Home services: how services at home strengthen your brand
In these uncertain economic times, households are keeping a close watch on their wallets, but home services are the exception to that rule: home services are a booming business. Discover the trends driving this growth market and how you can respond to them.
By 'home services' we generally mean the professional supply of support services to individuals and households. And these services can be quite diverse. The European Commission calls them "personal and household services" (PHS) and broadly divides them into two main categories:
In addition to these PHS, digital 24/7 services also make daily life at home a lot more comfortable for consumers: groceries delivered to your home, self-check-in online for your next flight, automatically operating devices or placing orders, etc. All of these are trends that improve the work-life balance.
Home services are booming business. For example, the European home care market was already estimated to be worth €79.7 billion in 2019, and the home services industry is expected to grow by 7.6% (CAGR, or compound annual growth) between 2020 and 2027.
Home services therefore play an important role in the European economy. The PHS sector represents no less than 4% of total employment in the EU.
In the majority of cases, households hire these workers through companies, government agencies or cooperatives. About 34% of the 6.5 million official PHS workers are employed directly by private individuals. And if you add to that the 3.1 million informal employees (in other words: undeclared workers), then that percentage rises to 50%.
The growth of the home services market is the result of a number of important trends: the integration of teleworking, the digitisation of services (e-commerce, self-service) and the rapidly evolving smart home technology.
In addition, social, demographic, as well as medical factors play a role: the need for a better work-life balance, the increasingly aging population and a higher incidence of chronic or lifestyle-related diseases.
But how can you respond to these trends?
Increasing the ease of ordering and speeding up service is a win-win, especially when your customer is facing an acute problem at home. With a handy web app for quick intervention, your customer service improves, the pressure on your support teams is reduced and your sales increase.
Reading tip: When will everyone live in a connected home?
People have always looked for a good balance between life and work, but the current economic conditions have seriously increased the pressure. Just think of dual-earners who are working longer hours or have to take an extra job. That leaves little time for young children or elderly parents.
By hiring home services, they can restore the balance a bit. It's hardly a luxury, by the way, now that one in five people is struggling with a burnout.
But, of course, people don't have to be sick to call in help at home. Thanks to a cleaning help or childminder, they can spend their free time more meaningfully: on their family, personal development or the search for a more fulfilling career.
Despite rising prices, people continue to buy, renovate and spruce up their homes. And it's no wonder: 71% of employees with a degree are increasingly working from home, and they want their home to be a pleasant place to both work and live. This trend will become even more significant in the coming years.
For infrastructural works, acute repairs or daily care, even the most passionate DIY enthusiast is inclined to rely on professionals. The DIY craze has been shifting towards 'do-it-for-me', for some time now: fewer and fewer people want to roll up their sleeves themselves, due to a lack of time and/or energy.
And that's an opportunity for you. Anyone who ensures that homeowners and families can easily call on skilled professionals in emergencies, for odd jobs or maintenance of their boilers or solar panels, has a winning combination.
People are living longer, more active and healthier lives than ever before. And they want to live at home for as long as possible, rather than lose their independence in a residential care home.
But what if they nevertheless experience health problems? Then they can often easily receive care at home. It is even the ideal solution for chronic or recovering patients:
Why not offer your customers the opportunity to consult a doctor from their armchair? For elderly, chronic or recovering patients, a digital doctor's visit or online monitoring of their condition offers great reassurance. And for those who do not dare to take the step towards mental health care, an online conversation with a psychologist can offer solace.
To hit a home run with home services, it's best to have a strong network of reliable, quality professionals with a balanced local coverage and outstanding ease of ordering. Your customers want to hire skilled professionals to do things like work on their homes, or to help care for their loved ones? Make sure they can do this very quickly via, for example, a 24/7 call center or a smart app.
By the way, you don't have to design all those services yourself. And you don't have to gather a network of reliable and proven professionals yourself or hire extra manpower. We've already done that for you.
As a co-creative partner, AXA Partners has developed an extensive range of insurances, solutions and services at home, ranging from care for the elderly to handyman services. A strong network and call center are ready to respond to the needs of your customers – on your behalf. This way you can quickly claim your place in this growth market.
Would you like to know more about our range of home services? Or about our co-creation process? Would you like to exchange ideas about how you can help your customers with home services? Feel free to contact our advisers.