by Robbe Healey
Learning from our Journey to Adopt Marketing
Philadelphia is the birthplace of the US Constitution, but also a significant birthplace for senior care communities in the US. In Greater Philadelphia and the Delaware Valley, the aftermath of the American Civil War included many widows who lacked the ability to provide financially for themselves. Outpourings of care by faith communities resulted in numerous “boarding homes” for widows, single women and couples, most of who were experiencing “reduced circumstances.” These venerable “homes” labored quietly and faithfully for decades. Evolving with the times, but undergoing little significant change.
Fast forward to the 1970s … what we now know as the CCRC movement was emerging in Greater Philadelphia and the Delaware Valley. Extensive campuses of studio and one bedroom apartments, common spaces, access to health care and other amenities planners believed would appeal to retirees began to dot the landscape. In addition to the new entrants to the market, the “boarding homes” added small studio and one bedroom apartments in order to remain relevant and compete in the new reality. Directors of Admissions managed the paperwork, processed deposits and fees and greeted new residents on move in day. Prospect interest was high, responses were strong, move-ins were robust and campuses were full. The building and expansion boom continued. By the mid 1980s occupancy challenges began to emerge. Vacancy rates climbed. Sales and marketing were considered “dirty words.”
Integrating Marketing...Selling Out?
Leaders in the sector aggressively examined both sides of the issue. Using a marketing lens, they looked from an external perspective at what the resident of the future would want and need from a CCRC in order to make the commitment to select and move to a community. Internally, they looked at the systems and tactics surrounding the brand image, if and how they were advertising and promoting the campus and how they were managing the inquiry and prospect engagement process. Industry leaders learned fast. They adopted a marketing approach incorporating many of the proven sales and marketing tactics from real estate and other direct selling professions.
These leaders retrofitted and renovated small apartments making more spacious accommodations with significantly upgraded amenities.They built larger apartments, cottages, and garden homes. Amenities increased in quality and number as well. Prospective residents could actually customize their units; not just select from among three paint colors and two styles of carpeting. The Directors of Admissions were replaced by Directors of Marketing. Sales Counselors were added. Branding and advertising programs were developed and launched. Occupancy challenges began to resolve. Communities on the leading edge of these changes were often viewed by skeptical peers as “selling out to a corporate model” that would ultimately degrade or destroy their commitment to mission. These fears were unfounded. When the communities slow to adapt to these market challenges finally reached the conclusion they also needed to adopt these approaches, they struggled to catch up and in some cases did not endure.
Marketing's Importance Today
Marketing is a core strategy to accomplish our mission. Today all successful organizations have effective branding and advertising programs. All successful senior living communities have a successful sales department with a customer focus. Curb appeal, employee/associate engagement and attitude, culture and philosophy are continuously refined to reflect mission, vision and values. Successful organizations have internalized the fact that continuing success depends on this!
Why Should We Work to Add this Program? What are the Tangible and Intangible Benefits?
Independent Sector, the leadership network for nonprofits, foundations, and corporations, clearly articulates the role of the Charitable and Philanthropic Sector in our society. “The charitable and philanthropic sector depends on a strong base of charitable giving. Without a strong base of private charitable contributions, the charitable and philanthropic sector could not sustain the important public benefit activities it provides in communities across the country and around the world. While earned income and government support are vitally important elements of the charitable sector’s income stream, it is private charitable donations that give the sector its credibility, value and relevance to our communities.”
As members of the Charitable and Philanthropic Sector, we have begun to focus on Corporate Social Accountability programs. We track and measure the dual impact of how, as tax exempt organizations, we contribute directly to community priorities as well as the breadth and depth of community support of our organizations. Charitable investment by generous donors strengthens our overall case that we are effective and worthy partners … and that we are worth the investment in ongoing tax exempt status.
Philanthropy as the Next Logical Step
For decades senior living communities have been the beneficiaries of bequests, gifts of real estate, memorial and tribute gifts. Many organizations have annual mailings or events to raise money for benevolent care. Donors receive acknowledgements, plaques and donor walls may be installed and legacy societies may be initiated and honored. The size and number of gifts fluctuates from year to year. Staff may be assigned to oversee donor acknowledgement and stewardship. Funds raised provide a little extra from year to year.
Philanthropy leaders in the senior living sector have established strong programs with significant results. These sector leaders committed to a donor centric approach and incorporated many of the proven tactics from sectors, such as higher education, into their giving programs. They identified early on that philanthropy could be a robust and productive revenue stream; supporting mission critical operations by focusing on donor engagement and matching donor aspirations with mission.
In addition to benevolent care these leaders and their donors want the opportunity to support programs such as renovations, expansion, and equipment; employee enrichment and education; spiritual life and chaplaincy; outreach; home based services; Alzheimer’s and memory care, and others. They welcome and encourage gifts to these and other priorities.
Can their success be a bellwether for our future?
Robbe Healey is a Vice President for Philanthropy at Simpson Senior Services in Bala Cynwyd, PA
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