Author: Varsity Team

It’s probably old news to senior care providers that changing attitudes and trends are slowly but surely shifting independent living to resemble assisted living, and assisted to skilled nursing, forcing services to evolve from lifestyle to healthcare.

Average move-in age for assisted living has increased from 82 to 87, driven by the economic downturn, and the desire to age in place. A number of those residents require help with multiple activities of daily living (ADLs), and – like their independent living counterparts – wish to stay at this level of care for as long as possible. More residents are also entering with memory issues, causing facilities to reexamine their building design, training and technology.

Technology, it seems, could be the savior of assisted living. Given the Transitional and coming generations’ familiarity with personal technology, employing healthcare-related innovations will seem neither foreign nor scary to them.

For residents with higher acuity, having access to Wi-Fi, a personal emergency response system (PERS) and a motion monitor safety system could be all they require. Others would benefit from medication management systems, care-planning systems and electronic medical records.

Although we’re not anticipating robotic employees anytime soon, something as simple as moving to electronic medical records could be a step in the right direction. Communities that have flipped the proverbial switch report positive effects on their assisted living services in the form of controlled costs, brand differentiation, increased staff effectiveness and, because of the added safety element and higher levels of care, fewer occupancy issues and increased length of stay.

We examined the role of technology in the CCRC setting in our recent Great Disconnect research paper. See how some communities are bridging that gap in the assisted living level in a recent edition of Senior Housing Business.

MARKETING INSIGHT: Technology could be the key for providers to redefine, rebuild and rebrand their assisted living levels. Developing and deploying technology will not only improve experience for both residents and their families, but making consistent, easy-to-access technologies a priority in living and healthcare spaces will be a necessity to attract the new generations of tech-savvy adults.

Contact us to see how technology could make a positive impact on the occupancy or bottom line for your community or organization.

Regards,

The Varsity Team

Here’s good news for Boomers and seniors who like to snack: Apparently, you’re increasingly looking for items that help you stay healthy and active – something we uncovered in our own research, and now verified by the food manufacturing industry.

Milk producer Fonterra North America studied the snacking habits of more than 600 healthy Americans between ages 50 and 75 and found that more than half believe the ability to stay active has a greater impact on their health than their weight, although 30% also said they already have weight issues.

Fonterra also found two extremely polarized schools of thought when it came to those cravings. At one end of the spectrum, a large number of “unwavering indulgers” knows they have health issues and shouldn’t pick up that Twinkie, but they do it anyway. On the other end are three snacking segments who are active and willing to make real changes in their diet to stay healthy:

• Active Seekers (16%) – They’re the active, nutrition conscious ones who are more than willing to make changes to their diet for health benefits. Think 70 year-old marathon runners.
• Health Seekers (22%) – Not quite as active, but generally follow healthy trends and are willing to make some dietary changes. Think on-again-off-again dieters.
• Open-minded Moderates (20%) – They’re the followers and are somewhat health-conscious but don’t have the discipline to keep up with a health program. They also try to eat well, but aren’t always able to. We’re surprised this percentage isn’t higher.

In general, Boomer consumers are looking for products higher in protein, and adding high-quality dairy protein to foods they’re already eating will be the easiest way to drive consumption. The meal most lacking protein and posing the greatest opportunities? Breakfast.

MARKETING INSIGHT: Manufacturers and commercial foodservices marketers, take note: Since this demographic is split on the benefit of taking pills, your industry will no doubt become the solution to some of these issues and trends as many would prefer to ensure their health through their diets. For those of you in the senior living industry, now is probably a good time to introduce healthy snacking options and education into your foodservice or wellness programs.

After years of excess in the realm of food, mature consumers have common concerns, and are taking a stand to control their diets. And as more and more people in this demographic continue their careers and postpone retirement, their reliance on unconventional, mobile-friendly meals and snacks will only increase.

Regards,

The Varsity Team

Although there have been great strides in the study and treatment of memory care, the issue of the care environment itself is often criticized for lacking standardization. But a recent CNN segment spotlighted what could be a new model for care – a model that’s actually two decades old – and features the unlikely combination of memory support and independent living.

