If you’re in sales and marketing, you should know your company’s ROI — return on investment. Many of us know our rates and our sales goals, but we don’t understand the ROI, which in easy terms is defined as “How much you spend to do something versus how much you get from doing it.” It’s measured as percent.
What About Lost Revenue?
For senior living operators: How do you calculate the cost of an empty bed at your community? This important formula can help you bring the bigger picture of revenue goals into focus so you can see why they are more important than simply meeting your occupancy goals.
- What’s the long-term value of a resident?
- What makes sense to pay for a referral fee, if my option is to leave the bed empty?
- When should I use discounts to fill my empty beds?
- What if someone for whom I’ve paid a referral fee dies after just a few months?
For home care agencies: Unlike senior living operators, calculating ROI is not as much of a focus. In-home care agencies have higher variable and lower fixed costs. However, take into account the following elements when considering each client:
- Geographic elements: Drive time, proximity of clients to caregivers, and gas mileage are all costs.
- Care providers: Full use (4 work hours versus 8 work hours).
- Management costs: Is the overhead worth it if a client wants only a few hours of care?
We held a webinar on “How to Calculate Your ROI on Internet Referrals” on October 20, 2014. It has proven to be one of our best webinars yet. It gives you mathematical tools to answer questions like. We recorded the webinar so you can take this opportunity to enlighten or refresh your perspective on ROI and lost revenue.
- For the ROI webinar slides: Calculating Your ROI [Presentation Slides]
- For a recording of the presentation: How To Calculate Your ROI On Internet Referrals [Recording]
If you have any questions or would like us to conduct this or any other webinar specifically for your organization, please contact me: firstname.lastname@example.org.
These lyrics to the Billy Joel song “Piano Man” may resonate with those of us who have had to confront the need to enter our information into our company’s CRM, or customer relationship management tool, before nine o’clock on a Saturday. It just may be way more work than we want to confront during a week when there is so much going on in our communities and in our lives.
So What Are People Saying About CRM Systems?
Say the letters C-R-M to some senior housing industry professionals, and undoubtedly you will get grins or groans. Steve Moran, founder of Senior Housing Forum, a Caring.com partner, says, “The challenge with CRMs is they often require a lot more work than absolutely necessary.” Some systems require multiple steps just to do the basics to please your manager – your executive director, administrator and/or regional director. Sometimes, you may need to work with your management team to configure your system to work for everyone in your organization.
Getting the CRM to Work for Your Goals
Moran has good advice for anyone in the field: “Try to find a way to like your CRM, because the stuff you don’t like about it may turn out to be good for you. It may take you 10 to 15 minutes to access the system and enter the basics, but later you will say to yourself, ‘I’m glad I did that,’ because you have a sale.” And that feels pretty good on a Saturday when the regular crowd shuffles in.
Is your CRM a cloud-based system? Cloud-based systems offer easy access for everyone in your organization who needs to use the information that anyone provides.
“A lot of the CRM selection dialog involves matching your company’s sales and selling philosophy to the product,” Moran says. “A particular CRM provider may be great for a company’s sales style and philosophy but may not be good for Ops and Finance.” And senior housing companies have unique CRM needs compared to other businesses.
We’re Sharing a Drink They Call Loneliness, but It’s Better Than Drinking Alone
While many of us in the senior housing industry have our gripes with our CRM system, we know it’s something we all need to help us manage our customers. Rest assured, you’re not alone. Join us on Thursday, September 25, 2014, at 2:00 p.m. EDT (11:00 a.m. PDT) to discuss the truth about CRM systems in the senior housing industry. Our panel of experts will include Deborah Howard, founder of Senior Living Smart; Jay Reischl, president of the Technology Division of DEI Sales/Central; and Jayne Sallerson, COO of Sherpa, for a lively discussion of the following questions:
1. Why do you need a CRM?
2. What should you look for when you select one?
3. How can you capture the trajectory of your customer’s decision process?
4. Where are the pitfalls as you integrate it with your daily work?
5. What metrics measure your success?
Our distinguished speakers have been on the front lines, advising, selecting, and implementing CRM systems for companies such as Emeritus, Five Star, Tealwood, Stellar, and others. Learn from their experience!
Space is limited — sign up today!
- Are these leads screened before you send them to a community or in-home care company?
- If these leads are screened, what’s the best way to work them?
- Why does it seem they are all so early in the buying cycle?
- Why do you send us leads without a last name or a phone number?
We recognize that the confusion for many senior housing and care industry marketers is in identifying the differences between directories and lead-referral companies. Alas, it’s time to bring to light the myths and misconceptions about online referrals to help equip senior care operators with the tools to help improve close ratios for Internet referrals.
All Internet leads are the same, right?
The Internet is a big place, and it makes sense that all digital leads would be perceived as being the same. But wait! There’s a part of Internet leads that makes them uniquely different from one another: screened leads versus unscreened referrals.
The difference between an unscreened Internet lead and an Internet referral is that Internet leads are accumulated via directory sites and sent out without any screening. An Internet referral has been screened according to your community’s specifications. Internet referrals are therefore expensive to produce. For example, Caring.com bids on 500,000 keywords every month and invests more than $500,000 per month on lead acquisition. We also spend heavily on fresh content for our website. Internet referrals come from companies such as Caring.com, A Place for Mom, and SeniorHomes.com, all of which have trained advisors answering phones 24/7 as part of their unique screening processes.
Another powerful myth is that all your company really needs is a great website to generate referrals. Not true. Of course you still need a great website, but getting people to it requires a digital marketing strategy that includes SEO (search engine optimization) and SEM (search engine marketing), plus some great Internet referral partners.
Are Internet referrals without a last name or phone number any good?
YES! In a recent study, Caring.com found that nearly 15 percent of all Caring.com Internet referrals that converted to move-ins were missing either a phone number or an e-mail address. In some cases, those leads are missing last names because many online consumers want to protect their privacy. Phone numbers are not given because the consumer may be searching the Web at work during breaks. You can still convert this kind of referral without a last name or email address or phone number to a move-in!
True or false: You never share your pricing with an Internet referral up front.
Let’s talk about it. Is sharing your pricing with an Internet referral partner (or sending it via e-mail) going to hurt your chances of winning a prospect? Another big myth that affects your close ratios is that you should never share your pricing.
Think again. . . . Internet shoppers generally want respect for their time. They see an unwillingness to share a price or a rate as reason to distrust you. “You might lose an opportunity for a conversation with them,” says Katie Roper, VP of sales at Caring.com. “You don’t have to use absolutes when sharing pricing. You can say, ‘Our rates start at $X, but most people pay between $Y and $Z per month,’ or per hour if you are an in-home care company.”
Don’t underestimate your communication strategy when connecting with Internet referrals. Though Internet referrals are different from professional referrals from doctors, social workers, or gerontologists, they are still real people looking for care. Some quick tips:
- Get in touch — quickly. Call the Internet referral within the first five minutes and to mention the person and organization that referred you, even in your first voicemail message. For example, “Hello, Mrs. Smith, this is Kathy Jones calling from Avalon Senior Living. I’m calling regarding Judy Johnson, your Advisor from Caring.com.”
- Meet in person. Whether it’s a tour or a face-to-face consult (for home care operators), your strategic goal should always be a face-to-face meeting. According to Jeanine Aspen, president of DEI-Central, “The first provider to get a face-to-face meeting with the prospect has a five-times-greater chance of getting them to become a customer,” she says.