This is a continuation of the Innovation series (see the list below)
Market research in the senior living industry is hardly out of the dark ages. It consists of the following elements:
- Market demographics, which means doing a statistical estimate of demand and comparing that demand with existing and under construction inventory.
- Developers then take a look at what has been successful in other markets and buttress those concepts by asking themselves what they would want if they were to move into senior a senior living community. The problem is that what the developer likes may not translate to the target senior population.
- Finally, a few companies conduct focus groups with residents and their families. There are three huge problems with focus groups.
- Often the residents and families have only been exposed to a single senior living community so that is the entire universe they are working from. While they can tell you what they like and don’t like, they have no real ability to say “I like this thing at one community and that thing at another community”.
- It is easy for people to say what they would like to have in a senior community when they don’t have any skin in the game. Just because people say they want something or would like to have something does not mean they would really be willing to pay for it, or would even take advantage of it.
- Most seniors only live in one or two senior communities. This lack of exposure to multiple communities limits the ability to think creatively or dream big.
The Best Idea
So here is my idea. I would propose someone needs to gather a group of six to ten adventurous assisted living residents and, over a six month period, have them live in six different assisted living communities. They would be interviewed throughout the process about what they liked and didn’t like, what worked and what didn’t, what had value and what was a total waste. You say impossible! . . . . . maybe, but I am not so sure. I could see a large national company or a coalition of not-for-profits take on a project like this. Not only would it provide valuable insight, but it would create a great opportunity for publicity. But in case you don’t like this idea here is my second best idea: Or, here’s an idea, some network could pick it up as the latest in reality shows: Big Brother: Senior Living.
Second Best Idea
With a large pool of residents across the country there are going to be a small subset of residents who have lived in more than one community. Interviewing those residents about the differences could provide a fractional view of what works and what doesn’t.
Why We Need This
In all parts of life and business we tend to do again what we have always done (including this blog). The problem is that doing it the same old way puts blinders on us, causing us to miss brilliant and creative better ways of doing things. The boomers will bring a raft of new and different needs and wants including a shortage of funds. We need to do everything we possibly can to be smart about finding new better ways of doing senior housing. My biggest fear with Senior Housing Forum is not so much the stuff I don’t know, because I can work on that. What worries me even more is the stuff I don’t that I don’t know. The same ought to be true in the senior living industry. What kinds of research do you do? How to you innovate?
Steve Moran
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Great idea, Steve. Brilliant, actually. “Gather a group of six to ten assisted living residents and, over a six month period, have them live in six different AL communities. They would be interviewed throughout the process about what they liked and didn’t like, what worked and what didn’t, what had value and what was a total waste.”
After the “live” survey, senior living providers find useful surprises and tips! This is a good customer service strategy too.
Changing your best idea up a bit: Gather a few boomers (those who never lived in a senior living community) move them in for a month or so – you’d get an earful of what matters to the future clientele!
Carol, I think the idea of having a bunch of boomers move in for a month is a brilliant idea.
Steve
Let me begin by saying I value and appreciate your blog and read it regularly. So today, your blanket dismissal of market research techniques in the senior housing industry caught my attention, of course, because that’s been my business for over 25 years. A few initial comments seem appropriate.
• You can, if you wish, dismiss the need to do a demographic and competitor analysis, but it is and should be a fundamental underpinning to analyzing a market. It forms a basis for determining how much more product the market can bear, how much competition the developer will face and how he can differentiate his offering and create or enhance his brand.
• Like it or not, lenders require this type of analysis and frankly, I think it is a critical factor in helping to prevent the development of communities that may struggle or fail.
• I take issue with your criticism of the value of the opinion of a senior who hasn’t lived in multiple senior housing communities. How many houses did you live in for a short time before you decided which one you wanted to buy? Why not give them credit for being able to do their homework, visit numerous options in the area where they want to live, and come to a good decision.
• Focus groups are only one of several research techniques that are used to learn more from consumers. Telephone and mail surveys, lost prospect surveys also provide researchers and developers with information on which to make decisions.
• Recommendations are not only based on what the researcher sees in the developer’s market. All of us who are truly committed to this field are constantly monitoring trends from around the country, identifying innovations and discussing those changing models with our peers in the industry. Frequently, things that are working elsewhere form the basis for suggestions to the developer we are working with.
In terms of keeping up with where the future will take us, we all are committed to staying on top of the “news”. After all, I am reading your column on a daily basis, aren’t I? And yours is only one source of information I make sure I read on an ongoing basis.
So let’s have a little respect.
