Doctor or Drug Rep: The Role of Sales in an MPS World

In the rush to find the MPS gold mine, OEMs are pushing out new training initiatives to transform their sales channels, and dealer teams are filling up MPS “Sales 101”-type classes, yet few have given much thought to the role of the sales rep in an environment where consultation skills are as important as product knowledge. For some, the sales rep needs to become a consultant, while for others, the consulting should be left to a professional services team. To understand which approach is best, a useful analogy is whether you want your sales reps to be doctors or drug reps.

The traditional drug rep is very different from the old-style copier sales rep. Drug reps know they are selling to sophisticated customers. They have to be knowledgeable about the medical environment, the components, the effects of their products and contraindications. Drug reps have to know medical terms and sell more on outcomes than cost – in many ways similar to someone selling a service to an IT manager. They need to build trust and respect by showing knowledge and understanding of their client’s environment. Being comfortable with the client’s terminology is more significant than being familiar with their own. Above all, they need to speak on an equal level, and their primary role is to educate and inform – changing their client’s behavior. Yet behind all the talk and advice is a reward based on the sale of a product.

A doctor, on the other hand, is there to diagnose and interpret information from which a treatment of the ailment can be suggested. A doctor’s role, similar to a business consultant’s, is to ask questions and take a holistic view of a patient’s (or client’s) health before establishing the best course of treatment based on training, experience and knowledge. Questions on lifestyle, diet, weight, family history and current treatments are parallel to those in our own world on strategy, profitability, processes, culture and current projects. The difference is that a doctor doesn’t go through the motions, so when he or she in medical terms “takes a history” before making a recommendation – questioning the user to assess the overall health and habits (policies) – the information gathered becomes vital to putting forth the best prescription.

So in an MPS engagement, gathering and interpreting information on a client is just as essential before recommending an improved operating environment. Without a doubt, we would all be appalled if our doctors skipped through the analysis and started offering us drugs for our ailments before we felt they understood what was wrong with us. Equally, a treatment that deals with the symptoms rather than the cause would create just as much concern.

With all the MPS training courses emphasizing the need for assessments and consultations, some consideration needs to be given as to who is the right person to do this work. A sales rep’s skill is to open doors and close deals – a skill set that does not lend itself to detailed and often lengthy analysis. While skipping over information costs lives for doctors, in the MPS world, it costs deals. Some sales reps are able to span the two roles, but rarely in my experience. However, that doesn’t mean all sales reps now need to become consultants or vice versa.

The larger the customer, the more sophisticated the environment and the more important a consultant’s skill sets will be in closing a deal. In contrast, the smaller the customer, the simpler the consultative tasks and the easier it is for a sales rep to perform the role. The danger is always that the sales rep completely dismisses the need to take on any semblance of the doctor’s role and so reverts to type and doesn’t even achieve the heights of the drug rep. Emphasizing at the outset that MPS sales is a new type of role with new skills is as important as the training itself.

Finally, think about the doctor’s reward versus the drug rep’s. A doctor looks for the long-term health of the patient, knowing that further advice and treatment will be required over a period of time, whereas the drug rep wants product sales. I am still staggered by how few sales reps are rewarded on the entire MPS contract as opposed to the equipment and software installed on day one. If we thought our doctor was rewarded on the number of pills he or she prescribed after each visit, we would change practices very quickly. All the money or time spent on training is wasted if the commission scheme is not in line with the change of behavior the training is attempting to achieve.

So before you sign up for the next MPS training course, ask yourself what kind of selling role you or your company aspires to: doctor or drug rep? If doctor, then make sure the long-term care of the client is in the interest of all parties!

Contact Robert Newry at robert.newry@newfieldit.com.

There's no such thing as a free lunch

...so should you charge for assessments?

By: Robert Newry, Co-founder, NewField IT

Finishing off an enjoyable lunch with a client recently I wondered as I picked up the bill, whether he saw this as a free lunch or a fair reward for his time and attention? I’d had a chance to pitch some new ideas from NewField IT and learn a bit more about his plans, in return for a small expense. But, how would I have felt if he was just a prospect and I had to go to the most expensive restaurant in town with fine wines and no guarantee of securing business at the end of it? Surely this is the reserve of a customer who has provided substantial business, yet many in our industry face an equal dilemma when asked to provide a free assessment, worth thousands of dollars in manpower.

The irony is that management in most MPS providers themselves think of an assessment as nothing more than a ‘free lunch’ – a necessary, but low value activity that is part of winning an MPS contract. Few respect that an assessment, depending on its scope, is as much a discovery for the customer as it is for them. If the customer knew how many devices they had, who used them and to what degree, where they were located, and whether they were leveraging the technology to optimise processes, then the assessment wouldn’t be needed. It stands to reason that the larger the organisation is the higher the complexity around printing becomes and therefore the greater the value in knowing exactly what is going on and how much it costs.

This disconnect between the service of providing an assessment and the value of the assessment has come about because many early assessments were nothing more than an elaborate sales proposal (typically limited to a USB stick collecting meter reads and a cursory walk around). The deliverable was reams of volume data in different configurations that the customer was expected to wade through and a current cost analysis based on what I have previously referred to as guerrilla economics*. Now, however, the shift to managed print services has accelerated and the role of the assessment has become much more significant in establishing the business case for change and a solid scope of work.

So for those MPS providers struggling to start charging for something they have traditionally given away for free, my advice is to look at an assessment like a professional French chef would a meal; starting by categorising assessments into four groups, much like the courses of a meal.

The first group is for pilot assessments, equivalent to the amuse-bouche or appetizer and usually provided without charge; a small indicator of the expertise of the chef, hinting at the delights to come. This could be the volume assessment of a floor, or a department, with devices mapped, but nothing more. Options for more detailed work should be presented; however, the value of each option must be clearly indicated, similar to a menu.

The next level of assessment, the hors-d’oeuvres in my analogy, goes into another level of detail. This could involve the odd user interview and a simple cost of ownership approach based on industry standards; something that can be done quickly and without too much time commitment. The client sees value now but is not fully committed (there is still the main course to come after all).

The main assessment though is like the Plat Principal, a signature dish, always chargeable because of the value, knowledge and expertise of the professional who creates it. This type of assessment will include detailed analysis of costs, user interviews across the organisation, IT systems analysis, creation of a print policy and multiple optimised scenarios. As long as the deliverable lives up to the associated costs I see no reason why MPS providers shouldn’t charge for it. NewField IT has the benefit of delivering such assessments as an independent consultancy, but the reason our customers pay for this service is because of the value we deliver.

Finally, if you have left your customer hungry for more, the desert might be a workflow assessment, reviewing the most intensive of the paper processes and understanding the barriers and challenges to moving these to a more electronic activity.

The message to every vendor in our industry is that an assessment is not “free”, there are simply varying levels of cost and value. MPS providers should understand the time and value of each type of assessment and at least start by recording it as a cost of sale that effects the sales team. One of the most successful MPS providers in the UK, Danwood, takes this approach and has a growing Professional Services Team, proof that once you start recognising the cost and quality of what you provide in an assessment, then so will your customers.

By taking this approach charging will become easier and the next prospect to ask for a full assessment for free can be refused; if you can do so with Gallic snort of indignation and a shocked look of insult, then all the better!