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How to build a home health marketing engine: how home health sales is different

Home health sales is fundamentally different from traditional sales. While it borrows many principles from traditional models, the nuances of building long-term relationships, managing dual customer segments, and navigating an industry without contracts require a distinct approach. Success in this field depends on your ability to adapt these differences into a sustainable, effective marketing engine.

How to build a home health marketing engine: how home health sales is different

How home health sales is different

Home health sales borrows heavily from traditional sales principles, but make no mistake—it’s a unique beast. Unlike selling products or services with contracts and money exchanging hands, you’re operating in a world built on trust, relationships, and patient outcomes. Let’s dive deeper into how home health sales differs from the traditional sales model and what that means for building a successful marketing engine.

Key Differences:

1. There are no contracts

In traditional sales, contracts solidify the relationship. You put in the work, secure a deal, and both parties know exactly what to expect. In home health, it’s different:

  • Referral sources don’t sign contracts for services. Instead, they say something like, “We’ll send you our next patient.” Great, right? Except it’s not always immediate or consistent. Unless you’re working with a high-volume hospital, you might not see a referral for weeks—or even longer.
  • The challenge? How do you track what happens next? Without a solid system in place, referrals can slip through the cracks. For example:some text
    • A referral might come in, but the patient doesn’t have the right insurance or isn’t in your service area.
    • Intake processes the referral, but if no one tells you it came from a specific referral source, you’ll never know to follow up.
  • Solution: This is where a home health CRM comes into play. A good CRM can notify your team when a referral comes in, track its progress, and ensure you close the loop with the referral source. It’s about creating visibility in a system where contracts don’t formalize relationships.

2. No exchange of Money

Here’s another big difference: there’s no monetary transaction between your agency and the referral source.

  • In traditional sales, money creates buy-in. When someone pays for a product or service, they’re invested. In home health, that financial exchange doesn’t exist. Instead, it’s a waiting game to prove your worth.
  • Without money changing hands, you must rely on consistent results and relationship-building to solidify the partnership. This makes it even more critical to:some text
    • Deliver on promises.
    • Follow up proactively to show the value of your services.

3. Two segments of customers

In home health, you’re serving two distinct customer segments:

  1. Patients: These are the individuals receiving care. For them, your clinical team must provide skilled, timely, and reliable care with an excellent bedside manner. This is the core reason your organization exists.
  2. Community partners/Referral sources: These are the professionals who send you patients. For them, your team must deliver phenomenal communication and updates. Referral sources want to know:
    • Did their patient receive care promptly?
    • Was the patient satisfied with the service?
    • Are you meeting the expectations set during initial discussions?

Unlike traditional sales, where the customer interacts directly with your product or service, referral sources are one step removed. This creates a unique challenge:

  • Providers don’t immediately know if your service is good or bad. Unless they hear feedback from the patient—or you follow up—they’re left in the dark.
  • You have to create that feedback loop. Show the referral source how well you did, even if they didn’t ask.
    Example: After receiving a referral, send updates on how quickly you started care, patient satisfaction metrics, and specific ways you fulfilled your commitments. “See how well we did what we said we would?” This builds trust and lays the groundwork for more referrals.

4. Long-term relationships are the focus

In home health, you’re not chasing one-off sales; you’re cultivating long-term relationships. This is where the nature of service-based businesses stands out. Referrals are built on trust, reliability, and consistent communication, not a single transaction. Your referral partners must feel confident that:

  • Patients they refer will receive excellent care.
  • Their partnership with your agency adds value over time.

These relationships require ongoing maintenance and attention, making home health marketing more akin to account management and growth than traditional business development.

5. Goals shift toward account management

The ultimate goal is growing the number of referrals, but this isn’t a pure business development play. Instead, it’s about managing and growing existing accounts while strategically adding new ones. A solid account management approach involves:

  • Regular follow-ups and check-ins with referral sources.
  • Sharing updates on how their referrals are being handled.
  • Identifying opportunities to deepen the partnership, such as pilot projects or expanding into new service areas.

6. Commission structures and tracking

In traditional sales, commissions are tied to deals closed. In home health, tracking and incentivizing referrals is more complex:

  • When does a referral count? Is it when a referral is sent or when a patient is admitted? This distinction is critical for commission structures.
  • Tracking time and effort: How much time does your team spend manually tracking referrals and admissions? Without a good system in place, this process can drain resources and lead to errors.
  • CRM integration: A referral management system can automate much of this, ensuring commissions are tied to clear, accurate metrics.

Strategies to Address These Differences

1. Leverage a CRM with intake management designed for home health and hospice

The lack of contracts and immediate visibility makes tracking referrals essential. A home health CRM:

  • Alerts your team when a referral comes in.
  • Tracks the referral source so you know exactly who sent it.
  • Helps you follow up effectively to close the feedback loop and build trust.

2. Establish a Follow-Up Process

Without direct customer service, you need to be proactive. Set up a system to:

  • Provide referral sources with updates on patient care (where appropriate).
  • Share outcomes that demonstrate your agency’s value.
  • Schedule periodic check-ins to reinforce the relationship and address any concerns.

3. Focus on Pilot Projects

Pilot projects are a great way to prove your value without a formal contract. Here’s how to approach them:

  • Identify what you do best (e.g., quick response times, specialized care like wound care).
  • Propose measurable standards you’ll meet during the pilot (e.g., same-day starts of care for patients in a specific service area).
  • Share progress and outcomes regularly to build trust and expand the relationship.

Final Thoughts

Home health sales is a game of nuance. Without contracts, monetary exchanges, or direct customer service, your success hinges on relationships, trust, and delivering results. By understanding these differences and tailoring your approach with the right tools and strategies, you can build a marketing engine that doesn’t just win referrals—it keeps them coming back.

Stay focused, stay proactive, and always make it easy for referral sources to see the value you bring to the table. That’s how you win in home health.

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