We utilized our deep knowledge and expertise to hone in on hidden costs and enhance return on investment by focussing our efforts in increasing direct leads. The result was a 46% reduction in sales costs to generate move-ins. Read on to learn how we did it:
About the Brand
Our client stands out for their innovative approach to Assisted Living and Memory Care, providing specialized communities that focus on enhancing the well-being of residents with specific needs. They prioritize creating a secure, engaging environment where all residents can enjoy activities tailored to their abilities, alongside professional, compassionate care. The inclusion of amenities like movie theaters, fitness classes, and complimentary transportation, coupled with a commitment to personalized care, makes them a pioneer in responsive senior living solutions across the nation.Project Overview
Helping our clients understand the value each channel delivers and its subsequent cost across their marketing and advertising efforts has been a top priority for CCR Growth. For this project we aimed to do a comprehensive analysis of this Senior Living Provider’s CRM, Move-in Data and the results generated by our team (direct leads to each community) versus the results generated through referral agency leads.Our premise: Referral Agency Leads not only cost more per move-in than direct leads, but also waste valuable time and resources impacting the sales teams ability to make meaningful connections with prospects and shorten the sales cycle.
The Challenges
- Gathering comprehensive and accurate data from the CRM, which involves tracking the origin of leads, their conversion rates, and the costs associated with each lead source.
- Consolidating data for a clear comparison between direct and referral leads can be a painstakingly difficult task.
- Ensuring the data collected is consistent and of high quality.
- Inconsistent data-capturing methods across different channels can lead to inaccurate analysis and conclusions, which can impact decision-making and future planning.
- Properly attributing sales to the correct marketing channel, especially in multi-touch customer journeys where prospects interact with multiple touchpoints before conversion.
- Improper attribution will impact the ability to determine each channel's effectiveness accurately.
- Accurately comparing the costs (including hidden costs) and value generated by direct leads versus referral agency leads.
This includes assessing not just the cost per move-in but also the time and resources spent on each lead type. - In addition we must assess the value generated from capturing and owning all of the data for the customary journey and not just the lead data acquired from referral sources.
- Quantifying the impact of referral agency leads on the sales team's efficiency and ability to make meaningful connections with prospects can be challenging, as it involves assessing qualitative aspects of sales interactions and cycle times.
- Sales team time is not always calculated at an hourly cost, nor is all time tracked and documented, making it difficult to quantify the effort needed and the cost per acquisition.
- Controlling for external factors that might influence lead quality and conversion rates, such as market trends, competition, and changes in consumer behavior, to ensure a fair comparison between direct and referral agency leads.
Our strategy consisted of 5 key components that helped the Provider have a deeper understanding of their costs and ROI across each channel, enabling them to set proper budgets that produced scalable results and profitable growth.
The Strategy
Create a unified database that allows for accurate comparison and analysis.
Accurately attribute move-ins to the correct channels, providing a fair comparison between direct and referral leads.
Determine the true cost-effectiveness of each lead source, highlighting any cost disparities.
Assess the impact of lead source on sales efficiency and the ability to form meaningful connections with prospects.
Provide actionable insights that can guide future marketing strategies and optimize the allocation of marketing resources.
The Results:
Cost Per Move-in
After careful analysis of the Provider’s portfolio across 12 months we determined that referral agency move-ins cost 33% more on average than direct leads.
Sales Efforts Required:
It took 30% fewer direct leads and 50% less sales calls to convert the same number of move-ins as referral agency leads.
Hidden Costs Uncovered:
Through thorough polling and analysis, we determined that, on average, the sales team was spending at least 15 hours for each qualified prospect. Because it took fewer direct leads to generate the same number of move-ins, our data uncovered it cost the provider 46% less in sales costs to generate move-ins.
Drive Down Costs & Increasing Profit:
By eliminating the need to invest so heavily in referral leads to drive move-ins, this provider saved millions in revenue that wasn’t paid in referral commission fees (which can often be as high as the entire first month’s rent). Investing more into direct channels such as SEO, Paid Search Ads, and other lead nurturing channels, this provider increased their direct lead generation and optimized the sales process to fill their communities faster and more efficiently.
Key Insights:
This study exemplifies the power of a data-driven approach in optimizing marketing and sales strategies. Continuous analysis and adjustment based on data can help every senior living provider stay ahead in a competitive market when properly implemented. This study helped us provide the following key insights:
Enhanced ROI from Direct Marketing Efforts – The significantly lower cost and higher efficiency of direct leads indicate a superior return on investment (ROI) for direct marketing efforts. Investing in channels that generate direct leads not only saves money but also brings in residents more efficiently.
Importance of Optimizing the Sales Process – The reduction in sales calls needed to convert direct leads into move-ins highlights the effectiveness of a streamlined sales process. Direct leads are likely more qualified or have a higher intent to move in, making the sales process smoother and more cost-effective. In addition, the community owns the entire data pipeline end to end, which allows a deeper understanding of the buyers journey and how to optimize it.
Strategic Allocation of Marketing Budget – Our findings emphasize the importance of strategically allocating the marketing budget towards channels and strategies that yield direct leads. Focusing resources on improving the provider’s digital presence, content marketing, SEO, and community outreach yields better results than relying on referral agencies.
Enhanced Sales Team Morale and Productivity – Cutting the sales team’s workload in half not only saves costs but likely contributed to higher morale and reduced burnout among team members. A more efficient sales process will allow the team to spend more time on nurturing each prospect, potentially improving the quality of interactions and resident satisfaction as the sales team is one of their first touchpoints with the community.
Predictive Planning for Future Growth – Understanding the efficiency and cost differences between lead sources allows the Provider to proactively plan and accurately forecast growth. They can use this data to model future marketing strategies and expected outcomes allowing them to scale growth and maintain cost-efficiencies.
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