Susan B. Brecht, President
Brecht Associates, Inc.
Susan thanks for joining the conversation. I am fearful I was not clear enough in my writing. I absolutely believe in and support and would never suggest that developers not do traditional market demographics. They give you a fundamental understanding of demand, competition, pricing and a host of other valuable information. It would be foolish to not do those things, so no ill will was intended and if I left that impression I am sorry.
While I would agree that talking to a senior who has never lived in a senior community or has only lived in a single senior community has value, in that in the case of a resident they can tell you what they like and don’t like, they don’t have the same perspective as someone who has lived in more than one community because of a lack of perspective.
Finally, with respect to focus groups. They can provide great insights into what people are thinking and what they like and don’t like and what their desires are. The big challenge with focus groups is figuring out if they will actually be willing to pay for what they say they want.
So again, I meant in no way to disparage current methods, but I do believe they don’t paint a complete enough picture in terms of perhaps taking us to the next big disruptive way of doing senior living both in terms of building design and programing.
No disrespect intended . . .
Steve
PS: You got me on the house thing. The house I live in is the first one my wife and I looked at when we went house hunting . . . except we have lived in maybe 20 different houses since birth.
Steve
I just love the dialogue and I appreciate your taking the time to respond. There is room for many new ideas and I hope that I will do everything I can to stay in touch and contribute to the world of new ideas.
Thanks and hope to see you at one of the upcoming conferences!
Susan
Steve:
I agree with you that a focus group provides a wealth of information. I think that there is also another approach to obtaining some information for this purpose. Would it be worth it to consider the opinions and feedback from 55+ employees at Senior Living Communities that might have past work experience in several communities? I always can feel and see the impact I am having on a senior when I am volunteering. I am with a Senior Move Management firm, so I know that our insights into downsizing have value to the move in coordinators at the communities. Employee’s could provide feedback on a national level that would be interesting to read. They also would know what kind of things our seniors enjoy doing together. Thanks
Steve, I love these ideas.
I do see a problem with six different locations in six months. Many/most of our residents that finally move into A.L., already have serious memory problems. I think this would just make the residents more confused. Perhaps,only the very sharpest of residents could spend six different locations in six months. They would have to fill out surveys during their stay and immediately afterwards, otherwise the confusion would be too much for them to handle.
I would like to see people moving into A.L., at a younger age, our average age is mid- eighties. This way they will be able to enjoy a lot more activities and will be more active so they can get out for other things then just a “lunch” or a trip to Walmart. I would like to see the residents be able to go out to movies, plays, and concerts. Our people can’t do that any more ( with the exception of 2-3 people) and they get frustrated it they have to wait for 20 minutes before the activity starts.They are so used to being entertained every second that they would not be able to sit and wait through viewings of trailers of other movies.
I am just thinking of what we see in our A.L., I don’t know if they are the exception or the rule.
I hope this feed back has been useful.
Here is another suggestion for your focus group idea: Most metropolitan areas have multiple local placement agencies (not Internet-based companies, but I am referring to those which personally visit each place and tour with seniors and their families and listen to their feedback). They could provide a wealth of information from their collective experience.
Steve – “Asking the Right Questions of the Right People” begs the question of who are the “right people” and to whom should the “right people” be asking these questions? I believe that the approach to finding the right Senior Living Community starts with the builders of the communities. Most Senior Living Communities I have visited have given zero thought to the market which they are serving. Hardly any communities I have seen give any thought to the layout of the space. “Aging in Place” is meant to enable individuals to live and remain in their homes rather than being transferred to different facilities. When you enter a 55+ community, you are in relatively good shape, God willing. However, as you age, people become reliant on different medical equipment to ambulate, and to perform their Mobility Related Activities of Daily Living (MRADL’s). I believe that the builders should hire Durable Medical Equipment consultants along with Home Modification Specialists to educate the builders as to what details of the structure need to be considered in these communities. How wide should the doorways be? How tall should the toilets be? How open should the floor plan be? Should the entrances to the front door have steps? These are the type of questions that DME and Home Mod. Specialists can educate the builders of these communities on. From my experience as a Durable Medical Equipment owner, I know that patients and caregivers do not have the knowledge about the products’ measurements, and other criteria that are critical to getting the correct sized equipment, and what other obstacles they will be presented with on a daily basis when assessing an individual’s needs according to their medical condition, which will have an effect on the size and shape of bedroom, bathroom, staircases (if existing), as well as the kitchen and living room. Therefore, I believe that the correct people asking the questions would be DME and Home Mod. Experts, and the builders would be the proper people to address these questions to.