The continuum drumbeat: understanding the role of CCRCs and public perception in culture change.

For the past five years, our industry has played a steady drumbeat to the tune of The Boomers are Coming. Now, the Baby Boom generation is on the cusp of entering the continuum of care, and culture change is needed to meet their desires. The best way to start influencing that change is to understand this group's expectations in a strategic way.

ARAMARK Senior Living Services set out to identify and quantify senior attitudes, because we found that a gap existed in the available information regarding seniors' perceptions of current and future housing options.

We interviewed and surveyed 2,000 seniors from the United States and Canada. The respondents represent two categories: residents of continuing care retirement communities (CCRC) and a random sampling of people aged 50-70 years old who represent potential future residents.

Senior perceptions of aging services

Perhaps the biggest surprise of our study was in the area of awareness. In terms of general awareness:

* 72% of future potential residents know someone who has lived or lives in a smiled nursing facility (SNF)

* 70% know someone who lives in an assisted living facility (ALF)

* 53% know someone in an active adult community

A full 60% of future potential residents do not know anyone who has been a resident of a CCRC, with 11% having never heard of CCRCs at all.

From the CCRC perspective, the lack of awareness among potential future residents translates into a misconception about quality of life, as CCRCs were rated the lowest in terms of perceived quality of life. Active adult communities were perceived to provide the highest quality of life, followed by ALFs and SNFs, respectively.

On the other hand, once a CCRC was described to potential future residents, 65% rated their perception of the quality of life to be excellent or very good, which was far higher than active adult communities, ALFs, or SNFs. Based on the statistical sampling, which was weighted to reflect the U.S. population, more than 55% (or approximately 23 million people nationwide between the ages of 50 and 70) indicated that, after having read the description of a CCRC, they would strongly consider a CCRC for themselves or a loved one.

Additionally, when CCRC residents were asked about their housing decision, 96% said they were satisfied with their communities and, if they had it to do all over again, would make the same decision. Moreover, 59% indicated that their quality of life has improved since they moved to the CCRC.

Growing the market

Our take on these findings is that a tremendous opportunity exists for CCRCs to do a better job of telling their story. Coincidentally, in November 2006 in San Francisco, the annual meeting for the American Association of Homes and Services for the Aging developed programming around the theme "Tell Your Story." We believe that stronger messaging and better market positioning would significantly benefit CCRCs, particularly because they have such a terrific story to tell.

Many CCRC operators and industry insiders might argue the point that CCRCs don't need to spread their marketing message, because they have waiting lists of people who want to enter their communities. This may be true, but our data tell us that many seniors enter CCRCs later in life (at the average age of 78), when they need more medical care and after they have tried an active adult community or ALF.

This can have negative financial consequences. From a CCRC operator's perspective, if awareness was higher, CCRCs might have an opportunity to attract seniors at an earlier age, rather than when they are older--and after they have already committed a fair amount of their resources to living in other communities.

One radical consideration would be to change the CCRC name. Most people that we spoke with had no idea what CCRC stood for, and associated this name with poor quality. Rebranding CCRCs and developing poignant messages around quality of life and lifestyle drivers could help to better educate boomers and attract them earlier in life.

Understanding the next-generation resident

The financial picture for current CCRC residents is as rosy as the boomers' is polarized. According to our findings, typical CCRC residents reported an average net worth of nearly $1 million, with annual household income of $67,000. They are financing their retirement with a "three-legged stool," which includes Social Security, pensions, and home equity.

Future and potential residents also intend to finance their retirement primarily with Social Security and money from the sale of their home. However, fewer than one-third of future and potential residents are actively preparing for retirement, and 34% of that group cited financial issues as top concerns.

Not surprisingly, our additional segmentation of the 50 to 70-year-old age group indicates that about 50% of the U.S. population will either not be interested or simply will not have the means to pursue lifestyles such as those provided by active adult communities, ALFs, or CCRCs.

What do these data tell us from a marketing perspective? They tell us that postretirement living realities for boomers will be closely tied to financial planning. Opportunities exist for retirement community operators to partner with, and communicate their value propositions to, financial advisory organizations, which will be working with the next generation to realistically plan for retirement.

Another interesting finding of our study was the willingness of respondents aged 50 to 70 years old to leave their family homes. Only 12% of the future potential resident group said that they would not leave their homes. This makes sense, given the fact that this generation's members have been much more mobile than their parents, relocating several times for new positions throughout their careers.

