Are Your Over Qualifying Prospective Senior Residents?

Are Your Over Qualifying Prospective Senior Residents?

Sometimes there is tremendous pressure from management to make sure a prospective senior has the financial resources in order to move into your retirement community.

First, engage the customer and make sure they are in love with the lifestyle and connect with what your senior living community has to offer, before you start grinding on them for financial specifics.  Build Value First or Your Senior Prospects Will Run Away!

Even savvy seniors can disqualify themselves.  They consider themselves poor even though they have a mortgage-free home to sell, social security, a pension, possibly an annuity, about 30% have long-term care insurance, IRA’s and of course some type of savings.  Many seniors have worked with an attorney to set up a trust and now have limited their resources.  Sometimes these seniors have to get financial permission from the trust in order to move into your retirement community.

Keep financial qualifying loose, until the senior is really excited about moving into your community.  For example, you may be a Continuing Care Retirement Community that requires twice the entrance fee in assets and 1 ½ times of the monthly fee in income.  Say something more friendly like: “Each person (couple) is unique, some seniors have more assets and less monthly income and other seniors have high monthly incomes and are a little lower on the assets.  Generally we are looking for 1½ times to 2 times the entrance fee in assets and 1½ to 2 times the monthly fee in monthly income.  Many things are considered assets like rental income or long term care insurance.”  Then shut up…or you can lose the sale.

Let them speak next…if you have built a trust relationship, they should open up and start sharing their assets and monthly incomes.  Most people sitting in front of you qualify.  It is very unusual if they don’t.  Please make a note that many children can pay the needed difference too.  Always remember to build value for your senior living community first!

Diane Twohy Masson is the author of Senior Housing Marketing – How to Increase Your Occupancy and Stay Full,” available for sale at Amazon.com.  If your curiosity is piqued to inquire on Diane’s availability to speak at a senior housing conference (CCRC, independent living, assisted living, skilled nursing or memory care) – please call: 206-853-6655 or email diane@marketing2seniors.net.  Diane is currently consulting in Southern California for Freedom Management Company, the proud debt-free owners of Freedom Village in Lake Forest and The Village in Hemet, California.  For more information:   Twitter: @market2seniors Web: www.marketing2seniors.net Blog: http://marketing2seniors.net/blog/

Which Internet Lead Referral Company Provides the Most Value?

Which Internet Lead Referral Company Provides the Most Value?

Value for the MoneyWhen all the smoke and thunder blows away, which company can provide me the best quality leads that will increase my occupancy immediately?  Keep reading for the answer.  I was shocked to find out in my research how many Internet leads a senior housing community has to go through in order to get two sales – the answer can be about 100!

This is my third article regarding researching senior housing Internet referral companies.  All the major players do a pretty good job of differentiating themselves from each other.   Some companies seem to do a better job of identifying and targeting qualified leads than others.   Some have great web sites, live care advisors, blogs or have fantastic placement on the Internet.  A majority of the legitimate leads tend to need some help with the activities of daily living.

Pay Per Move In – In talking with a lot of administrators, in a variety of senior housing options, they tend to shy away from paying an entire month of rent for a move-in.  It is a big chunk of change and I have personally experienced several bad outcomes with this choice.  One challenge was when we offered the 2nd month free to get move-ins.  The Internet company received one months rent, we gave the 2nd month away for free and the residents moved out at the end of the 2nd month.  Yes, it cost us money to have these people live at our assisted living community.

I have also had great results with pay-per-move-in in the past, including increasing sales by 10% per month with straight independent living or assisted living rental properties.  The key was working the leads immediately, because the Internet lead company would send the same lead to 5 or more of my competitors.  The retirement community who called the lead first won and he who followed up two or three times also won.

Monthly Subscription – Monthly subscription Internet leads are not as high quality, because no live person filters them.  About the only advantage I can see, is your community will be included in the paid search field at the top or side of a Google search (within that referral source).   This will run you about $150 or more a month for this benefit.

Pay Per Lead – The companies that provide pay-per-lead have a wide variety of outcomes depending on their level of filtering the leads.  You will pay $35 to $50 per lead with results ranging from 2% to 8% turning into move-ins.  This means that every 50 leads your company calls will turn into a sale in the worse case scenario.  The average for one company was about 4% or one sale in every 25 leads.  One company claimed that the best quality sales people could produce one sale out of every 12 leads.  Why the discrepancy?   They said that lead results were better for those sales forces that proactively used quick follow up when the lead was received and then continued with multiple attempts of connecting with the prospective resident.  I have found this to be 100% true with those I coach.

So the bottom line is the better the sales people, the lower the cost per lead.  Internet leads come in, then sales people are supposed to turn them into tours, so they can become sales and finally become a move-in.  What can you do if your sales people don’t manage leads effectively and you need to increase your occupancy now? A couple ideas would be to hire a sales coach or have stricter monitoring and management of metrics to set goals in your sales lead tracking system, both of which would help to increase existing performance on all your leads.