The world’s first and only “village” for dementia sufferers began as an experiment 20 years ago when a traditional skilled nursing facility in the Netherlands undertook an ambitious project to transform itself into an environment that would recreate the life their memory care residents had once known.

The six founders of Hogewey (aka “Dementiaville”) conceived the idea for a dementia “mecca” by asking themselves how they would like to live their final days should they be affected with dementia or Alzheimer’s Disease. Despite opposition from the local and healthcare community, Hogeway was born.

Hogewey is a place where residents can live “normal” lives, without locks, with minimal medications, and doing the things they once loved – shopping, cooking, going to movies or a restaurant, and visiting the pub or the hairdresser. But in reality, they’re being constantly monitored by caretakers who staff the entire village and its attractions.

Those caretakers are also charged with making residents’ worlds seem as real as possible through food, music, individual home decorations and mood boards — or anything else that cater to their fond memories. Families have input in all functions of the village.

You can read the full article here.

MARKETING INSIGHT: People in Dementiaville will ultimately need 24-hour skilled nursing care – a level of care that urgently needs a set of regulations and standardization, particularly as the number of cases increases. However, for those who are still mobile and have some level of acuity, the concept is brilliant, as it addresses the familiar for those suffering from memory loss.

Regards,

The Varsity Team

Less than two years ago, analysts were predicting the market for anti-aging products, services and innovations would grow to more than $114 billion, thanks to increasing demand from Boomers and seniors.

To uncover part of that demand, we need look no further than Project Looking Glass II. What does skincare have to do with senior services? On the surface, nothing. But in that study, many of our retirement community subjects were still in the workforce and planned to remain there. Apply that mindset nationwide, and you’ve got tens of thousands of potential customers who are still looking to maintain a youthful appearance to remain relevant in the workplace.

The analysts were right and wrong. While the market has indeed grown, it has become saturated, and the category’s main contingent consists of women over 55 who report being confused by the number of products as well as their claims.

The industry has responded (wisely) with a “stage not age” push, launching new products that address skincare beyond the physical signs of aging such as wrinkles, lines and age spots. New innovations include products that address skin needs due to changes in life stage – including hormonal changes. Yes, you read that correctly.

Manufacturers claim that decreased estrogen production associated with menopause or aging can affect the skin’s ability retain moisture or repair itself.

Anti-aging skincare products that address changing skin needs beyond just treating wrinkles may help to bolster category sales. Murad leads the way with its Resurgence® line, targeting consumers going through menopause. Vichy Laboratories collaborated with not only dermatologists, but also obstetricians, gynecologists and psychologists to understand how women’s hormonal changes impact the skin. Finally, Naterra International’s Phase+ line of skincare products is specifically designed to address the effects of diabetes, which tends to cause extremely dry, cracked skin.

It’s an interesting trend. And although it’s currently relegated to the high-end brands, experts are quick to point out that, given the competitive nature of the skincare industry, consumers will eventually see a lot of “me too” mass marketing.

MARKETING INSIGHT: The health and beauty market has always been a bit ahead of the curve, and they were early to realize the spending power of the mature market. Products that create unique positioning while addressing typical consumer concerns, as well as connecting a youthful appearance to workplace success are the opportunities.

Smart mature consumers already agree that lifestyle choices such as diet, sleep and exercise impact aging and its effects. However, products that speak to overall wellness, as opposed to just treating the physical signs of aging, could be winners.

Regards,

The Varsity Team

There have been great strides to become more environmentally conscious, as we uncovered in our recent Project Looking Glass II and Next Generation studies.

Based on new product introductions with green claims launched in the last five years alone, the title of “green” as a mainstream product feature appears to be firmly ingrained in both consumer packaged goods (CPG) manufacturers’ offerings as well as in the minds of consumers.

That idea has trickled down into the mind of the mature market consumer as well. Today’s Boomers and seniors are much more environmentally conscious than their predecessors, thanks in part to education and intense messaging on the state, local and national levels, and to the social consciousness common among the Boomers, and starting to appear in the current Transitional Generation.

In the retirement living market, community “Green Teams” and recycling programs are now common. But for the older generations, thinking environmentally is often a learning process, while for the younger set, it has become part of their lifestyle. As we uncovered in our Next Generation research, there was still some amount of skepticism regarding the true impact on the world.

