Customers are Changing:Three Strategies to Get Ahead

BC Seniors Living Association

Margaret Wylde ProMatura Group, LLC

1. Focus on living, not aging.

2. Know your customer.

3. Deliver the experience.

5

2012 Study of Independent Living

2,917 resident surveys 4,024 non-resident telephone surveys 488 non-resident mailed surveys

Aware of IL communityPerception of IL community

Likelihood of moving

Same survey as residentsGroup 70 to 79 years of age

Group 80+ years of age Match residents of IL

Age at Time of Move-InMoved During Year of Survey or Previous Year

<75 75 to 79 80 to 84 85 to 89 90 to 94 95+

14%

21%

33%

22%

10%

0%

10%12%

27%

35%

15%

2%

2001 2012

7

Distribution of Residents by Age2001-2012 All Properties

<80

80-84

85-89

90+

0% 5%10%

15%20%

25%30%

35%40%

45%50%

33%

32%

23%

12%

18%

25%

32%

25%

20122001

Percent within Age Group

Age

Gro

up

All in 2012

Age of IL Residents at Move-In Moved-In within 24 Months of the Survey Year

Mean Increase in age of .32 year per year (1 year increase every 3 years).

1999 2000 2001 2002 2007 2008 2011 2012777879808182838485

79.680.2

81.682.3

81.8 81.982.8

83.8Age in Years

Increase in Age at Entry to Increase in Life Expectancy per Year

Age at Entry Life Expectancy0

0.05

0.1

0.15

0.2

0.25

0.3

0.35 0.32

0.06

Change in Age (years)

10

Self-Rating of Health

2001 20120%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2% 6%20%

28%

55%

49%

24%16%

Excellent

Good

Fair

Poor

Same Store

13%

11

Use a Walker

CCRC - EF Combined Free-standing

2%

13% 15%19%

38% 37%

2001 2012

25%

12

Fell in Past 6 Months

200115 %

201231 %

13

Meeting Expectations: 2001 and 2012Activities and Recreation – Same Store

2001 20120%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2% 5%17% 8%

57%54%

24%34%

Exceeded

Met

Nearly met

Not met

Same Store

14

Meeting Expectations: 2001 and 2012Food Service – Same Store

2001 20120%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

15% 8%

19%

13%

47%

48%

19%31%

Exceeded

Met

Nearly met

Not met

Same Store

15

Meeting Expectations: 2001 and 2012Housekeeping – Same Store

2001 20120%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

5% 4%

19%11%

60%

51%

15%

34%Exceeded

Met

Nearly met

Not met

Same Store

16

Meeting Expectations: 2001 and 2012Residence – Same Store

2001 20120%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

0% 2%14% 8%

68%61%

18%28%

Exceeded

Met

Nearly met

Not met

Same Store

10%

17

This Community Offers Me Good Value for My Money – Same Store

2001 20120%

10%20%30%40%50%60%70%80%90%

100%

0% 3%7% 6%

25% 23%

43% 47%

25% 21%Strongly agree

Agree

Neutral

Disagree

Strongly disagree

Same Store

4%

2%

18

I Consider This Community My Home

2001 20120%

10%20%30%40%50%60%70%80%90%

100%

0% 1%0% 3%9% 10%

45%56%

45%30% Strongly

agree

Agree

Neutral

Disagree

Strongly disagree

Same Store

15%

19

Satisfaction with Quality of Life in Community

2001 2012

45%31%

47%

52%

7%14%

1% 2%0% 1%

Very dissatisfied

Dissatisfied

Neither satisfied nor dissatisfied

Satisfied

Very satisfied

Combined IL/AL

14%

20

1. Consumers choose what they want, rather than what they need.

2. Hyper-abundance and choice.

3. Consumers don’t like wasting their time, money or effort on anything.

4. Your competition is everywhere and everything.

5. Must be aware of innovations from around the world.

6. Consumers are more aware of and excited by companies that get ‘it’ right (customer service, marketing tone, design or usability).

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What does it take for a resident to recommend a community to their

friends?

Very Satisfied Satisfied Neutral or Low Satisfaction

0%10%20%30%40%50%60%70%80%90%

100%

0

2

4

6

8

10

12

14

16

74%

19%

6%

15

1210.3

Percent Willing to Recommend the Community to a Friend by Their Level of Satisfaction and Mean

Satisfaction Scores

Level of Satisfaction

Perc

ent W

illin

g to

Rec

omm

end

to a

Fri

end

Mea

n of

Thr

ee S

atisf

actio

n Q

uesti

ons

22

Independent Housing

Assisted Living

SupportiveHousing

So what is it that we are selling?

