Driving Sales: A Strategic Approach To Cost Effective CE and ROI

This segment will be part three of a three-tired approach to creating a meaningful acquisition and retention strategy that you can implement. First we discussed the role of continuing education and training as a sales driver and retention tool. Second, we created a framework for successful integration of that strategy by understanding the role of employee acquisition and retention through their education, training and engagement.  In this segment we will look at a significant new strategy for systematizing these into a cost effective strategic plan that drives sales and provides an appropriate return on investment (ROI).

In part three, I want to help develop ideas, initiatives, and marketing projects that primarily help you be seen as a resource to your doctors. If your clients develop a relationship with you that support their growth, development, and success (both emotionally and financially) your laboratory will be perceived as much more than a commodity supplier. If we allow dentists and their staffs to see us that way (commodity) then we must be prepared to compete more on price and convenience rather than service and quality. Enhancing their experience value with you increases their satisfaction, loyalty and engagement with your laboratory such that price is secondary or even tertiary.

Dale Carnegie and others have encouraged us to “help people get what they want and they will help you get what you want.” Steven Covey said, “Seek first to understand then to be understood.” In the movie Jerry McGuire, Cuba Gooding Jr. and Tom Cruise implore us to “help me, help you.” The message is the same for laboratories: help your clients and they will help you.  When you do, they win, you win, and the patients win.

Be a resource, not a laboratory.

When your relationship moves from being a commodity supplier of units towards becoming a growth and development partner, three very important things happen:

   1. They do more of the dentistry they want for and with the people they like.
   2. They see you as an invaluable reason for getting there.
   3. As they grow their practice, your revenues also grow.  Nine percent of a one million dollar practice is more than 9 percent of an $800K practice.

One of the most successful ways to do this is to provide continuing education opportunities for them that support this objective. Not just any continuing education. It has to be the right continuing education. And it has to make financial sense for you to help. Successful, productive practices work fewer hours, hive higher revenue per hour and much higher net incomes than the ADA averages.  Bringing high quality continuing education opportunities to your dentists, from you, especially at your lab, is a giant step to helping these doctors (and ultimately you) succeed and prosper. When dentists get access to Pankey, Dawson, Kois, Spear, LVI, Hornbook, we all win. When dentist expand their range or restorative services to include implants, all ceramics, attachments, or bite guards, we all win.

What gets measured gets done.

I have heard that adage for years, and it is true. First however, we have to decide to measure the right thing to be done. It is not enough to just hold classes willy-nilly and hope that someone decides to try your laboratory and become a regular account. That does happen to be sure, but not often enough to create a sustainable marketing plan. Instead, align yourself with the type of continuing education provider or partner that reflects the same values of the clients you serve and would like to serve. This year I will lecture for the NADL, manufacturers, dental laboratory groups, individual laboratories and many dental groups and annual meetings. Also, I will film and be filmed for National Dental Network and National Lab Network. I will do this for and with clients with whom I share congruent philosophies. My message is not neutral. I am biased towards a high touch, health centered, comprehensive, high quality, individualized, fee for service model of dentistry that works in a true partnership with professional dental laboratory technicians. My goal is to bring like-minded dental teams and dental laboratories together for the betterment of our professions and the public.  I am not the right lecturer for every dental laboratory or dental group. Match your continuing education message to your goals and objectives that emanate from your values. It will be sincere and more effective.

ROI: A Different View

If at the end of a hands-on course, lecture, live patient satellite broadcast or evening get together at or for a laboratory, a new relationship begins, it was a success. If that new friend decides to send in a case, they become a customer. If they continue to use your professional services over time, we can call them clients. And most sincerely, when they have chosen to honor you in the highest way by referring a friend, they are your advocates. For example, one new account doing $3,500 per month would yield $42,000 in revenue annually. At an 18 percent operating margin, that would provide your laboratory with $7,560 of operating income annually. What would you spend to acquire that account?  $100, $500, or even $756 dollars? The latter would be a 10 percent cost of acquisition to net income (pretty impressive and paid out only in year one) and less that 2 percent as a cost of revenue! Quality dental continuing education cannot really be free, but the fee can be captured from prospective revenues realized rather than admissions to the event. This same free continuing education serves equally well to support your current client retention. Measure your current doctors increasing engagement and the financial impact with you as they participate in these endeavors. In other words, do what you do best at your core. Stay in the laboratory business, don’t go into the continuing education business.

If you end up with one new account and your current clients feeling you are an important resource to them, the cost of quality continuing education would be worth it. Some other education you provide is the equally important help with case planning, material and process selections and general technical support. You help dentists sell cases by doing exquisite diagnostic wax up. Stand tall, stay professional and partner with your current and future clients or success. The NADL is helping by partnering and aligning themselves with quality dental educators, meetings and partners.