Best Practices for Better Senior Living Referrals

Professional referrals can be one of the best ways to grow occupancy in senior living communities. In fact, when done well (and consistently), senior living referrals tend to be cost-effective, yield higher conversion rates, and lead to longer stays.

In one of our recent podcasts, SLS’s Debbie Howard chatted with Michael Moye, Senior Account Executive at WelcomeHome CRM. Michael has a unique perspective on community outreach because he used to work as a community relations director.

Here are the key takeaways from his conversation with Debbie, along with best practices to improve your senior living referral program.

Understanding the importance of senior living referrals

Professional referrals play a significant role in driving occupancy, mainly because they tend to convert at higher rates. Michael says approximately 6% of leads come from professional and non-professional referrals. But 75% of those tours will move in. (Michael tracks this data using WelcomeHome CRM.)

The reason behind the high conversion rate is trust. When sources that people trust refer them to a community, decision-making becomes easier and quicker.

Michael acknowledges that building relationships with trusted sources takes effort. However, the payoff can be huge.

“So think about the six months that it takes—you’re laying the foundation,” he says. “It’s really hard work. But then once the framework is there and you start to see the pipeline of referrals coming in, 75% of those are moving in.”

This is because your referral partners have already educated people about your community, so your prospects end up knowing a lot about it before they even set foot inside.

Compared to other lead sources, referral-based leads are the least expensive.

Debbie explains, “The only thing you have to invest is your time and creativity. And when you compare that to how much you’re paying aggregators or paid digital leads or newspaper or direct mail, it really is the most cost-effective as well.”

Developing a referral-based marketing strategy can be wise for communities looking to maximize their marketing budget while achieving high-quality results.

How to build strong relationships with referral sources

Make community outreach part of your community’s DNA.

Referral success doesn’t happen overnight. It has to be ingrained in the community’s culture, something Michael refers to as being part of an operator’s DNA.

He says operators and owners should establish a clear framework for their sales teams and emphasize the importance of engaging with the local community.

Recognize that potential referral sources are everywhere.

It’s easy to focus on the biggest professional referral sources like hospitals. But it’s also important to remember that anyone can be a potential referral. Much benefit can come from simply opening up your community and making it a local destination.

Debbie echoes this sentiment and recalls her experience in senior living sales and how some referrals came from unexpected places.

“I got move-ins from somebody from the Girl Scout troop that we hosted to help them with a baking project,” she explains. “And we got a move-in from somebody who came to a piano recital. We had a grand piano and a beautiful space, and we partnered with a local music school, and we had refreshments. When you open those doors, and you create those opportunities, you never really know who’s going to be there that might have a need that you’re not going to find any other way.”

Outreach strategies that lead to better senior living referrals

Be more than simply a “cupcake marketer.”

It’s easy to fall into the habit of delivering small gifts or baked goods to professional referral sources, but that won’t necessarily help build long-term partnerships. You might look like the hero for a hot minute, but people will quickly forget about you after they gobble down the goods because you’re not delivering substance about the community.

Instead, Michael says to bring cupcakes with a purpose. What can you tell them about your community? Is there something new about your community that could help them?

PRO TIP: If you really want to differentiate yourself, instead of just bringing in cupcakes, bring in your chef with the cupcakes and have the chef talk about their approach to dining and nutrition in your community.

Identify your Trojan horse.

When he worked as a community relations director, Michael turned his community’s health and wellness director (HWD) into a Trojan horse. He had a great relationship with his HWD and would position himself as a tagalong when they made hospital or other outreach visits.

He says referral sources, especially those in hospital or rehab settings, preferred talking to the HWD.

“They would much rather hear about outcomes and [our] care to approach than hearing it from a sales director like myself,” he says. “And so I won a lot of hearts and minds, not because of my wits and my smarts, but because I was smart enough to bring us the smarter person in the room and going in and making sure that they visit the people.”

Debbie notes that this approach is another brilliant way to differentiate your community in the sea of sameness.

“Nobody else has your health and wellness director,” she says. “Nobody else has your outcomes. Nobody else has your stories or your passion or your mission statement or your values or your culture.”

Follow good sales etiquette.

Always add value to your conversations with referral partners.

Michael says there’s a saying in sales: Don’t spill the candy in the lobby.

He explains, “It’s so easy just to get a little bit nervous and then just start pitching and talking their ears off and annoying them.”

Always remember your job is to make their lives easier. What are their biggest problems? What are their biggest headaches? Which patients are they most worried about? How can your community help solve these pain points?

Go into every conversation with a way to help them rather than a sales pitch about another feature/benefit in your community.

Don’t monopolize people’s time.

You can make a big impression in five or ten minutes by focusing on adding value.

Michael says, “I think it’s super important to know that it doesn’t have to be an hour-long conversation. In fact, I don’t think they want you to be there for an hour. I think they’re like, ‘Get out of my office. I’ve got a job.’ But if it’s five valuable minutes that they can be educated about something that your community does and maybe differentiating from other competition—that’s the meat. That’s where you’re going to find a lot of value compared to just dumping everything out.”

Block your calendar to hold yourself accountable.

One of the biggest challenges for sales teams is being consistent with outreach. The best thing you can do is block your calendar specifically for these outreach appointments and drop-ins and stick to it.

Talk less, listen more.

A good way to do this is by asking thoughtful questions, such as what challenges people face, what referrals look like for them, etc. Michael says, “I think there’s a really good 70/30 rule on talking about 30 percent and then allowing them to talk the other 70 percent.”

Give your referral partners updates after someone moves in.

Keeping referral sources updated on the well-being of their referrals can solidify trust and keep the relationship strong.

Michael says you can use automation, like WelcomeHome, to trigger a reminder to thank the referral partner after a referral has become a move-in. “Sometimes, we’re so busy we forget to thank our referral partners, and we forget to update them,” he says.

Debbie agrees. “And that really means a lot to them to be able to say, ‘This is someone you referred 30 days ago when she was just coming out of rehab, and she was having these issues. And now, here’s a picture of her enjoying this activity or on a trip’. That’s going to do more than any cupcake you bring through the door.”

Bottom line: Add referral partner outreach to your sales and marketing mix.

Building a strong referral network is an ongoing process that requires both effort and attention. However, by implementing these best practices, your senior living community can foster meaningful relationships that consistently drive high-quality referrals.