The childcare landscape in Australia is in the midst of a transition. As work patterns shift and families rethink their daily routines, your organisation’s role as a childcare or outside school hours care (OSHC) provider becomes even more essential. The mainstreamification of remote and hybrid work has made a lasting impact on families, and it’s transforming when, how, and why they use childcare and OSHC services. If you want to stay relevant and competitive, it’s imperative to understand these changes and how your facility can stay ahead of the curve.
Resonate CX, a leading provider of customer experience management solutions, aims to offer insights that can help childcare providers realise dream experiences for clients and customers. Our Childcare Customer Opportunities Australia 2025 report explores how evolving work patterns and family preferences are reshaping childcare usage across Australia. The January 2025 childcare Australia study was presented to childcare sector representatives by Resonate CX’s CEO and founder, Mita Bedi, in April 2025 and is available for viewing here.
The Changing Face of Work: What’s Driving New Childcare Needs?
The one-year expectation from the study is that the days at work are about to increase, which has huge implications for the childcare sector as parents tend to plan around their schedules. If they are required more days for work, they will start to either decide to increase childcare days or look for a more suitable provider. Of the 600 respondents to Resonate’s market study, 31% are saying they’re going to have 0 days at home, which means that the total addressable market for the childcare sector is about to increase.
Let’s take a look at what consumers think their weekly availability for homecare will be like in a year:
- 31% expect to have 0 days of availability for homecare
- 22% expect to have 1-2 days of availability for homecare
- 18% expect to have 3-4 days of availability for homecare
- 28% expect to have 4-5 days of availability for homecare
Shifting Childcare Usage Patterns: 1-Day Drop-Offs and Full-Week Bookings on the Rise
In 2024, 36% of families were using childcare three days a week. We refer to this group as “medium frequency” users or “Balancers.” They represented the undecided middle. They are not fully committed to full-time care, but also not occasional users. These are the different types of consumers according to how frequently they used childcare services in a week in 2024:
- 25% are Explorers or 1- to 2-day users
- 36% are Balancers or 3-day users
- 39% are Partners or 4- to 5-day users
Since then, we’ve noticed that the middle is now starting to disappear. Now, Balancers only comprise 30% of childcare service, a 6% drop from the previous year. Many of these families have shifted their usage, either reducing to one or two days or increasing to five.
It’s a clear polarisation that suggests partial churn, which providers need to be aware of.
There are two main hypothesis driving this shift:
- First, more parents are gradually returning to the workplace.
- Second, the rising cost of living is putting pressure on household budgets.
For some families, childcare is essential, and they are increasing their usage. For others, it has become too expensive, so they are cutting back.
This is an important trend to monitor. Over the next 12 months, we expect the three-day group to continue shrinking, with more families moving into the five-day cohort, which is already growing.
To adapt, you might explore offering flexible day packages or introducing pricing structures that reward consistent attendance. When designing these strategies, consider whether your current systems can support families who don’t follow a standard booking pattern. Being flexible will help you maximise capacity without overextending resources. Also, strengthening your communication capabilities and streamlining your booking platforms will help you support these changes while keeping operations smooth.
Why Families Use Childcare and OSHC: It’s Not Just About Work Anymore
Yes, work is still the primary driver for families booking childcare facilities. Some 68% of childcare users and 69% of OSHC users said it was their main reason. The bigger story, however, is in the other motivations. Aside from work, the different reasons why respondents send their children to childcare centres include:
- 57% do so to provide their children with social interaction
- 50% think of childcare as a means to promote their child’s educational development
- 28% consider childcare services an important component of their family routine
These are powerful, emotional factors. They show that families are choosing your service not only out of necessity but because they believe it supports their child’s growth.In OSHC, the picture is a little different. Family routine is a key factor (31%) for the consumers who use these services, and parents appreciate the support that OSHC facilities provide during early mornings and after school. More than a stopgap, families consider OSHC services as one of the pillars that support the way they structure their days. Some parents even rely on OSHC for self-care and use the time away from their kids to manage other responsibilities or simply rest. Around 10% of OSHC users and 20% of childcare users mentioned this.
This broader range of motivations means your marketing should speak to more than just working parents. You’re not just filling a gap in the schedule. As a childcare services provider, you’re enhancing a child’s life and easing the load on families. Keeping this in mind, make it a point to highlight your educational programs, the social benefits of group play, and the structure you bring to family life. You might even survey your own customers to better understand their unique reasons for choosing you.
