As noted previously in our blog by Malissa Illiano, MBA, Senior Consultant and Director of Market Research for Sage Age Strategies, “Senior living and senior care communities are dealing with many questions about the future these days. We’re seeing additional forms of competition in the marketplace, increasing costs, tightening margins, sweeping demographic trends and changes in attitudes, preferences and expectations among a more demanding generation of purchasers of senior living services.”
“Common questions include: Should we transition some of our assisted living into memory care? Should we purchase that new acreage that just became available? Why aren’t we meeting our occupancy goals? Is it our pricing strategy, our marketing plan, or our personnel? What changes are taking place in our service area that are impacting us?”
Reducing Your Risk and Improving Your Odds of Success
Malissa adds, “Although the answers to these important questions for senior living providers might not be immediately clear, one thing is – making high stakes financial decisions without supporting data is extremely risky business. The margin for error is extremely narrow today and the risk of financial loss is often high. The difference between sustainable, profitable growth and failure can be razor thin, making informed, evidence-based decisions a virtual imperative.
“Unfortunately, there have been too many examples of senior living providers investing in plans that had little or no chance of succeeding from the very beginning. While ‘going with your gut’ might work in some life situations, it can lead to devastating consequences in the competitive business environment.
“Fortunately, effective data-based decision-making assistance specifically designed for senior living communities is readily accessible and affordable today. And many provider communities across the country are taking full advantage.
“As an example, in the past year we have conducted market feasibility and demand analysis projects for more than 50 different senior living communities and/or potential projects nationwide. For a very small percentage of a potential project’s overall cost, decision makers receive the information they need to make the right call – whether it’s proceeding with the opportunity, modifying the original plan or choosing not to go any further.”
Big Things Come in Small Packages: Mini Market Assessment Details
Sage Age Strategies offers an impressive array of market research programs, tools and subject matter experts to help ensure that your facility and service line investments are successful. One such tool is our mini market assessment reports, or Preliminary Market Demand Assessments.
Says Malissa, “Our highly cost-effective preliminary market demand assessments have become a very popular tool for senior living providers who want a foundation of solid market information for decision making purposes at minimal cost. These reports provide basic competitive market details and demand calculations that provide a snapshot of the market area without investing in the cost of a full-blown market feasibility study.
“An added benefit is that the cost of the preliminary study can be applied to our full market assessment and demand analysis product if a more comprehensive review is desired. The full market assessment offers an in-depth ‘drill down’ into key marketplace information and includes additional research tools such as mystery shopping of all competitors to gauge market potential and recommend a course of strategy.”
Specifically, the preliminary market assessment is comprised of three key areas of evaluation, which include:
Market Area Definition – We evaluate and define the primary market area, taking into consideration geography, common traffic patterns and other relevant features for each specific area.
Competitive Overview – Here we identify current marketplace competitive units in the primary market area and provide information on the number of units and estimated occupancy levels.
Demand Analysis – This involves utilizing industry assumptions to calculate market demand at a range of price points to gauge fee sensitivity in the market area.
All raw demographic data is also provided to the client community.
Adding Clarity to Complex Issues for Our Client-Partners
One of the many senior living providers across the country that has benefited from our Preliminary Market Demand Assessments is Provident Resources Group in Georgia and the Southeast.
Debra W. Lockwood, CPA, President and CFO states, “The Preliminary Market Demand Assessment reports that Sage Age has completed for us have not only helped us to avoid markets where we initially believed there might be potential new development opportunity but they have also saved us thousands of dollars in market research costs. This product that they offer has been – and will continue to be – extremely valuable to Provident Village and our new development efforts.
“Additionally, we didn’t always avoid less-than-ideal markets in the past. Sage Age has been a solid partner with us in developing effective marketing strategies, even in difficult markets. Their reports have provided us with the foundation of information and direction needed for creating such strategies.”
Providing the Tools and Expertise You Need to Make the Right Decisions
At Sage Age Strategies, we help senior living communities nationwide obtain answers and make decisions that are based on accurate data. We provide many proven market research tools such as market assessments, feasibility studies, competitive research, mystery shopping, consumer research and marketing & sales assessments to give you and your community the highest probability of success.
Proven Market Research Expertise to Guide Your Growth Strategy
If you are a senior living community that needs assistance in assessing your competitive marketplace to evaluate strategies for growth, we encourage you to contact us today.
At Sage Age Strategies, our market research and integrated marketing professionals excel in identifying opportunities and creating strategies that grow your occupancy in profitable service areas.
Sage Age Strategies is a multiple award-winning, strategic growth, marketing and consulting organization that operates exclusively in the unique senior living space. To learn more, please call or email Adrienne Mansfield Straub at 570-601-1720 ext. 100 / firstname.lastname@example.org.