Senior living occupancy saw an uptick in Q3 2019 to 88.0 percent from the Q2 2019 eight-year low of 87.7 percent according to new data from the National Investment Center for Seniors Housing & Care (NIC). Earlier in the year, Enquire’s 2019 Annual Senior Housing and Post-Acute Sales and Marketing Benchmark Report of 3,967 senior care locations had 28 percent of respondents saying that improving the sales process is the biggest opportunity for growth in 2019. This raises the question, does a better, more disciplined sales process equate to higher occupancy? Based on our experience over decades in the industry, the answer is a resounding yes!
But that leads to an even more important question: what constitutes a disciplined sales process? One key component to a disciplined sales process that supports occupancy growth and maintenance is marketing and sales metrics.
A strategic marketing plan should always start with the goals and metrics in mind. Determine your occupancy goals and then work backwards based on your performance metrics. The standard metrics for marketing and sales should include effective, lead, and performance indicators:
Now that you have identified the metrics and goals, how do you set them? This is where backwards math comes in. Let’s work with a simplified example that does not factor in other measurements, such as turnover or anticipated move-outs of residents, which will increase the overall move-in goal.
You can also determine the number of activities needed per week and per month based on measurements. To determine a sales activity goal using the above example: if it takes an average of 25 activities (emails, calls, face-to-face meetings) to gain a move-in, multiply that by the number of move-ins you need and factor in the prospects who don’t move in.
Setting the goals and metrics to measure marketing and sales performance is a key step to being able to effectively oversee and gauge the success of your marketing and sales team and their efforts. With extensive experience as developers and operators, HDG consultants can work with your team to develop a strategic marketing plan that will include the goals, strategies, and tactics to help you achieve your senior living occupancy and revenue targets. For more information, please contact us at 763.537.5700 or firstname.lastname@example.org, or meet with Erin Shvetzoff Hennessey, CEO, and Craig Abbott, EVP, Growth, at the American Seniors Housing Association (ASHA) 2020 Annual Meeting.
Authored by: Cindy Olson
Vice President, Consulting Services