The Barriers Holding Families Back from Using More Childcare
Surprisingly, only 38% of parents say childcare is too expensive. While it remains the top concern, it wasn’t as dominant as expected. Meanwhile, 23% say they have other care options. This means your competition isn’t just other centres, but also alternatives like staying with a friend or grandma. Being able to clearly articulate why your care is a better choice than these informal options can directly drive enrolments.
Then there’s the 15% of the market where children are still settling in. These parents aren’t increasing days yet because their child hasn’t fully adjusted. This presents a big opportunity as this group doesn’t require major investment. It’s about reinforcing the message that their child is safe, comfortable, and thriving. When they feel that, more days (and enrolments) will follow.
To summarise, these reasons are why parents are not utilising childcare services more:
- Too expensive: 38%
- Other childcare options: 23%
- Part-time work: 15%
- Slowly setting in: 14%
- Doubts about quality: 2%
For OSHC families, the following reasons stand out as to why they’re not booking more days:
- Too expensive: 38%
- Other care options: 36%
- Part-time work: 26%
- Slowly setting in: 6%
- Doubts about quality: 4%
These are areas where you can make a real difference. Educate families about the value of your service, not just the cost. Build trust through strong communication and transparency about what you offer. It’s also worth the effort to share success stories, testimonials, and results that show your programs work.
What Parents Prioritise When Choosing Childcare Services
Safety serves as the baseline for childcare services providers. It’s a practical expectation from parents and regulators alike, not a bonus. But beyond that, families are comparing your service based on child development programs, the qualifications of your educators, and how well you communicate with them. These soft but essential factors can set you apart.
Parents are more discerning now. They’re looking at whether your educators are trained not just in supervision and classroom management but also in developmental support. They’re assessing how easy it is to reach you, how promptly you respond, and how well you keep them informed about their child’s day.
In short, parents consider the following to be crucial factors when choosing a childcare provider:
- Safe facilities
- Child development
- Qualified educators
- Communication
- Value for money
- Curriculum and programs
For OSHC providers, value for money stands out. Parents want to feel their child is engaged and safe, not just being supervised until pick-up time. That means your curriculum, your team, and your space need to work together to deliver a more cohesive and richer experience.
The Churn Factor: Why 1 in 5 Families Are Switching Childcare and OSHC Providers
While childcare services are a necessity, this doesn’t mean that families can’t be selective with their choices. As a matter of fact, around 23% of childcare users and 19% of OSHC families have changed providers in the last year. Why? The reasons vary, but some common themes emerge: location and accessibility, staff quality, family needs, curriculum, and communication. On the flip side, this volatility offers advantages to providers, as it comes with the opportunity to get more enrolment.
For Childcare providers, location is critical. Simply put, if you’re out of the way, you’re vulnerable to losing clients. But you can control other churn drivers. For instance, investing in staff development pays off in satisfaction and stability. Ensuring your curriculum remains fresh and aligned with parents’ expectations helps, too. Another important piece is your relationship with families. Proactive communication, listening to feedback, and following up on issues can strengthen loyalty. Parents want to feel heard. When this need remains unfulfilled, they tend to bring their children and business elsewhere.
Facility Features That Win (or Lose) Parents’ Trust
Parents want to see that your space supports a child’s learning and creativity. That means having more than just toys and mats. Think about reading areas, craft corners, grassy outdoor play zones, and shaded spaces. These features show that you care about a child’s whole experience.
Interestingly, childcare parents are more demanding. Nearly 60% expect added features and are willing to switch if another provider offers them. OSHC parents are slightly more content, but even then, half are open to switching for better extras.
Keep in mind that it’s not enough to have in-demand features in your facility, as you also need to showcase them to parents. Communicate how your childcare centre is investing in reading, crafting, and outdoor play areas by including photos and videos of these spaces in your newsletters and updates. It’s also crucial to highlight these facilities during tours. Don’t assume families know. If you’re planning upgrades, involve parents in the process. This will help them become more involved with your facility, and they’ll appreciate being part of it.
Navigating the New Childcare Landscape with Confidence and a Reliable CX Partner in Resonate
Today’s families are adapting to new ways of living and working, and they expect their childcare providers to do the same. The need for flexible schedules, strong communication, and programs that support a child’s development has never been clearer. If you want to build lasting relationships with families, it’s time to double down on what matters most. The providers who succeed in this evolving space will be the ones who listen closely, adapt quickly, and never stop improving. You’ve got the opportunity to not just meet expectations, but to exceed them—by staying agile, responsive, and always family-focused.
If you’re keen on providing your customers with the dream experience they expect from childcare services providers, our team at Resonate CX can help you stay ahead of shifting childcare trends. To know more, download our full Childcare Customer Opportunities 2025 report.
