We recently posted a blog regarding the great value in using a SWOT analysis for your elder care business.
Another valuable assessment tool is a STEEP analysis, oftentimes called a PEST or STEP analysis. The analysis is perfect for identifying external issues that influence an elder care business when marketing to seniors. The analysis provides the framework for creating a SWOT analysis. Let’s take a further look.
STEEP Analysis Defined
A STEEP analysis is essentially a scan that looks at the large external issues that affect an elder care business. The analysis looks at five specific issues and basically analyzes each of these factors in detail. STEEP is an acronym for these five and they include:
- Socio-cultural issues (e.g., the age range and life-style trends of a target market)
- Technological issues (e.g., the use of Google analytics and texts)
- Economic issues (e.g., late payments to vendors, interest rates, and labor costs)
- Environmental issues (e.g., energy-efficiency and waste disposal issues)
- Political issues (e.g., the impact of Watchdog groups and regulations)
The Purpose of a STEEP Analysis
The goal in a STEEP analysis is to highlight the current external factors affecting a business and identify any possible changes that might emerge in the external environment that could affect elder care marketing efforts. Once these changes are identified, a business can label them as either threats or opportunities. The senior care business can then decide how best to defend against any threats and take advantage of opportunities.
How to Perform a STEEP Analysis
Any elder care business can easily perform a STEEP analysis on its own. The analysis involves two steps.
- Step 1: Gather information about each of the factors in the STEEP acronym.
- Step 2: Identify which of these factors represent threats or opportunities.
The key to this analysis is for managers to gain as much relevant information as possible about a business’ external environment and use that information when marketing to seniors. Much of this information can be easily found via basic research tools, including the Internet.
A STEEP analysis is an invaluable assessment tool to help your senior care business. We understand that the analysis can grow complex. Focus on Aging can help. Contact us with any questions that you may have about the STEEP analysis.
Marla Levie, BSW, MA, is the President and Founder of Focus on Aging, an established Chicago-based marketing, consulting and recruitment firm. For more than 20 years, Marla has successfully been providing consulting, social media and recruiting services to the elder care market and to other service professions. For more information about Focus on Aging, contact Marla at info@focusonaging or at www.focusonaging.com.