If you’re considering opening a daycare center, one of the most important points you will need to consider is who is your target market and who isn’t.

Most people would say that the target market for daycare centers must be parents – specifically parents with small children under the age of 5 or 6.

Unfortunately, such a broad definition of the market will prove to be inadequate even for taking the most basic of business decisions – where to start your daycare, what services to provide, what skill sets to hire and what types of marketing strategies and campaigns to run to attract the right customers.

And so, we must segment this market and analyze it at a much granular level to truly understand who the right customer for your daycare center is.

In this article, we will study the target market for daycare centers by understanding why parents choose a daycare and what key factors they take into account while selecting one daycare center over another.

Keep reading!


Who is the Target Market for Daycare Centers?

While the most obvious answer to the question – Who is the target market for daycare centers – is “Parents”, different parents have different reasons for looking for a daycare center.

So to truly understand this market we need to dig deeper and look closely at the need that parents have that makes them consider a daycare center for their children. And this can be a basis for segmenting this market large market.

So based on the various needs that parents have, the target market for daycare centers can be split into the following segments:

  1. Working parents who cannot take care of their children during the day
  2. Parents who want their children to socialize and interact with other children
  3. Parents who are looking for a safe and secure environment for their children to stay in during the day
  4. Parents who are looking for an educational program for their children before they start primary school
  5. Parents with children with special needs

Let’s look at each of these segments.

1. Working parents who cannot take care of their children during the day

The most common reason for parents looking for a daycare center is that both parents work full time and cannot take care of their children during the day.

According to the Americal Association of University Women (AAUW) in 2019, 66.4% of mothers with children under the age of six were employed.

This segment of the target market for daycare is usually time-strapped and is looking for a daycare center that is close to their workplace or home. They are also willing to pay premium prices for good quality daycare.

2. Parents who want their children to socialize and interact with other children

Another segment of the target market for daycare includes those who believe that it is important for their children to socialize and interact with other children even at a very young age.

These parents usually send their children to daycare a few days a week or during the weekends so that their children can play with other kids and learn how to share and cooperate.

3. Parents who are looking for a safe and secure environment for their children to stay in during the day

Some parents also use daycare centers as a form of babysitting service.

They are usually working parents who cannot find a trustworthy family member or friend to leave their children with during the day.

Sometimes parents work from home and cannot care for their child at the same time. Or they may have a meeting and might have to leave their child in someone’s care.

Such parents look for a short-term option for a daycare where they can send their child for just a few hours each day. Daycare centers can charge good money to this group of parents and they can be one of the important ways in which daycares make money.

4. Parents who are looking for an educational program for their children before they start primary school

Some parents like their children to go through an education program that prepares them for primary school.

These parents usually send their children to daycare a few days a week or during the weekends so that their children can be exposed to a structured learning environment.

They usually look for daycare centers that have qualified teachers who can teach their children basic numeracy and literacy skills.

Some parents in this segment may seek out special educational programs like Montessori or Waldorf.

5. Parents with children with special needs

Parents with children who have special needs may also look for a daycare center that can specifically provide their children with the necessary care and support.

These parents usually look for daycare centers that have qualified staff who are trained to handle children with special needs.

Now that we have looked at some of the key segments in the target market for daycare centers based on the reasons they look for a daycare for their children, let’s understand what factors these parents take into account while choosing a specific daycare center for their children.


Daycare Centers: How do parents choose one over another?

Once parents make the decision to send their child to a daycare center – either part-time or full-time, they then need to select one daycare center over others. How do they make this selection? What do they look for?

There are various factors that parents consider while looking for and selecting a daycare center for their children. The most important ones are:

  1. The quality of care and education
  2. The location of the daycare center
  3. The safety and security of the facility
  4. The cost of the services
  5. The reviews and ratings of the daycare center

Let’s dig deeper.

1. The quality of care and education

Without question, the most important factor that parents look at while choosing a daycare center is the quality of care and education that the center can provide.

Parents want to be sure that their children are being cared for by qualified and experienced staff in a safe and secure environment.

They also want to be sure that their children are receiving the best possible education and care that will help them get ready for primary school.

2. The location of the daycare center

Another important factor that parents consider is the location of the daycare center.

Parents will want the daycare in a convenient area so that they can drop off and pick up their children easily.

This is usually close to the home or office so that they can easily get there in case of an emergency or if their child falls sick and needs to be taken home.

3. The safety and security of the facility

Another crucial factor that parents consider is the safety and security of the daycare center. This point may even be more important than the quality of the education.

Above all, parents want their children to be safe. They will want to be sure that the daycare is located in a safe area and that the facility is secure.

Many parents look for daycare centers that have CCTV cameras installed and a good security system in place. They may also want a daycare that live streams online so that they can watch their child remotely over the internet.

Sometimes location and security go hand in hand. If the daycare center is located in a commercial area or in a downtown area, parents might be more concerned about the safety and security of their children than they would have been had the daycare been located in a residential or suburban area.

4. The cost of the services

Like with any other service, the cost of the daycare is an important consideration for many parents.

While all parents will want the best possible care and education for their children, they also need to be sure that they can afford the daycare center.

They will also want to be sure that the fees are reasonable and that they are getting value for their money.

As we saw, the main reason parents send their children to a daycare center is so that they can go to work and earn money. So if the cost of the daycare exceeds what one of the parents makes as income, then that parent might simply choose to stay home and care for the child instead of going to work.

5. The reviews and ratings of the daycare center

Finally, parents will almost always ask around before selecting a daycare center for their child.

They will want to be sure that other parents have had a good experience with the daycare and that it is reputable. They will look for good ratings from parents as well as from independent organizations.

They will make contact with Parent’s Associations and/or ask friends if they know anyone sending their children to a particular daycare. Parents will also interview the daycare center’s management and owners to understand their philosophy and experience in running the daycare and looking after the children in their care.


Summary

The target market for daycare centers is best understood by analyzing the main reasons why parents choose a daycare center for their children.

In most cases parents are looking for a safe place for their children to stay while they go to work. But some stay-at-home parents too may prefer sending their children to a daycare center. In some cases, this is because the parents want their children to socialize, interact and play with other children, and sending them to a daycare is the only possible way.

In other cases, parents want their children to go through a special education program before starting primary school. Similarly, parents of children with special needs may also look for a daycare which specializes in offering education and care for the needs of their child.

When selecting one daycare center over others, parents make their selection while paralleling looking at several factors. For some parents, the quality of care and education is the main decision factor. For others, it is the location of the daycare or the safety and security of the facility. For some others, the cost is a primary consideration. Almost all parents will look at peer reviews before selecting a daycare and so the daycare’s reputation plays a major role in the selection process.

So, if you are considering starting a daycare center, remember to take the time to truly understand your target market and your ideal customer. Understand why they are looking for a daycare and what factors will most influence their decision. With this knowledge you should be able to offer the right services and build a marketing plan that can appeal to the needs of your target market.