Building a Better Wait List
Building a wait list seems like a great move. But it could be hurting your lead nurturing in ways you can’t see.
by Donna Wardell, Director of Client Services
Traditional waitlists have been used for decades by CCRCs across the country as an indication of interest for future move-ins. The thinking is that if a lead isn’t ready to move now, securing a small deposit of perhaps $500 or $1,000 accomplishes two things. First, by making a payment, the individual or couple is more committed to your community and less likely to move elsewhere. Second, the payment is an indication of real interest, making them more worth your time and attention in future months/years.
These are sensible ideas. But if they were correct, then why is it so common to see communities with wait lists that also have a significant number of available apartment homes? When a community with 500 people on its wait list commits to building a 112-unit expansion, why aren’t all of the apartments (or at the very least, the priority club) immediately sold out?
Why is it so common to see communities with wait lists that also have a significant number of available residences?
Most wait lists are practically meaningless
The hard truth: many, many folks on a wait list never have any intention of moving in. For some, it’s a way of doing something—anything—so they can feel like they have a plan for their future. But in reality, they’re completely uncommitted. It’s the ultimate “this is for later, not now” indicator.
We’ve even seen wait lists full of people who forgot they joined, who have passed away, or who are on wait lists for multiple communities. These leads can take up valuable time from your sales team, who could be prioritizing more productive contacts.
A wait list can work against you by giving people emotional “permission” to kick the can down the road to be dealt with in the future.
Your wait list could be hurting your sales
Having a wait list while you have open inventory makes very little sense. If the lead were ready to move now, they would move now. And unfortunately, a $500 or $1,000 refundable deposit isn’t enough to make people committed to moving at a future date either. The low payment and option to refund can even give people emotional “permission” to kick the can down the road to be dealt with at a later date.
It’s time to rethink what a wait list really is, and when to implement one. We believe that a wait list really only makes sense when you reach high occupancy and low inventory. If you have open inventory that matches what a lead is looking for, but they’re not ready to deposit, then you need to just keep working them until they’re ready.
The DNA of a proper wait list
Where a wait list has real value is when you have someone who wants to be part of your community who wants a home type that isn’t currently available. In that case, you want to get that lead to commit to your community before they reconsider and move elsewhere.
This is accomplished by creating a wait list that requires a significant entry fee payment—as much as 10-15% of the actual entry fee for the lead’s desired residence. Real commitment from the buyer requires real money, such as a $60,000 or $80,000 payment to get in line for the next open apartment.
This “serious inquiries only” wait list has value both for your community and the buyer. Your community knows the buyer is serious and is worth your attention. And the buyer knows they’ve actually secured their spot in the community once their desired type of home becomes available. It’s a win-win for all involved.
So what happens when one joins this new high-value wait list, but then isn’t ready when their preferred floor plan is available? The lead can reject the offer, but only a limited number of times (this is spelled out in the wait list agreement). If they turn down the available floor plan more than the prescribed number of times, their deposit gets refunded (minus a service fee). Of course, they can rejoin the list at any time with another 10% deposit.
Launching a real wait list
In recent years, we’ve worked with multiple clients who have reached high occupancy and chosen to end their existing wait lists to implement this type of high-value wait list with great success. Several clients have asked us to create a new brand for the list so it feels more comprehensive and real.
Existing wait list members had to actively choose between getting their original payment refunded or applied toward the new (much higher) wait list fee for a specific floor plan. In the database, anyone opting not to join the new list was simply reclassified based on their interest (still a lead, no longer interested, passed away, etc.)
Our clients who have gone with this new model are also typically referring to the folks on the new list as “future residents” rather than “waitlisters.” And most communities are creating fun events exclusively for those on the new wait list. This is a smart business decision because now you’re spending money on a smaller group that is committed rather than a much larger group of people that may have no intention of ever joining your community.
Switching to this new model may be painful for prospects who felt like they had their futures buttoned up for a mere $1,000. But adopting this new model of wait list is really the only effective way of filtering out the “tire kickers” to focus on folks truly desiring to join your community.
About Anstey Hodge
Founded in 2003 in Roanoke, Virginia, Anstey Hodge is a full-service marketing agency specializing in senior living. Our team is made up of marketing experts with deep experience in strategic marketing planning, brand development, digital advertising, SEO/AIO, creative campaigns, website development & interactive tools, and more. Anstey Hodge is a certified Google partner agency.
This article is just one in a series of articles sharing some of our lessons learned over the past 20+ years as leaders in the industry.