Senior Marketing: Bringing Clarity; The Power of Advanced Analytics

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In the world of senior living marketing, data is king—or so we’re led to believe. Digital and CRM platforms churn out numbers that promise to provide clarity on what’s working and what isn’t. But here’s the catch: those numbers can be misleading. They often present a narrow, shortsighted view, missing the complex interplay of touchpoints that work together to guide a prospect toward becoming a resident. Relying solely on these platforms or even on people’s recollections of what influenced their decisions can lead to misguided marketing strategies and wasted resources.

This is where advanced analytics come into play. By employing some sophisticated math, senior living marketers can cut through the fog of incomplete data and unreliable memories to gain a clearer, more accurate understanding of which marketing investments are truly driving results. When these investments are better understood and more accurately valued, marketing effectiveness improves—sometimes dramatically—leading to more conversions for less total investment.

In this article, we’ll explore three advanced analytic approaches that are essential for senior living marketers: diminishing returns analysis, experimental design, and Marketing Mix Modeling.

1. DIMINISHING RETURNS ANALYSIS: KNOWING WHEN ENOUGH IS ENOUGH

The law of diminishing returns is a fundamental concept in economics that applies equally well to marketing. Simply put, there comes a point where investing more in a particular marketing channel or tactic yields progressively smaller gains. Without a clear understanding of where this point lies, senior living marketers may continue to pour money into channels that are no longer delivering significant returns.

Diminishing returns analysis helps marketers identify the optimal level of investment for each channel. By analyzing performance data and identifying the point at which additional investment no longer produces meaningful increases in conversions, marketers can reallocate resources more effectively. In senior living, where budgets are often tight and every dollar counts, this approach ensures that marketing spend is directed where it can have the greatest impact.

Here is a recent case involving an Orchard test & assess initiative. 

• Placed a heavy-up paid search test in place for several communities.
• Post test, Orchard led diminishing return analysis to quantify the potential upside and project when the incremental lead volume would become unprofitable.

 

Key Findings

• There was room to increase spend in the channel, netting a 39% lift in total lead conversions at a cost per lead under the communities’ established goals. 

2. EXPERIMENTAL DESIGN: TESTING WHAT WORKS

Another powerful tool in the advanced analytics toolbox is experimental design. This approach involves systematically testing different marketing strategies or tactics to determine what works best. Rather than relying on gut feelings or anecdotal evidence, experimental design provides a data-driven way to assess the effectiveness of various marketing initiatives.

In the context of senior living marketing, experimental design can be used to test everything from messaging and creative content to channel selection and timing. For example, a senior living community might run a series of A/B tests to compare the effectiveness of different ad creatives or landing pages. By measuring the impact of each variation, marketers can make informed decisions about which strategies to scale up and which to refine or abandon.

The key advantage of experimental design is that it allows for continuous optimization. As new data comes in, marketers can adjust their strategies in real-time, ensuring that their marketing efforts remain aligned with what’s actually driving conversions.

Senior living interest can get a boost after family holidays, when adult children experience some of their parents’ decline, or at least have a chance to talk face-to-face about life’s next steps. 

Here is a recent case involving an Orchard test & assess initiative. 

• Fielded a test to measure the impact of a post-holiday heavy-up, using similar test and control communities.
• Test communities with a heavy-up spend saw significant lead gen increases, at +14% volume post-Thanksgiving and +17% volume post-Christmas.

3. MARKETING MIX MODELING: SEEING THE BIGGER PICTURE

Marketing Mix Modeling (MMM) is a comprehensive analytical approach that helps marketers understand the collective impact of all marketing activities. Unlike digital and CRM platforms, which tend to focus on individual touchpoints, MMM provides a holistic view of how different channels and tactics work together to drive results.

For senior living marketers, this is invaluable. The decision to move into a senior living community is rarely made after a single interaction; it’s the result of multiple touchpoints over time. MMM allows marketers to quantify the contribution of each touchpoint to the final conversion, providing a more accurate picture of what’s driving success.

By understanding the entire marketing mix, senior living marketers can make more informed decisions about where to allocate resources. For instance, if MMM reveals that a combination of social media advertising and direct mail is particularly effective at driving conversions, marketers can prioritize these channels in their strategy. The result is a more efficient and effective marketing program that maximizes ROI.

A recent Life Plan community Marketing Mix Model showed a marketing return on ad spend (ROAS) of $18.84 on average. Not only did it confirm high returns, but also powered optimizations into ideal spend range per channel for the top channels in the mix. 

IN CONCLUSION

In the complex and competitive field of senior living marketing, relying solely on the numbers reported by digital and CRM platforms can lead to shortsighted strategies and missed opportunities. These platforms often fail to capture the full journey of a prospect, from initial interest to becoming a resident, and people’s recollections of what influenced their decisions can be equally unreliable.

Orchard Senior Marketing’s advanced analytics provide a way for senior living marketers to get the clarity they need to make smarter, more effective investments. By leveraging techniques like diminishing returns analysis, experimental design, and Marketing Mix Modeling, senior living marketers can optimize their strategies, reduce waste, and ultimately achieve better results with less total investment.

In a market where every interaction counts and the decision-making process is deeply personal, the ability to accurately assess and adjust marketing efforts is not just beneficial—it’s essential. Advanced analytics give senior living marketers the tools they need to succeed in this challenging landscape, driving more conversions and helping more prospects find the right community for their needs.

 

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