As we compile our annual home care survey findings into the Private Duty Benchmarking Study each year, we like to highlight the leaders in the home care industry, those with annual revenue of $2,000,000 or more. By studying the leaders, home care owners can learn some of the secrets to success that apply to any home care business, large or small.
Some interesting facts about the leaders from the “2014 Private Duty Benchmarking Study”:
- 54.8% have been in business for 10 or more years, and 23% have been in business for 7-9 years.
- 60.7% have only one location.
- 65.9% serve an area with a population of 500,000 or more.
- The leaders earned a median revenue of $3,082,182 in 2013 (compared to the industry average of $1,398,090).
- The leaders bill an average of 2,829 hours each week (compared to the industry average of 1,355 hours).
The leaders are using Search Engine Optimization (SEO) as their top consumer marketing source, responsible for 10% of their 2013 revenue. SEO refers to the steps a business takes to attract the attention of consumers searching for information via the Internet. When a business maintains an active, helpful website, an informative blog, and a social media presence, search engines begin to recognize them as an expert in their field and will recommend them to consumers. The 2014 Study shows that most home care businesses, including the leaders, are finding success using SEO to attract potential clients.
The leaders’ top referral marketing source for 2013 was their clients, past and current, and their loved ones, with these referrals bringing in 20% of the leaders’ 2013 revenue. Overall, this was the top referral marketing source for all participants in the study, which means that home care businesses are realizing the potential gains from client referrals. Happy clients can be your greatest referral source as they spread the word about your company and their satisfaction with your services. Remind your current clients that you love referrals.
When it comes to their top caregiver recruiting source, the leaders are tied, with 19.9% utilizing an employee referral program and 19.9% turning to Internet sites like Craigslist.org. This is a change from last year’s results: Internet sites were in first place, but employee referrals ranked third. The leaders are increasing their focus on employee referrals, most likely because these referrals come with extra benefits that other hiring methods just don’t provide. Before employees send you a referral, they often do much of the pre-screening for you. They are more likely to refer serious, qualified job candidates and to educate them beforehand about the job. Through a formal employee referral program, you can encourage and reward the employees who help you find and hire new, qualified caregivers.
After looking through the “2014 Private Duty Benchmarking Study,” it’s interesting to note that the leaders’ strategies are being adopted by more and more home care owners as they strive to duplicate the successful methods outlined in the study. We hope everyone is using the study this way!
Have you compared your business strategies to the leaders’? If you haven’t already purchased a copy of the “2014 Private Duty Benchmarking Study,” order yours today!