Top Consumer Concerns in 2006

1. Tough times for consumers.

Hurricanes and wildfires. High heating and gas prices. Job worries. Shrinking health and retirement benefits. Higher minimum credit card payments. Higher mortgage rates. Higher bankruptcy and foreclosure rates.

The bottom line: flat or shrinking disposable income for most consumers. And uncertainty about the U.S. role in the Middle East adds to this brew.

What this means:

First, opportunity: consumer stress, anxiety, and worry will continue to be high. Wellness products and services which help customers and clients feel that they have some control over these concerns will continue to appeal.

Second, risk: your seemingly affluent customer base may surprise you. Many consumers have financed their lifestyles on credit and have little financial cushion. For example, Plano, TX is one of the nation’s wealthiest suburbs. Yet it has had more bankruptcies and foreclosures than any other similar suburb nationwide.

Watch for payment problems like bounced checks, delinquent payments, more charge-backs. Watch cancellations if your business is membership- or subscription-based. And every business should have a contingency plan for a sudden downturn – tweaking your products and pricing, zeroing in on your most profitable customers, targeting different customers, reducing costs, etc.

2. The “third place”.

Many consumers are on the lookout for a “third place” to spend their time. It’s not home, it’s not work – but it may be Starbucks, the health club, a bookstore, or a restaurant. The keys: comfortable seating, good lighting, snack and restroom access, and, frequently, television and/or wireless internet access. We think part of what’s driving this trend is the increase in people who work from home rather than a traditional office.

What this means: It’s not a fit for every wellness business, but consider whether your business can or should become a “third place”. If not, perhaps you should co-market with another business that does act as a “third place”. For example, a nutritional retailer could partner with a health club to sponsor a mid-afternoon snack break for members who work via the club’s wireless Internet network during the week.

Top Technology Trends in 2006

1. Cool tools & e-health.

High-speed Internet access and lower-cost technology have enabled a flurry of creative wellness-related products. Plus, refugees from the tech and telecom sector attracted by tremendous growth in health, wellness and fitness have added new skills and ideas. And we see a boom in e-wellness and e-health: online health and wellness-related information, products, and services.

Here’s a sampler:

• Podcasts recorded by health and wellness professionals provide portable workout guidance or lifestyle counseling sessions, available on the customer’s schedule and preferred device—iPod, mp3 player, or computer
• The Playstation Kinetic Eye Toy, although finicky to set up, appeals to technophiles who enjoy interactive workouts
• Video dance systems like DDR, initially a huge hit with kids and teens, continue to spread to the adult market
• MonsterMedia’s Ground FX is new and nifty technology that we think lends itself to fitness center applications
• On-demand streaming video of live instructor-led sessions, like those at NewYorkYoga.com, YogaLearningCenter.com and the Daily Fitness Online Gym.
• Tools like the BodyGem by HealtheTech (measures resting metabolic rate) and the BodPod (measures body composition) bring cost-effective healthcare-quality measurements to nutrition and weight management programs
• iTrain, CardioCoach and similar mp3 programs provide coaching and counseling in downloadable formats
• Online physician access and ask-a-doctor messaging services like TelaDoc.com and NetLiveMD.com

Another growth area: software applications and online communities like SparkPeople.com which offer expert coaching, support, and extensive data-tracking and analysis of health-related info. And consumer-oriented health record storage services like iHealthRecord.org and the Personal HealthKey are beginning to appear.

What this means: Many of these products and services are suitable for even smaller businesses or individual practitioners. Don’t let lack of familiarity with the underlying technology scare you away. Podcasts and downloadable mp3 sessions, for example, are relatively easy to implement without large up-front costs. Pay attention to what customers need to meet their goals (fitness routines on the road, for example). Then educate yourself or get outside help to make it happen.

2. Online weight loss programs.

These programs appeal to those consumers who prefer an online environment for reasons of schedule or privacy. They also typically offer a more diverse community of support than a local weight loss group or workplace weight loss team.

They also offer an excellent way for providers of workplace wellness services to compete on price by minimizing labor costs. It’s a great way to build a scalable business that can handle a few hundred employees or thousands of employees, mainly by upgrading hardware and database capacity.

Online programs can also find it much easier to offer expert resources and community support 24x7. Flextime and part-time professionals, and those in remote or offshore locations can be an excellent and cost-effective source for staff. And it’s a great fit for work-at-home staffers.

What this means: Continued growth in both consumer and employer sales of online weight loss programs and other online disease management services. Good news for the traditional programs focused on local in-person meetings, though: there’s plenty of opportunity for everyone. And integrated programs combining online community support with local presence have a leg up on everyone!

Top Healthcare Trends in 2006

1. Prevention.

Thanks to science and high healthcare costs, interest from all quarters in prevention of illness and preservation of health has never been stronger.

What this means: Just about everything related to health preservation is hot. In workplace wellness, disease management and incentive programs are booming. You don’t have to be a healthcare specialist to join in. For example, Have A Great Day administers wellness incentive programs for employers and others.

At the same time, programs intended to keep low-health-risk people from turning into high-risk people are coming on strong. Since 9 out of 10 men and 7 out of 10 women will become overweight during their lifetimes, we’re beginning to realize that even young healthy people tend to turn into people with higher health risks over time, unless preventive action occurs.

We also continue to see an opportunity for wellness businesses to market prevention as a thrifty alternative to expensive traditional insurance. It doesn’t address catastrophic illness, but it offers meaningful yet lower-cost health benefits for employees.

2. Crisis creep.

The healthcare crisis will worsen in 2006. About one-third of all Americans will be without coverage during all or part of 2006. Yet the US spends more money per person on healthcare than other developed countries. Still, we experience lower life expectancy and higher infant mortality. It’s not an issue of how much we spend, but what we spend it on.

The U.S. relies on employers as the primary source of coverage. However, employers of all sizes from all industries are cutting worker health benefits.

As this crisis continues to creep upwards, from lowest-income, least-educated people to middle-class Americans, we believe a gradual move towards national universal health coverage is inevitable.

For 2006, we expect to see some state-level progress. Massachusetts, for example, is pursuing universal coverage.

3. Educating consumers.

Health literacy expectations continue to rise. Virtually every current healthcare initiative depends on well-informed consumers who can analyze their own current and future healthcare needs. Of course, in reality few individuals have mastery of the details and skills needed to make well-informed choices.

Recent examples include the new Medicare Part D prescription benefit, health savings accounts and health reimbursement accounts, high-deductible plans and consumer-directed plans.

What this means: Business opportunities galore for health and wellness professionals who can educate and advise consumers.

Another growth area: “go-between” roles, like geriatric care managers. These people act as a liaison between consumers and the fragmented healthcare entities that they have to deal with, including employers, insurance providers, benefits administrators, physicians, hospitals, long-term care facilities, and more.

4. Offshoring.

Many computer-related jobs like technical support have moved from the U.S. to India, China, Poland, and other countries where employers believe that they can get comparable skills at a potentially lower cost than in the U.S.

A similar trend has begun in healthcare. Hospitals, insurance companies and others have begun outsourcing certain medical procedures which do not need direct patient contact. They’re also outsourcing back-office tasks, like insurance transaction processing.

What this means: Some businesses will offshore/outsource traditional healthcare jobs which mainly work behind the scenes in a consultative role. For example, imaging centers can instantly send electronic images virtually anywhere on the planet for review by a radiologist. Like it or not, this strategy can reduce costs while still providing access to top-notch professional capabilities.