Pay Per Tour – There’s a new model that I’ve recently come across, pay per tour, which seems to address the efficiency and ROI challenges of all the existing models. This model addresses the lead efficiency issue that I’ve seen with some companies managing Internet leads while getting a reasonable effective cost per move-in.

It’s a new program being launched by Seniors for Living and based on their preliminary data they show an average of a move-in for every 4 to 7 tours (depending on the community).

The cost is around $400 per tour, so if my sales people provided great tours, an Internet move-in would only cost me around $2000.  This would save me the hardest and most time-consuming part of the sale process which is following up the lead and qualification to get to the tour.  I have spent 14 years in senior housing and have trained hundreds of sales people on how to turn inquiries on the telephone into great senior living tours so I know what it takes to get to a tour.

This pay per tour sounds like it will be the best approach, particularly for those retirement communities with sales teams already spread thin from their other sales activities. As part of my researching for this blog series and speaking with Seniors for Living I have begun working with them on their advisor training to help them refine their process to generate a better tour and the best overall experience for prospects and communities. Since this is a new approach I’m eager to see how this works with wider use by more senior living communities.

I look forward to hearing your feedback on all these models. What’s your experience?

Diane Twohy Masson is the author of Senior Housing Marketing – How to Increase Your Occupancy and Stay Full,” available for sale at Amazon.com.  If your curiosity is piqued to inquire on Diane’s availability to speak at a senior housing conference (CCRC, independent living, assisted living, skilled nursing or memory care) – please call: 206-853-6655 or email diane@marketing2seniors.net.  Diane is currently consulting in Southern California for Freedom Management Company, the proud debt-free owners of Freedom Village in Lake Forest and The Village in Hemet, California.  For more information:   Twitter: @market2seniors Web: www.marketing2seniors.net Blog: http://marketing2seniors.net/blog/

I’m Not Ready Yet!!!!

I’m Not Ready Yet!!!!

When you hear a senior prospect or family member say these words – what runs through your mind first?  How do you respond?  Do you believe them?  At every encounter with a prospective resident, someone always buys the popcorn – either the sales person or the senior!

Recently, I was going through some retirement community’s databases and lead after lead after lead had a “NRY” as the number one response in the notes.  I had to ask, “What is “NRY”?”  The retirement counselors in unison said, “Not ready yet.”  I thought quietly to myself, “Why the heck would anyone put such a negative assertion in his or her database?”  The next time they look at the lead, they are going to immediately think that it’s a crappy lead.

I believe that every lead is great!  If someone hangs up on me, the prospective resident is just having a bad day.  I have actually called these back again and they have been receptive, come in for a tour and eventually moved in.

When someone says they are not ready yet, do you blow the person off like I see some sales people do?  Are you just looking for a quick sale on a silver platter or a 30-day move-in?  Well then you are missing a ton of sales and this is why the occupancy is down at your retirement community.  Real sales people know that persistence pays off.  I have called people every month for one year and then they turned into a sale!  Those can be the most gratifying sales!

Do you have a Negative Nellie working your precious (expensive) senior housing leads that could be potential move-ins?  Believing Betty understands that each lead could be worth thousands of dollars and calls with enthusiasm and passion.  The customer needs to hear us smiling through the phone and feel our energy and excitement when they arrive in person.  We need to believe in our leads and keep calling them back…

When someone says they are not ready yet, they are one fall or one diagnosis away from suddenly wanting to move immediately.  Don’t schedule the next call for one year away, because it’s not the golden goose quick sale.  Understand the frailty of the senior customer and schedule to call them on a quarterly basis or your competition will get this move-in instead of you!

So when a senior tells me that they are not ready yet…this is great…they are interested for the future. The first thought that runs through my mind is: I need to educate them more about the lifestyle!  The second thought I have is: What did I miss saying?  Did I build enough value for health services?  After I learned about them through discovery, did I tailor the tour to their needs?  I need to fill the retirement community today, one year from now and 5 years from now!  So if someone wants to wait a year or two, no problem… my positive contact with them can speed up their decision.  Then when they suddenly want to move in, whom will they think of first?  Well, the nice lady on the phone who was never pushy and always had their best interests at heart…of course!

Diane Twohy Masson is the author of Senior Housing Marketing – How to Increase Your Occupancy and Stay Full,” available for sale at Amazon.com.  If your curiosity is piqued to inquire on Diane’s availability to speak at a senior housing conference (CCRC, independent living, assisted living, skilled nursing or memory care) – please call: 206-853-6655 or email diane@marketing2seniors.net.  Diane is currently consulting in Southern California for Freedom Management Company, the proud debt-free owners of Freedom Village in Lake Forest and The Village in Hemet, California.  For more information:   Twitter: @market2seniors Web: www.marketing2seniors.net Blog: http://marketing2seniors.net/blog/

Trying to Evaluate Senior Housing Internet Referral Choices?

