Archive for the ‘Marketing’ Category

The 80/20 Rule as It Applies to Seniors Housing

Friday, August 5th, 2011

I have always wanted to improve my time management skills—who doesn’t? So I bought a couple of books, The 80/20 Principle by Richard Koch being one of them. The 80/20 Principle basically says that 80% of your outputs result from 20% of your inputs. The principle works in all kinds of ways, even in the criminal word. Apparently 80% of the crimes are committed by 20% of the criminals.

(In the US the 80/20 rule also refers to the Federal Fair Housing Act as it applies to communities that are designated for seniors—at least 80% of the units must be occupied by someone over the mandated age, 55 or 62 or whatever.)

So all this got me thinking about the world of service-enriched seniors’ housing and how the rule could be applied there. Here are some possibilities:

• 80% of resident satisfaction is attributable to 20% of operational efforts.
• 80% of food satisfaction is due to 20% of menu items.
• 80% of profits is due to 20% of effort.
• 80% of positive word-of-mouth marketing comes from 20% of residents.
• 80% of complaints come from 20% of residents.
• 80% of internal productivity advances are suggested by 20% of employees.
• 80% of new residents come from 20% of marketing efforts.

Operators who are able to figure out the 80/20 distribution in their communities are in a position to make a huge contribution to resident satisfaction as well as to the bottom line. After all, if the principle works in the world of crime, it must certainly work in the world of seniors’ housing.

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Social Media in the Seniors Housing Industry in Canada

Wednesday, April 20th, 2011

We here at Lumina Services are slowly moving into the 21st century. We have a blog on our website, we have podcasts on our website, we have a page on Facebook, and we have a twitter account, although we have yet to tweet anything. Part of the problem of course is that there is no one to tweet TO! We recently went through the websites of half the members of the BC Senior Living Association and found two tweeters (people who tweet?)and one Facebook page. I thought that was pretty amazing, although it also made me feel a lot better about being such a latecomer to the world of social media.

So stay tuned!

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Food and grab bars

Friday, April 8th, 2011

I realize that I have posted about these two issues on numerous occasions but they are both something of bêtes noires for me.

I have been travelling a lot and have eaten at several seniors’ projects. In one of them (which will remain nameless) the food was execrable. It isn’t often you get to use “execrable” in a sentence and I would have been glad of the opportunity if it weren’t for the fact that because I couldn’t eat the food I was extremely hungry.

I mentioned this to my good friend and colleague Rita Thibault at Westbridge Group Valuation Partner and she said: “Aren’t people trained to cook decent food for large numbers of people?” Good question. One of the residents at a sister project of the aforementioned community, where the food was much better but apparently still not up to snuff, commented that if the chef really were trained at some school the school ought to be shut down.

It consistently amazes and astonishes me that operators serve such lousy food. Even in projects that are fully funded and also full of people who can’t afford to move anywhere else, you would think simple human decency would lead these operators to serve decent food.

Then yesterday I ate a community that prides itself on its food and rightly so. My lunch was delicious. Food costs here are $7.50 per person per day, which is on the high side, but not only are the residents happy, the community generates a lot of revenue by catering outside events.

Enough said about food, at least for today, and on to grab bars. I have been in two seniors communities recently that have no grab bars in the bathroom because these communities are intended for “independent seniors”. That’s just dumb. Even hotels are better than that, or at least some hotels. I am currently staying in a brand new mid-range hotel and there is not a grab bar in site although the bathtub is very high. How many people do you think actually have baths in hotels? Very few I imagine. Why don’t they install showers instead? Even if there is some logic to the bathtubs, why no grab bars? Grab bars make tubs safer for everybody, to say nothing of the one in four British Columbians who are going to be over 65 in no time flat.

So there you have it – my rants for today.

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An Asian Retirement Community

Thursday, March 17th, 2011

Readers of this blog are by now familiar with one of my many obsessions, that being the impact of multi-generational cultures on the demand for supportive seniors housing. The hypothesis is that in cultures where families look after their elders at home until they are so frail they need residential care, the intermediate step of supportive housing (IL, congregate care, service-enriched) is skipped. Here in very multi-cultural British Columbia, there is lots of evidence indicating that this hypothesis is a sound one. For example, in spite of a very large Chinese population (which typically cares for elders at home) there is only one small private pay supportive housing project targeted at the Chinese community.

