Beyond Branding: Build Client Equity

Branding is important. So is growing your client base.

Many healthcare agency owners focus on establishing their brand in the community.  They distinguish themselves in several ways:

• We offer the best care for your loved one

• We treat your loved one like family

• We customize care for seniors

• We offer a range of services from housekeeping to meal prep

• We help aging adults stay engage

• We are accredited providers

• We provide companion care

Many offer multiple services with no distinct specialty.  Some take a niche approach. They define themselves as the best in the service they offer. Establishing your brand is essential. But to grow your brand takes more.  To grow your brand, one must go beyond brand management. One must grow the client base; one must build client equity.

Growing the Client Base

Spending precious marketing dollars on protecting your brand is important.  But for an agency to be successful over time, the focus must switch to maximizing client lifetime value – that is, the net profit an agency accrues from transactions with a given client during the time that client has a relationship with the agency.  The agency must focus on client equity (the sum of the lifetime values of all the agency’s clients across all of its brands or offerings) rather than brand equity (the sum of clients’ assessments or a brand’s intangible qualities, positive or negative).

Client Equity Rather than Brand Equity

Let’s use a scenario that frequently occurs in home care.  Mildred (client) selected Spiffy Home Care agency for its housekeeping and meal prep services. They do a great job and the price is fair. As Mildred ages, her needs change.  Maybe she needs medication reminders, trips to the doctor, or assistance with activities of daily living. Mildred has outgrown what Spiffy Home Care offers.  I suggest that Spiffy Home Care broaden its service offerings to meet Mildred’s needs.  Spiffy can do this by (i) training existing staff in these new requirements, (ii) hiring new staff with these skills, (iii) developing strategic alliances with agencies that provides these services, or (iv) a combination of these options.  Smaller agencies can also hire independent contractors to provide these new services as the agency refocuses its staff.  It is financially better to keep Mildred as a long-term client rather than investing precious marketing dollars to finding new clients.

Put Brand in its Place

Building client equity drives long-term growth for your agency.  Use brand management to support client equity, not the other way around.  Branding can open the door to client relationships. But, branding is individualized and is only important to clients when it suits them.  Building client equity mean that you are building an agency that is flexible and responsive to your client’s needs. You will keep your clients for a long time.