If you need more help with measuring ROI from your digital marketing, Caring.com is hosting a webinar on this topic this Thursday, July 21st.
By Pam McDonald
Pew Research has found that half of Americans age 50 to 64 are using social networks, as are 35% of those 65 and older. With Facebook as the most commonly used social media, it’s no wonder many senior living marketers put a lot of effort and investment into getting “likes”.
But, have you ever wondered what a Facebook “like” is really worth? Or whether there are better ways to achieve greater financial results through social media? The folks at Caring.com have. They’re the largest online resource for people who provide care to senior loved ones and a Senior Housing Forum partner.
In a webinar presented earlier this year, Caring.com shared some data about the value of a Facebook like. Their social marketing expert Denise Graab says that some estimates range from $0 to $136.38 per like, but that the answer depends on who you ask, how you measure it and your ability to calculate it for yourself.
“It can be difficult to measure the return on investment of your Facebook marketing,” Denise said, “particularly if you’re not doing advertising associated with lead forms and tracking those social-sourced prospects through to close.”
She noted, “By contrast, the significantly positive impact of consumer reviews on senior care businesses is now well-established and proven, and should be among your top social marketing priorities.”
Caring.com (with the largest collection of senior care reviews online), has for years tracked the influence of this consumer feedback on driving inquiries, tours, and move-ins. In a 2012-2013 study, they looked at senior living community listings with reviews vs. those without reviews, and found that those with reviews got up to 14 times more inquiries than those without them.
Their 2014- 2015 data showed that assisted living and memory care communities with the Caring Stars award (based on positive reviews) got twice as many consumer inquiries and move-ins on average than Caring.com partner listings without the award.
And this year, they started sharing specific case studies for operators with 100+ listings on the site, with one that achieved about 5x more leads, 7x more tours, and 8x more move-ins for its listings with 15+ reviews vs. its listings with only 1-2 reviews. Specifically, the client got on average less than 1 (or .9) move-in for its listings with 1-2 reviews versus 7 move-ins per listing with 15+ reviews.
Denise pointed out, “If you consider the average lifetime customer value of that move-in boost, you can start to compare how much more revenue you’re getting from investing in review generation vs. chasing likes.”
She provided some math to consider…
If the average stay of a senior living resident is 2.7 years, with the median annual costs for assisted living at $43,536, then the average lifetime customer value of that resident is about $117,550 (2.7 x $43,536 with the result rounded off). Taking that data, combined with the Caring client case study review impact data, it’s clear that a single consumer review has the potential to lead to about $54,250 more revenue for your senior living community.
Here’s how they got to that figure:
13 more reviews on the operator’s listing led to 6 more move-ins on average per listing (in the case study: 1 or less move ins for listings with 1-2 reviews, 7 for those with 15+ reviews)
A move-in has an average lifetime value of $117,550
6 move-ins times $117,550 = $705,300 average lifetime value of those additional move-ins
$705,300 divided among those 13 reviews = $54,254 per review
Denise cautions that there are no guarantees that every review is going to drive these kind of results. Nor that every senior living community is going to see the same level of impact from having 15+ reviews on their listings. Additionally, the average lifetime value of a senior living resident varies as well.
But she says, “This analysis gives you a mathematical framework you can use to calculate and compare the value you’re deriving from Facebook marketing vs. the value you’re getting from reviews on sites like Caring.com.
If you need more help with measuring ROI from your digital marketing, Caring.com is hosting a webinar on this topic this Thursday, July 21st, and a webinar about senior care reviews in August as well. Or contact Denise at Caring.com to learn more about how reviews are driving inquiries, tours, and move-ins on your listings in their directory.