In our increasingly competitive and challenging senior living industry, making the correct strategic decisions and investments for your organization’s growth has become a high stakes game. Narrowing operating margins mean the “margin for error” has become increasingly small when planning for your future. No longer can senior leaders base key decisions on “gut feeling” or past good fortune. With today’s changing marketplace, the need for evidence-based decision-making has never been more important.
The Market Feasibility and Demand Analysis Process
In order to gain a better understanding of your market area, as well as to assess opportunities for growth in the market, leading, national senior living growth experts such as SageAge Strategies apply a proven, comprehensive process to determine the demand for senior living services, including independent living (under both entrance fee and rental fee structures), assisted living, memory care assisted living and skilled nursing care. As part of this process, we assist you with key initiatives to guide your decision-making and help you to:
- Evaluate and determine the actual primary market area, as well as the secondary market area, if relevant, taking into consideration geography and common traffic patterns for the area
- Provide a detailed demographic analysis regarding seniors age 75+ in the market area, including overall population, housing value and income levels, as well as a review of need-based population for assisted living and memory care assisted living services
- Evaluate current marketplace competitive units for independent living, assisted living and memory care assisted living in the primary market area via in-person mystery shop efforts and provide information on the number of units, estimated occupancy levels and pricing structures currently offered by competitors in the market area
- Include a review of the strengths and weaknesses of each competing community, a detailed review of the sales approach and effectiveness of the marketing team at each community, as well as a review of unit offerings, unit sizes and campus services and amenities
- Provide a detailed competitor analysis spreadsheet for easy comparison
- Provide details on any independent living, assisted living and memory care assisted living projects that may be in the planning or early development stages in the area by contacting (via telephone) key individuals from zoning and planning offices in the defined market area
- Complete a market demand analysis for buy-in and rental independent living, assisted living and memory care assisted living, utilizing all statistically relevant market data, including calculation and analysis of market penetration rates, to help determine opportunities in the market.
The New McLean: A Case Study in Success
Recently, SageAge Strategies worked with long-time client-partner, The New McLean, in Simsbury, CT to conduct a comprehensive market review and demand analysis project that was the cornerstone of the New McLean’s repositioning, rebranding and service expansion strategy. The process was predicated on The New McLean’s commitment to the following tenants of strategic growth:
- Success is best achieved through thoughtful, purposeful and visionary strategic planning
- Asking the questions, confirming the facts and understanding the answers is essential
- Testing the information further on a pilot group of prospects and charting their response….
- This leads to the development and implementation of strategic action plans that are grounded on facts, based on realities and achieve desired outcomes
The comprehensive project has proven highly successful with key outcomes of the initiative including:
- Creation of a new, overarching brand
- Repositioning of the community to the public and referral sources
- Development of a CCRC offering
- Addition of independent living with enhanced living services
- Development of a memory care assisted living offering
- Enhancement of the existing assisted living offering including new facilities and enhanced services
- Significant dollar and percentage increase in the community’s private payer revenues and major improvement in the overall financial position
Said one senior leader at The New McLean, “It’s not just about whether there is a demand for a product offering, renovation or service expansion. The real value is drilling down on the data, doing the in-depth consumer research to make sure the development of the new program offering is in tune with market desires and preferences, not just needs.”
Implications for Senior Living Communities
Understanding the pertinent market forces, nuances and statistical potential of your markets is crucial in making the correct business decisions and optimally allocating your precious resources. Whether you’re considering the expansion of your community or creating a new service line such as memory care, effective market feasibility and demand analysis provides you with an accurate picture of your chosen market’s potential. This enables you to make data-based decisions on the value of an opportunity and the projected return on your investment.
We Optimize Your Probability of Successful Market Investments
If you are a senior living provider considering the need for assistance in accurately assessing potential market growth opportunities, be sure to look for an experienced organization that operates exclusively in the unique senior living marketplace and has the specialized expertise and the award-winning experience required to succeed. Our experienced staff takes the guesswork out of high stakes market investment decisions and provides you with the actionable information you need for planning purposes. We provide market feasibility and demand analysis for new start ups, additions to existing campus offerings and more.
For more information, contact us at 570-601-1720.