The vision for this blog is to create a community of harmonious professionals across the care continuum who encourage each other in exploring digital media as a way to support businesses and families dealing with elder care.
Written on July 20th, 2010 by tasha
It costs less to sell more services to an established customer than it does to acquire a new customer. This maxim of commerce is even more appropriate in times of shrinking budgets. We all have to work smarter. Today’s blog post is particularly inspired by Stan Massey, VP of Strategic Planning at Transcend Hospice Marketing, who did a great presentation on the topic of longer lengths of stay as a way to increase revenue.
If you want to increase revenue by 10-20%, you can do it by increasing the number of clients you see. This is good. But acquiring a new referral often involves “taking” that referral from a competitor. Not an easy task. (See our last blog post on Blue Ocean Strategies.)
Signing a client on to service 10%-20% earlier than you usually do, however, can add up to revenue gains even greater than 10-20%. Many of your expenses are likely frontloaded or on a per-client basis (e.g., marketing expenses, the initial assessment). These expenses are fixed, meaning they do not increase if you serve the client longer. This translates into more profit with a longer length of service since the fixed expenses have already been covered. Read the rest of this entry »
