When you’re the decision-maker for a senior living operation, improving operational efficiency is a top priority…especially when your organization’s net operating income is always in the spotlight.
As Investopedia puts it…
Net operating income…can only be increased by raising rents and associated fees or by decreasing reasonably necessary operating expenses.
So it’s no wonder that a recent issue of the Senior Living Executive magazine showcased an article on operational costs.
The three major expenses it listed?
You’d be right if you guessed food, labor, and energy.
While rising commodity prices and abnormal temperature changes can certainly increase your costs, the reality is…
Some challenges draining your net operating income are relatively hidden.
They may not show up on the financials, but they’ll definitely drain your resources…and you can find these in your sales department. Keep on reading to discover three hidden revenue drainers we see in senior living operations…
#1. Mismanaged Inquiry Calls
If you’re in the C-suite, analyzing inquiry call performance may seem like a task better suited for your VP of sales.
But make no mistake.
How your team members answer phone calls has a direct impact on your occupancy…and thus your revenue and net operating income.
If team members convert more inquiries to tours, your properties will receive more deposits. Even with a low tour-to-move-in ratio, the sheer number of increased inquiries alone can impact your revenue.
However, mismanaged inquiry calls are far too common.
If you’ve read our report 3 Research Takeaways We’ve Uncovered That You Can’t Ignore for Your Senior Living Organization…then you might remember the results of 350 mystery shopping calls:
Participants averaged a score of 40.49% when it came to a critical aspect of a solid inquiry call.
(If you didn’t read the report, you can download it for free. Go here to access our report—on the right, you’ll see where you can request your free download.)
#2. Poorly Planned Tours
Poorly planned tours are another revenue drainer that can impact your net operating income and leave revenue on the table, and it’s one we see at Bild & Company over and over again.
Unless your on-site teams strategize each tour around individual prospects, you’ll forfeit additional income. (Not to mention, unplanned tours can take longer, wasting a team member’s time…and your money.)
Don’t just take our word for it…check out this article at McKnight’s to read about the importance of planning a visit.
Because tours play a significant role in securing deposits, make sure your team doesn’t neglect this opportunity to drive occupancy—and increase your net operating income.
#3. Lack of Follow-Up
You don’t have to have a background in sales to understand that following up can improve your bottom line.
However, many senior living operations falter in this area—creating a hidden drain on your net operating income.
If you’re questioning whether follow-up is truly a challenge for operations, be sure to read our blog The Unspoken Truth behind Why Your Senior Living Portfolio Suffers from Low Occupancy. (In this article, we present some startling stats drawn from mystery shopping 200 communities.)
From poor follow-up to mismanaged calls, most senior living communities suffer from hidden challenges that deplete their revenue and ultimately their net operating income. And if you’ve found it’s more difficult than usual to improve your net operating income, your operation may be suffering, too.
You can gain the expertise you need to pinpoint unknown obstacles—and minimize them—with Bild & Company.
For years, we’ve specialized in helping senior housing organizations improve top-line growth for their properties.
If you’re ready to decrease inefficiency—and increase your net operating income—partner with our team of senior housing experts. Call us at 1-800-640-0688, or get in touch online.