By 2021, the vibrant lifestyle industry’s recovery will depend on declining demand, but that is easier said than done.
As a result of the Covid-19 pandemic, the occupancy rate dropped last year, bringing the entire sector’s occupancy rate to its lowest level in history. While it is difficult to estimate the amount of pent-up demand, sales managers at two of the largest premium life insurance service providers in the United States believe it exists. However, once vaccination efforts get brought under control, and the pandemic gets brought under control, it cannot lead to a sudden increase in occupation.
Over the next few months, senior sales staff will have to work hard to regain potential customers and their families’ trust to rebuild the occupancy rates. Specifically, providers need to make optimal use of the coming months to prove that the community can offer an active and engaging lifestyle, in addition to the safety of residents.
Recovery rate While the industry generally believes there is some catching up to do, not all suppliers agree on meeting the demand. For example, different levels of care may have different recovery rates.
Janine Witte, Vice President Sales, Senior Lifestyle Corp. The Chicago-based company firmly believes that demand will pick up. However, she believes that the most affected types of products will have a longer path to recovery.
Westman agrees that communities and life and memory stations can spring back first. But neither did he lead an independent life.
Witte and Westermann agree that the recovery rate from one market to another may also vary. Given the size of the company, they have a good view of this. Seniors Lifestyle runs over 200 communities throughout the county. Through its Department of Life Care Services, LCS operates more than 140 communities, including many significant life planning communities.
In Texas, the number of LCS communities moving between August and December was higher than in 2019. The number of relocations in many Midwest Company communities was similar to the fourth quarter of 2019. Westerman noted that in the areas most affected by the pandemic. LCS arrival speed decreased.
Witte said that the Northeast had won “first place in big fluctuations” among the leading generations of exclusive lifestyles when it comes to exclusive lifestyles. High-end lifestyle communities in the Southeast also experienced turbulence in early 2020, followed by a decline in the third and fourth quarters. As long as such volatility persists, it will complicate the recovery forecast.
Westerman said that the introduction of the vaccine does not appear to impact immigration so far significantly. In January, the number of LCS consultations “increased seasonally” vaccine work, efforts are slowly creeping up to the average 2021 level.
“We do not want so many inquiries, so how do we transfer inquiries (to more visits and increase the number each month in the coming months?” Westman said.
However, despite the encouraging signs, the industry still has many foundations to compensate for the decline in employment rates. He added that, as much as we all want, it will not “restore 34,000 units by 2021”.
Witte also thinks that 2021 will be a long road with some obstacles.
Getting into the Demand
Although full recovery time can not yet get determined, both the LCS and the Senior Lifestyle are more creative in maintaining relationships with potential customers, aiming to nurture potential customers until they are ready to take action.
There is no doubt that there will be errors in the process and sales professionals have to make a firm decision.
Witte said: “We can develop all these wonderful methods to cultivate potential customers. But they must be able to keep in touch with them, decline, accept disappointment, and deal with voice mail and unanswered emails and face-to-face appointments, and continue. They have to keep going ahead.”
The current situation is that vendors have to work harder than ever to determine pre-pandemic conversion rates among new prospects. At the same time, fewer potential customers are entering. However, there is silver clothing in this more difficult time as the suppliers are more innovative than they have been in recent years. This could help propel the industry forward in the months or years to come.
“If you check all the news, we will release the news that we didn’t have in 2018 and 2019, then we will do better. Westerman said: “We are building a virtual book club, talking about the priority of vaccines. Right, for the prospects, it looks different and feels different. “I think we will learn some important lessons this year, which will help us move into the future. ”
In terms of messages, Senior Lifestyle believes that the Covid-19 vaccine can appeal to the elderly and their families who are drawn to society.
Westerman said that rent concessions are a hot topic in the senior housing industry. When used sparingly and wisely, rental concessions can also be a useful tool for capturing pent-up demand.
According to Witte, Covid-19 has lowered the occupancy rate for the entire industry, so more aggressive pricing is required when competition intensifies.
He added: “For us, it is studying how to use certain means to sign a lease, but at the same time, it must reflect our value as an industry.”
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