November is National Home Care & Hospice Month, and CareAcademy honors the contributions of direct care workers (DCWs) and the value they bring to their clients and families. These heroic caregivers play a central role in our healthcare system and in homes across the nation.
With Baby Boomers stepping into their old age rapidly, the demand for home care has never been higher. As the market expands with 10,000 seniors every day, running a non-medical home care business can be very profitable.
But how can you deliver an optimum profit for your non-medical home care business?
In this guide, we’ll highlight six ways how you can increase your profits in this lucrative healthcare sector.
How to Increase Home Care Business Profits
Your home care business profitability depends on your revenue and costs. Your goal should be to increase your revenue while also reducing your costs. Here are some strategies to help you do both:
1. Get more clients (passively)
Increasing your revenue is essential to make more profits. To do this, you need to bring in more revenue by acquiring more clients at a low cost. That means you shouldn’t have to spend a lot on client acquisition.
Here are three passive streams for client acquisition you can put in place to generate more revenue:
According to a Kantar report, friends and family remain the most popular source of trust in brands. Provide excellent service and offer incentives to your customers to refer your services to their friends and family. Here are 15 effective home care resources you can tap into.
B. Strategic partnerships
Partner strategically with local doctors, insurance companies, and residential care providers to increase your customer base.
C. Optimize your Google My Business Profile
Your presence on search engines should be an essential part of your home care marketing strategy.
2. Maximize cash flow
To secure a stable cash flow, offer your services as pre-paid retainer packages instead of one-off hourly services. You can customize the packages based on your customer needs, such as 50-hour pre-paid packages. But the core concept is to increase your hours billed to bring in more revenue.
3. Use tiered pricing structures
Tiered pricing works by decreasing the price of your service per hour and creates an incentive for your customers to purchase more.
For example, you can charge $22 per hour instead of $24 when a customer signs up for three months and $20 per hour if they sign up for six months. The more hours they sign up for, the higher the discount they get.
However, be careful to optimize your packages and create tiers based on customer needs. Pricing structures like this will ensure you have a constant cash flow with high customer retention.
4. Elevate your brand and charge more
Focus on making your brand the leader in the home care market. You can do this by showcasing reviews of happy customers on your website and social media.
87% of buyers read online reviews before making a purchase. And when it comes to sensitive services like providing home care for the elderly, being trustworthy is even more critical.
Once you establish your brand, you’ll be able to charge more per hour and hence, increase your profit margin.
5. Improve caregiver retention
With demand on the rise, there’s also a growing shortage of staff in the home care industry. Although there are an estimated 2.2 million home care workers, the supply is still less than the demand. And the cost of staff replacement can be up to $41,000 a year.
6. Improve customer retention
Provide excellent service to keep your customers happy and increase the average lifetime value of your customers.
You can ensure a positive customer relation by regularly communicating with your clients and asking for feedback. You can also offer discounts for feedback that’ll help you improve your services.
Customer satisfaction also depends on how well-trained your caregivers are. So, make sure they are compliant with all state requirements and have the best training.
Book a call with CareAcademy for online training of your caregivers and fast-track your agency with qualified and compliant caregivers.
A non-medical home care business can be lucrative and rewarding with a stable cash flow and a satisfied customer base.
At the core of your agency is caregivers. Make sure they are well-trained and compliant. Book a demo with us to understand how training your caregivers can help reduce compliance risks and grow your business.