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]