In recent years, successful pharmaceutical
and healthcare companies have increasingly taken a smarter approach to
cultivating business relationships. In parallel with many other sectors, such
organisations have long left behind the scattergun - or 'spray and pray' -
approach of the '70s and '80s, in which any business was seen as good business.
Latterly this has been replaced by more careful targeting of those NHS
and other healthcare customers who were likely to offer a greater probability
of sustained, quality business. As a result, a whole new vocabulary emerged,
including multi-level relationships and partnering, in which the goal was to
start bonding with potential customers and deepen relationships with existing
customers.
Not surprisingly therefore, throughout the '90s there was
increased growth in corporate hospitality as companies recognised the benefits
to be had from taking targeted customers and prospects out of the formal
clinical setting.
Unlike many industries, we have clear rules and
guidelines, particularly with regard to the ABPI in Pharma, governing what is
acceptable in terms of hospitality. But in common with other businesses we know
that putting clinical and non-clinical contacts in a social context, where you
can relate to them as human beings and where they can talk about their needs
and decision criteria in a low-threat environment, can be an excellent way of
getting closer to customers.
And indeed, when handled well, such
corporate events can deliver a high-level captive audience - often for a
considerable period of time - and continue to offer potential gains on what is
not an inconsiderable investment.
For companies operating in the
healthcare sector, social contact is in many ways as important a part of the
marketing mix as conventional sales promotion or tendering. This has always
been a familiar part of the industry and something which at times has been the
subject of strong criticism and debate. Cultivating business in a social
environment has created its own problems, which should be addressed if real
value for both customer and company is to be derived from a substantial
investment especially in these times of ever-decreasing budgets.
The
multi-level contact strategy typical of many healthcare companies means there
can be all manner of company personnel involved in hospitality events. Whilst
some will be from the sales function, there are others with a more technical or
senior role that may have never received any training in influencing or selling
skills. In any case, conventional selling skills also tend to be too direct to
be appropriate for social gatherings.
Those organising events with a
degree of corporate hospitality often focus on the attendee list or content of
the event, rather than the planning, implementing and measuring of marketing
strategy. As a result, the combination of direct and indirect costs gives a
high real cost per contact, often with no measure of return on
investment.
Does this matter? Taken in isolation, each may not seem
especially problematic, yet the consequences can be significant and damaging.
Expensive events may be organised, simply because they are different or of
particular interest, with little regard as to whether or not they serve the
broader marketing strategy and with no planning as to how tactical objectives
might be achieved.
Failing to understand what is required of them, some
customer-facing staff will turn every conversation into a heavy sales
discussion, while others will stick to much safer ground, engaging only in
social chitchat. And, underlying all this, no one knows what progress if any
has been made as there is rarely any mechanism in place to measure success.
Social influencing
So, success is by no means guaranteed
and, to make them work effectively, sales teams and other customer contacts
must fine-tune their skills. The types of event can vary widely - from
exhibitions, product launches and roadshows to events at conferences or
congress and 'wining and dining' - but common to all is that the unwritten
ground rules are different from a formal sales setting.
Those attending
a hospitality event will have different expectations - business may be on the
agenda at some point, but the up-front attraction is entertainment, information
and social interaction. As a result, the kind of straightforward selling skills
acceptable in a surgery, clinic or office are not appropriate in a social
environment. At a social event a 'fun' or relaxed element must therefore be
maintained, at the same time ensuring it offers an acceptable return.
So in examining how to manage such events, we must determine: What
behaviour is acceptable and effective in influencing (rather than selling to)
customers and prospects in a social context? How can we plan to use effective
behaviour and link it to our customers' needs and our corporate goals? And
finally - and most importantly - how can we measure the success of social
events in contributing to these broader aims?
Key issues to
consider include:
- Event planning - positioning the event within
the broader marketing strategy or account management plan and ensuring it is
appropriate to meeting business objectives and those of the customer, whilst
keeping within industry guidelines or the rules of the ABPI;
- Setting measurable objectives - we are not
talking housekeeping issues here - percentage of attendees, quality of catering
and so on - but quantifiable outcomes such as numbers of appointments or
follow-up calls secured. The skills and tactics required to achieve such
outcomes - identifying needs and gaining commitment - can then be determined in
advance and will typically depend on where attendees are in their
decision-making;
- Managing interactions - assign the right people
to key roles and in each case clearly define responsibilities and expectations,
from the initial 'meeters and greeters' to the 'statues' - the primary client
contacts who should typically stay in one place and to whom invitees are
brought;
- Persuasion skills - effective influencers make a
conscious distinction between 'social' and 'purposeful' conversation, devoting
an appropriate amount of air time to each and managing a smooth transition
between the two modes of communication. Similarly, they recognise the value of
both the 'push' style - giving information and putting forward ideas - and
'pull' style - asking questions and building on others' ideas - depending upon
the topic or situation in question;
- Working the room - it is easy to give offence by butting into a conversation or leaving abruptly, so many people don't try. They cluster with colleagues or friendly clients and often become so sociable they can barely stand! Skilled networkers by contrast select the right targets and adopt appropriate verbal ploys to enter or exit a conversation - graciously and without causing offence. It's all in the timing.
So, hospitality and business are not mutually exclusive. What it takes is the right blend of confidence, processes and skills to ensure that, while you and your customers enjoy themselves, you both progress your business agendas.
About the author
Huthwaite
International is a leading consultancy for changing behaviour in a commercial
setting. Blue chip companies worldwide trust it to deliver measurable results
by challenging, improving and sustaining performance at all customer
touch-points through its academic research-based methods.
The company
focuses on the customer to provide innovative skills advice for progressive
individuals and organisations in sectors such as IT, financial services,
healthcare, telecoms and professional services. Huthwaite's specialised
services include negotiation skills development and sales performance
improvement such as the pioneering SPIN® Selling.
Established in
1974, Huthwaite has UK headquarters in Wentworth, South Yorkshire, and handles
international projects through its branded consultants throughout Europe, USA
and Asia Pacific. For more information on Huthwaite's cost-effective services
and solutions, please visit
www.huthwaite.co.uk
Alison Morris is sector head for
Healthcare and has more than 10 years' experience of sales and training within
the healthcare environment.
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