As I knock around North America visiting senior housing communities and talking with operators there is a common theme that runs through almost every conversation.
“Senior Housing is Behind the Times”
We as an industry are behind the times in at least these areas:
- Sales and Marketing – Hardly changed at all in . . . well forever.
- Webpage Design – For the most part you could toss all senior housing webpages in one basket and the community names in another; then randomly grab a webpage from one basket and a community name from another, merge the two and no one would know the difference.
- Building Designs – There has been some creative thinking in the area of memory care, but I am not sure any of it has been radical or disruptive.
- Programmatically – There have been some fairly significant tweaks in this area including a lot of buzz about person centered care, but ultimately you will find almost every activity program anchored with bingo, birthday celebrations and Bible study.
- Technology – This fifth area is where I will focus the balance of this article.
Technology in Senior Housing
I am a bit of a technology junkie and while I have a number of business relationships with related to Senior Housing Forum, my closest connection is with Vigil Health Solutions a senior housing technology company that today provides high capability emergency call systems and call systems is one area that has experienced radical technology growth. We are also seeing communities install community wide wifi and big screen TV/Internet systems. There are several reasons technology in senior housing is behind the curve:
- There is a perception that seniors and care givers are technophobic. I have a sense that often, those providing care and managing senior communities are more technology resistant than the residents.
- Technology development is expensive and the market is relatively small. Even if a company came out with the zoomiest cool technology gadget that every senior in independent living, assisted living and skilled nursing just had to have, they would sell maybe a million units compared to the hot new smart phone that will sell millions of devices in a few months. As a result devices are much more expensive.
- New Technology requires early adopters. People who are willing to take a chance on new technology when it is not fully flushed out, when it is rough, which means it will not work perfectly. Kari Olsen, president of Front Porch Center for Technology Innovation and Wellbeing is one of those people but we need more of them.
Looking Forward
Last week I published an article about the Marcus Evans High Roller Summits. The other player in this space is Lincoln Healthcare with their LTC and Senior Living LINK Conferences. They are an organization that has totally embraced the idea that Senior Housing Technology is way behind the curve and is doing something about it. In part two that will publish on Thursday I will lay out what they are doing to change this. But as a tease . . . You can come be a part of the LINKTANK action by getting a chance to hear pitches from innovators, asking questions of the innovators and voting on their ideas. Details to come on Thursday. Finally if you are someone who has a great idea and want’s to pitch it, I will talk about how you can play in the Thursday post. My question to you readers: How would you complete this sentence? I wish someone would figure out a way to __________________________________ (of course in the context of senior housing). You can now read part 2: Help Discover the Next Great Senior Living Technology Steve Moran
Steve …There is great company providing the tech and support to assited living facilities.. Check out Connected Living ….ConnectedLiving.com
Simplified touch screen Tech working with all the major assisted companies providing traing and support and changing the atmosphere and character of the facilities… All positive / the best marketing tool for any facility.. Ability to stay connected to to family and all those important to you..Also back of the house for facilities…
Steve, my experience as a marketer and a writer in the health tech field confirms that often staff–even senior staff–is not comfortable with technology per se, and having to read, interact and interpret with data on web-based platforms. This is starting to mellow but it’s still there. Combine it with the capital and ongoing cost factor–and often that special installations have to be done–and it’s easier to say no than yes.
Funny that you mention marketing as an area behind the times in senior living….invariably, I’ve been called about ‘marketing’ positions at senior communities and even HQ, and they are always, always, always SALES positions. Sales and marketing, as any textbook will tell you, are two different functions. If you look upon marketing as finding out where your product or service fits in the life and pocketbook of the customer, and getting it there–profitably–that is a function missing in most senior communities.
Donna you are so right about sales and marketing, very different functions and almost always miss labeled. I think mostly because sales is perceived to somehow less desirable.