Focus on living, not aging

What is aging to you?

aging in place

The industry has aging on the

brain

living

It’s a good day to see the manatees

BuyNoBuy

29

3

Ageist

Commoditized- all the same Paternalistic

Assume we know what’s best for our customers

Know your customer

32Copyright ProMatura Group, LLC, 2012. All rights reserved.

33

High occupancy, high rates

Low occupancy, Low rates

Correlates of Success

225 COMMUNITY FEATURES1200 DEMOGRAPHIC/ECONOMIC

Copyright ProMatura Group, LLC, 2012. All rights reserved.

Copyright ProMatura Group, LLC 2012. All rights reserved.

34

Captured and Analyzed

• Location• Site (landscaping, parking, signage)• Exterior physical plant• Interior physical plant (common areas/residences)• Amenities• First impressions• Personnel• Residents• Price

35

Attributes with Strong Correlations with the Performance Values of the Mean IL Rate and IL/AL Occupancy

Variable Pearson Sig. Level

Sales Counselor Focused on You 0.626 0.0042Median home value for 5-mile-radius 0.533 0.0001Pub/Bistro/Cafe 0.523 0.0002Greenhouse/Gardening Area 0.509 0.0003Increase in median income of 65+ households 0.479 0.0004Increase in median income of 45-64 households 0.451 0.0010Gestalt Score 0.449 0.0012Increase in median income of 75+ households 0.436 0.0015Community Kitchen 0.435 0.0022Architectural Style of Building 0.426 0.0020IL Building Score 0.417 0.0039IL - Green Space or Landscaping 0.411 0.0037IL - Site Appearance 0.408 0.0036IL - Appearance of Reception Area 0.391 0.0079IL - Exterior Condition of Building 0.366 0.0090

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The right market for your

product.

Quality of reception area.

37

It is a fact…

Communities with high satisfaction have high occupancies.

So what correlates with satisfaction?

Housekeeping4%

Maintenance3%

Servers0%Dining Experience

4%

Social Activities4%

My Interests5%

Exercise3%

Education1%Made Friends

15%

Friendly staff5%

Feel Safe1%

Exec Director9%

Personal Care9%

Reception1%

Day Trips0%

Religious2%

Feel at Home36%

Impact on Overall Sense of Satisfaction

Feel at Home

Deliver the experience

Being with family and friends or hearing from family and friends 23%Reading newspaper, books 9%Exercise 7%Being able to work in yard, gardening 6%Getting up, getting out of bed, waking up 6%Eating out, eating out with family and/or friends 6%Being healthy, feeling good, feeling well 6%Doing as I please, wish, want, enjoy 5%Church, reading Bible, bible study, church functions, spiritual 4%Good weather, sun shine 4%Activities, being busy or active, social functions 3%Watch TV/news 3%Walking the dog, time with pets 2%Accomplishing something, a project 2%Playing cards, Bridge 2%Being with spouse, doing something with spouse, girl friend, gentleman friend 2%Volunteer work, helping others 2%Getting out of the house for a short time 1%Computer, check email, play Scrabble 1%Cooking 1%Maintenance work, chores at home 1%Knitting, sewing 1%Going to work, good day at work 1%A good night's sleep, sleep late, sleep in 0.9%Shopping 0.9%Listening to music 0.8%Peace and quiet 0.6%

What makes a great day for you?

95% normalStuff

5%activity

Non-Residents

My wife and I have not had dinner alone, together in the last four years.

What can’t you do today that you did

in your former home?

42

You must know what makes your prospective buyers happy.

You must know what they want.

What They are Looking for in an Independent Living Community

Less home/yard maintenance 28%Dining/Food Services 11%Less lonely/Around other people 11%Amenities available 9%Making new friends 7%Safety/Security 5%Less responsibility 5%Activities/Services 5%Being around people own age 4%Having own private space 4%Medical support available 3%Convenience 3%

Would consider

IL

What They Would Like Least about Living in an Independent Living Community

Too many rules/restrictions 13%Lack of privacy 11%Loss of independence 10%Too small/Not enough space for guests 10%Forced to live with others/Too crowded 9%Being away from current home 8%Being around old and disabled people 7%Cost 5%Eating in dining room with others 3%Inability to keep up hobbies 3%Feels like an institution 3%Too noisy 3%

Would consider

IL

Beginning End 0%

5%

10%

15%

20%

25%

6%

85%

Impact of Lifestyle on Likelihood of Purchase

Lifestyle shown during research

Might buy

Very Likelyor likelyto buy

2125%

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what the prospect and customer experience cannot be left to chance

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1. Create a living, full-of-life, fun future.2. Know each person, your customer.3. Facilitate the life/lifestyle they want.