No Matter the Economy, Be Judicious In Your Use of Financial Incentives
As we move into 2009, the lackluster economy and slumping real estate market show no signs of rebounding any time soon. That means new move-ins for senior living communities will continue to be a challenge. For most sales counselors, “I’m not ready” has been replaced with “I can’t sell my home” and “My portfolio has taken a big hit” as the most often heard objections. This is even true for those prospects that understand the value of the community and have a genuine desire to move. In response to this, we are seeing more and more communities offering upgrade packages, free months, discounts, or deferred payment plans. These are all logical, and often necessary, tools to close sales and maintain healthy occupancy levels.
However, doing this also requires prudence in how and when to communicate these financial incentives. Too often, communities will use these incentives in newspaper ads and direct mail to prospects as special savings or limited time offers. Let’s remember that most age- and income-qualified prospects aren’t open to the idea of a senior living community. They still think they are expensive, or for old people, or that they aren’t ready. Financial incentives do not address these core objections. And while the desire may be to create urgency they often just teach prospects to wait for the next deal.
Financial incentives are best used as closing tools for the hottest leads. Secondly, they can be very effective to a small set of warm leads as a way to re-engage and jump-start the conversation. A rule of thumb: if you haven’t had the opportunity to sit down with a prospect and discuss their needs and your community in detail, then it is too early for financial incentives to be of value. Even in tough times, stick with the core benefits of a senior living community, address the underlying needs of your prospect base and don’t forget to sell the value of your community before you discount the price.
