Insights from Insiders
From the initial call to the product launch, vendors are eager to place their products in the hands of a DSO. However, success isn’t solely about closing the deal; it also requires ensuring a smooth transition post-sale.
Unfortunately, a divide often exists between vendors and DSOs. The ultimate goal for both parties is to establish a relationship founded on trust. By fostering transparency, they can address the significant challenges related to practice-level needs, communication, and effective collaboration. Successfully navigating the complexities of the DSO industry and understanding vendors’ perspectives requires a nuanced approach.
Familiar with identifying growth areas, developing and implementing new processes, and driving revenue for their companies, Amanda Horman, Director of Hygiene Operations at an emerging DSO, Ume Dental Growth, and Allison Norris, CEO and Founder of Dentele Group, a non-clinical recruiting agency, share their insights regarding bridging the gap.
To ensure a successful relationship between vendors and DSOs, Allison and Amanda have compiled a list of suggestions:
Understanding the Needs of the DSO
- Size matters. Some DSOs require more resources to invest in new products or services. They depend on vendor support to ensure their teams are well-trained. Without onboarding and support, many DSOs may struggle to use the products competently. Remember, your role as a vendor is crucial to their success, so consider the size of the DSO to ensure you provide the necessary support post-sale.
- Are you offering continuing education (CE) hours? To gain the trust and buy-in of clinicians, it is essential to provide accredited CE hours. Clinical teams often perceive vendors that do not offer CE hours as less credible, which can significantly decrease the utilization of your product.
Effective Communication and Follow-up
- Follow up. Do you want us to continue using your product and placing repeat orders? Achieving this requires consistent follow-up with the DSO. Without regular reminders of your product’s advantages and benefits, DSOs are less likely to use it as frequently as you would like.
Professionalism and Ethical Practices
- Sometimes, it’s better to say nothing. We appreciate when vendors engage at the practice level, but certain topics should be avoided. Specifically, discussing compliance or pricing with clinicians or other practice team members is inappropriate. These individuals are not trained or authorized to make such decisions, and this can lead to significant compliance issues, creating substantial problems for the operations team. If you have concerns, please address them with someone in leadership who can thoroughly research and clarify the issue. Causing operational problems will not support your goal of increasing profit. Remember, there are many vendors who provide assistance without causing additional headaches.
- Ethics 101. We truly value your efforts to increase our revenue by providing updates on manufacturer discounts, promotional offers, product bundles, and the latest products. However, we strongly discourage any actions that could compromise our integrity, such as unethical marketing tactics. What constitutes an unethical marketing tactic? For instance, a sales representative visits our office to promote a new and exciting tooth whitening system. The receptionist, performing her job exceptionally well, prevents the representative from speaking directly with the doctor or office manager. The representative then leaves some pamphlets about the product and, before departing, offers a piece of marketing advice: “You could give this bleaching system to patients in exchange for a 5-star Google or Yelp review.” This is bribery and is unacceptable. You cannot bribe patients for positive reviews. Additionally, paying for or bribing for Google reviews is illegal. Let’s uphold a high standard of ethics in our partnership and avoid such practices.
Collaboration and Resource Sharing
- You have to align. Vendors who prioritize aligning the DSO’s goals with their sales cycles are doing it right it our opinion. Think of it as tailoring your approach. Customizing your approach shouldn’t take a ton of time, and it will be worth it in the end.
- Sharing is caring. If you are recommending a product or service to a DSO that does not have a proper pilot program rollout, then provide resources or connect us to someone who does. Share another satisfied customer’s information with us. Having their insight and knowledge would help out so much.
Vendors, here is a perfect example of resource sharing. Recently, a vendor introduced a periodontal product for us to sample in our offices. They provided training, continuing education, and follow-up support. When I had questions about rollout, insurance reimbursement rates, and CDT coding, the account manager proactively connected me with a fellow DSO hygiene leader who was already using this product in their practices. This resource proved to be highly valuable.
If you don’t know the answer or are unable to share it due to legal constraints, provide a resource who can. This approach is invaluable and greatly appreciated.
DSOs, on behalf of the vendors in the industry, I want to express our gratitude for the opportunity to work with you. You certainly keep us on our toes, especially regarding contracts and invoices.
As vendors, we work tirelessly to satisfy our clients and ensure their happiness. As recruiters, we strive to find the perfect candidate for your organization, and depending on the contract type, our income depends on your hiring decision. When we have found your next employee, who aligns with your team and values, a simple thank you goes a long way. For instance, “Thank you for finding the Director of Operations who will generate significant revenue for my division.” Moreover, when you receive an invoice for this candidate, please pay it on time, as late payments are extremely frustrating.