If you want to increase occupancy, it’s time to ditch the notion that prices drive move-ins.
Don’t get us wrong.
As a senior living CEO, competitive intelligence and market information is critical for setting reasonable rates at your properties.
But it’s a mistake to think that slashing rates, waiving entry fees, and offering discounts are effective strategies to meet your growth goals.
At Bild & Company, we’ve found that senior living organizations increase occupancy when they shift their focus from adjusting rates to implementing a key principle—building value.
In this article, we’re sharing what building value looks like, why it has an impact on your occupancy, and how you can empower your organization to use this powerful approach.
What Is Building Value?
To put it simply, building value is…
- Taking stock of your organization’s strong points—the tangible and the intangible ones.
- Strategizing how to capitalize on what sets your operation apart.
- Relying on an infrastructure that leverages your organization’s strengths to increase occupancy.
When you focus on building value, you’re no longer at the mercy of competitors or market factors for improving occupancy.
In effect, you transform your outlook from a defensive mode to an offensive mindset…a transition that can have a significant impact on your census levels and net operating income.
Why Does Building Value Increase Occupancy?
Even if the concept of building value is appealing, because you’re an executive, you need to answer a key question before implementing this approach in your organization…
Will building value increase occupancy for my portfolio?
The good news is, we’ve seen numerous senior living organizations reap the rewards of this approach to close their revenue gaps and improve their top-line revenue.
On top of that, research demonstrates the link between building value and financial returns.
Recently, Capgemini released a report on global consumers, announcing that…
81% of consumers “indicate that they are willing to spend more with an organization for a better customer experience.”
When you focus on building value for your organization, you create a better-personalized customer experience as you leverage your strong points.
In turn, improving the experience your communities offer increases the likelihood of attracting residents who value quality over a reduced price.
How Do I Build Value in My Organization?
Building value for your senior living organization starts with your mindset as your company’s CEO.
However, it doesn’t stop there.
To help your operation experience transformation, you’ll need to ensure there’s a trickle-down effect from your own leadership.
Here are our 3 tips for positively impacting your company to increase occupancy…
- Listen to your C-Suite. Check out the vibe that’s coming from your C-suite. Pay close attention to what other executives are saying. If you notice your colleagues are more focused on lowering prices or cutting resident services, it’s time to help them brainstorm strategic ways to capitalize on your organization’s strengths.
- Analyze your regional leadership. When you meet with your regional leaders, take stock of their updates. Notice if they’re using their site visits to empower your communities to build value or if they’re simply putting out fires and correcting problems.
- Evaluate your executive directors. When it comes to translating executive initiatives into tactics for growth, your executive directors are responsible for failure or success. If your EDs consistently make excuses for their failure to meet objectives, it’s time to set a new tone. Hold a conference, schedule one-on-one meetings, or provide outside support—the goal is to empower your executive directors to shift their mindset.
If you’re ready to increase occupancy and improve ROI, but don’t know where to start, turn to Bild & Company.
Every week, our team of senior housing experts empowers leaders to build value for their organization and their individual communities.
Whether you need to transform your organization’s culture or help struggling properties improve performance, we’re here to help.
To talk with our CEO, Traci Bild, about your specific goals, call us at 1-800-640-0688. When you call, ask for Liz Simpson, or contact us online to schedule a time that’s best for you.