Top 3 Key Performance Indicators Home Care Owners Should Track WeeklyAuthor: BrightStar Care® Franchising
When you join the BrightStar Care community, you are welcomed into a group of owners and executives who are quick to provide support and advice – both in the form of data and emotional intelligence.
The leadership team offers a tailor-made system that tracks 10 key performance indicators (KPIs), which are then sent to franchisees on a weekly to monthly basis to help inform and steer business decisions. Ultimately, KPIs help each owner create goals that are both challenging but attainable as they begin their journey as a home health care business owner.
Fortunately, not only does this advanced system help franchisees track performance upon opening, it equips them with knowledge of the benchmarks they must hit in the forthcoming years.
These are the top three KPIs all home health care business owners should check weekly – no matter their years of expertise. Not only will monitoring them help your business thrive, but it will align your goals with your vision.
1. Monitor Where Your Business Inquiries Come From
At BrightStar Care, most inquiries come through one of two avenues, according to Teresa Celmer, the Senior Vice President of Marketing and Talent Management at BrightStar Care. One is sales and the other is marketing.
It’s critical to know the difference and track accordingly. Sales inquiries are the direct result of your salespeople, who share the details of the BrightStar Care mission, alongside our capabilities and differentiators. Marketing, on the other hand, comes through advertising, an internet search, strong search engine optimization, a news interview and other initiatives.
Tracking this information appropriately – by adding it to an automated system – will help your business know where its success is stemming from and how to best allocate and optimize funds for the upcoming year.
“Home care is an opportunity-driven business,” Celmer added. “Knowing specifically where your leads are coming from and inputting them into a system is going to streamline data mining and give you a clearer understanding of where your budget is paying dividends.”
2. Percentage of Inquiry Conversions
Feeding directly from the above KPI, turning those inquiries into action is arguably the most important part of your agency’s performance.
At BrightStar Care, this is seen in the form of living room visits.
Once a potential client expresses interest, you’ll want to meet with them at their home, assess their needs and discuss together how you can best serve them.
“Once a BrightStar Care franchisee gets into the living room of a client, we have an 89% rate of turning that inquiry into a full-fledged client,” said Celmer.
Knowing these numbers and being able to track them to a person or campaign, can help business owners decipher top sellers, and/or what messages and services are resonating with potential clients and adapt how they operate based on these trends and successes.
3. Gross Margin
Simply put, gross margin is the difference between what you bill the client for the service and what you pay the caregiver to provide the service, and it’s critically important in the growth story of your agency.
Understanding the difference and how it fluctuates week to week can help the owner assess if they are pricing their services appropriately. While all BrightStar Care franchisees charge competitive market rates for services systemwide, the economy is changing daily, and therefore it behooves you to use a critical eye when scrutinizing your prices and adjust based on demand, ability to retain caregivers and economic climate.
More importantly, at the individual level, seeing this financial breakdown allows owners to see how their money is being put to use.
“For example, owners should ask themselves, ‘Am I using too much overtime labor to fulfill shifts, or did I have a full bench of CNAs this week?’” said Celmer.
Paying overtime is expensive and therefore costly to the agency, so tracking those numbers and setting weekly goals is a beneficial task for owners.
The ability to pull insights from numbers and data and then make the necessary changes based on discrepancies you see is going to be the best way to position your agency for strong ROI.