The COVID-19 crisis has thrust the entire world into relative mayhem, pretty much overnight. Businesses of all kinds must rethink the most prudent way to maximize revenue – because companies are now operating in a newly defined environment, with a whole new set of rules.
Home health agencies are one of the many industries that have felt the brunt of the COVID-19 crisis as reports from across the country continue to reveal serious revenue reductions, with the primary causes being noted as the pausing or canceling of home care services.
Home health care agencies will need to remain innovative in this challenging business environment if they are going to stay profitable, or at least, operating long enough, until business rebounds to somewhat normal demand levels.
On a brighter note, industry experts predict that the home health care industry to be one of the few to rebound quickly when the dangers of COVID-19 have been reduced, and the world population can move about safely from the devastation of the highly contagious coronavirus, COVID-19.
Home Care Revenue Sources
There are three revenue sources that generate an agency’s revenue flow. Revenue is sourced by -
These three revenue sources act as the revenue pillars of business growth, although acquiring new clients (especially at this moment of time during COVID-19) tends to be the most challenging of the three revenue pillars.
Option 1 - Increasing revenue generated by each existing client
Each business generates income and revenue differently. In the home health care business, there are two viable ways to increase revenue from existing clients. Additional services (in terms of hours or actual services) is one way; the other way is to increase the rates charged for current services.
This source for new revenue for home health agencies during the COVID-19 environment may be the difficult to attain. Mostly because, according to agencies around the country, there has been a marked reduction in hours and services requested by current clients of home health agencies.
However, despite the challenging business and economic environment facing home health agencies, there are innovative out-of-the-box ideas that can help increase an agency\'s revenue that is generated from existing clients.
Creative home health agencies are expanding caregiver services to accommodate clients in new ways like –
Other agencies are helping staff in places where trained medical personnel is not typically needed - except during the COVID-19 outbreak. Agency staff members are trained to assist in procedures like taking temperatures of those entering airports or food markets, to name a few.
And while these creative revenue sources may not completely replace an agency’s lost revenue, this newly sourced revenue can mitigate the financial damage, or stop the financial bleeding, until the event has passed, and life has returned to some normalcy.
Option 2 - Retain existing clients longer
The client retention revenue-building strategy is the revenue-generating approach that agencies have most within their control. It might help to understand that the opposite of client retention is client turnover.
Client turnover is costly and hurts all parts of an agency’s business.
A business strategist, F. Reichheld – known for his invention of the Net Promoter Score, estimates that by only increasing customer retention by 5%, net profits can grow from 25% to 95% - it all depends on the type of business and business model. The Net Promoter Score (NPS) is a measurement that calculates a business’s growth potential, plus the ability to alert businesses early on as to what to expect from future growth.
Many organizational gurus and business leaders believe that a client retention strategy is more about an attitude or a mindset. A client retention strategy requires agencies to analyze their clients’ needs with great care and must not be afraid to recognize those areas within the home health agency that needs improvement.
Client retention and client turnover are most concerned with managing details. Consider some of these suggestions that will help build lasting relationships with clients who appreciate and stay with the agency.
Communicate Often
For those clients who have temporarily suspended services, be vigilant and reach out to them often –
Be the First to Know about a Problem
Many agencies choose a multi-pronged approach. Problems become more transparent when –
Listen to Negative Feedback
Listening is only the first step. Retaining clients will only be successful if the agency responds to feedback quickly and effectively, because anything less may cause dissatisfaction and ultimately, the possible loss of a client.
Acquiring New Customers
Most agencies employ marketers to help keep the flow of new referrals and clients steady and full.
Many agencies have begun to use sales tactics that have been shown to be valuable in terms of sales results, from remote sales teams, rather than the traditional approach of agency door-knocking.
Consider these ideas when applying these sales techniques to the home health agency business.
Organization & Progress of a Sales Team
Acquiring new clients for a home health agency takes consistent sales applied daily by trained sales professionals in the home health industry.
With much competition fighting for the same clients, it is essential not to let any new clients slip through the proverbial cracks. This is one of the fundamental reasons that home health care sales needs a more modern and refined approach.
Sales charts with continuous data collection can be followed on a well-defined spreadsheet, but these can get complicated and often cumbersome. In those times, members of the sales staff generally use a CRM (Customer Relationship Management) software system to be more organized and efficient as a sales team.
CRM software is quite adept at making sure sales professionals meet their sales goals through sophisticated tracking systems that highlight accountability and productivity. It is often a manager’s best sales tool.
Balance Sales and Personalization with Scalability
Most individual’s email inboxes are jammed packed with unwanted emails that are nothing but mere solicitations. Most people recognize these emails and delete them before ever opening them.
As such, robotic sounding emails have limited effectiveness and generally find their way to the circular file, better known as the trash can. Yet, rewriting each sales email would be incredibly labor-intensive and, unfortunately, unproductive.
The best solution is to create a series of email templates to be used as initial emails, first follow-ups, second follow-ups, reminders, and birthday greetings, etc. But take the time, when you can, to personalize the email in some small way. This simple step often has remarkable sales results.
Looking Ahead
Government and industry experts alike agree that it is very likely that the home care business will see a stark surge in demand when the COVID-19 crisis plays itself out.
Ultimately, a home health agency\'s next task is to stay focused on remaining solvent during the pandemic, and then to prepare for the anticipated demand surge when the COVID-19 pandemic winds down.
In Summary:
The COVID-19 crisis has thrust the entire world into relative mayhem, pretty much overnight. Businesses of all kinds must rethink the most prudent way to maximize revenue – because companies are now operating in a newly defined environment, with a whole new set of rules.
Home health agencies are one of the many industries that have felt the brunt of the COVID-19 crisis as reports from across the country continue to reveal serious revenue reductions, with the primary causes being noted as the pausing or canceling of home care services.
Business 101 teaches managerial students that there are three revenue sources that generate an agency’s revenue flow. Revenue is sourced by -
These three revenue sources act as the revenue pillars of business growth, although acquiring new clients (especially at this moment of time during COVID-19) tends to be the most challenging of the three revenue pillars.
The client retention revenue-building strategy is the revenue-generating approach that agencies have most within their control. It might help to understand that the opposite of client retention is client turnover.
Client turnover is costly and hurts all parts of an agency’s business.
Most agencies employ marketers to help keep the flow of new referrals and clients steady and full.
Many agencies have begun to use sales tactics that have been shown to be valuable in terms of sales results, from remote sales teams, rather than the traditional approach of agency door-knocking.
Consider these ideas when applying these sales techniques to the home health agency business.
Acquiring new clients for a home health agency takes consistent sales applied daily by trained sales professionals in the home health industry.
With much competition fighting for the same clients, it is essential not to let any new clients slip through the proverbial cracks. This is one of the fundamental reasons that home health care sales needs a more modern and refined approach.
Most individual’s email inboxes are jammed packed with unwanted emails that are nothing but mere solicitations. Most people recognize these emails and delete them before ever opening them.
As such, robotic sounding emails have limited effectiveness and generally find their way to the circular file, better known as the trash can. Yet, rewriting each sales email would be incredibly labor-intensive and, unfortunately, unproductive.
The best solution is to create a series of email templates to be used as initial emails, first follow-ups, second follow-ups, reminders, and birthday greetings, etc. But take the time, when you can, to personalize the email in some small way. This simple step often has remarkable sales results.
