Customer Success and it’s Impact on Dentistry
You have heard of software-as-a-service (Saas), right? This describes a new approach to paying for the software programs we use, and what used to be a one time fee is now, a monthly subscription. A perfect example of this is Microsoft Office – Word, Excel, Outlook, Powerpoint, etc. – you can buy a license for this suite of products for a one time fee of $150 or you can subscribe to Office 365 and pay $8.25/month.
I thought this was merely a pricing strategy until I read the book Customer Success: How Innovative Companies Are Reducing Churn and Growing Recurring Revenue. This presents an entirely new approach to software and sales that impacts both the software company – and their customers. The primary change in a Saas model is that instead of a one-time sale, software companies are actually selling us every month – and although they stand to make a higher revenue for long term clients, they are also at risk of losing money on short term customers. This means, that we, as customers, have far more power in the relationship because we can terminate our subscription at any time – and so the software company’s challenge is to keep us engaged with their program – and in fact, allow us to observe and measure our success thanks to it’s use.
This sea change appears to have a genuine benefit for dentistry. If a software company is motivated to “prove its worth” by making us more successful, then I’m a fan! Seems like a win / win to me. The challenge I see for dentistry is one of measurement. Most offices struggle to monitor performance beyond simple production / collection – so before a software company can provide hard evidence of its value, they first must establish the metrics. For managers and dentists keeping up with this Saas trend, the opportunity exists to partner and leverage training, customer support and the broader community to establish a working dashboard for the practice that not only monitor internal performance but also provides measurable feedback to the software company.
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If you’re managing a dental practice and want organized systems for easier dental staff training, then check out my Collections System and how to Set Up a Recall System. Once these internal systems are in place, you may want to focus on marketing with a system for New Patient Referral Tracking and handling patient complaints.
And, if you’re interested in a comprehensive approach to run your dental practice and train your team, visit Dental Staff Training Levels.