Defining customer value
Customers make their choices based on their perception of value of a product or service. In turn, value is assessed by factors such as quality, service, image and cost.
Every consumer purchase, including something as close to the heart as childcare, is based on a thought process of ‘What’s in it for me?’ So let’s answer that question…What’s in it for them? Why would a family choose family day care over an alternative form of childcare?
When asked why they chose family day care, parents told Choice this in 2006:
| • |
Referral – they knew someone who had used the service and spoke highly of it – that tells us that word of mouth is one of the most powerful tools we have in our marketing kit |
| • |
The quality of workers – there is a high level of confidence in the quality of workers in family day care – a key reason for choosing this type of care |
| • |
Cost/affordability – users of family day care are significantly more likely to have chosen this form of childcare because of cost |
These are significant points to work with, but we know there’s more. When asking the question ‘Why us and not them?’, our own research tells us that family day care’s value proposition is based on:
| • |
small groups and more individual care |
| • |
consistency and quality of care |
| • |
carer experience and training |
| • |
low staff turnover |
| • |
negotiable hours/flexibility |
| • |
mobility – able to go out into the community and provide a ‘real world’ approach to childcare |
| • |
a focus on family |
| • |
links with government – reliability |
| • |
history/longevity – we’ve been around for 30 years |
| • |
nurturing, home-based learning environment |
| • |
convenient, accessible and safe |
| • |
accredited, regulated, monitored |
| • |
affordability |
This is what the industry says about itself…it is not necessarily what families say about the industry.
Asking current clients what they believe to be of value is a fundamental part of marketing research.
| • |
What is it about your service that keeps your current families satisfied? |
| • |
What else could you do, or what could you improve, that would add even more value to their experience? |
It’s worth spending time on further satisfying already satisfied clients – turning a satisfied client into a delighted one means more positive word of mouth for your service.
A key point that came out of the Choice research is that families choose family day care because it is affordable. We know that many families are on maximum CCB which means that their childcare is very low cost or even free. Are these families the bulk of your current market? If they are using two or three days care a week, what would induce them to use more family day care? What more, or better things could be added to the service that parents would value enough to increase their family day care use over other forms of care or informal arrangements?
There is also a perception out there that family day care is the ‘cheap’ option – the one you take when you can’t afford anything else. This perception of affordability can work for you when you want your families to use more of the service, but it can also work against you if you are trying to attract a target market with different values.
The point is, knowing your customers is the key to defining what they value and what strategies you are going to put in place to attract them to use family day care above other forms of childcare, including informal care with relatives.
The Choice survey represented a very small sample of childcare users. You can undertake much more effective and useful marketing research in your own scheme through questionnaires, observation, focus groups etc., and by looking at statistics you already collect. For example, without breaching privacy regulations, you can see quite easily see the income demographics of your current client base.
| • |
Are there mainly low income earners using your service, or a mix? |
| • |
Are there opportunities there that you are missing? |
| • |
If your current marketing message is aimed at attracting low income families, what could you be saying that might attract higher income families? For example, making a statement that your service is ‘community-based’ might not attract families who believe that ‘private’ services (eg schools, hospitals etc) are of higher quality – you just need to know the market that you intend to target and define the messages that will attract them to use your service. |
Benchmarking your current client base – who they are, where they come from and what attracted them to your service – gives you a place to start looking for the gaps.
| • |
Who are you not seeing and why? |
| • |
Look at your current marketing material – is it simple, clear and readily understood by the people who are not familiar with childcare? |
| • |
Do you have a scheme website that profiles your service, carers and current vacancies? Are you easy to find? |
| • |
Is your best customer service person the one that answers the phone and/or interviews prospective families? |
| • |
Are initial inquiries for care quickly acted on – what is the average time between inquiry and a child in care? Is there room for improvement in those processes? |
Similarly, think about the people you deal with and how they can help spread positive word about your service. The schemes across the country that are thriving in every way are those with strong partnerships between staff and carers that energise and empower each individual to work toward the same goals as a team.
Remember, it does not matter what you have to offer – what’s important is what your customers want. This is a challenging statement: surely, if you offer a quality childcare service, families will want to use it. That’s true, but they have to also know that they want to use it. Your marketing message must create the want, need and demand for your type of childcare in the minds of your potential clients. In a crowded marketplace and increasing competition, your service needs to stand out and get noticed.
The bottom line is: find out what your customers value and give them more of it.
|
