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Hello this is Kevin Williams here with seniormarketing.com and today I want to talk about how to calculate
The average lifetime resident value and why this important. This is really the foundation
of the lifeblood of smart marketing and the foundation of all your business activities.
What this is this is the value in dollars that a customer or resident is worth to you
on average. This can be done globally but it should be
done by service type. And what I mean by service type is whether your community offers assisted
living, or skilled nursing, or independent living, or memory care, or hospice or any
form of service types that you have. Each of these numbers is going to be different
for these service types. If this a new concept to you, then I would
start off with knowing this on a global level and to calculate this on a global level you
just take the average stay and we're working months so the average stay in months. I have
here industry averages just 21 months times the average rent and we have another industry
average with 3,300 per month and that brings you to $69,300 which is the average lifetime
value of your residents. And this, you know this really is something
that's eye opening to a lot of people. When we talk to people around the country and maybe
5% actually know these numbers. And this is critical because this is like buying real
estate without having it appraised. I mean it's really important to know these numbers
and cause it's really, don't let it be overwhelming it's not something you need to know overnight,
but it's really something that's important and I would start with this global lifetime
value because I think it will shock you. And most people have no idea how much their residents
are worth, and if they know they'd certainly treat all their phone calls and marketing
efforts much more seriously.