Knowing this mindset, today’s retirement communities are slowly realizing that they cannot simply be “green for green’s sake,” but need to incorporate these initiatives as a means to produce measurable results, as well as shorten the learning curve.

Here’s a great example: Our PLGII subject community, Frasier Meadows, was able to move from a dismal 70% to a 95% energy efficiency by installing compact fluorescent light bulbs, high-efficiency boilers, occupancy sensors and 500 new windows. Residents and management alike saw the health benefits and long-term ROI.

MARKETING INSIGHT: In short, go ahead and be green, as long as it’s done in a practical, fiscally responsible manner and shows real results that benefit everyone.

Some communities have made efforts to overcome the notion that one person can’t make a difference by quantifying the environmental savings based on using their green initiatives, and differentiating their community to the environmentally-conscious.

From a marketing standpoint, a slightly different approach than the current crop of messaging (which centers on the cumulative savings based on “if everyone made these changes”) may need to be considered. Instead, providers may want to show how one single person’s annual – or lifetime – green habits can add up to savings on such things as plastic waste, pollution, and even money.

Sustainability and being “green” should be a collaborative effort. For residents, it should be promoted as paving the way for coming generations. For management, it should demonstrate corporate social responsibility, good stewardship of resources, and become a true point of differentiation.

The Assisted Living Federation of America (ALFA) has some great tips and tools for making your community green without breaking the bank, and proving benefit to all.

Regards,

The Varsity Team

The first impressions of health information technology (HIT) – including electronic health records (EHR) and electronic medical records (EMR) – was that it held great promise for improving healthcare quality and safety, along with reducing the costs of providing care in the post-acute or long-term care setting.

The last time we covered HIT, and specifically EHR in the senior living industry, several multi-campus communities had already made the switch into the paperless realm.

Some preliminary data from LeadingAge and Ziegler‘s jointly commissioned LZ 100 survey shows that 79% of the largest LeadingAge members currently have an EHR system in place and plan to increase their investment over the next 12 months.

Note that we said largest.

Despite the advantages of EHR adoption for the long term care facilities using them and payers, the systems don’t come cheap, and costs vary depending on the type of system being deployed.

The study noted that, under a Software as a Service (SaaS), where a provider contracts directly with an EHR/EMR vendor for an annual service charge, implementing the technology could cost nearly $260,000 for a 25-bed facility over a period of five years. A third party-hosted solution would cost the same facility $254,279, while an in-house solution would ring in at more than $355,000 for the same five-year period.

Add to this the fact that EMR and point of care solutions can place a strain on a community’s current IT infrastructure, and require new measures to be put in place for security and access.

The benefits of going “paperless” are well-documented. EMR systems have a direct effect on positive outcomes, staff efficiency, the virtual elimination of medication errors, increased face time with residents and family members, and yes, cost savings.

As assisted living and skilled providers begin partnering with hospitals and other care providers in Accountable Care Organizations (ACOs), it will become more important to be able to move data seamlessly between those organizations, as well as provide hard data showing that they’re providing quality care.

MARKETING INSIGHT: For smaller facilities, adopting an EHR system remains cost prohibitive, and the likelihood of widespread adoption in the next three to five years remains low. Clearly, policy initiatives, programs and financing options must be put into place.

Those who are on the fence about such systems should consider the following:

• Being seen as thought leaders with state-of-the-art technology;
• The federal mandate requiring all healthcare facilities to have electronic health records;
• The ability to align with an ACO or become a preferred destination for post-acute therapy;
• Marked improvements in quality, efficiency and effectiveness of care;
• Improvements to the quality of documentation; and
• Reduced the paperwork for employees.

Last year, automakers were reporting that “older” consumers were making up the lion’s share of new car buyers. Apparently, they didn’t believe their own numbers, as a new study shows that that same cohort is still buying more new cars than the 35- to 44-year-old age group, who were most likely to buy four years ago.

So who’s responsible? You guessed it. The Boomers who refuse to age, and apparently, refuse to give up their car keys. According to a new study by the University of Michigan’s Transportation Research Institute, the 55 to 64-year-old age group, or older Boomers, has now become the demographic most likely to buy a new car.

