With news from all over bombarding the dental industry, it would seem like crawling in a foxhole and waiting things out might be the best strategy for many people. Much of the news, howevever, like currency fluctuations, stock market volatility and mergers/acquisitions are beyond everyone’s control. It does not mean that you can’t plan for the side effects. As I have said before, we operate in a niche industry, and many people have done well by understanding the niche they occupy and taking best advantage of it. This is the time to be looking at the next two quarters and tweaking your game plan (you do have one!). Keep in mind that your competion is doing that, as well. Be sure to maximize the best parts of your products and services so that your customers understand that vital role you and your company play in our business. Use every available out let to tell your story, and emphasize the value you can offer. I does not matter if the niche you occupy is an inch high, as long as it is ten miles long.
I just read a fascinating article from the Harvard Business School Working Knowledge newsletter (http://hbswk.hbs.edu/item/5693.html). In it, Sarah Jane Gilbert interviews Todd Rogers and Katy Milkman about their research regarding the “want” decision vs. the “should” decision: “I want the pizza, but I should have the salad.” The article relates to online grocery shopping, but the findings seem as though they would be pertinent to any kind of buying.
It appears that timing makes a huge difference. If the decision affects the immediate future, people tend to go with what they want (I’ll have the pizza). However, if the decision’s impact won’t be felt until some point in the future, people are more inclined to go with what they should have (buying healthy groceries to be delivered a week from now).
In the dental industry, this type of decision might be seen in choosing between, say, replacing a worn chair vs. getting a new gizmo. If the Harvard research is to be trusted, this would argue for two different approaches to the selling process. If you have a commodity type product or one that is seen as a standard component of the dental office, you might offer long-term leasing, free trial, rent to buy, or other options that put the buying decision in a future context or show the long-term advantage of having the product. If, on the other hand, you are selling gizmos, you might push for that impulse sale–at shows, with sales reps, etc. and use messages (check out consumer marketers for this) that promote instant gratification, keeping up with the Jones, or personal reward (”you deserve a break today”).
Are you selling Big Macs or spinach? Take an honest look at your products and consider how people approach the “want” vs. “should” decision.
With the Euro now a $1.38, it becomes obvious for a number of companies in the dental industry that exporting more goods is very timely. The weakened dollar will allow companies who have not really expoloited overseas markets to take a closer look at this strategy. European manufacturers are finding it increasingly more expensive to bring goods into the US, so this may keep down the competition for a while. Since most large dental companies are truly global players, currency fluctuations don’t play as big a role in selling strategies. But for the small to mid -sized company with a few good niche products, the current economic situation may offer a great opportunity. Success won’t happen on it’s own, however. It will take more work, and some financial investment to build a stronger international sales base. With the the US market in a bit of a doldrum, Europe may be the place to go, for now. Worldwide economic fluctuations are out of most people’s control, but nothing says you can’t take advantage of the current situation.
I was contacted yesterday by the most litigious company in the dental industry (I’d mention their name, but I know what would happen then…). They wanted a copy of a survey I had quoted in a filler item for a client’s e-newsletter. As it happens, I was able to provide them with the original source and had quoted it accurately, so I had the necessary documentation, but I was reminded of the importance of documenting your claims.
Whether you make claims for your product/service in print or through your sales reps, make sure you can back them up with proof should competitors (or diligent clinicians) come sniffing around for them. While it may be easy in the excitement of creating a new ad to get drawn into a puffed up promotional line, it can come back to bite you if you are not careful.
Clinicians are getting more skeptical of manufacturers descriptions of product performance, requiring clinical studies (evidence-based dentistry) or at least laboratory test results that support the claims. And then there are the manufacturers who make it a side business to squelch competitors at every opportunity by taking a magnifying glass to their advertising and literature. Oh, and don’t think that competitors can’t get their hands on memos sent to dealers or to sales reps. Never disparage competitors or their products in print–even internal print.
When you are creating new literature, advertising, or dealer/sales communications, step back for a second and picture the document on your competitor’s desk. Are you starting to sweat? If so, rethink the claims and use only the ones you can back up.
If you shop at a mall (which I try to avoid at all costs), you will notice one or more anchor stores: Macy’s, Sears, Bloomingdales, etc. These are the stores that tend to draw shoppers, who then also visit the smaller stores in the mall. An anchor store is essential because it sets the tone for the mall, gives people the sense that they will find what they are looking for, and attracts customers through its advertising.
Do you have an anchor store? By this I mean do you have a star product or a product that is a long-trusted favorite? If so, make sure you are maximizing its ability to attract shoppers. Here are some strategies for building on your “anchor store” product:
1. Make sure product-specific brochures and flyers cross-promote your other products as well.
2. Use a phrase such as “from the manufacturers of ___” or “another product from the makers of ___” when promoting your second tier products.
3. Pack promotions for other products (or free samples) in boxes of your primary product.
4. Create special pricing for purchases that combine the star product with a less well-known one.
5. Piggyback your advertising–in ads for the primary product, include an inset promotion for another product.
6. If you have an e-newsletter or other ongoing communication with your customers, be sure to mention your other products.
7. On the website page devoted to the primary product, feature a prominent link to another product.
8. Make sure your technical services and customer services representatives suggest customers try your other products when appropriate (don’t overdo!)
9. At conventions, use customer interest in your primary product to introduce them to other products.
10. If there are clinicians who are particular boosters for your primary product, provide them with samples of other products for them to try.
There has been a lot of recent news about contaminated toothpaste coming from China. This product has been recalled in a number of countries. Although many good products are made in China, the quality for many is still suspect. The dental industry has seen a huge influx of low-priced Chinese dental equipment hit the US in the last few years. It seems at every dental convention there are more new entries. The US dental industry is in a bit of a slowdown, with everyone hoping for a huge fourth quarter to pull out the year. Every dentist won’t be re-equipping but for those that do there are plenty of lower-priced, quality-oriented US manufacturers to fill the bill. They need everyone’s support. With a continually consolidating industry, we need as many good US players as solvent as possible. We can’t afford to see more players going the way os Napa and LSM.
I just read an article on businessweek.com about getting past gatekeepers. It used to be an almost literal term, referring to the person responsible for protecting the decisionmaker from sales representatives by not letting the reps get past their desk. Now it may mean getting past spam blockers, voice mail, or other high-tech gatekeepers.
The Business Week piece focused on relevance as the key: if you can show how your message is highly relevant to the person you are trying to reach, that person will likely take your call.
This reminded me of a study I read where they surveyed people about spam. It turns out that most people define spam simply as something that is not of interest to them. The same is true of “junk” mail. If I get a mailing promoting sailboats, I know someone hasn’t done their homework (I get seasick just looking at them). That is junk mail to me. If, however, I get an unsolicited mailing about plants, particularly if it expands my knowledge, I don’t mind because I enjoy gardening and want to learn more.
The lesson is know your audience and then tailor your message, whether you are speaking with someone one-on-one or creating a marketing campaign that will go to thousands. Rather than going right for the sale by sending unsolicited promotions, consider an educational newsletter, free reprints of studies (if you’ve gotten permission from the publisher), or technique-based brochures that dentists will want to keep. Instead of another ad, consider funding a CE program or offering a seminar. If you print a catalog, try adding step-by-step photos, reference charts, or coupons for special offers. By keeping your messages interesting to your recipient, you will find yourself behind the gate before you know it.