HomecareCRM Industry Insights
| Sales Expense Management with CRM software | |
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 Sales Expense ManagementCustomer Relationship Management (CRM) software is widely used to keep track of contact information, notes, histories, phone calls, and documents, but did you know that you can also track expenses and determine how much you are spending on your referral sources? By managing expenses from within your CRM software, you can also find out how much you are spending per referral source, which referral sources are more profitable and whether you are Stark II compliant. Using your CRM software’s expense feature, start tracking expenses. No matter what you spend, enter it into your software and code it appropriately. If the expense is a sales expense, link it to the referral source and/or activity for which the expense is related. For example, if you take food to a referral source, link the expense to the referral source in your software. Do this for every expense, for every referral source. Once you begin entering your expenses into the software, you’ll soon have enough data to start evaluating where your money is going and whether you are complying with Stark II regulations. You can also use the software to alert you when you are approaching certain limits - or if it has exceeded limits. Run reports regularly and analyze spending. As you analyze the data, pay attention to: the types and amounts of expenses, the referral sources incurring the largest expenses, and the sales representatives involved. Ask yourself the following questions: • Which referral sources are costing the most? • Which are costing the least? • Are we Stark II compliant ? • Does spending more money translate into a larger number of referrals? Take the total amount of spending per referral source and divide that by the number of referrals sent to determine the cost per referral. For example, if you spent $100 on a referral source and he referred five patients in a given month, each referral cost your organization $20. A good CRM software can calculate this type of information and display it in reports automatically. Next, run an expense report per sales representatives and ask similar questions. • Which sales representatives are spending the most? • Which are spending the least? • Does spending more money translate into higher numbers of referrals? Perform a similar calculation for each sales representative to find out how much each sales representative is spending per referral. Using these numbers and analyzing expenses could be revealing. You may discover that you are overspending or that some referral sources actually cost more than expected. You may find that some sales representatives are able to generate more referrals without generating excessive expenses. Ideally, you will be able to find an acceptable cost per referral which can be used as a guideline to trim expenses. After all, managing expenses involves understanding where your money goes and controlling future expenses. By using CRM expense management features, you should be able to discover how much you are spending per referral, which referral sources are the most profitable, and ways to trim expenses without affecting the stream of referrals to your agency. |
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