The study found that those consumers had the highest rate of vehicle purchases in 2011, while the youngest age groups had the lowest rate. Even consumers age 75 and above bought cars at a higher rate than 25 to 34-year-olds and 18 to 24-year-olds.

Industry insiders believe that one of the main reasons behind the numbers is that people are staying in the workforce longer, and thus remaining in the automotive market longer as well. Today, most Boomers live in the suburbs and expect to age in place in their homes, or are stuck in larger homes whose values have fallen. Driving is viewed as the key to independence and even self-worth. Given their propensity to remain independent, the next 20 years will see the number of U.S. drivers over 70 triple.

From a marketing perspective, auto manufacturers have been throwing good money after bad, spending billions to try to reach Generation Y and younger consumers – who are not driving as frequently or in as great numbers as the Boomers.

“You shouldn’t be chasing the younger people, you should be looking at the older people,” Michael Sivak, author of the study, told Bloomberg. “Boomers are trying to extend their youth as long as they can, both in terms of taking care of their bodies and in their expenditures.”

Sivak notes that automakers are having to rethink marketing to older drivers, who are no longer content to buy a large luxury sedan and drive it for 20 years. A good point is, however, that Boomers are not their parents’ generation. They expect to continue working and driving long into their later years. The challenge here is for automakers to develop models that cater to the specific needs of this aging population, without alienating them or younger cohorts.

MARKETING INSIGHT: The aging of one of the country’s largest generations will have a lasting impact on the automotive market.

There’s opportunity here for automakers to roll out more compact and affordable models that specifically meet Boomer needs. As Boomers age they increase the amount of participation in daily sport and leisure activities. With more Boomers working longer and having larger household sizes than previous generations, fuel efficient, compact vehicles, which maximize passenger and cargo capacity, may be an attractive purchase for this still relatively wealthy cohort.

For the senior living sector, it could mean providing more facilities to accommodate automobiles for those who continue to work and remain behind the wheel. In our research, Boomers looking at current CCRCs were turned off by the dearth of resident parking, and the absence of covered parking.

For local and state municipalities, this could mean investing in public transit and new roadways, and promoting the building of compact, walkable and mixed-use communities that minimize the need to drive as their residents age.

Product manufacturers, electronics retailers, and senior service providers continue to miss the mark when it comes to tapping an audience with spending power and an increasing interest in crossing the Great Digital Divide. But that’s slowly changing, thanks to a new generation subtly driving the industry for themselves, their families and professional caregivers, according to Varsity’s new research white paper.

The Great Disconnect: What Technology Marketers Need to Know About Reaching Today’s Mature Market Consumer, is based on focus group findings of adults age 65-95, shop-alongs at major retailers, and observations gleaned while staying in a retirement community for one month during Project Looking Glass II.

The study examines how new generations of Boomers and seniors are using technology and making purchase decisions based on personal preferences, physical and logistical convenience and health-related concerns. It also identifies issues encountered while shopping the category, changing attitudes, and the factors influencing purchase decisions. Some of the top-level findings:

• Today’s “Transitionals” — a demographic mix of Depression-era Silent Generation and early Boomers — are the driving force when it comes to product usage and expectations that were formerly the realm of younger consumers.
• More advances have to be widely implemented in the senior living industry and in light of the coming generations’ familiarity with technology.
• Children and grandchildren remain top influencers, both in terms of product education, recommendations, purchases and even repairs.
• Companies that facilitate aging in place will play an increasingly important role.
• Internet browsing is now a leisure activity, and many are influenced by mobile content.
• Brick-and-mortar retailers should consider training staff to be patient with older, apprehensive consumers, or using peer “brand ambassadors.”

“Technology has changed the fabric of our lives, but many innovations found in the broader market have yet to take hold in the mature market,” said John Bassounas, Varsity director of client services. “But that’s going to have to change, either by choice or by pressure. This study will confirm many industry observations, but will also offer new insights that can serve as the basis for planning for markets ranging from retirement housing to retail.”

You can receive a free copy of the report here. Members of the Varsity team are available to provide in-depth presentations of the report, either via webinar or in person. To schedule a presentation or for additional information, contact Matt Bekelja at 717-652-1277 or mbekelja@varsitybranding.com.