Re: All Digital sales approach

Paul,
I think Tim and I feel we want to allow Canada the flexibility to do some
out of the box initiatives to try to drive the uniqueness of this business.
Tim has a strong handle from his past on how to increase our visibility
through the micro-sites and consumer, we have discussed creating an
account management strategy as about 30% of the business that comes to us
is from referral relationships that need to be managed by someone 100%
dedicated to fostering these and growing these (stay tuned on some ideas
with Ashley and melissa on how we do this) and we would like to agree on a
market pricing range rather than a strict market rate card as it is
affecting this very competitive business. I am attaching our proposal and I
trust Tim and team will push every opportunity to as close to that 50%
margin as we can and need the flexibility in certain submarkets. See the
attached and let me know if approved so we can grow Canada. Thanks

On Fri, Jul 28, 2023 at 5:15 PM Timothy Thomas <tt@thekey.com> wrote:

> Thanks Paul. On average 18-20 starts a month from paid ads. Organic can
> yields another 10 on average.
>
> Enjoy the break!
>
> On Fri, Jul 28, 2023 at 5:12 PM Paul Kahn <paul.kahn@thekey.com> wrote:
>
>> Thanks for the quick response.  How many starts do you get from the
>> digital campaign?
>>
>> And have a great break.  I am taking off later next week too.
>>
>> On Fri, Jul 28, 2023 at 5:10 PM Timothy Thomas <tt@thekey.com> wrote:
>>
>>> Hi Paul,
>>>
>>> I wanted to answer you before I leave on PTO today so forgive me for the
>>> lack of polish on this response. I'll think about it in more detail and
>>> follow up should I miss anything.
>>>
>>> Canada has always been very reliant on consumer advertising as the
>>> referral market here is predominantly controlled by the government. Most
>>> institutions, hospitals, longterm care homes will direct patients and
>>> families to begin their search for care by working with their local
>>> government home care provider. Often times this care is managed by a
>>> combination of government employees and sub contracting agencies who bid on
>>> this high volume low margin business.
>>>
>>> Our clients typically come to us after having had a poor experience with
>>> the government option, or more recently having been on a long waitlist for
>>> home care. As most home care brands are not widely known, clients turn to
>>> google / word of mouth referrals to solve their needs. As the owner of
>>> Montreal, we always invested heavily in Google ads, as well as ensuring our
>>> organic ranking dominated our competition.
>>>
>>> Currently, our goal is to achieve a customer acquisition cost of
>>> $3000/usd per start of care via google ads. As of June or CAC was closer to
>>> $4500 per SOC so we have more optimizing to do. By targeting only the high
>>> net worth postal codes we hope to drive this cost down. If our average
>>> client produces lifetime revenue of approximately $18,000 the ROI is
>>> decent. By increasing our organic ranking the return can be multiplied and
>>> this cost is minimal (content creation, blogs, SEO and newsletters).
>>>
>>> What's not working at the moment is our website strategy and I hope to
>>> address this asap (Angie is aware). We have 7 micro websites, ex:
>>> www.homecareassistancemontreal.ca that haven't had any development work
>>> done since the acquisitions 2-3 years ago. Therefore our organic ranking
>>> has plummeted. We've launched www.thekey.ca but again no SEO work has
>>> been done so this doesn't yield many leads.
>>>
>>> Since the loss of our HCLs the only market that has suffered is Greater
>>> Toronto where we had 4 HCLs. This market most closely resembles the US
>>> market in Canada. It's highly competitive and senior living referrals were
>>> proving 6-10 starts a month. They were almost always Cheetah's so overall
>>> the revenue loss is more than offset by the savings on salaries.
>>>
>>> Some of our biggest referral partners are government entities. We have
>>> Vancouver Coastal Health (VCH), which refers us 24/7 hospital discharge
>>> cases. Some can last a few weeks, others several months. This now
>>> represents ~40% of the Vancouver business alone. These are not easy
>>> partnerships to secure but they can be very lucrative. There is an entire
>>> other market in Canada which involves going through an RFP process with the
>>> government. It's almost always low margin but on occasion we can find these
>>> VCH style contracts which are a good fit for us. I'm not an expert on this
>>> business and would consider hiring a consultant who could help us navigate
>>> the right contracts.
>>>
>>> Otherwise we have a network of GCM's, placement agents and senior living
>>> communities that provide us with a steady stream of clients. In most cases
>>> these relationships were secured prior to acquisition and simply require an
>>> occasional follow up to maintain.
>>>
>>> Hope this helps.
>>> Tim
>>>
>>> On Fri, Jul 28, 2023 at 4:18 PM Paul Kahn <paul.kahn@thekey.com> wrote:
>>>
>>>> Tim,
>>>>
>>>> Do you have any data around being all digital marketing in Canada?
>>>> What learnings do you have around that - what is working and what is not
>>>> working?  What kind of ROI?  any data that would be useful.  And also
>>>> anything lost by not having HCLS and only relying on digital market?  You
>>>> should also call out some unique characteristics of operating in Canada and
>>>> also other sources you get new clients from that don't require a sales rep
>>>> (HCL) and don't come through the digital marketing channel - eg govt.
>>>>
>>>> PK
>>>>
>>> --
>>>>
>>>>
>>>> *Paul Kahn*CFO |
>>>> *TheKey*917-821-0553
>>>> [image: TheKey] <https://homecareassistance.com/>
>>>>
>>>
>>>
>>> --
>>> Tim Thomas
>>> Head of Canada Division
>>> *Please note my email has changed:*
>>> tt@TheKey.com <tt@thekey.com>
>>> (514) 591-9387
>>> TheKey.ca <https://www.thekey.ca/>
>>> [image: TheKey] <https://www.thekey.com/>
>>>
>> --
>>
>>
>> *Paul Kahn*CFO |
>> *TheKey*917-821-0553
>> [image: TheKey] <https://homecareassistance.com/>
>>
>
>
> --
> Tim Thomas
> Head of Canada Division
> *Please note my email has changed:*
> tt@TheKey.com <tt@thekey.com>
> (514) 591-9387
> TheKey.ca <https://www.thekey.ca/>
> [image: TheKey] <https://www.thekey.com/>
>