The Most Important Senior Living Sales Metric
I know, it's definitely a headline with hyperbole! But I am confident that once you see the evidence you will agree with me on the significance of the data.
I evaluated nearly 1700 move-ins and 18,000 lost leads and found some extremely interesting data on tour frequency and the impact on conversion rates, move-ins and lost leads.
Tours, Tours, Tours!
We all know tours are important but my data analysis reveals the positive impact of second and repeat tours on the likelihood a prospect will convert into a resident.
Average Tours per Move-In Data
Avg Tours Per Move-In: AL 1.8 MC 1.7 IL 2.0
Percentage of Move-Ins with 2 Tours: AL 57% MC 51% IL 41%
Percentage of Move-Ins with 3+ Tours: AL 20% MC 21% IL 25%
It is clear from the average tours per move-in data that the typical prospect, who moves in, tours more than twice! IL prospects tour more frequently than do AL and MC prospects, primarily because they have a higher rate of touring more than 3 times. Compare this data to lost leads or leads that have not converted. The average prospect that hasn't moved-in has only toured, on average, .36 times!
While this data may not have come as a surprise to you, the following data reveals more about the behavior of prospects.
Conversion Rates of Prospects Compared to Tour Frequency
1st Tours' Impact on Prospects: Obviously First Tours are an important metric, however, in terms of their impact on motivating prospects to move-in, first tours alone are not enough to convert a prospect into a resident. As you can see from the data below only 1 in 5 memory care prospects who moved in did so after their first tour, while less than 1 in 10 prospects who moved in did so after their first IL or AL tour.
Independent Living: 7% of prospects who toured 1 time moved in
Assisted Living: 9% of prospects who toured 1 time moved in
Memory Care: 20% of prospects who toured 1 time moved in
2nd Tour's Impact on Prospects: Conversion rates rise dramatically when a prospect tours a second time. However, for AL and IL the move-in rate for prospects is still at 40% or lower and only half of memory care move-ins occurred after the second tour.
Independent Living: 34% of prospects who toured twice moved in
Assisted Living: 41% of prospects who toured twice moved in
Memory Care: 55% of prospects who toured twice moved in
3rd Tours Impact on Prospects: Prospects who toured 3 times converted at even higher rates than those prospects only touring twice. IL shows the greatest improvement in conversion rate, nearly doubling from 2 tours. What is interesting is that prospects facing a short decision making time frame, especially Memory Care prospects, still needed to tour 3 or more times to feel confident about their decision. One could conclude that Memory Care and AL residents are the most vulnerable and families need to feel very comfortable with the community they choose and touring is the best way for you to develop the trust needed to make the move-in happen.
Independent Living: 62% of prospects who toured 3+ times moved in
Assisted Living: 64% of prospects who toured 3+ times moved in
Memory Care: 74% of prospects who toured 3+ times moved in
There are number of things this data tell us about the decision making of our prospects and the implications on the senior living sales process.
Prospects need to trust you because choosing a senior living option is such a significant and complex decision for a family to make. The trust factor is important because of the complexity of the decision that can include financial, emotional, location, time and effort to move, and family dynamic factors (to name a few).
Obviously, a goal of your engagement with prospects is to build trust to gain their commitment for that first or next tour in the process. However, as a sales professional you should do what I call "taking the temperature" of the prospect before you ask for that commitment and you end the engagement.
Temperature taking is about asking the right question(s), which can reveal whether the prospect is hot, warm or cold toward you and your community. "So now that you've toured our community, how do you feel about our ability to help you and your family?/Do feel that our community is the right next home for you and your wife?"
Obviously, if a prospect commits to second or third tour they are beginning to feel comfortable with you and your community. However, even if they tour a third time there is a relatively large risk that your not going to gain the prospect's commitment to move-in. If a prospect doesn't commit to an additional tour or a move-in after a second or third tour there may be an objection you must defeat to get the move-in. Again, handling objections is about asking the right question, here it is: "What is holding you and your family back from making this decision?"
While these are just a couple of the important sales tactics you should use to be successful in converting more prospects into move-ins, it is clear that increasing 2nd, 3rd and even 4th tours of your community is a strategy you should employ to increase conversion rates and move-ins.