But a recent issue of the Journal of Active Aging focuses on a retirement community targeted directly at the Asian community in Fremont, California that has been around for a decade. Fremont is a community of just over 200,000 people that is part of the much larger San Francisco Bay area (over 7 million people). The 64 unit project is owned and operated by Aegis Living and is called Aegis Gardens. The article is very positive, highlighting the linguistic skills of the staff (all, at a minimum, speak Cantonese or Mandarin or both), the design of the project (incorporating feng shui principles), and the activities (tai chi, mah-jong, origami). Food is not addressed in the article.

Outcomes have been extremely successful—80% of residents participate in physical activity programs, falls are a fraction of what they are at most communities, average age is older than at most other communities, staff turnover is extremely low.

The president of Aegis is quoted in the article as saying the company needed to negotiate a very steep learning curve on the way to success.

Part of that learning curve is described in an article in the San Jose Mercury News in 2004. That is a very long time ago but it is interesting to note that way back then, residents were upset. Here are some excerpts from the article:

But in the last few months, residents say, beloved Chinese staff members have resigned or been released, and replaced by employees who speak only English. The new staff members have implemented several culturally puzzling changes: buying wine for “happy hour,” moving a pingpong table into the tai chi space, and banning residents from cooking zong zi, a special rice dumpling prepared for the Chinese Dragon Boat Festival.

Residents have also complained that the center only spent $5.25 per resident a day on food. Though management has since raised the food budget to $5.75 a day, the food budget remains an issue. [note: $5.00 per day on food is quite common in 2011]

The Aegis Gardens situation is a “typical business problem” among companies trying to serve ethnic communities, said Felipe Korzenny, Florida State University professor of marketing communities and a local marketing consultant. The Aegis company has no Asian-American managers or corporate executives outside of its Chinese-oriented facility, Lucas said.

Note that was way back in 2004 and clearly, Aegis has addressed those issues. But the fact remains that in a metropolitan area of over 7 million people, where 20% are Asian, there is only one very small retirement community for those 1.5 million people.

Perhaps there are others and if any blog readers know of them please let me know.

Note: in US demographics “Asian-American” typically includes people of East, South East and South Asian descent.

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Integration or segregation of assisted living services in independent living communities

Wednesday, January 26th, 2011

I have posted about this before and there is also a section on the subject in my book The Future of Seniors Housing: Planning, Building and Operating Successful Seniors Housing Projects (now available on our website and soon to be available on Amazon etc).

The thing is, I think I have changed my mind since the book was published (that would be last month). Aha you may think, she is already cleverly planning the second edition. That’s not true although I do think about another book from time to time. What has changed my mind is talking to many people in the industry in recent weeks about the provision of assisted living services in retirement communities. The Lumina Group is working with a new entrant to the industry and it is up to us to advise him about the right strategy—he has no preconceived notions and no established model he is unwilling to deviate from. Should he plan to deliver personal care services to his residents who need them wherever in the building they may live, or should he develop a separate wing for his assisted living customers?

The book comes down on the side of the segregationist model although when you think about it, the term “segregation” has so many negative connotations that its use should immediately raise red flags. But the support for the segregationist model reflects quite specific circumstances in which the assisted living residents are really very frail and receiving significant levels of personal care—hours per day, not minutes per day. In those situations, more independent residents may feel very uncomfortable living cheek by jowl with their much frailer neighbours and as Victor Regnier has pointed out, the feelings may well be mutual. (See my book for further information, or any of Victor Regnier’s of course).

But when daily hours of care are not so extreme, most industry people we have polled strongly support integration. I will go into more detail about why in later posts. In the meantime, I am working on the second edition of The Future of Seniors Housing.

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I Have Seen the Future…and It’s Open Kitchens!

