Your Gen Y Customers
Young dentists provide a new set of challenges for distributor reps
By Nicholas Hein, D.D.S.
The rules have changed over the last 15 years when it comes to accommodating your dental customers. Compared to their older counterparts, young dental graduates are approaching the industry with new
attitudes, perspectives and tools for communicating. Distributor reps who know and understand this are better equipped to develop relationships and succeed
in the market.
A new scenario
One of the biggest changes reps may encounter in their relationships with dentists is the role of the Internet. Whereas older dentists feel their distributor rep is the best source of information for advice on product selection, the average new dentist uses the Internet as a primary source of information about products (as well as a way to purchase them). Whereas older dentists likely used a local commercial bank to finance their practice acquisition or startup, and most have used the same attorney for the better part of their career, new dentists tend to use a national bank to finance their practice acquisition, with no face-to-face contact, and they have relied on several attorneys with specialized training. It’s not that the professional relationship has disappeared. But, the acceptance of the major corporation from 1,000 miles away may begin to erode local competitors’ advantage.
Service matters
As technology makes it easier for dentists to connect with more vendors, distributor reps must discover ways to set themselves - and their companies - apart from their competitors. Five to 10 years ago, adjunctive services were luxuries. Fee analyses, office system evaluations and inventory management were all considered perks and were marketed as such. But, these services soon will determine whether a client continues to work with a local, face-to-face sales rep or utilizes a national, Web-based vendor. The days of the order taker are over.
Local distributors as well as reps working for larger national companies will continue to be important to dentists as long as they continue to offer valuable services beyond processing the orders.
Effective communication
The need to offer their customers more valuable services won’t be the only change for distributor reps. Communication methods are changing. But, while established dentists may appreciate e-mails or text messages from their reps, younger dentists will expect this.
New technologies often appear to be mere gimmicks. However, such technologies can be efficiently deployed and utilized. One application is the office design and construction project, which most new graduates take on during their first few years of practice. Whereas meetings with architects and interior designers previously required multiple face-to-face encounters, most laptop computers sold today are capable of real-time video conferencing, which can be utilized to review designs and materials. So, for example, a designer can bring to a meeting only those carpet samples the doctor showed an interest in during a video chat.
Text messaging and e-mail present yet another change in communication. Often considered to be a means for high school gossip, tools such as these can provide an advantage for distributor reps, particularly when voice communication is inappropriate.
Boom market
Some distributor reps may have gotten accustomed to helping their dental customers market big-ticket items, such as cosmetics, implants and high-end technology. While these services will likely continue to be a focus, profitability will become increasingly important, especially for newer dentists.
The dental industry has created thousands of products and methods to serve the top 15 percent of dental consumers. Established dentists often saturate this ‘high end’ market, and new doctors must find other ways to generate a profit. Particularly as dental schools, banks and practice brokers drive young dental graduates into practices with heavy insurance obligations, mass marketing strategies and mid to low income patient bases, these dentists will require new solutions. For instance, sales reps might refer to a return on investment of, say, three images/crowns/etc. per day to pay for a machine. But new dentists are looking for more than a break-even proposition. This new model doesn’t just require paying for the machine, but adding $3,000 per month to the
bottom line after it is paid for.
Chances are, new dentists don’t have access to patients looking for $50,000 treatment plans. Rather, they are starting practices with 45 to 55 percent overhead. Sure, many new dentists would love to practice cosmetic dentistry and own two lasers and a digital panoramic machine. But, most banks and practice consultants are going to recommend against this, and distributor reps must keep this in mind when they help customers establish their practice.
For the most part, dentistry has remained an industry of primarily solo practitioners in small operations. But no business remains stagnant - particularly not the dental industry - and distributor reps who stay ahead of the curve and help drive this change will ultimately prosper along with their dental customers. [FI]
Nicholas Hein, D.D.S., runs a dental practice in Greenwood Village, Colo.
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