By Tony J. Onaissi
Many home health and hospice agencies have their own sales people whose job is to be on the road promoting their agency, hoping to get referrals from physicians, hospitals, Assistant Daily Living facilities, etc. The traditional compensation model consists of offering a base salary and sometimes a commission based on the generated revenue or on the number of hospice or home care referrals or both, but without the tools to measure the sales team’s performance.
With fierce competition around and concerns about profitability, sales efficiency becomes instrumental to optimize the return on investment made in sales people whose cost represents a sizeable portion of Sales and Marketing. But how can managers optimize and measure the efficiency of their sales team?
Tracking the traveled path:
Home health and hospice sales people should have smartly designed mobile apps capable of tracking their traveled path through GPS and of computing the mileage costs associated with each trip. This information is vital to know for sure that the assigned task was accomplished and its expense automatically logged. Furthermore, the fact that the mobile app computes the mileage costs with high precision will translate into significant savings to the agency because often, when reported to management, the mileage is overestimated. You can imagine how much this over estimation, trip after trip, day after day, can contribute in higher operating costs to the post-acute care providers.
Increasing travel efficiency:
Thanks to GPS and while on the road, a sales person should be able to locate via the same app and through Google maps, the nearest contacts to his/her planned contact visit. This functionality cuts the unnecessary and additional travel time and expenses, resulting in travel optimization, higher efficiency and profits to the home care or hospice agency.
Today’s mobile apps are capable of time stamping the beginning and end of a visit hence computing the time spent with each prospect. This allows to sort the prospects by order of importance after knowing the average time spent with each and its corresponding generated revenue.
Furthermore, and all being equal, the productivity of the sales team members can be measured by selecting a time interval and comparing the overall time spent vs generated revenue for each sales person. Management should regularly meet with their sales team, share this information and other key KPIs to increase their home health care and hospice referrals.
Finally, knowing that management can monitor the marketer’s activity from anywhere, will have an important impact on the efficiency and productivity of the sales team.
In today’s digital and competitive world, post-acute care providers should invest in the right tools to optimize their sales force efficiency, especially since such investments have become affordable thanks to SaaS cloud models where a software is leased instead of purchased. Ask to have the option of subscribing monthly, albeit at a higher cost in order to try and test the software that will be adopted to manage home care and hospice referral sources in order to increase referrals. Once sure, you can switch to the annual contract that comes with significant savings to your agency.