Engagement platforms: Acquisitions…then what?
The last 2 years have proved to be a really interesting time in the world of resident engagement platforms. Acquisitions continue to occur and while I understand the consolidation and partnering of companies will ideally (and hopefully) lead to better products and experiences, there seems to be one continual dilemma.
What does this mean to the end user, the customer?
Since 2020 we have seen the following:
Spectrio acquired Lifeshare Technologies
Eldermark acquired SmileRx and Viibrant
Touchtown acquired Sagely
iN2L acquired LifeLoop
VoiceFriend acquired CareMerge
And, I am certain there are more coming down the pipe. I believe it is a saturated market with too many options that ultimately do almost the same thing, they just all do it all a little differently. Because of that, a person can sit through 10 demos and walk away from each one trying to recall what stands out, how they are different, and which one did what.
Here’s an analogy. Every woman that likes dresses has a LBD (little black dress). A “go to” in the closet always ready for a multitude of occasions. There are certain features of the dress that stand out, but only to the possessor. Maybe the straps, the hem, where it hits above the knee, the material, the fit, the neckline or sleeves. All important features, kind of. You will put that dress on and wear it out and guess what people remember? (most likely your significant other)
That you wore a black dress!
Imagine a picture of a group of women all wearing black dresses for some celebratory occasion. Yes, they are all uniquely different. But to everyone else’s observation they are all still just black dresses.
I do think ongoing innovation, listening to residents, staff and families using the platforms, older tech phasing out and continued acquisition and integrations can propel the engagement platform space beyond the little black dress analogy.
Over the next year I project there will be more separation between the best in class for the value, and what the senior living industry can realistically afford. Until the engagement budget is more inline with other departmental budgets, or costs are shared across marketing, dining and operations budgets, the monthly price point and implementation costs of an engagement platform can be prohibitive to purchasing. Even if the need has unequivocally been proven.
When speaking to operators who are using any of these platforms, the first question when an acquisition is announced is “What does this mean”? Unfortunately, there has not been (to my knowledge) a good explanation, or clear answer out of the gate. Just a lot of excitement and hope for the future state.
This is what we are hearing from current customers caught in the crosswinds:
If I already have one product and now you two are combined, do I get the other?
What does, or will a new pricing structure look like?
Are they integrated?
If I have data in one, will it be in the other?
Do I still have to log into each one separately?
If we use one for family communication, will we be able to see it elsewhere?
What, and when can I expect to see that is different, better, new, and upgraded?
Will there be an extra cost when additional features are added or integrated?
What if one platform is a flat rate per month for all components and the other has a la carte pricing?
We continue to hear these questions and confusion on the customer/operator side. I believe companies owe their customers a better explanation and transparency with the end goal or future-state plan. Perhaps that transparency is the honest answer of “we do not exactly know yet”, but we believe this is a strategically sound acquisition and this ______ is the why!
If there is little to no communication whatsoever and it’s business as usual the suggested, “just keep using it as you always have”, as the customer you think “what is the point”?
If nothing changes on my end, why involve us in the non-changes and communication fodder. The emails and posts become noise that gets pushed aside and ignored. Once you go down the path of wasting the customer’s time with irrelevant information, it is difficult to regain attention when you need it back.
I also believe not sharing a visible timeline or roadmap of what is going to take place, or what I can expect over the next 12-18 months is frustrating for the customer. I am confident the customer begins to question the integrity of the overall plan and future state.
Is the acquisition simply one of growing a total customer base and that is the only real strategy? If so, great. Just say it. I believe people understand and respect that answer more than silence or generic statements that do not provide any real concrete information. If the plan is to operate the entities completely separate, tell us that. If it will be at least a year until there are significant or noticeable changes, tell us.
In a time where families have demanded transparency in senior living and we have responded accordingly, strengthening such relationships and building trust, I believe we deserve the same from vendors and partners in the space. This is not just about acquisitions, but also disclosing pricing.
While this post is about engagement platforms, I know there are many other acquisitions and mergers affecting community staff, residents and families that should be better explained. As vendors we seek to be identified as a “partner” that will help solve the inefficiencies and nuances. True partnerships are created on trust and honest conversations, even when the answer is not the one we may want to disclose.