, and it’s in your best interests to carefully consider how to incorporate it into your sales time in front of customers.
PT pitfalls
PT is one of the hardest sales you will make. Direct competition owns the lion’s share of the market, partly due to focus and expertise, and partly due to the established reputation of one of the services in the pathology community. And, they are good at it. They make it easy for customers to order online and with some services offering direct submission of PT results to the service provider, who grades their results and sends them back electronically. Finally, PT suppliers have program-to-program variance with different tests in their “program challenges,” so it is critical for the distributor account manager to know which tests their customer needs PT for and communicates it effectively to their PT provider.
PT enrollment (subscribing to the program for the coming year) is typically seasonal, with most customers placing their orders for the coming year in the October to December time frame. This is right during the flu, strep, etc., season when more account managers are up to their eye balls in selling respiratory tests. So, there is a lot of distraction during that time of year. Finally, established direct PT suppliers bird dog their customer base carefully and keep a close eye on renewals. They will push back with discounts and other tactics to keep their client base.
PT suggestions
Selling PT calls for a targeted approach. The first thing to do is get acquainted with the PT program(s) your company offers in early summer. Learn the catalog and find the person in the organization who is motivated to help you cross reference the direct competition’s programs to the ones you offer. Find out which sales tools including cross references and specialized PT programs your supplier offers that the direct companies do not. Yes, there are some out there. PT/INR is one.
The next step would be to make a list of your 15-20 largest moderate complexity (and high complexity microbiology or toxicology customers) as my targets. Have your story ready: “Consolidate your PT testing with the source of your lab instruments, reagents and other services from the distributor you trust: me. Our supplier offers unique advantages such as solid technical support, lower program cost, a convenient sample shipping schedule, etc.”
Then, meet with three customers a week to learn which programs they are in, whether they have enrolled in the coming year yet, and propose your solution. You will find your PT supplier willing to get on a call with you for your largest customers. Close on the spot for enrollment to avoid having the direct competition come in and under cut your pricing or offer special deals. Don’t expect miracles. A 10-20 percent close rate your first year is a good start. As a side bonus, selling PT really sharpens your sales skills.
Finally, keep follow up in view and check in with your customer every couple of months to assure they are satisfied with the service you have offered them. This follow up offers you the advantage of conducting a broad-ranging discussion of their lab and strategy for the future. It helps assure you will be at the front of the line when they are thinking about new tests, products and services.
PT: Not EZ, but OK4U. Good luck!