Beyond ROI = What’s Your Community’s ROE?
by: Kyle Robinson, VP of Strategy
Perhaps we have been looking at the wrong vowel all along! What if – instead of measuring your community’s Return On Investment (ROI), we looked at your Return On Engagement (ROE)?
Merriam-Webster’s defines each as:The mere definitional difference speaks volumes. Take for example, a true coach or counselor (aka: marketing / sales) knows that people BUY based on EMOTION, then back-it-up with facts. In today’s senior living industry, this truth remains.
Investment = the outlay of money usually for income or profit
Engagement = emotional involvement or commitment
The mere definitional difference speaks volumes. Take for example, a true coach or counselor (aka: marketing / sales) knows that people BUY based on EMOTION, then back-it-up with facts. In today’s senior living industry, this truth remains.
Yes, our communities should enrich the person’s life.
Yes, our communities need to offer an attractive product.
Yes, our communities should provide the best of the 4 H’s (Housing, Healthcare, Hospitality, Holistic Wellness).
Yet, the consumer’s decision to move or not to move involves emotion and a certain level of commitment.
Once a resident, his/her experience can be positive or negative, often based on a level of engagement, rather than investment.
And in today’s marketplace, we must offer solutions and personalization. Yet, once the consumer has “checked-off” the features’ or facts’ list, then the sale is still an emotionally-driven one. Investment has its benefits, but don’t we typically invest for a monetary benefit? When a senior decides to move, he/she desires much more than a financial reward – it’s all about lifestyle, lifecare, socialization, wellness, and peace-of-mind. (hint: ROE matters)
The same holds true once he/she moves to our community and becomes a resident (or member). Engagement in the community’s social fabric is key to a smooth transition, and ultimately, for the resident to receive the amazing benefits our Life Plan Communities offer.
What TRULY stands in the way of someone’s decision to move OR not to move? If all qualifications to move are met (age, income, health, interest), then why would someone remain at home OR put the move off until they are “ready?” If we could increase their engagement = increase probability they understand the value in moving AND have a desire to be part of your enriching community.
Questions to ponder:
- If moving to a Life Plan Community involves more than a financial commitment, then shouldn’t we also look at how to better engage with prospective residents?
- Once someone moves to our community, how can his/her lack of engagement OR enhanced engagement affect their experience?
- Do we track engagement in marketing, sales, wellness, or satisfaction?
- Are we willing to re-examine ROI and consider that ROE may offer a stronger indicator for our communities?
If you’re interested in measuring engagement, just send me a note. And cheers to your future engagements!