Even Grown Ups Can Grow! A company consults with CHG to address declining sales and discovers deeper underlying issues.

Background:
We worked with a client in a Midwest community of approximately 350,000 to grow their freestanding rehab clinic into a full-service, market-leading occupational health center. Eight years later, sales were down following mergers, new owners and changed company dynamics. Because the area is primarily agricultural, our client knew that volume would not come from new businesses moving into the area or new manufacturing plants. So, given a fixed pool of leads, and active, aggressive competitors fishing in the same pond, how could they increase sales?

Problem:
The center’s management knew us well after years of working together and they thought it was time for additional sales training, customized for the unique needs of the situation and personalities involved. “No problem. Let’s see what the salespeople need to work on,” we said. We soon learned the problem was not entirely a sales issue, and strategic focus, planning, operations and expectations played a part as well.

Examination and Diagnosis:
In our pre-training assessment we found the sales role had evolved into one of customer service, and, more specifically, problem solving and complaint handling. Existing clients used sales reps to run interference on billing questions, case management, return-to-work information updates and such. If a prospect or client had a question about additional services, the salespeople would certainly respond and recommend. But there was no time or plan for proactive sales calls or relationship marketing.

While leadership and sales teams were focused on increasing sales, they failed to set objectives and plan and measure important ongoing activities that would result in greater sales. They looked at the end without identifying clear indicators of whether or not they were getting there. For instance, the sales team knew they needed to bring in more business, and that the last person in the door usually gets the next referral. Still, there was no priority setting or accountability for what referrals they should go after. Should they attempt to bring in volumes of low-end drug screens or a pre-employment physical contract for one year? So sales calls quickly evolved into customer service conversations without an agenda or objective, and a vicious cycle developed.

Prescription:
Sales training was postponed! Two core issues had to be addressed first. Operationally, the program had to correct its patient registration, reporting and billing procedures to reduce (if not eliminate) complaints. We also recommended a new protocol and structure for handling complaints that wouldn’t distract sales from bringing in business. The second issue was to address sales planning, objectives and performance standards (not sales tips and training). We helped the client assess and identify product lines and services that had market potential, the best profit prospects and the best quick-hit potential. We helped create a sales plan to achieve volume targets for each product line and client, down to how many appointments, proposals, contracts, etc., were realistic benchmarks to achieve the goals. All of this rolled into performance standards, compensation and rewards.

Result:
Six months later, the center enjoyed a 300% increase in revenue, while customer complaints significantly decreased and satisfaction increased.

Bonus result: Through this process, we reminded the client that significant long-term growth was not likely to come from new factories. And given the events of September 11, it was beneficial to have a revenue source that didn’t depend on the number of employees in the workforce. The Employer Consulting Division was formed. It included a portfolio of services, such as contracted on-site nursing and physician staff for employers. The division generated $500,000 in incremental revenue its first year.