By Stephen Tweed
Do Consumers really understand Home Care?
One of the Top Ten Trends affecting the future of home care we are monitoring is the increasing consumer awareness, and how that is causing increased expectations of home care companies. However, we came across an interesting study that shows that a significant number of seniors have much lower awareness of the options available to them than we had expected.
Data show that:
- By 2030, 21% of the American population will be at retirement age.
- 20 million adults in the US require assistance with self-care and other daily tasks due to physical, cognitive, or behavioral health isues.
- National spending on home health care reached a high of $113.5 Billion in 2019, a 40% increase from 2013.
A study of 500 seniors conducted by Cross Country Workforce Solutions Group shed some light on consumer awareness. The study showed:
- 66% of respondents have thought about future care needs, buy only 9% are looking into it, and 34% have not thought about it.
- 74% of people aged 60 to 79 with a net worth of $500,000 or more have thought about their needs, compared to 51% with less than $50,000 net worth.
- 70% of respondents prefer to remain home with support, and 51% would prefer to stay home without support. 37% said they preferred to move into a transitional services facility.
- 57% of respondents have not considered a budget for what they may need for aged care. 60% of respondents aged 60 to 79 with a net worth of $500,000 or more have considered a budget for care.
- 73% of respondents over age 70 expect to pay for care from their personal savings, or through Medicare (for skilled home health).
The over 70 population indicated the following home care services that they would be interested in:
- Taking me to appointments – 45%
- Medically necessary care – 40%
- Shopping – 34%
- Laundry – 30%
- Meal preparation – 29%
Cross Country Workforce Solutions Group staffs in-home caregivers for PACE programs nationwide. To see the full report, visit Aging in place | Cross Country
Understanding High Net Worth Consumers
One of the things that struck me about this study is the differences in thinking about senior care by consumers over age 70 who have a net worth of over $500,000. Their level of awareness, thoughts about budgeting, and willingness to pay for care from their savings are quite different from other age cohorts. This falls in line with our experience working with home care companies that are part of the Home Care CEO Forum Top 5% Mastermind Group. Those member companies that have grown the fastest and earned the highest net income from operations are those that have focused on working with clients and families who have high net worth.
As the owner or CEO of a growing home care company, the more you understand about your target audience, the more effectively you can build your brand, and communicate with potential clients and referral sources.
- What do you know about your current client base?
- What is their awareness of home care options?
- What is their approximate level of net worth?
- How are they finding your company?
- What sources of new business bring you the most new clients with the highest hours per week and the longest length of stay?
Want to Know More About YOUR Ideal Client?
To profitably grow your home care company to your desired size, one of the most effective strategies is to clearly define your “Ideal Client”, and then refocus your sales and marketing process on attracting more “Ideal Clients.” For assistance in gathering and analyzing data to identify your ideal clients, explore Leading Home Care’s Home Care Industry Research Service.
