Senior Marketing Measures

Issue: 1 December 22, 2008

The demand for senior living communities has been impacted by the financial events this fall. The need for senior housing, driven by the graying of the America, will continue; however it will be many quarters before we see growth rates equaling those of the past decade. Seniors are cautious and the getting them to commit to long term contracts will be difficult.

I know that your advertising representatives have told you that selling to seniors during the past decade has been difficult; but the reality is that demographics have been on the seller’s favor. Senior consumers have gone to great lengths to find your services and properties while sales have found that overcoming objections has been relatively easy.

Have you prepared for a buyer's market? A market where you (as the seller) seek leads, qualify prospects, manage the sales process, and then close the sale. In addition, you will have to develop marketing programs just to gain brand name recognition. From my experience, senior living communities are NOT prepared for a buyer’s market. Most communities have no concept of the work that it takes to attract prospective residents.

If you are one of the few who are ready for a buyer’s market, congratulations. But most senior companies do not have a comprehensive marketing to survive difficult times. Let me prove my point…Please answer the following:

• What role does advertising perform in attracting prospects?


• What is my company’s position?


• What strategies and tactics do we use to communicate to leads?


• Once we have contacted a lead, how do we continue the communication process?


• Have you ever audited your marketing program?

The answers that most communities give to these questions demonstrate that they do not understand marketing and controls used to manage the function.

Companies who have implemented a comprehensive marketing strategy will prosper; but the vast majority who do not have a marketing strategy will complain about the poor market and lack of qualified prospects. These companies will cut sales and marketing, staff, office, and maintenance expenses to maintain short-term profitability; however, these actions will damage their reputation and long-term viability.

Market Focused Communities

The correct response is to review your marketing program and gain control of your marketing program; In other words: control your message. This correct response is critical because your most important assets – your people, your reputation, your brand, and your customers – are not quntified on your balance sheet (Ted Levitt). Sadly, most companies will cut these assets and damage their company during these tough times.

Successful companies (including senior living communities) set performance goals, create scorecards and constantly work to identify and correct measures that will help manage their community. Marketing Scorecards include measures to trigger concerns about future prospects, current prospects, generate sales, customer satisfaction, and service quality.

A company’s Marketing Scorecard is developed to reveal the fundamental health of the company. The Marketing Scorecard should become the must read report for marketing, sales and senior management. The results need to be evaluated and interpreted to analyze marketing effectiveness and develop action items to improve weak components.

Exhibit A shows a marketing scorecard example for the senior services companies to reveal how marketing expenditures impact the company’s fundamental health.

Exhibit A
Marketing Scorecard

The Marketing Scorecard is a template developed to enable senior living communities to analyze their marketing effectiveness. The measures can be customized meet corporate or community needs. A Marketing Scorecard requires facts based on activity and research; otherwise the scorecard becomes subjective which limits its value to management.

Market Overview: The goal for this section is to measure the number of qualified prospects attracted and sales effectiveness in closing. A community whose census numbers are strong may have a low close percentage but the community’s marketing goals will help put the contrast into context.

Satisfaction: We recommend that communities use a five point scale: Very Dissatisfied, Somewhat Dissatisfied, Indifferent, Satisfied and Very Satisfied. The level of satisfaction questionnaire should measure each component of the community’s offering, not just an overall basis. The communities must learn the causes of satisfaction and strive to exceed satisfaction.

Quality: Management will understand the community’s quality when compared to peer and new communities. This relative quality measure will enable a community to separate itself from other communities and may help improve profitability.

CMG~SRG is a marketing company committed to advancing the messages senior communities seek communicate. We have developed publications, interactive multimedia, marketing services and web tools that enable senior marketing companies the tools to achieve their goals.

Last week, we kicked off our Display Page discount offer. The response has been strong and we will continue this opportunity for you to promote your community. $25.00 to populate your community’s web page on www.yoursrg.com.

Thank you for your time and please contact me with any questions.

Tom Chappelear
CMG~SRG
Tom.chappelear@cmginc.com
402-292-1135