Part 2: How to Build a Healthcare Sales Machine

This video provides an in-depth exploration of how to build a successful healthcare sales machine, focusing on the critical elements of people, process, and technology. Dr. Eric Bricker emphasizes that, similar to insurance, "healthcare innovation is never bought; it's sold," underscoring the necessity of proactive and tactical sales efforts. The presentation serves as a continuation of a previous discussion on organizational structure, delving into the specific, actionable tactics required for effective sales execution within the healthcare sector.

The core of the discussion is structured around three pillars. First, the "People" aspect highlights the essential qualities of successful healthcare sales representatives, stressing that a prior healthcare background is not a prerequisite. Instead, attributes like being a good conversationalist, enthusiastic, a quick learner, and possessing significant "hustle" are paramount. The speaker shares a pragmatic view on sales hiring, suggesting that approximately half of new sales hires may not be a good fit and will likely leave within six months, necessitating a strategy of hiring twice the number of desired sales reps.

Second, the "Process" component details the operational necessities for a high-performing sales team. This includes comprehensive and continuous training—both industry-specific and product-specific—which should be integrated into weekly meetings and seasonal training blocks. Crucially, the process mandates rigorous measurement and tracking of sales activities, such as daily phone calls, emails, LinkedIn messages, and weekly presentations, to ensure accountability and identify effort levels. A fundamental aspect of this process is a well-defined compensation structure that includes a quota and On-Target Earnings (OTE).

Finally, the "Technology" section underscores the indispensable role of a robust CRM software system. Dr. Bricker strongly advises against using simple spreadsheets, advocating for CRMs like Salesforce.com or Hubspot to meticulously track all sales activities, leads (including broker/consultant and customer leads), proposals, and the sales pipeline. The CRM facilitates performance management by providing objective data on activity levels, enabling managers to identify underperforming reps and implement performance improvement plans. The video concludes by stressing the importance of weekly pipeline reviews, stratified by the largest anticipated Annual Recurring Revenue (ARR), to proactively address roadblocks and drive sales forward.

Key Takeaways:

• Healthcare Innovation Requires Active Selling: Unlike some products, healthcare innovation is typically "sold," not "bought." Companies must adopt proactive and strategic sales tactics to introduce and gain adoption for their solutions.
• Essential Sales Rep Qualities: Successful healthcare salespeople are excellent conversationalists and storytellers, enthusiastic, quick learners, and possess significant "hustle." A background in healthcare sales is not necessary; these skills can be developed through training.
• Strategic Sales Hiring: Expect a high attrition rate among new sales hires, with about half potentially leaving within six months. To build a team of five, plan to hire ten individuals to account for this reality.
• Mandatory and Continuous Training: Comprehensive training is non-negotiable. It must include both general industry knowledge and specific product training, delivered consistently through weekly meetings and dedicated seasonal sessions (e.g., November/December).
• Rigorous Activity Tracking: Sales success is directly linked to activity. Implement systems to measure daily phone calls, emails, LinkedIn messages, and weekly presentations per sales rep. This data provides objective insights into effort and performance.
• Structured Compensation is Key: A clear compensation structure with a defined sales quota and On-Target Earnings (OTE) is fundamental for motivating sales teams and aligning their efforts with company goals.
• CRM is Essential, Not Optional: Abandon spreadsheets for managing sales. A robust CRM system (e.g., Salesforce.com, Hubspot) is critical for tracking all sales activities, leads, proposals, and the entire sales pipeline effectively.
• CRM for Performance Management: Leverage CRM data to monitor sales rep activity levels. Low activity is a clear indicator of potential underperformance and should trigger performance improvement plans, helping to identify and address issues early.
• Comprehensive Lead Management: Utilize the CRM to track all types of leads, including those from brokers, consultants, and direct customers. This prevents leads from "falling through the cracks" and ensures consistent follow-up.
• Proactive Pipeline Management: Sales teams must track anticipated start dates and estimated Annual Recurring Revenue (ARR) within the CRM. This data is crucial for forecasting and strategic planning.
• Weekly Pipeline Review by ARR: Executive teams (VP of Sales, CEO, CRO) should conduct weekly pipeline reviews, prioritizing opportunities by the largest ARR amounts. This focused approach helps identify and resolve roadblocks in high-value deals.
• Audit CRM Data for Accuracy: While CRMs are powerful, it's important to audit inputs to ensure data accuracy and prevent fictitious entries. Managers should actively participate in calls and presentations to verify activities.

Tools/Resources Mentioned:

• CRM Software: Salesforce.com, Hubspot (mentioned as examples of effective CRM systems).
• Excel Spreadsheet: Explicitly mentioned as an ineffective tool for sales management and tracking.

Key Concepts:

• Healthcare Sales Machine: A systematic and optimized approach to driving sales within the healthcare industry, encompassing people, process, and technology.
• OTE (On-Target Earnings): The total expected compensation for a salesperson if they meet their sales quota.
• ARR (Annual Recurring Revenue): The predictable revenue that a company can expect to receive from its customers on an annual basis, particularly relevant for subscription-based sales models.
• Sales Pipeline: A visual representation of where a salesperson or sales team is in the sales process with all their prospects.
• At-bats: A metaphor for sales activities or attempts (e.g., phone calls, emails, presentations) that contribute to potential sales.