Women as key influencers

Women are important influencers of the decision to enter a senior living community. They represent the greatest numbers presently living in communities and have the greatest influence on others' decisions to enter a community. Our research indicates that 63% of CCRC residents are women, and that a senior's decision to enter a community is primarily influenced by daughters, sisters, and daughters-in-law.

This finding is a clear opportunity to develop messaging through targeted marketing tactics--"to women, for women." For example, one CCRC of which we are aware holds "high tea" for female residents and encourages them to invite their daughters, sisters, and other female relatives.

This goes a long way toward making residents feel proud to be part of the community, delivering an exceptional experience, and ensuring that family members are confident that their loved ones are actively engaged in quality-of-life activities. It is also a great way to introduce a potential resident and his or her loved ones to the community.

According to our research, marketing to the children of the boomer generation would be a prudent undertaking for CCRC operators or anyone looking to expand their administrative focus into the broader continuum of care. Doing so could help foster a dialogue between boomers and their parents about living arrangements after retirement.

Many boomers are feeling the effects of being the "sandwich generation," torn between the demands of their children and their parents.

Specialize staffing for the best outcomes

We have long believed that boomers will be a more demanding group to satisfy, and our research confirms this fact. Staffing to meet their needs will be important.

Trying to deliver different experiences with the current infrastructure by using a limited employee base will result in dissatisfaction for both residents and employees. Instead, adequately staffing and developing employees who are sensitive to the specific emotional needs of residents will better ensure a hospitable experience.

With labor shortages everywhere around us, the challenge we face is twofold: First, we must find employees with the right behaviors to fill our open roles, and second, we need to retain that work force after we have selected, hired, and trained it. Let's face it--our service workers are the ones delivering the resident experience that we promise to our residents and future residents.

For example, our study determined that boomers will be more focused than past generations on fitness and wellness programs. It would make sense to have staff members who are specifically oriented to delivering quality programs in this area. Boomers also expect a service-focused culinary experience. Delivering a quality outcome in this area also will take certain expertise.

Are you ready?

We've all used the phrase "culture change" to identify what needs to happen--I've heard it time and time again during our state and national meetings. But what are we doing to make this change?

We all know that boomers expect "experiences" in life; I believe that in the next few years CCRCs that are culturally geared to deliver programs that meet boomers' higher expectations will be set apart from other forms of senior housing.

CCRCs that are planning now to strategically raise awareness and engage boomers with emotionally connected messages will be best positioned. Those that are able to deliver their value proposition by actively reaching boomers' children, women family members, and financial planners will have an advantage.

Once boomers begin to enter the continuum, CCRCs that have created a service culture trained to deliver hospitality-based experiences with outstanding execution of the most valued programs and services will retain residents and maintain high levels of resident satisfaction.

The drumbeat is getting louder; boomers and all of their expectations and potential for your business will soon be joining you. Are you ready?

What seniors want

According to ARAMARK Senior Living Services' survey, in terms of seniors' primary expectations from a community, both current continuing care retirement community (CCRC) residents and potential future residents place a high value on a number of drivers--several of which are emotional--including the following:

* Security

* Appearance and upkeep of the facility

* A warm and friendly atmosphere

* A sense of pride in their living space

* The availability of wellness programs

* Access to quality medical care

* Food quality

Savvy administrators will create targeted messages involving these areas that will resonate with both current and potential residents, as well as with family members and friends who influence the decision to enter a community.

When considering messaging on all levels, it is important that communities honestly and realistically assess what their key strengths are and develop brand attributes that speak to residents and influencers alike by addressing unmet emotional needs.--Robert W. Wilson

Robert Wilson is the Executive Vice President and General Manager of ARAMARK Senior Living Services in North America. He leads operations, sales, marketing, finance and human resources to ensure cost and quality outcomes for 170 clients.

ROLE OF AWARENESS IN PERCEIVED QUALITY OF LIFE

Whereas most CCRC residents rate the quality of life very high, the
low quality-of-life rating among future potential residents
is largely attributed to a lack of awareness of CCRCs.

Current Residents

How would you describe the change in your quality
of life since moving to this community?

* Much better               26%
* Somewhat better           33%
* Neither better or worse   38%
* Somewhat worse             3%
* Much worse                 0%

Future Potential Residents

Please rate the quality of life offered by a continued care
retirement community.

* Excellent        5%
* Very good       12%
* Good            16%
* Fair             5%
* Poor             1%
* Don't know      62%

Source: ARAMARK Senior Living

Note: Table made from pie chart.