Why Is Selling in Healthcare So Hard??

This video provides an in-depth exploration of the inherent difficulties in selling within the healthcare sector, particularly for digital health and healthcare services companies targeting employers for their health plans. Dr. Eric Bricker, the speaker, frames the challenge as a complex business-to-business (B2B) sale, necessitating an understanding of two key sales frameworks. He begins by introducing the concept from "Hope is Not a Strategy," which posits that the importance of "Fit," "Risk," and "Price" varies significantly throughout the sales cycle. Initially, "Fit" is paramount, transitioning to "Risk" in the middle, and finally to "Price" at the close of the deal.

Building on this, Bricker integrates the Miller Heiman sales approach, which emphasizes that complex B2B sales involve a multi-stakeholder buying committee rather than a single individual. This committee typically comprises "Technical," "Outcome," and "Financial" buyers, each with distinct priorities and concerns. The core of the video lies in the intersection of these two frameworks, creating a 3x3 matrix where each of the nine boxes represents a unique combination of buyer type and sales cycle stage (Fit, Risk, Price). The speaker highlights the "hard part": in a single sales meeting, multiple buyer types will simultaneously be at different stages of their "Fit, Risk, Price" mentality, requiring the salesperson to identify and address all these unique combinations at once.

Dr. Bricker then systematically dissects each of these nine combinations, detailing the specific concerns and motivations of each buyer type at different points in the sales cycle. For instance, a Technical Buyer (e.g., benefits manager) is concerned with vendor competence (Fit), cooperation from carriers (Risk), and their own time/bandwidth (Price). An Outcome Buyer (e.g., VP of HR) focuses on improving employee health/satisfaction (Fit), avoiding low utilization or complaints (Risk), and their team's bandwidth or budget justification (Price). Finally, the Financial Buyer (CFO) assesses if health spend decrease is meaningful (Fit), if the solution will have a positive ROI (Risk), and if there's budget room (Price). The video underscores that effective selling requires a deep understanding of these underlying mental processes to navigate the complex, multi-faceted sales environment in healthcare.

Key Takeaways:

• Healthcare Sales are Complex B2B: Selling in healthcare is inherently difficult due to its nature as a complex business-to-business transaction, often involving multiple stakeholders and varying priorities.
• "Hope is Not a Strategy" Framework: The importance of "Fit," "Risk," and "Price" shifts throughout the sales cycle. Initially, "Fit" (solution relevance) is key, then "Risk" (potential downsides, implementation challenges), and finally "Price" (cost-effectiveness, budget alignment).
• Miller Heiman Multi-Stakeholder Buying Team: Complex B2B sales involve a buying committee, not a single decision-maker. This committee typically consists of Technical Buyers, Outcome Buyers, and Financial Buyers.
• The 3x3 Sales Matrix: The intersection of "Fit, Risk, Price" with "Technical, Outcome, Financial Buyers" creates nine distinct areas of concern that a salesperson must address.
• Simultaneous & Varied Buyer Concerns: The most challenging aspect is that different buyer types will be at varying stages of their "Fit, Risk, Price" mentality simultaneously within the same sales meeting, demanding a dynamic and adaptive sales approach.
• Technical Buyer Priorities: These buyers (e.g., benefits managers, brokers) prioritize vendor competence in implementation (Fit), cooperation from existing systems/partners (Risk), and their own time/bandwidth for managing the solution (Price).
• Outcome Buyer Priorities: These buyers (e.g., HR VPs, Directors of Benefits) focus on improving employee health and satisfaction (Fit), avoiding low utilization or service complaints (Risk), and ensuring their team has the capacity and budget justification for the solution (Price).
• Financial Buyer Priorities: CFOs and other financial stakeholders are concerned with whether a decrease in health spend is meaningful to the organization (Fit), if the solution will yield a positive Return on Investment (Risk), and if there is available budget for the solution (Price).
• Organizational Context for Financial Buyers: A solution's "Fit" for a CFO depends on the company's growth and margin profile; fast-growing, high-margin businesses may not prioritize health spend reduction as much as slower-growing or lower-margin ones.
• Risk of Negative ROI: For financial buyers, a primary risk is spending more on a solution than it saves, meaning the solution must demonstrably achieve its promised cost controls.
• Solutions Exist for Each Box: While the video does not detail them, the speaker assures that specific strategies and solutions exist to address each of the nine unique combinations within the sales matrix.

Key Concepts:

• Fit, Risk, Price: A framework from "Hope is Not a Strategy" describing the evolving priorities during a complex B2B sales cycle.
• Technical Buyer: A stakeholder primarily concerned with the practical implementation, functionality, and operational aspects of a solution.
• Outcome Buyer: A stakeholder focused on the benefits and results for the end-users or the organization's strategic goals, such as employee satisfaction or health improvement.
• Financial Buyer: A stakeholder whose main concern is the monetary impact, ROI, budget implications, and overall cost-effectiveness of a solution.
• Complex B2B Sale: A sales process involving multiple decision-makers, a lengthy sales cycle, and significant investment, often requiring tailored solutions.