Sales Tips
As a former Senior Living VP of Sales & Marketing, I never looked forward to budget planning season…BOOO! It was, however, a great time to review my partnerships with paid referral sources and decide when to add to them, double down, or even pause them. The big question is, where does one start?
Begin with a thorough analysis to ensure a positive return on investment and alignment with your company’s goals. Here is how I recommend approaching this evaluation, and the solid reasons why a senior living company might benefit from paid move-in referral sources:
Cost vs. Revenue: Compare the cost of the referral source to the revenue generated from move-ins. Calculate the cost per move-in and the overall financial impact on the company.
Conversion Rates: Assess the quality of leads by examining the percentage of referrals that convert into actual move-ins. A higher conversion rate justifies continued or increased spending on that source.
Lifetime Value of Residents: Consider the long-term financial impact of referred residents, including their average length of stay and the revenue they generate over time.
Lead Quality: Not all leads are equal. Evaluate which referral sources consistently provide high-quality leads that are a good fit for your communities. This might include assessing the number of referrals that match specific care levels or preferences.
Retention Rates: Analyze how long residents referred by paid sources tend to stay. Higher retention rates can indicate that these leads are more aligned with your community's offerings and culture.
Lead Volume: If a paid referral source brings in a high volume of leads, especially during low-occupancy periods, it may be a crucial tool to maintain consistent occupancy levels.
Geographic Reach: Paid referral sources often have access to a wider market, bringing in leads from regions that may not be effectively reached by in-house marketing efforts.
Brand Visibility: Paid referral partnerships often give senior living companies broader market exposure, increasing the community’s visibility in competitive markets.
Time and Resource Efficiency: Partnering with referral sources reduces the time and resources needed to generate leads in-house. Referral agencies often have established networks and expertise in targeting the right audience.
Filling Vacancies Quickly: Paid referral sources can help fill vacancies more quickly, reducing downtime and stabilizing occupancy, which is crucial for cash flow and financial health.
Market Saturation: In highly competitive markets, relying on paid referral sources can give a senior living community an edge, helping to capture more leads and maintain a steady flow of residents.
Access to Broader Networks: Referral agencies often have a large database of families actively seeking senior living options, which a community may not be able to reach on its own.
Expertise in Senior Living: These sources specialize in the senior living industry, meaning they can often pre-qualify and match potential residents to the right type of care, saving time and increasing conversion rates.
Reduction in Marketing Burden: Paid referral sources help reduce the in-house marketing workload, allowing the community’s team to focus on other strategic initiatives like resident care and community engagement.
Performance Tracking: Most paid referral services provide performance analytics, allowing the community to track lead sources, conversion rates, and other KPIs, which helps optimize spending for the future.
Evaluating referral sources during budget season requires analyzing both quantitative metrics like ROI and qualitative aspects like lead quality. Paid referral sources are especially valuable for maintaining occupancy, expanding market reach, and providing qualified leads in competitive or underserved regions.
You May Also Like This
Sales Tips
As a former Senior Living VP of Sales & Marketing, I never looked forward to budget planning season…BOOO! It was, however, a great time to review my partnerships with paid referral sources and decide when to add to them, double down, or even pause them. The big question is, where does one start?
Begin with a thorough analysis to ensure a positive return on investment and alignment with your company’s goals. Here is how I recommend approaching this evaluation, and the solid reasons why a senior living company might benefit from paid move-in referral sources:
Cost vs. Revenue: Compare the cost of the referral source to the revenue generated from move-ins. Calculate the cost per move-in and the overall financial impact on the company.
Conversion Rates: Assess the quality of leads by examining the percentage of referrals that convert into actual move-ins. A higher conversion rate justifies continued or increased spending on that source.
Lifetime Value of Residents: Consider the long-term financial impact of referred residents, including their average length of stay and the revenue they generate over time.
Lead Quality: Not all leads are equal. Evaluate which referral sources consistently provide high-quality leads that are a good fit for your communities. This might include assessing the number of referrals that match specific care levels or preferences.
Retention Rates: Analyze how long residents referred by paid sources tend to stay. Higher retention rates can indicate that these leads are more aligned with your community's offerings and culture.
Lead Volume: If a paid referral source brings in a high volume of leads, especially during low-occupancy periods, it may be a crucial tool to maintain consistent occupancy levels.
Geographic Reach: Paid referral sources often have access to a wider market, bringing in leads from regions that may not be effectively reached by in-house marketing efforts.
Brand Visibility: Paid referral partnerships often give senior living companies broader market exposure, increasing the community’s visibility in competitive markets.
Time and Resource Efficiency: Partnering with referral sources reduces the time and resources needed to generate leads in-house. Referral agencies often have established networks and expertise in targeting the right audience.
Filling Vacancies Quickly: Paid referral sources can help fill vacancies more quickly, reducing downtime and stabilizing occupancy, which is crucial for cash flow and financial health.
Market Saturation: In highly competitive markets, relying on paid referral sources can give a senior living community an edge, helping to capture more leads and maintain a steady flow of residents.
Access to Broader Networks: Referral agencies often have a large database of families actively seeking senior living options, which a community may not be able to reach on its own.
Expertise in Senior Living: These sources specialize in the senior living industry, meaning they can often pre-qualify and match potential residents to the right type of care, saving time and increasing conversion rates.
Reduction in Marketing Burden: Paid referral sources help reduce the in-house marketing workload, allowing the community’s team to focus on other strategic initiatives like resident care and community engagement.
Performance Tracking: Most paid referral services provide performance analytics, allowing the community to track lead sources, conversion rates, and other KPIs, which helps optimize spending for the future.
Evaluating referral sources during budget season requires analyzing both quantitative metrics like ROI and qualitative aspects like lead quality. Paid referral sources are especially valuable for maintaining occupancy, expanding market reach, and providing qualified leads in competitive or underserved regions.
