Building Lasting Relationships

Objectives:

1. Learn a simple but effective relationship selling model for complex selling environments.

2. Understand the key points of contacts and strategy for approaching each.

3. Gain insights into the necessary knowledge for building lasting relationships with IDNs and Health Systems

IDNs Biggest Complaints About Suppliers

5. They don’t understand the IDNs organization

4. They don’t understand the IDNs cost structures

3. Too Many reps per IDN

2. The Reps are not empowered

1. They focus on Features and Benefits versus business issue discussions

0 2 0 4 0

%re s p o n s e

p ro d u c t v ss o lu t io n s

N o tE m p o w e re s

M u l t i R e p s

C o s t S t ru c tu re

O rg S t ru c tu re

*Taken From Stratcenter.com

The Common Factor

5. They don’t understand the IDNs organization

4. They don’t understand the IDNs cost structures

“If you have seen one IDN, you have seen one IDN”

Selling effectiveness: then and now

Potential

Customers

Then Now

Sales Representative

Corporate Executive

National/Corp. Acct. Mgr.

Clinical/technical Specialist

Sales Representative

Telephone Sales

TelemarketingCatalog SalesDistributor

reps

Manufacturers Reps

3. Too Many reps per IDN

Local Account Mgmt

Strategic (IDN/MHS)

Account Mgmt

Corporate (GPO) Account

Mgmt

System VP MM

Portfolio Manager

Hospital MM

Department Heads

Clinical Staff

Administration of facilities

Resource Committee (e.g. clinical, financial, contractual, value

analysis)

GPO/IDN Acct

Managers

Sales Force

Designate Single Point of Contact to Head of System

Prime Vendor - Distribution

2. The Reps are not empowered

IDN Account Manager:Bottom Up:1. Assign contact responsibility at each level

aligning relationships (e.g. clinical to clinical, economic buyer)

2. Get to know decision-maker at each level and understand their buying needs

3. Incorporate these needs to provide a custom solution to the system

IDN Account Manager:Top Down:1. Harmony with GPO relationship (?)2. Working on system objectives when proposing

solutions (cost, environmental, safety, infection control)

3. Make proposition simple, building as you go for implementation

4. Act as Primary interface for your Company5. Being an advocate and know when to say

when (fine line between persistent and pain)6. Follow Up!

Internal CommunicationHave to be able to deliver – start by looking

internally:• Negotiating cost, margins, profitability• Delivery (manufacturing capabilities)• Marketing (materials)• Value Adds (FTE, education, in-service

schedules, installation)• Single Product vs multi product/multi line

delivery

Case Study

St Joseph Health System, Orange and Vernacare

Jim McManus, VP of Finance

GPO - MedAssets

1. They focus on Features and Benefits versus business issue discussions

“Any good Material Manager will pick up the phone to listen to an opportunity”

- Greg Lauder, VP Capital, Banner Health

“There has to be a value proposition that improves Cost, Quality or Service process”

- Steve Pitzer, Director Of Supply Chain Management, Christus Health

“Don’t feel the need to sell something all of the time, spend some time listening and understanding our needs and come back prepared with a concept of interest”

- Mike Rosenblatt, VP of Materials Management, SSM Healthcare

Vendor

Strategic

Resource

Business

Resource

Problem Solver

Sales ActivitiesSolutions Process Executives

Product Event Operations

*Taken from Impax Sales Process

“ Everything you need to know about lasting relationships, you learned in Kindergarten:

Use common courtesy, basic skills and play nice in the sandbox”

- Mike Rosenblatt, VP of Materials Management, SSM Healthcare