By Stephen Tweed
A few weeks ago, we had our Top 5% Home Care CEO Mastermind Group in Marco Island, Florida for our semi-annual get together. Fifteen leaders from ten companies gathered to discuss their big burning issues, and to share ideas and insights on how they are growing their businesses.
One of our members made a very strategic point about her big burning issue.
“We need to be more intentional about what a good referral looks like. We did an analysis of our business, and 51% of our clients have a length of stay of less than three weeks.”
That led to an in-depth conversation about sources of referrals, and the dollar value of a client. We calculate the dollar value of a client by taking the average monthly revenue times the total length of stay in months. According to Home Care Pulse, the average length of stay is 12 months, and four the Masters level agencies it is 16 months. What is your average length of stay?
The conversation also dug into the average hours per client per week, and the impact of accepting clients with relatively few hours per week, hoping they will grow into clients using many hours per week. The group was clear. As one member put it, “Short shifts rarely grow into longer shifts with higher hours.”
Another member said, “Only one in one hundred short hour clients grow significantly.”
What do you know about your Client Mix?
Have you done an analysis of your clients to understand the average length of stay, the average hours per client per week, and the dollar value of a client? Have you analyzed your clients by referral source to find out which referral sources are giving you the most valuable clients?
In today’s world of caregiver shortages, burned out schedulers, and inability to take new clients, home care leaders need to be more strategic in looking at their sources of referrals.
Defining Your Ideal Client
Several years ago, we were working with one of the members of our Top 10% Mastermind Group. We conducted a study to analyze the dollar value of each and every client they served in a calendar year. We organized them by referral source and this led to a totally new understanding of which referral sources bring in clients with the highest dollar value. It also led us to a clearer understanding of family caregivers, and who is more likely to buy home care services for a large number of hours per week over a long period of time. In another study, we learned that when an inquiry comes into your office, 60% of the time the caller is the oldest daughter of the client. Another 20% of the time, the caller is another daughter. We also discovered that the ideal caller is a professional female who is 45 to 65 years old, earns over $100,000 per year, is married with children, cares a lot about mom or dad, and has more money than time.
How do you find this ideal caller?
By doing an analysis of your best clients and worst clients, by studying your list of clients by referral source, and by getting feedback from your care coordinators and schedulers, you can paint a clear picture of the clients who are easiest to work with, who require larger numbers of hours per week, and who stay in your care for a longer length of time.
To learn more about how you can grow your business, attract more of your ideal clients, and make your life easier, you may want to consider becoming a member of a Home Care Mastermind Group. If you are an independent company providing more than 1,500 hours of care per week, you will want to take a look at the Home Care CEO Forum. When you join a Home Care Mastermind Group, you’ll interact on a regular basis with owners and CEOs of other companies your size who do not compete with you in your local market. You will discuss opening the big burning issues that are blocking you from the kind of business growth you want.
Don’t delay. Take a look today. Home Care CEO Mastermind Groups.
You may also want to explore becoming a member of a Caregiver Quality Mastermind Groups. These are mastermind groups that focus exclusively on caregiver recruiting and retention. These groups are open to independent agencies and franchises that provide 1,500 hours per week or more.
Here’s another opportunity to explore Caregiver Quality Mastermind Groups.
Join us on the second Thursday of each month at 2:00 pm eastern time for the Caregiver Quality Assurance Town Hall gathering. This is open to all of our mastermind members, clients, newsletter subscribers, and LinkedIn Group members. This topic this month will be, “Strategies to Grow Your Business by Rehiring Former Caregivers.”