Resources & Blog
Jeff House and Ann Marie Ladis
Posted: Wednesday, January 18, 2012
Efficiency, Efficiency and Efficiency
When I heard these concepts for the first time, the TV talking head was referring to the economy, but they apply very well to retirement community sales and marketing programs.
Most of us would agree we need to be efficient, but what is efficiency (other than a one-room apartment that's agonizingly difficult to sell)? Your image of an efficient person likely is one who is competent, well-organized and able to function with minimal waste leading to fast work turnaround. However, if you dream of creating an efficient community, a balanced, successful program needs to address three forms of this concept: allocative, operational and adaptive efficiency.
Allocative efficiency is when you only produce goods and services that your potential customers want without wasting resources producing something people don't want. A phone call or note that actually answers a prospect's question is an efficient allocation of resources, but a "data dump" tour is not. A Christmas fruitcake is almost never an example of allocative efficiency. Your results may differ.
Operational efficiency is the ratio of resources expended to benefits achieved, the bang for the buck. What is your cost per lead or sale? How many touches do you need to secure a commitment? Could you achieve the same results at lower costs – such as by shifting dollars from television ads to search engine optimization?
Adaptive efficiency is how quickly and how well you are able to adapt before the tried and true becomes the "same old same old." Do you anticipate changes or react after the fact? Do you know about new regulations on the horizon? Do you try to compete by being just like your competition only better (or only cheaper) or do you find something people want but can't get from your competition?
So, the next time someone innocently suggests that you build more apartments to generate necessary revenue even though your customers want cottages (allocative inefficiency), or the Marketing Staff is required to give tours to busloads of non-qualified curiosity seekers (operational inefficiency), or your community has 500 people on the wait list, but no one will move in (adaptive inefficiency), consider how addressing each facet of efficiency might give you a boost.