Issue link: https://read.dmtmag.com/i/36987
16 Smart Talk SERVICE DEPARTMENTS Establish performance indicators BY DICK FULLER Q. How do other industries manage service departments? A. We are all painfully familiar with the challenge of providing quality repair service for our mobility cus- tomers yet somehow not go broke. There is no other industry that is quite like the HME mobility repair business. Still, there are some time- proven methods that are simple to use and common sense in approach (and without going through the agony of creating departmental P&Ls) that apply to HME repair. Our “reference industry” will be independent auto repair shops (not franchised car dealerships). I have selected a few crucial “Key Performance Indicators” (KPIs) from the auto repair business that can be tweaked to fit the HME mobility repair business. KPIs are like benchmarks with laser guidance that target “source points” to direct your attention to a manageable set of causes, not a long list of vague factors. The selected KPIs are easy to put into place without need for IT sup- port, and draw from data that you probably already have access to. WWW.HMENEWS.COM / AUGUST 2011 / HME NEWS The KPI concept is adapted from Mitch Schneider’s series of text- books and seminars on automotive service management. The single most important KPI: Average Repair Bill (parts and labor). Simple and easy to calculate, this KPI is very telling. More often than not, it is lower than it should be. Pushing to repair as many wheelchairs per day, rather than Common reasons: ■ doing as many job operations as you could/should on a given ser- vice order. ■ Sloppy evaluation, missing other repairs that need to be done. ■ Not billing for “adds” such as non-faulty components that must be removed for access to broken parts. HME Dick Fuller is the owner of Richard Fuller Consulting. Reach him at fuller@rfuller- consulting.com or 636-227-5275. CUSTOMER RETENTION While you’re keeping their confidence up, we’re helping keep DSOs down. Don’t overlook existing customers BY JENNIFER SOWARDS Q. Can you grow a business without new customers? A. One simple and occasionally overlooked aspect of running a business is ensuring that the cus- tomers who have purchased once will continue to purchase in the future. Companies are constantly marketing for new referral sources and putting efforts toward gaining new customers. Unfortunately, this often results in neglecting your current customer base. By show- ing your current customers that you value their individual needs, you will increase their loyalty and ensure they will contact you again in the future. These steps could be as simple as a follow-up phone call or a letter to communicate that you are grateful to have them as a patient. Once they know their business is appreciated, they are inclined to bring you more. The first element of nurturing your existing clients occurs inter- nally. Make sure your staff mem- bers share the same commitment to a positive customer experi- ence. When the client walks into the store, are they greeted by a personable welcome or a casual glance from a disinterested and overworked receptionist? Also help your clients feel at home with a brief office orientation. Introduce them to the staff and help make them comfortable. Lis- tening to and understanding each customer’s individual requests will increase their confidence level in your staff and your store. Another way to develop a bet- Keeping your Days Sales Outstanding down requires reliable HME business management software that tracks everything from order entry through final payment. QS/1® ’s SystemOne® for HME provides effective, reliable business management from financials and inventory to Medicare compliance. QS/1’s end-to-end technology and services work together to help your business thrive. Every day. ter shopping experience is to take a look at your store from a “patient’s eye” view. When purchasing medical supplies, does your store reflect energy and optimism? Or does it seem drab? The general atmosphere, look and feel of your store can increase the energy level and comfort of your existing and potentially future clients. HME 1.800.231.7776 www.qs1.com © 2011, J M SMITH CORPORATION. QS/1 and SystemOne are registered trademarks of the J M Smith Corporation. Jennifer Sowards is COO of HME Providers, Inc. Reach her at jsowards@ hmecorporate.com or 321-267-7576 ext. 222.