Cost-benefit-customer alignment is a major concern in every healthcare decision. This poses a delicate challenge for audiology practices about balancing the cost-benefit when presenting the right hearing aid solution to the client in front of them. Moreover, for the clinic owners, it is important that you understand the clients, consult them and motivate your audiologists to make the highest returns or your business and reach the highest possible client satisfaction rates.
Understand your clients
A good advice to be able to hit the right price point is not to go on autopilot. Mind that not everyone wants the same, so it is important that you understand what challenges the client has and how to solve these problems. Rather than always selling the most expensive equipment, understand the requirements, challenges, lifestyle and price range from the clients before you make the recommendation. In your Practice Management Software you should make sure to insert all the knowledge you have about the client to stay relevant, informed and equip all employees to give a personalized service. From call-center, to audiologist, receptionist or other staff facing your clients.
Consult to the client to make the best decision
When you get to the solution suggestion part, don’t oversell to the client. If the client cannot afford a certain price-point, you should not sell here. But to consult the client the best possible solution and price for this individual, explain the consequences of buying the cheaper model and what situations the client will still experience difficulties. Not over-selling may lower the price per unit, but on the other hand it will increase conversion rates and lower return rates.
Handle objections about OTC
From time-to-time a client will likely ask you about alternative solutions like OTC (over-the-counter). Those types of inexpensive hearing aids may be easier on the budget, but they are also more likely to end up letting the consumer down in terms of comfort, durability, and addressing their specific hearing needs. It is important to let patients know that a hearing aid isn't just a one-time investment. Buying a cheaper model may seem like saving money up front, but in the long run it will be more cost effective to purchase a model that comes with the ongoing support only a dedicated audiology professional like you can provide. Making personalized adjustments, offering resizing, and providing hearing tests are all benefits which online retailers can't offer.
Motivate the audiologists
The most important factor in the sales process is the audiologist who is key into generating sales from the leads you have attracted to your shops and the sales you get from re-purchasing clients. It is therefore important that you have an incentive program for your audiologists. This should motivate them to strive for increased in-shop conversion rate for new clients, Balance average selling price (ASP) per product to make sure the clients will not return. The measure points you should use are:
- Net sales of hearing aids: Incentivize your audiologists to increase the “quantity” of their sales. This KPI should be measured on net invoiced sales, i.e. subtracting any returns for credit
- Net ASP per invoiced client: Incentivize your audiologists to maximize sales value of each of their sales transactions, i.e. maximize the combination of ASP per product, binaural rate, sales of accessories and other after sales services. The audiologist will thereby be rewarded for up-selling, whether to a product at a higher price-point, a binaural set of hearing aids, sales of an (additional) accessory or an after-sales service package.
Balancing these factors with grow the revenue of your business - but be aware to not have too many measure points in your program this will demotivate the audiologistS. With a BI-analytics tool you can easily track performance of your audiologists and benchmark performance across shops, staff, regions etc.