The Member Relationship Marketing Program Your Club Needs...
Does your club offer a loyalty and reward program? I’d be surprised if you said yes. Most private club’s do not. Why don’t you? Because you’re a club and have members not customers? Because your club is exclusive…prestigious?
Are you not interested in creating high satisfaction levels?
Are you not interested in providing value to your membership?
Are you not interested in expanding your membership size?
Are you not concerned about retaining your members longer?
Are you not interested in growing your club’s revenue?
There are three primary ways to grow your club's revenue;
1. Increase the number of members
2. Persuade your current members to use a larger variety of club services and amenities
3. Encourage your current members to use your club more frequently
Two of the three ways to expand your club business focus on your current membership base. But, as a club you most likely also rely on member referrals to increase your club's membership. So, in essence all three ways of growing your club business centers on your current members. All clubs are dedicated to investing in their members' satisfaction. Some clubs are better at it than others, and few clubs invest in a value driven loyalty and reward program. If your desire is to go beyond the ordinary and you are interested in growing your club to new levels of revenue and membership size, then you should consider investing in a loyalty and reward program. Loyalty and rewards are "Member Relationship Marketing 101". Member Relationship Marketing is a facet of customer relationship management (CRM). The focus is on customer/member loyalty and long-term member engagement rather than short-term goals.
As difficult as things have been since March 2019, many clubs have benefited from the pandemic as it increased golf rounds, tennis court bookings, and memberships. Believe it or not, now is the perfect time to engage with your members further and implement a Membership Relationship Marketing program to help continue your club's growth.
It is when times are good, revenue is strong, and membership levels are high that you should expand your offerings and invest in your members. Don’t wait until the economy contracts and hard times are upon you. Member Relationship Marketing is all about creating long-term value. Adding services and amenities that add value make for satisfied members. Satisfied members spend more money, they become more frequent users, they remain members longer, and they are avid promoters. There's no better advertising than word-of-mouth from satisfied members.
The most prominent way to add value to a club is by facility improvements; a new clubhouse, renovated locker rooms, a new fitness facility, tennis court upgrades, golf simulators, etc. Unfortunately, capital improvement programs usually come at a steep cost. In addition, they take time to accomplish. Facility upgrades often take months if not a year or more to complete. A much lower cost option to add value and help grow your club business is through loyalty & rewards. Reward programs are a proven method of increasing business and retaining loyal customers. Millions of people around the world participate in one or more loyalty & reward program. Besides being low cost and a great value most loyalty & reward programs can be implemented within a couple of weeks. According to Jupiter Research, more than 75% of consumers today participate in at least one loyalty program, and the number of people who participate in two or more is estimated to be 1/3 the consumer population.
For loyalty and reward programs to be effective they should not provide discounts for more products/services at your club. Great programs offer new services or products of value that go beyond your club's current offerings. Privat-VIP- is one such program that incorporates travel and loyalty/rewards all-in-one that a club can easily incorporate into their business model. A good program should also create tiers or levels to help establish status differentiation. Members love status... let's face it, they joined a club to feel special, and to be a part of something unique.
The last characteristic of a successful loyalty and reward program is giving members a voice. I know what you're thinking, no need to do that, members constantly complain and give you an earful whenever they can. The reality is, those hyper-critical members, the "complainers" and "critics", they are most likely not your best customers. The reality is you need to listen to the critics, but you also need to listen to your biggest fans, the members that spend big money at your club. You need to reward your big spenders, your best customers. Don't you want to know what they think and feel? Acknowledge them and give them the opportunity to be a part of a club advisory panel. Not quite as formal and laden with responsibility like a committee, an advisory panel is a group of members that get to voice their opinion on new ideas, new menu items, new products for sale in the Pro Shop, a new service, a new piece of equipment in the fitness facility, etc.
In summary, rewarding members by giving thanks; adding value through new services and amenities; and providing members with a "voice" will help take satisfaction levels to new heights. Loyalty & Rewards (Member Relationship Marketing) at its finest!
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About the Author: Eric Ruehlmann is a versatile business executive with over 25 years of service in the club management industry. Eric's knowledge and experience is broad having held advisory positions and worked on projects in a variety of industries such as; consumer research, loyalty & rewards, travel & leisure, and lifestyle products & services. Eric is currently focused on sharing his knowledge about travel loyalty and reward programs with club managers and club board members. Eric Ruehlmann is the founder of Build A Better Club and a managing partner of Privat-VIP- Travel & Rewards Club.
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