Trying to Evaluate Senior Housing Internet Referral Choices?

Every one of us is so busy in senior living sales and marketing.  Some of you are pure sales and others are juggling marketing with sales.  With walk-ins, tours, and phone inquiries happening constantly, who has time to research Internet exposure and lead referral companies?  Maybe I can help…I have been looking into this for a few weeks and have learned a lot.

You can do “Pay for Click,” which means you buy high placement for key words that show up in a Google search.  Ever wonder how companies get in the colored box at the top of the screen with a Google search or have placement on the right hand side of your screen?  Every time someone clicks on that link, you pay, no matter what.  If someone is looking for a job, the phone number to your community to talk to a resident or simply click but have no interest, it can cost you 50 cents to $5.00 or more.  When I looked into it, there were almost 400 versions of the keywords independent living, senior living and senior housing.  The cost was going to be almost $1000 a month for a ten-mile radius.  Are you kidding me?   They had not even included key words such as assisted living, skilled nursing care or a Continuing Care Retirement Community yet!

Another easier choice for those of us in senior housing seems to be the Internet lead referral companies.  They buy all the clicks and key words, so they take all the risk.  Most of them have a live person talking to the inquiries, so by the time we get the lead at our community, we may have a viable person who is interested in our senior living community.

There are three main types of Internet lead referral companies:

  • Pay after a move-in
  • Pay-per-lead
  • Monthly subscription

The quality varies through my experience depending on which company you select and your type of senior housing.   There are pluses and minuses to all three choices.  The plus to paying after a move-in is, obviously, paying for performance only.  The minus is this can be the most expensive option with the cost generally being one month of rent.  Pay-per-lead companies charge between $35-$45 a lead.  The plus is that most of the companies have a person confirming which type of senior housing the prospect is interested in and making sure they understand it is private pay.  The down side is most of them have around a 2% conversion rate into a sale.  Monthly subscriptions can charge around $150 a month, so the cost is good, but they don’t have a live person filtering the leads, so you can receive a lot more garbage leads.

One benefit of all Internet referral companies is finding their sites in the paid search boxes on Google.  People searching online have hit key words regarding senior housing and start exploring their options through Internet referral sources.  You can add photos, videos, a description of your community, prices, floor plans and some Internet referral sources even link back to your website or your social media.

So what’s the purpose of adding Internet leads into your marketing mix?  More people are finding senior housing online than ever before and when someone is doing a search online – you want to be found.

Check back in a couple of weeks and I will be sharing which Internet lead referral companies I believe are the most effective and the best value for the money spent.

Diane Twohy Masson is the author of “Senior Housing Marketing – How to Increase Your Occupancy and Stay Full,” available for sale at Amazon.com.  If your curiosity is piqued to inquire on Diane’s availability to speak at a senior housing conference (CCRC, independent living, assisted living, skilled nursing or memory care) – please call: 206-853-6655 or email diane@marketing2seniors.net.  Diane is currently consulting in Southern California for Freedom Management Company, the proud debt-free owners of Freedom Village in Lake Forest and The Village in Hemet, California.  For more information:   Twitter: @market2seniors Web: www.marketing2seniors.net Blog: http://marketing2seniors.net/blog/

Choosing Rental Versus Entrance Fees in Senior Housing

Choosing Rental Versus Entrance Fees in Senior Housing

Many seniors or adult boomer children looking for housing struggle to understand the difference between selecting a month-to-month rental choice vs. selecting an entrance fee at a Continuing Care Retirement Community.  I have seen people create excel spreadsheets in order to understand what may have better financial implications in the long run for their family member.

A couple of key question to ask yourself in your search for senior housing are:

  • How long do you plan to live? (I know it’s a tough question, but are you living a healthy lifestyle now?  The age of parents at death can be a small factor, but how you treat your body with exercise and eating healthy is considered a key to aging well now.)
  • Do you have long-term care insurance? (Having it can be considered an asset, but it comes with an expensive monthly fee and some policies have limits of two or three years of maximum care in a skilled nursing center.  Older policies do not include in-home care or assisted living, so check your policy.)
  • Can your savings and assets survive, if you and/or your spouse needed assisted living or skilled nursing care for 5 or more years?

The average cost of Skilled Nursing Care on a national basis runs between $6,500 and month and $9,500 a month according to a national Metlife survey.  Why is this cost important?  Because this is a cost that can quickly wipe out your savings account.

Month-to-month retirement community rentals offer no protection for the future…what if you live there for eleven years and run out of assets?  If you can’t make your monthly fee – you would be asked to leave period.  There is no long-term contract with you.  We have all read articles in the newspaper talking about someone spending $300,000 plus at a rental community over the years and then being turned away because they ran out of assets.  You might be asking yourself – could this really happen to someone?

