Commercial Strategy In Healthcare, Ancillary Revenue Drivers

Ancillary Revenue Lines, What Can You Include In Your Commercial Strategy?

In tough economic times we need to really consider your commercial strategy for your healthcare Practice. All sources of revenue for our Practices should be considered. Ancillary revenue lines should be part of your hearing healthcare commercial strategy. Ancillary revenue lines are just that, ancillary or additional to your main revenue flows. Traditional ancillary lines in our profession would of course be,

  • Batteries
  • Cleaning & care equipment or supplies
  • Assistive listening devices

These ancillary lines can drive revenue, but they have been traditionally ignored because of low profitability compared to our core offerings. However, profitability is profitability, any revenue at this time is not to be ignored. There is also clear strategic reasons for offering ancillary product or indeed service lines.

So ancillary revenue lines can serve both a strategic and tactical purpose in your Practice. Strategically they not only feed into the perception of your brand, help drive your online audiology marketing strategy, but also help fill your long term sales funnel driving lead acquisition.

Tactically it can boost revenue and through flow in your Practice. Through flow or footfall if dealt with properly will drive heightened core sales opportunities. How bad is that? I am sure that most of us would appreciate heightened sales opportunities.

This strategy should bring new business into your Practice therefore offsetting the normal attrition rate on your database. The cost of the strategy is relatively neutral, you include the new stock lines or services on marketing channels that you are already deploying. Your Practice is already in place, it exists and the overheads are hopefully being covered by your core business offerings.

In true retail business they consider profitability and costs by square foot of display. Perhaps it is time that we introduced this concept to our Practices, use space to display product lines from the new products you decide to deploy. In order for this to truly be an effective strategy you will then have to assess the impact of these products on an ongoing basis.

What products and services would you consider deploying to boost your ancillary revenue?

Regards

Geoff

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About Geoffrey Cooling

my name is Geoffrey Cooling and I am the author here at Just Audiology Stuff. I have been involved in the Hearing Healthcare Profession for several years now. I initially worked as a Hearing Healthcare Professional for a large national retailer in Ireland.

After several years in Practice I was approached to work for a manufacturer, where I was employed for five years. I am now the Co Founder of a business called Audiology Engine. We design websites, undertake content marketing and generally look after everything digital for audiological practices. I am also a contributor to many hearing profession periodicals and websites.

I have written two commercially available books, The Little Book of Hearing Aids which is written for hearing aid consumers and Audiology Marketing in a Digital World which is written for Audiology Practice Owners. They are both available in Paperback and Kindle versions on Amazon. I also write for consumers on the website Hearing Aid Know, which is a website with the mission of demystifying hearing aids, their types and their technology.

I have a great interest in commercial strategy as it applies to Healthcare in general and specifically to Hearing Healthcare. I also have a great interest in the psychology of sales and human interaction. I have been involved with social media for some time, both personally and professionally. I find the engagement and discourse on some social media channels fascinating.

I instituted social media strategy for the company I worked for as an experiment. That experiment soon spread throughout the company and I am proud to say that the company is probably one of the most active in the industry. I would like to point out that all views, opinions and thoughts here are mine own. Unless of course they have been planted by the pod people, you just can’t take your eyes off the pod people. Those views do not necessarily reflect upon any views or opinions held by my employer, if I ever get another one.

I think that our industry is in the middle of a time of huge change, I think that the change will be forced by both internal and external pressure. I think that private Independent Healthcare Practices will have to be smart and lithe of feet in order to meet these changes. I hope that some of my blatherings are of benefit to those Practices, Independent Hearing Healthcare Practices need to survive. I believe that if that occurs it will be of real benefit to Patients.

I hope that I, and my writings will play a small part in their continued success.

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  1. Pingback: Ancillary Services, You May Think I’m Nuts, But! - Just Audiology StuffJust Audiology Stuff

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