Market research is carried out to determine if there is a market for your service. This is essential for the sustainability of your childminding business. You will need to know the following from your market research, to plan and prepare yourself for the tasks ahead.
Your market research should answer these questions, but especially the main two highlighted:
– Is there a demand for your service?
– Who are your competitors?
– How many are there?
– Who are providing the same service?
– How could you be different?
If the answer to the first question is ‘no’, because there are not enough children in your area etc. and the demographics for your area show a greater number of adults than children, you may have to rethink your plans, as getting regular customers could be difficult.
If the answer to the third question is ‘many’, then you also need to consider if you can offer something different to what is already available or consider shelving the idea, because the competition is too great and the market saturated to make a reasonable living.
Market research will therefore help you gain a better understanding of how to stand out from the crowd.
There are numerous ways you can carry out market research, and some methods are better than others. But in general, there are two main ways: primary and secondary.
Primary research: involves speaking directly to your customer and asking them what they want. You can do this for example, by doing surveys at a local playgroup etc.
Secondary research: involves using the research already done by others about your customers. This can done by asking other childminders in the area or asking your Early Years team at the council.
For your market research to be accurate, you should involve both primary and secondary type researches, and you should also find out about the following.
Know your area
Do you live in an area which has a high population of working families? Are there lots of new housing estates with schools nearby?
Are there many day nurseries?
Are there many childminders?
Investigate the schools in the area and check to see if they offer ‘before and after school provisions, or out of school clubs, if not then this could be a market you could tap into. If they do long long do they run for? Are their times suitable for working parents?
After researching your area, you need to tailor your services to what is needed.
Know your customers
Find out if there are large employers who operate in your area, as well as offices and retail businesses. Check the hours that their employees work, to see if you can support with childcare. Why do they need your service? What are their price points?
Do parents commute long or short distances from where you live, are they likely to leave their children for long or short lengths of time? What are their needs? Identify them in terms of age, occupation, income, status e.g. single, married, family, age of children etc.
Carry out a survey
Create a short, easy to fill in survey, which can be easily returned to you. Ask potential customers what it is they require from a childcare service and ask existing customers what they like about your service and how it can be improved.
Value your feedback
In order to keep the cycle of filling vacant places going, as children come and leave as they get older, it is better to create a waiting list, than have empty places waiting to be filled.
What will make them come to you?
It is particularly important that you understand what it is exactly that you are seeking to find out, therefore you must have a detailed plan of how you are going to organize this. The more focused you make your research, the more valuable the results will be.
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