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How to Increase the Revenue of Your Home Care Agency

Many industries, including home care, struggled during the recent pandemic. Here are the three foundational elements of business growth and how each one contributes to a revenue strategy in the aftermath of the global pandemic.

Businesses all around the nation have reported losing money as a result of customers stopping or canceling services in recent times.

Care agencies have been compelled to implement some incredibly creative actions as they look for ways to maintain their revenue, such as providing manpower for temperature checks at the gates to airports and other important public locations.

A crucial concept essential to developing a comprehensive revenue strategy is, however, frequently missing from discussions on maintaining revenue. It’s a basic concept, yet it’s simple to miss.

Before we go any further…

Bringing in revenue is one thing; however, it is also very important to protect your assets and your business. Insurance for home health care business can be very important when you’re involved in the care of others. Unfortunately, things do not always go according to plan. Take the time to research the insurance options that are available to ensure you are protected if things go wrong.

The Three Sales Levers

There are essentially three levers you can pull in any firm to increase revenue:

  • Gaining new clients
  • Increasing revenue per customer
  • Securing longer-term customer retention

Out of the three, new client acquisition is by far the most talked-about but also the hardest and most expensive course of action.

Lever 1: Bringing in new clients

At this point, the majority of agencies have started to adjust to the reality that marketers are no longer allowed inside buildings and other organizations that have historically been reliable sources of referrals.

Unfortunately, it is unlikely that this circumstance will alter anytime soon.

However, many of the strategies being used by effective home care marketers are the same strategies that other businesses have been utilizing for a long time.

Many organizations sell to clients who are located in diverse geographical areas without any face-to-face interaction.

Software businesses and other vendors have been honing a well-established method of conducting remote business-to-business sales for decades. Many of these organizations’ playbooks can be used for a referral-marketing scheme for home care, albeit not all of them can.

Lever 2: Increasing Revenue Per Client

A brief recap of the fundamentals: Adding hours or raising rates are often the only two ways to increase per-client revenue in the home care setting. If the client wants to expand the care plan with different service kinds, both of these options make the most sense.

This lever is often the most challenging. According to reports from numerous home care agencies, the factors directly affecting agency earnings are per-client hours (clients reducing or pausing services).

Some of the strategies you may wish to employ are as follows:

  • Virtual check-ins charged in brief intervals (15-30 minutes)
  • Grocery pick-ups
  • Shorter home visits to satisfy needs like prescriptions

These are unlikely to completely make up for lost income, but they can help your organization weather the storm until things start to feel more normal.

Lever 3: Keep current customers longer.

A retention-focused revenue plan is particularly crucial in situations where cashflow is a major problem, even though it’s necessary to implement a strategy that uses all three levers.

The impact of client retention is significant and largely under your control.

Both mindset and approach are important for boosting client retention. It entails scrutinizing client requirements and making an effort to comprehend every element of the experience you’re giving your clients, even if doing so requires painful introspection on your part.

  1. Communicate frequently

Maintaining a strong relationship with clients will make sure that when they wish to resume receiving home care services, they turn to you and not a rival.

  1. Create several methods of communication

You may get a clear picture of what’s happening by using a three-pronged strategy that combines regular check-in calls, regular quality assurance surveys, and online review monitoring.

  1. Make a commitment to quickly closing the loop on any unfavorable comments.

Although listening is the initial stage, it is largely ineffective unless you make a commitment to responding fast to the criticism you receive. Now is not the time to allow any component of the client experience to fall between the cracks when cashflow is such a major concern.

In the Future

According to industry experts, there will likely be a spike in demand for home care in the near future.

Ultimately, your next step is to consider how you can get ready for the expected increase in demand.

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