12A – Figuring Out Buyer Behavior No. 1

1) Pick a segment. The segment I am targeting is people who have not yet made any plans for long-term care.
2) Need Awareness
#1- Worried about lack of plans. Their lack of future plans stems from the fact that they don't know what their financial situation will be like in 10-15 years.
#2- Not worried about lack of plans. Money is not a problem for couple, so they feel like that gives them room for error in their planning. They have not decided on any plans for long-term care because they don't know where they want to retire.
#3- Not necessarily worried, but not content with their level of preparedness either. This individual is retired but still very busy doing missions work overseas in Central and South America. Money isn't going to be too much of an issue because of charities which will support him in his later years. However, he does have budget constraints and won't have unlimited options.
4) Move to information search. 
The two couples and the individual whom I interviewed all agreed that they had two options. When the time comes, liquidate all assets and move into an assisted living facility. Or, modify your home with lifts and ramps and hire a nurse to come periodically. The two options can vary dramatically in cost depending on your specific needs and what you are willing to spend, but they generally agreed that in-home care is the best option
5) Report the findings of your research. Much of the problem for these people stems from the lack of liquid capital to fund expensive healthcare for an undefined time period. #1 and #3 struggle with this because much of their net worth, more than half, is tied up in their house. For these people, something like a fixed annuity, funded by a declining balance reverse mortgage could be a viable option.
6) Draw conclusions. Again, the primary hurdle for almost everyone I interview is financial. This is why my business model needs to be flexible to meet the financial needs and constraints of my market.

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