BUSINESS SENSE
BY JOE PLAIA, JOSEPH PLAIA CONSULTING
Marketing the Value of Drug Testing and Selling Return on Investment (ROI) Solutions
The nature of the problem and the scope of the opportunity Tere are many companies that are providing drug testing services and managing programs, but aſter years of marketing and selling drug testing, I am convinced that there is an opportunity for companies to increase profits by improving business practices. Ask yourself these questions: “Is my business headed in the right direction? Are both my sales and profits increasing? Do my clients value me as a partner and are they loyal?” In order to sustain and grow a successful business in any industry, you need to develop a business plan and effectively execute a strategic marketing and sales plan. Te drug abuse testing industry has become a highly competitive
environment, susceptible to economic conditions, and it is substantially more complex than ever before. In an industry controlled by buyer demand, clients require more services but expect to pay less. Terefore, program managers and service providers must not only be adept at managing operations, they must also stay up-to- date with new industry developments. Given these conditions, it is important to consider revisiting your business plan, modifying your marketing program, and/or redefining your sales strategy. According to Kerri V. Weinert, CEO/Senior Consultant with
Boston Biomedical Consultants, Inc., total testing growth for 2012 was in the single digits and will remain so for the next five years. Weinert stated that “the global Drugs of Abuse (DAT) IVD testing market approached $500 million in 2012 (manufacturer sales). Despite the ongoing emergence of designer drugs and increase in the sales of the pain management segment, this growth has been unable to overcome the decline in the U.S. unemployment rate. In addition, pre-employment drug screening is still below historical levels.” In 2008, U.S. drugs of abuse sales data was calculated from Quest and LabCorp shareholder meetings, a BBC report on Drug Testing Technologies and Global Markets (July 2008), and from the 2008 Frost and Sullivan Report. Te following was the breakdown: • $1.63 billion U.S. sales • 87% of all testing conducted by laboratories • 13% with rapid (on-site) testing • 48% urine lab • 37% blood lab • 2% oral lab • 12% urine POCT • 1% oral POCT
16 datia focus In a survey of industry professionals, it was estimated that, in
2012, approximately 15 percent of all testing was conducted with a POCT device and that there was only a marginal increase in oral fluids lab with increased sales of 5–10 percent. Te best option for growing your business these days may be in
targeting businesses that have not already been testing, adding new segment participants, and expanding the testing of existing clients. In recent years, new business has been generated by taking it from the competition, lowering prices, improving services, and by intro- ducing new methods of testing. But growth can best be achieved by offering a comprehensive solution that includes offering multiple testing modalities and new sales strategies. Tere are six key components that are the foundation of a sound
business plan for marketing and selling substance abuse testing products and services. Focusing on these components will help you maintain very satisfied clients and yield profits for your business. A solid business plan is your map, the sales strategy is the vehicle, and a solution with value is the reward.
Key Components: Marketing and Selling Drug Testing 1. Business solutions alignment Develop a business plan that clearly defines your mission, as well as your professional and financial goals. You need to recognize how the industry perceives you compared to how you would want to be perceived. Determine what will distinguish you fom the competition and provide the best opportunity to win. In order to gain the trust of your client and establish credibility, it is important to integrate your direct and indirect service offerings. Be sure to align your company with the right partners to ensure delivery of a seamless solution to your clients.
2. Marketing your business assets Define your business purpose, principles, and assets in order to differentiate your company and gain a competitive advantage. Conduct the necessary research. Perform a marketing audit of your business and the markets you plan to penetrate in order to gauge both the supply and demand side of that opportunity. It will also help you conclude what you do best and who will value it the most. Te botom-line validation of your asset delivery requires a demonstration of objectives achieved, vali- dation of realized value of benefits, customer satisfaction, and outcome assessment.
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