LOS ANGELES — There are two main motivations that typically result in seniors making the transition to seniors housing.
“Curiosity and crisis,” stated Matt Stevenson, senior vice president of operations at Oakmont Management Group. “These are completely separate, but really clear triggers.”
Stevenson made the remarks as a participant in “The Power Panel: CEOs Discuss the State of the Industry.” The discussion was part of France Media’s InterFace Seniors Housing West conference, held Feb. 20 at the Omni Los Angeles in downtown Los Angeles.
Panelists emphasized the importance of understanding exactly what leads seniors into their facilities. Pinpointing the exact motivations, the panel asserted, was critical as seniors housing owners and operators court future residents and design spaces and programs that resonate with both the clientele and, in some cases, the second-party decision-makers.
In many ways, addressing a crisis — such as a fall, health scare or other incident that may make a senior or their adult children fear for their safety if left home alone — is easier for seniors housing operators, as these are need-based moves. In these instances, the communities’ services, specific programs, and medical and caregiving staff are often their selling points. In essence, these sales are somewhat science-based.
Other potential residents are compelled to look into seniors housing options out of curiosity. These sales, panelists asserted, are much more of an art form.
“It’s all about selling the lifestyle,” said Torsten Hirche, CEO and president of Transforming Age. “One trigger may be ‘my friend lives here.’ Another trigger may be that they want to live near their adult children. A third trigger could be that they want to continue leading an epic life.”
Defining a generation
Moderator J.P. LoMonaco, president of Valuation & Information Group, noted that ambiguity around phrases like “epic life” was part of the marketing challenges seniors housing officials face. After all, what is considered an epic life by one senior may seem boring — or terrifying — to another.
“It’s very hard to define some of these phrases,” he said. “If you label someone as an ‘active adult,’ what does that mean? It means different things to different people.”
Panelist Robert May, managing partner at Avenida Partners, noted the industry wasn’t doing itself any favors by sweeping seniors into these broad categories.
“Our industry struggles when it comes to defining ourselves,” he said. “We start talking about seniors in general, and it does such a disservice. The senior population is as diverse as the people in this room.”
Fortunately, May does see a solution.
“Talk to them,” he suggested. “They’ll tell you everything you need to know, and they’ll never stop talking.”
Chip Gabriel, fellow panelist and president of Generations, agreed with this strategy. He noted that resident acquisition should be a lot less about the sales pitch and a lot more about getting to know that individual senior, their habits and their preferences. From there, it’s much easier for both parties to see how this would-be resident may fit into a particular seniors housing asset.
“We have sales consultants meet with potential residents two to three times in their own homes,” Gabriel said. “We create that relationship. We get to know their background. We ask them what they did for work. Then, when we do get them on campus, we can find a way to make a connection with our existing residents.”
Culture is king
A large part of determining whether a senior is a fit for any one community has to do with that community’s culture, panelists noted. Fortunately, outlining this community culture isn’t as complex as determining what makes up an “epic life.”
“You want to create a culture around making people feel comfortable,” Gabriel said. “It’s about making eye contact, making them feel warm.”
May noted that this often starts with the staff, which makes retaining talented caregivers all the more important.
“There is no medical need in our facilities, so culture is critical,” he said. “The culture in many communities will begin to self-predict and independently define what sort of community it is going to be. Let this sense of community thrive. Residents will stay a long time, so you want to have familiar faces in the staff and in the neighbors that live down the hall.”
Stevenson believes proper staffing and training was even more integral to the success of an operation when a seniors housing owner is looking to expand.
“We think a lot about the scalability of our culture,” he said. “We are in the people business and, in our communities, there are tens of thousands of social interactions happening daily.
“When we think about the success of our organization, it’s people dependent. We depend on all these relationships and interactions being positive. We want to create environments where our residents feel a connection with the people they work with and see every day.”
As simplistic as it sounds, Gabriel believes it is this notion of consistency, particularly in terms of community culture and staff, that ultimately determines whether or not your seniors housing asset is successful in the long run.
“In the seniors space, there are a 100 different ways to be successful,” he said. “That’s the beauty of it. It’s a local business. The ones that don’t do well aren’t in the business long-term.
“One of the things the industry lacks is people caring for the communities over time. If you have a long-term perspective, it’s a great space to be in. Good operators will get good yield; we plan to get great yields.”
— Nellie Day