Well, my own mother ran out of her resources after living in a Continuing Care Retirement Community for eleven years.  She had not anticipated living in a higher level of care for three plus years.  It was horrible when her annuity and assets shrank and she was unable to pay the full monthly payment at her Assisted Living.  The great news is that she was not asked to leave.  Her Continuing Care Retirement Community in Seattle had never asked anyone to leave because of financial reasons.  What a relief for my mom and my family…

Many Continuing Care Retirement Communities offer a guarantee of care for the rest of your life, if you outlive your resources.  What incredible peace of mind this provides for residents and their family members.  Yes, this guarantee comes with the price of an entrance fee and those vary nationally.  I represent a Continuing Care Retirement community in California, whose entrance fees start at $55,000.  What a reasonable price, it’s less than the cost of one year of Skilled Nursing Care… Plus, when a resident pays an entrance fee, the monthly fees at Continuing Care Retirement Communities tend to be much lower than month-to-month rentals.

What are your thoughts on rentals versus entrance fees?

Diane Twohy Masson is the author of “Senior Housing Marketing – How to Increase Your Occupancy and Stay Full,” available for sale at Amazon.com.  If your curiosity is piqued to inquire on Diane’s availability to speak at a senior housing conference (CCRC, independent living, assisted living, skilled nursing or memory care) – please call: 206-853-6655 or email diane@marketing2seniors.net.  Diane is currently consulting in Southern California for Freedom Management Company, the proud debt-free owners of Freedom Village in Lake Forest and The Village in Hemet, California.  For more information:   Twitter: @market2seniors Web: www.marketing2seniors.net Blog: http://marketing2seniors.net/blog/

4 Things That Can Make Your Senior Living Sales Team Olympians!

4 Things That Can Make Your Senior Living Sales Team Olympians!

1) A great Olympic attitude – every single day! The attitude of a senior living sales person can literally increase or decrease your occupancy.  Every gold medalist Olympian has an amazing story of adversity that they overcame with a great attitude.  Some of the new Olympians even gave up on their sport for a year or more and then came back to win with a positive team spirit and an amazing coach!  Does the senior living sales coach at your organization have a winning attitude that is contagious to the team?  Can you feel the energy in the office and at your retirement community marketing events?

2) Believing like an Olympian in the community with 100% conviction! If the targeted occupancy goal is 95 percent at your assisted living and you are running at 90 percent, 85 percent, or less, how can you function under this pressure?  How can you keep this stressor out of your interactions with the customer?  Are you Unbelieving Ursula—wringing your hands and scratching your head?  Or are you Believing Betty—charming prospects by painting a pretty picture of their potential lifestyle in your amazing community?

3) Having the work ethic of an Olympian! Move-ins don’t happen without follow up calls and tours period.   Are you personal texting and chatting with residents or making 15 to 20 calls a day – EVERY DAY!  This will result in a minimum of 5 tours a week!  With enough potential residents walking in the door of your Continuing Care Retirement Community, it’s just a matter of them recognizing that your community is the best!  Olympic senior living sales people ALWAYS ask for the deposit at every single appointment!

4) Emulating a selfless attitude like an Olympian! One hundred percent of the marketing team’s focus should be listening to customers and understanding their needs.  This information is helpful in customizing your retirement community’s features and services to satisfy those needs. There’s no greater fulfillment in life than to help other people improve their lives.  If you bring this attitude to every appointment, and there are enough people walking through your doors, occupancy will take care of itself. Many sales people believe their work is more than a job.  They consider it a social service or a ministry.  These folks are making a difference in the world, building one relationship at a time.  Are you this type of senior housing marketer?

Your prospective customers will feel your Olympic attitude and passion.  This alone will intrigue them and keep communication progressing with strength.  They know intuitively if you are looking out for their best interests or merely want to fill the building for a commission.  Your verbal and nonverbal communication in a customer meeting says it all. If you’re listening 100 percent, you don’t have time to talk about yourself.  Every word that comes out of your mouth will be for the prospective resident’s benefit.

Please share how you or your senior living team is performing to a gold medal standard of excellence!

Diane Twohy Masson is the author of “Senior Housing Marketing – How to Increase Your Occupancy and Stay Full,” available for sale at Amazon.com.  If your curiosity is piqued to inquire on Diane’s availability to speak at a senior housing conference (CCRC, independent living, assisted living, skilled nursing or memory care) – please call: 206-853-6655 or email diane@marketing2seniors.net.  Diane is currently consulting in Southern California for Freedom Management Company, the proud debt-free owners of Freedom Village in Lake Forest and The Village in Hemet, California.  For more information:Twitter: @market2seniors Web: www.marketing2seniors.netBlog: http://marketing2seniors.net/blog/