Steve
Hi Steve,
I have to say I don’t think I agree with the first point about sales and marketing. There definitely have been changes in terms of lead management and proper sales funnel tools (we provide these).
The problem is the awareness of retirement homes that such tools exist, not to mention their reluctance to use technology and CRM to manage their homes. Changes have been made in terms of what vendors provide, but unfortunately most homes prefer an archaic system of excel spreadsheets and pen and paper.
Great post.
Hi Lior:
I would agree that there has been some adoption of technology to help in this area. I have a couple of questions, because I just don’t know the answer. Has this technology helped to reduce costs for communities? Are communities using them to the point where they are actually getting more move-ins?
Steve
@ Lior, many communities do not have a sales and marketing plan beyond a sketch–and Excel would be an upgrade for some. It’s the consistency that’s key. I’ve been in organizations where Salesforce is there, just that no one uses it!
A strong, differentiated message based on a sound positioning statement, media outreach and partnerships with the community, local organizations and vendors often is a foreign language to communities.
@Donna, I agree with you on the first part. We specifically provide a customized version of Salesforce for retirement homes, to make those problems easier. But even then the adoption rate of our users is low. Personally I think it comes from trying to shift the people who were hired for pen and paper jobs into a tech savvy position where CRM is not their expertise.
I agree with the second part and I notice that those that work with top senior marketing consultants really have their funnel down. Are you a consultant yourself? Coming to ALFA?
I have in the past (when I was with Living Independently Group, the developer of QuietCare, the first remote behavioral/ADL monitoring system). Senior housing and LTC are my areas in part but I’m more focused on health tech.
From LinkedIN Groups
As a partner of a new and innovative company, Senior Learning Network, providing lifelong learning to engage seniors, we see the technology limitations of nearly every senior center we come in contact with. It seems that many of the senior centers administrative staff do not see the need to make the changes in broadband or equipment to meet the needs of the newly arriving seniors…Baby Boomers.
By Ellen Ervin
From LinkedIn Groups
As a health care provider, I am totally perplexed that senior living communities have a designated room for licensed hair care but none for health care. Multi care treatment rooms in senior living communities will decrease costs, increase access to care, promote dignity, and emphasize infection control. How did hair salons become part of the senior living amenity mix before the most needed amenity of all?
By Stuart Boekeloo
That’s a good question Steve. The answer is twofold. Yes, in most cases communities have streamlined their sales process to the point where they’ve seen a 20%+ increase in sales from the CRM adoption alone.
The other aspect you have to keep in mind where they can be saving money, and one of the reasons they decided on our software in the first place, is in how much they are saving on other things. Saving time from no more pen and paper, saving server costs, IT departments no longer necessary, etc all contribute to less time in administration work and more time increasing occupancy and improving resident lifestyle. This alone reduces costs tremendously, not to mention increases revenue by streamlining the sales process.
Lior
Let’s go back to your question.
I wish someone would figure out a way to…
I wish someone would figure out a way to make the items that technology creates, a tool. New technology is not an “end all to be all.” Tools have a purpose, that purpose is straight forward and easy to understand. The tool “a hammer” is easy to use, easy to understand its use and easy to get results. The tool “the telephone” is easy to use – you pick it up dial and talk or if ringing pick it up and talk. Though technology has changed the phone, from wired to wireless cell phones, from operator assisted to smart phones – the purpose of the phone is the same… communications. You don’t have to understand the technology behind the phone to use it, in fact even a small child can use it. The best “technological” tools are the ones that are intuitive and doesn’t take all your time to use it. Technology shouldn’t have you go through ten layers of “If you are calling for sales push “2”, for hours push “3”, it should be transparent and not slow down or complicate the communication. We as users of technology shouldn’t be engrossed in it. I have seen that with CRM software where the users concentrated more on the numbers and the process and not on the customer. If you look at technology as a tool to help you, whether you are in sales, community management or owners then it can enhance what you do, how you do it and allow for more time for personal involvement with your customer or resident, your staff and your community.
