Your zip code is much more than a number. It’s the key to your practice’s success, and it determines your ability to
weather economic storms. A demographic analysis is critical for success because it enables you to reach your target customers and assist in your branding and marketing. How?
WHAT’S YOUR TARGET MARKET?
You need to differentiate your strategies based upon your audience: millennials and retirees are two different markets that require separate methods. For example, if you’re targeting millennials, you’ll want to be sure that you’re using mobile and social media marketing—85 percent of American millennials have smartphones. On the other hand, retirees are more interested in content-driven marketing full of useful information and practical advice they can use.
While anyone can obtain a basic demographic data, practice advisors can analyze this data to determine what it means for you and your dental or optometric practice.
What goes into a demographic analysis? Here are some of the aspects included:
Demographic analysis examines zip codes and provides characteristics that are typical of the residents there. Some areas may have a large number of married couples without children, while others may be composed primarily of renters instead of homeowners. This also includes the average household size, the average age, educational attainment, and population density.
MEDIAN HOUSEHOLD INCOME
Demographic reports also show how the median household income compares to other zip codes in the area as well as the state and nationwide average. Your practice advisor can even get more specific information by breaking down the income data into block groups.
Unemployment rates, the growth of an area, and the cost of local goods and services should all be considered when locating your practice. A demographic analysis includes this information, and your practice advisor will be able to help you determine the impact they can have on your practice.
INFORMATION ON COMPETITORS
Are there other medical practices in the area? How long have they been there? An analysis would include the names of the medical practices, the year they were established, and any specialties or auxiliary services offered.
Visibility is key when selecting a site for your dental practice, and traffic patterns are an important part of this equation. Essentially, 40,000 cars driving by each day is considered good for a retail location, although this may vary in areas with a smaller population or in more rural areas.
A sample of what goes into a marketing demographic analysis can be found here. If you have any questions about the advantages and disadvantages of locating in a certain area, be sure to speak to a practice advisor, who can point you in the right direction.