Physicians, chiropractors, therapists, health professionals or
wellness practitioners can utilize medical wellness programs to
provide real solutions for today’s changing health care environment.
Before jumping into this exciting market, every rational decision to
build a new wellness program should be preceded by an investigation
of the feasibility of the project.
Such
a process provides assurance that is needed to study and confirm
that the market exists and can be successfully developed for a new
wellness venture. Before a new wellness center develops facility
standards, it should have a clear conceptual plan along with goals
and desired outcomes. The future success for any wellness
development will be the market research and business plan.
Winning with Wellness
The recommended Medical Wellness approach with each successful
medical wellness center is similar to the approach a coach takes
when assembling a team for a winning season: Planning, Pre-season,
and Season. The time- proven
process taken during the planning process will ensure the successful
development of the new wellness center.
There are several important tasks for developing a successful
wellness center and program:
Planning
A new wellness facility team, like any team, must plan for success.
It is recommended that the detailed planning stage of the project be
initiated as early as possible. The market study and plan is often
completed by a professional consultant. The first step in the
essential planning process is to conduct a Market Feasibility
Evaluation. As a result of this feasibility process these plans
should start with the project goals, target market and site
selection.
Specifically they should include some technical analysis of the
following components:
• Define Project Mission and Goals
• Market Analysis
• Member and User Profile
• Demographic Analysis
• Competitive Analysis
• Comparison of Successful Centers
• Program Plan
• Facility Space Program
• Wellness Center Model and Profile
• Financial Proforma and Schedules
• New Center Project Time Line
Pre-season
Critical tasks to prepare for a winning season in any new facility
include market research, space and
facility design, equipment selection, hiring and training of staff,
a successful marketing and pre-sales program and
the effective development of all wellness programming that
will set the tone for customer service and retention.
In
my experience, the complex and vital processes during these stages
play a large part in determining the success of the program. It is
recommended to initially use a consultant with proven wellness
experience and expertise during the planning and pre-season process.
Season
When the doors to your new facility open, the season begins. This is
when professional and effective management will improve the health
and wellness of the community, guests, and members; and help
maximize programs, participation, and revenues while minimizing
expenses.
The
professional market study will include financial forecasts, budgets
and executive recommendations. This process will allow the program
and staffing plans to lead a successful wellness center operation
(season). It has been my professional experience that this process
is a blueprint for success. Behind each successful project is the
experience and expertise of the planning team. How the programs and
services come together and functions is determined during the
critical feasibility study and business plan process.
Planning for Business Success
A new wellness facility team, like any
team, must plan for success. It is recommended that the detailed
planning stage of the project be initiated as early as possible.
The
first step in the essential planning process is to conduct a market
feasibility evaluation. As a result of this feasibility process,
these plans should start with the project goals, target market and
site selection. In beginning to conduct a detailed market
feasibility analysis, it is very important to review demographic
data and select the best site for the success criteria and desired
goals. Set outcome goals to identify the business and wellness goals
for the proposed center; meet with all key stakeholders to fully
understand the reasons for building a center and preliminary
financial objectives; evaluate the overall facility, service areas
and program plan to clarify how the wellness center and programs
will help contribute to the goals of the overall plan.
The
following process is just one example used to estimate the
feasibility of a new wellness facility:
Determine Market Area — The primary
market area is defined as within a drive time or a radius of the
proposed facility. The recommended trade area is generally a 10- to
15-minute drive time. Although geographic barriers will always
exist, experience with projects confirms that the people most likely
to join a center are those living or working in close proximity to
the facility.
I
highly recommend using a drive time analysis for the evaluation.
Consultants will review the project site locations and
conduct a site analysis. They should evaluate the location for
potential users based on demographics, convenience and
accessibility. Radius or mile rings studies can be completed if the
drive time analysis is not available.
Estimates and Extrapolation —
Proprietary membership, enrollment rates, estimated penetration from
census-related reports, data mining and household surveys are
reviewed and analyzed. These results are applied to the local
community level using demographic projections and data
mining.
Rely
on consultants, design firms, wellness industry data sources,
surveys, benchmarking databases and nationally recognized market
analysis demographic database tools to analyze: the number of
households within varying proximities of the proposed facility site;
the average income levels of households within varying proximities
from the proposed facility site and the correlation of household
income to the acceptance threshold of member dues and other fees;
the average number of individuals per household as well as median
age of the highest potential prospective members; industry studies
that document the average distances users and members are willing to
travel to join a wellness center; recent community census data and
projected population statistics, including household size, income
level, age and education; interviews with physician and other
practitioners to determine the potential for medical referral
memberships; and estimated community and employee usage for various
recreational activities.
An
income analysis can be applied to the potential member profile in
order to estimate the population who may join a new facility based
on planned programs, services and price elasticity.
Effects of Competition — Every new
project should conduct competitive or community analysis of the
comparable operations in the target area. This community assessment
determines key information about the area’s existing wellness
centers. A “professional shopper” technique is used to assess direct
competition. A good competitive analysis will include the following:
the location of competitive centers and their distance from the
proposed wellness center along with the estimated memberships and
the age of competing facilities. Any new facility or programming
components should be included with the size and amenities of the
competing facilities, and the summary will identify facility
features along with membership options and member dues, initiation
fees and other costs.
Corrections Based on Research Experience
— Even after all attempts to
discount potential memberships through the market evaluation and the
competition analysis, there will be a group of people who would be
expected to join, but do not participate as predicted. This is where
a seasoned consultant with proven experience is most valuable.
Impact of Medically-related Memberships
— It has been determined that 20% to 30% of fitness center members
are introduced to the facility because of medical needs, such as
cardiovascular disease or orthopedic problems. Experience with
wellness operations indicates that physicians who are associated
with the facility will use the programs as an integral part of
medical treatment.
Comparison of Successful Centers —
Develop a comparison of successful wellness centers in the market
area to help determine facility and program components to consider
in the center. This is a great benchmarking tool and process and
future marketing resource for memberships.
The following chart provides the different market research methods
and assessments.
Research Methods & Assessments |
 |
Demographic survey
evaluation |
 |
Market feasibility
assessments |
 |
Telephone interviews |
 |
Brand image analysis |
 |
Focus groups |
 |
Product/service
utilization |
 |
Direct mail surveys |
 |
Advertising effectiveness |
 |
Customer intercepts |
 |
New product/service
development |
 |
Mystery shops |
 |
Customer satisfaction |
 |
Inactive/former customer
surveys |
|
|
|
|
|
|