Friday, October 8th, 2010

A couple of weeks ago I toured the new Tapestry at UBC project, which just opened. Like its sister project, Tapestry O’Keefe, the UBC project offers both rental units and condo units. One of the things that struck me about the dining room was the open kitchen, which is sort of like an Earl’s. I wondered whether seniors might like that idea, or not. It’s unusual in upscale communities, although there may be a grill area adjacent to the dining room where special events occur. The Dunfield in Toronto offers this feature—there’s a grill-to-order event every Friday night. Some less upscale communities have open kitchens, but these are somewhat more reminiscent of hockey arenas than an Earl’s Restaurant.

So I was happy to tour the Belletini in Seattle last week, not exactly a sister to the Tapestry projects but definitely related by virtue of management by Leisure Care. The Belletini too has an open kitchen and according to both the Chef and the Marketing Manager, the residents love it! They love to interact with the chefs, they love to see the food being cooked, they like the general liveliness created by all that activity. There is a counter facing the kitchen that has six quite high stools for eating and watching. Apparently these stools are occupied the minute the kitchen opens at 5, notwithstanding the fact that when I say the stools are tall, I mean they are tall! The Chef told me that if people need help climbing up on them, they help them—no big deal.

So there you go. Never hold a preconceived notion. More on the Belletini and another Seattle-area project in forthcoming posts.

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Why it Would be Wonderful to be a Seniors’ Housing Market Analyst in the USA

Wednesday, September 1st, 2010

I have made this point before several times (about the vastly superior information on the US seniors housing industry) but I was struck anew by the disparities between our two countries earlier this week. The wonderful National Investment Center is celebrating its 20th anniversary. It also has a new Research Director. In a recent newsletter, the Research Director talked about some of the directions he wants to pursue over the next few years. Here are some of the things he said:

Given the ever-increasing interest in our sector, we’re working to stay ahead of the curve, so to speak, by anticipating the research needs of our industry’s participants and prospective participants. Therefore, our top research priority remains the product enhancements associated with NIC MAP. That includes not only a forthcoming tool for portfolio benchmarking but also thereafter reports providing local trends analyses. In addition, NIC MAP reports soon will incorporate detailed sales transactions metrics, and we look forward to regularly reporting market effective rents, which incorporate any leasing promotional discounts. Later this year, in our ongoing effort to disseminate insightful and timely industry research, we’ll publish the inaugural edition of the NIC Investment Guide 2010 that will serve as a primer on our property sector and has been proclaimed by a number of the draft document’s reviewers as an unprecedented comprehensive overview of our industry.

[NIC Map is a quarterly data and analysis service that collects and disseminates a broad range of information on the seniors housing industry in the top 100 metro areas in the US.]

From a Canadian perspective, that is just an incredible goal. We are so far behind the curve we have no idea if it even exists or if we are in danger of driving off the road.

Here’s what I mean. Over the last few weeks it has become apparent that one of the sub-regional markets we track in the metro Vancouver area is very soft—much softer than any of the operators will admit to and much softer than the CMHC Seniors’ Housing Report indicates. The CMHC report indicates that the vacancy rate in this area is well under 10%. Legitimate people (ie real people, not mystery shoppers) seeking accommodation in this area have been led to believe that there are very few vacant units available and that anyone wanting a unit needs to act fast. If we were mystery shopping the area we would be told the same thing, although we are a lot more sceptical about what marketing people tell us.  We look for other signs confirming the official story but often it is very hard to tell what the true vacancy situation is.

Rather disconcertingly, reliable information indicates a vacancy rate in this area that is approaching 20%. I can understand the motivation of the marketers: telling people you have a vacancy rate of 15% can be discouraging to prospective residents.

But the enormous difficulty of trying to truly understand the market means the signals to operators, developers, lenders, and analysts are confusing or contradictory or both. Not to mentions disingenuous to the consumer.

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Sun City Arizona is 50 Years Old

Friday, August 20th, 2010

That seems almost impossible to believe.  Not so much its age per se, but the fact that it was built when the median age in the US was 29.5 and the oldest baby boomer was 14. Today the median age is 36.7 and the oldest boomer is 64. Del Webb died in 1974. I don’t know if anyone has written a biography of him but it would certainly be interesting to ask him how he came up with the vision of enormous retirement communities when the US was comparatively so youthful. Wikipedia notes his many accomplishments, but doesn’t touch on this subject. The entry does note though that on opening day, 100,000 people came to check out Sun City–so many that Del Webb had to survey the scene via helicopter.