Stuart – It is not about the space but where you do it. In my independent senior living community we have several home health care providers but all of them provide health care in the apartments (med monitoring or bathing assistance) or from the apartments to areas in the community (such as meal assist). In contrast the beauty salon doesn’t go to the apartments to provide their service, since most of what they do rely on equipment or tools that they have in the salon. Maybe a closer comparison would be physical and occupational therapy. Here I do rent space to that group since much of what they do is in the privacy of their rented office. If I was a health care provider in an independent senior living community, I wouldn’t spend my money on office space. Instead I would focus my time and money on marketing my company to the residents and/or kids (influencers) on what I could do for them. I also have health care professionals such as podiatrist and audiologist that don’t have an office space in the senior living community, but instead provide monthly free services such as hearing checks and free toe clippings. If there is a need for additional care, an appointment is made in the “off site” office and free transportation is provided by our community’s shuttle service. At this level of health care is it better to have the traditional office structure instead of an “on site office”. One other concern with having multiple health care offices. Our community is independent senior living, not assisted or skill nursing care. In those communities they have nurses and other health care workers on staff 24 hours a day. In our community we focus on the senior retirement living, with activities, a safe environment, interaction with other seniors and many of their needs provided for, such as meals, housekeeping and transportation.
Bill,
I’d argue that simplifying the sales process whether through technology or strategy, you are creating a tool. Once again it goes back to the user to be able to use. So I do think you have to understand the technology to use it, at least somewhat, so you understand how it is saving you time as I mentioned.
Let’s not forget what CRM actually stands for. The users can’t leave out the Relationship part of it, just because technology is their new tool for managing their sales process.
Lior,
In the senior housing field I have used two opposite end systems. YGL (You’ve Got Leads) and paper DI cards. With YGL, which is a good system of tracking leads. In my experience we work with prospective residents, some times over many years. Often it was with different sales people, so having a narrative of who, what, when and where is very helpful. The system allowed us to search not only for the potential resident but their family or key influencers as well. Also the follow up task feature helped in keeping an ongoing contact with that lead. Unfortunately senior sales management use the system as a “whip on the back of the servant” constantly checking to see how many calls you did this hour and phoning you with their displeasure. It doesn’t account for the time you spend with the customer building a personal relationship. To the sales management it was a number system of so many calls = so many tours = so many move ins. They didn’t see it as a tool to save time and help build relationships and understanding with your customers. For us in senior housing living a key component do success. I agree with you that you do need an understanding of the technology to effectively use it, but it should not be used as a single focus of numbers and statistics.
On the other side is DI cards a paper system of cards, files, carbon paper and boxes. A cumbersome process when you have hundreds or thousands of prospective leads. It’s a challenge to read handwritten notes, names and address from multiple people over the years, along with being a daunting task to look up names of interested seniors, their families and their friends. It is a slow process that takes your time away from creating effective relationships with your customers.
I view all of the resources I have (direct mail, advertising, websites, closing skills, phones, CRM software, senior housing knowledge) as tools in my tool belt to help me be successful in providing for the needs of seniors.
What software do you provide?
This is why I mentioned the necessity of understanding what the tool is and how it use it, not just for effective ROI but for effective relationship management. There are two types of sales strategies out there: those based on stats and how many deals closed, and those that recognize the value in building a relationship with the customer in the long run as well. I believe if that if the sales manager had the former sales strategy, that whip on the back would come either with or without CRM stats.
As for what we provide, we built an an entire app or “skin” to the popular Salesforce.com CRM, which is customized and tailored to retirement home management. Everything from senior living sales and marketing processes with lead capture to Billing to Resident Operations and lifestyle within the community. Extreme reporting on every aspect is another crucial feature. As I explained above, if built and used correctly like we train our clients, you will not only close more deals but save more time to focus on building more relationships with prospects or residents in the building.