Fast forward to 2017, and while it may not be the Roman Coliseum, fearsome battles between vendors for health systems purchasing decisions, as well as battles around vendor choices within these health systems, still take place on a regular basis.
The difference in vendor and provider approaches to selling and purchasing, respectively, isn’t productive for either party, resulting in mutual frustration and inefficiency, as well as solutions rife with compromise. Vendors and providers that are open to changing how they approach purchasing conversations can save themselves the “sales battle”, work more efficiently and make better decisions to push toward innovation.
The Status Quo of Sales
There are almost as many books, websites, consultants and courses on how to sell as there are sales people. Typically, technology sales to a health system would fall into the category of “consultative sales,” with the sales professional spending numerous hours seeking to uncover the needs of the health system prospect.
Of course this interaction only takes place after days, weeks, months or even years of trying to reach the health system’s decision-makers. The sales rep will seek to get in front of the C-suite to ensure buy-in at the highest levels, while top management struggles to understand why they should care about a new (your product here).
As a result, the vendor seeks to define a need that fits their solution. This role reversal puts the health system at a disadvantage; rather than determine the scope and capabilities needed to satisfy their requirements, the discussion is driven by the vendor, whose best interests are served by focusing on what their product can deliver.
In the end, neither the vendor nor the health system can be declared victorious. The vendor must expend precious time and resources on a sale that may or may not occur, while the health system invests in a solution that may not fully meet their primary needs.
Reinventing Purchasing
Galloping to the rescue is technology – the knight on a white horse that will save the day. Not only can the right technology streamline the sales and purchasing process, it can transform the approach and interactions to enable better decisions. Here’s how:
1) Prioritize purchasing initiatives. While defining, ranking and gaining buy-in on initiatives may not seem like part of the purchasing process, it actually clarifies the need and ensures resources are not expended on secondary priorities.
Think of it as making a shopping list before you go to the grocery store. Having a plan and a list makes it easier to bypass temptation and focus on what you really need.
2) Publish the need to a wide range of vendors. Allowing companies to present their innovations not only gives health systems access to a wider range of solutions, it fosters ongoing innovation. A sales rep just might have the best solution in their back pocket, but you don’t know they do X in addition to Y until it’s communicated.
3) Vendors respond to well-defined requirements. Currently vendors have to poll a wide range of management, users and purchasing agents to elicit a comprehensive definition of the desired solution. Under a technology-driven approach, the health system has already defined the parameters and requirements. This saves time for the vendor, allowing them to focus on prospects who truly need their solution.
4) Health systems make an unbiased, well-supported decision. Rather than respond to unsolicited sales outreach, including reams of emails, letters and cold calls, health systems can focus on the submissions that meet their defined needs and communicate with those vendors more effectively.
From Confrontation to Collaboration
The current purchasing process is outdated and inefficient. Vendors and health systems need a platform that levels the playing field for vendors while streamlining evaluation and decision-making for health systems.
What traditionally has been a gladiatorial battle is now a civilized game of Go Fish, powered by platforms that help drive these decisions. Health systems can now navigate through the internal evaluation and prioritization process, broadcasting its top-ranked initiatives. Vendors – regardless of size or existing relationships – can respond with appropriate solutions.
There is now a faster, easier way to get vendors’ innovative solutions in front of health systems that need their offering. Gone are the days of purchasing decisions resembling Romanesque battles – vendors and providers now have a better way of working together to make better, faster decisions.
About the author
Bruce Brandes is the co-founder and CEO at Lucro.
The views, opinions and positions expressed within these guest posts are those of the author alone and do not represent those of Becker’s Hospital Review/Becker’s Healthcare. The accuracy, completeness and validity of any statements made within this article are not guaranteed. We accept no liability for any errors, omissions or representations. The copyright of this content belongs to the author and any liability with regards to infringement of intellectual property rights remains with them.