In 2010, more than 40,000 people, 98% of them white, live in Sun City, which contains seven recreation centres,  eight golf courses, three country clubs, two bowling centres, an amphitheatre and a lake—the largest concentration of year-round recreational facilities in the United States. According to the 2000 census, 80% of the population of Sun City was over the age of 65. The median age is 75, twice the national median of 36.7.

These are staggering statistics. The oldest mid-sized urban area in Canada is Parksville, BC, on the eastern coast of Vancouver Island. Compared to Sun City, Parksville is positively youthful—only 34% of the population is over 65. Perhaps because of this comparative youthfulness, not many developers of golf course communities have been drawn to the Parksville area, notwithstanding its assumed appeal for retirees and seniors. The closest golf course community is Fairwinds, which offers “1,350 acres of living” consisting of one golf course, one marina, a community centre and 400 residential units. Arbutus Ridge is further south and a little bigger, with 600 residential units. The 830-acre Crown Isle Resort is an hour north of Fairwinds. And that’s basically it for active-adult type of communities in what is usually considered the epicentre of retirement living in Canada.

I wonder what Del Webb would make of that.

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Help Required: Title for Book on Seniors’ Housing

Saturday, August 7th, 2010

As regular readings of this blog know, I am writing a book that will be published shortly (meaning in the next couple of months). It is currently titled The Future of Seniors’ Housing: Planning, Building and Operating Successful Seniors’ Housing Projects.

That is quite a dull title I admit. A book designer suggested I come up with a more exciting title and use the existing title as a sub-title. That is a great idea but the problem is I can’t think of a catchier title. If it were 2005 and not 2010 Silver Tsunami would be perfect but unfortunately about a million other people have used that phrase over the last several years. I tried a few variations on the golden theme but lots of people think “golden” should not be used in any context dealing with people over the age of 55. My personal favourite on the golden front is nursing homes that are called “Golden Door”. I think that’s hilarious although I probably wouldn’t be quite so amused if I were about to move into a Golden Door Nursing Home. You would have to work hard to avoid the implications.

And speaking of nursing homes I visited a friend of my mother’s yesterday who recently moved into a nursing home on account of a very weak heart. His heart may be weak but his sense of humour certainly isn’t. The monthly activity calendar on his wall listed “zucchini races” every Wednesday morning at 10:30. “What”, I asked, “are zucchini races?” Without missing a beat he said”I don’t know but it doesn’t matter anyway because I don’t think my zucchini is up to it.”

I am still chuckling about that. However the point of this post is not to share witticisms but to ask for your help in coming up with a catchy title for my book. If I use your idea I will certainly acknowledge your help in the book. Please try to avoid any metallic references.

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Sarah Palin School of Public Policy: Stephen Harper, Tony Clement and the 2011 Census

Thursday, July 22nd, 2010

The furor over the 2011 Census reminds me of Sarah Palin claiming she understood international relations because she could see Russia from her front door. That is how all of us will have to operate in the future—without benefit of actual facts guiding our decisions.

I have noted in past posts how we rely on data from the long form to analyze seniors’ housing markets, including data on income and housing. I haven’t noted though how often we rely on mobility data to understand demographic patterns affecting markets and communities. Data from the long form tells us how many people of various age groups lived at the same address five years earlier, how many lived in another community in the same province, and how many lived in another province.

Well that is just downright intrusive, Tony Clement and Stephen Harper would no doubt say. But of course it isn’t intrusive and the data helps us to avoid mistakes. In my forthcoming book I mention the case of a former client of ours who was planning to build a big seniors’ housing project in the interior of British Columba. He was sure that people from all over Canada would flock to the community, partly because his site was in BC, an assumed magnet for seniors, and partly because it was a good site, right behind the Tim Horton’s. We were able to show him, based on long form data, that his assumption was mistaken and that the prospects for his site were not good.

Normally it is a delicate matter to tell someone that their plan isn’t a sound one but this client was far from perturbed. “You have saved me millions of dollars”, he said, and that is true.

The lack of long form data in so many areas of the Canadian economy and Canadian society is going to be an extremely costly, as well as a futile, exercise.

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