Customer acquisition in the early childhood sector is challenging. Not only is it a competitive market to try and engage new families and encourage them to consider your centre, but these numbers show us that it is just the start of a long journey to convert leads to customers.
Understanding the pattern of churn at your centre and understanding how it compares to the industry average can provide interesting insights into the health of your centre. It also helps focus on the importance of a strong waitlist and ensuring you have good processes in place to manage those on the waitlist.
I recently had to order a basketball uniform for my son, from the club’s website, it was the most drawn out process. It struck me that as parents we expect better, easier, more efficient ways to get things done.
A recent report by Colliers International states that in the childcare industry, occupancy rates average between 50%-70% (regional) and 80% (metro). Most centres need to be operating at 70% to be profitable.