The following post is the first in a four-part series discussing the implications of online user reviews and ratings for senior housing communities.
Online user reviews and ratings have been staples of service industries like restaurants and hotels for more than a decade. Research indicates that these reviews have an immense impact on the purchasing habits of Americans, typified by a 2007 Deloitte study which states:
“Almost two-thirds (62 percent) of consumers read consumer-written product reviews on the Internet. Of these, more than eight in 10 (82 percent) say their purchase decisions have been directly influenced by the reviews… All age groups are reading and acting on online reviews at significant rates”
Figures such as these explain exactly why similar functionality is beginning to enter the senior housing industry, and why resistance is futile.
Not an industry of early adopters.
The senior housing industry isn’t exactly on technology’s bleeding edge of most of the time.
While most providers are quick to embrace innovations that help them provide better care for residents (and rightfully so), technologies augmenting marketing or communications are often met with staunch resistance.
One senior housing executive recently went so far as to tell us we were wasting our time providing an online listing service because “the internet is just a fad”!
A few Neolithic viewpoints notwithstanding, most senior housing providers appreciate how indispensible the internet has become to the bulk of Americans. Many, however, seem to think that it is less important in their industry.
I suspect that these views stem from the erroneous assumption that their target audiences, seniors and baby boomers, don’t use the internet. This, of course, is not the case as a study by the Pew Internet Project indicates that 70% of Americans 50-64 and 33% of those 65+ use the internet.
As user generated reviews and ratings on senior housing providers become more commonplace, these older internet users will begin to make decisions based partially on the shared experiences of their peers, and begin share their own.
An obvious progression.
Comment and rating sections have long been standard with nearly every online retailer. Dedicated consumer review sites such as Yelp and Angie’s List have become immensely popular. Consumer ratings and reviews can even be found on Google Maps.
Hitting a bit closer to home, websites which allow consumers to review and rate physicians have become more commonplace in recent years.
Revolution Health (the second largest online health website, created by Steve Case of AOL fame) puts a huge emphasis on user generated content, claiming to employ a “consumer-centric” approach (Disclosure: Revolution Health has licensed the SNAPforSeniors database and search tools).
The site not only allows users to rate hospitals and physicians, but also drugs and treatments. Revolution Health is certainly not alone in this case, as many sites are increasingly putting healthcare content in the hands of the consumer.
Senior housing is an obvious extension of this trend. In my next post I’ll explore how it’s already taking hold in the industry, and why it’s facing stiff opposition from many providers.
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About the author: Grant Milne is a communications specialist with SNAPforSeniors and the managing editor of Senior Housing Insights. He can be reached at grant.milne@snapforseniors.com.