Top 8 opportunities from COVID-19

I picked a tough time to change careers.

Twelve months ago, as I sat in my annual performance review, I told my boss that 2019 would be my last year at the club.

I committed to a plan that would support them through a 10-month transition and allow me time to establish my consultancy business.

Then, just as the wheels started moving for the business with contracts rolling in, COVID-19 hit.

It was a devasting blow to our industry. This was an industry I thought was robust, whose biggest risk was legislative changes or an aging clientele.

Like many, I took a few days to process what this meant for our business.

I’ve always believed that no matter how challenging a situation is, there are always opportunities to be found.

When BRC experienced several years of declining crowds to their Ekka Wednesday race day, we repositioned the event as a music festival at the races and partnered with nightclub promoters to achieve record crowds of 18,000.

Sometimes, the more challenges there are, the more opportunities.

And this was no different.

After a few days home with the family, it dawned on me that this will be a defining period for businesses across the globe.

I reflected on a quote from John Demartini: “A master lives in the world of transformation, not the world of loss and gain.”

As I set my mind to the biggest opportunities that faced our industry, a smile of positivity spread across my face.

Here are my top 8 opportunities for venues during this defining time:

1. Building long term loyalty

The actions you take now will define how your members perceive your venue and who they choose to support when businesses re-open. Show you care by asking your staff to call and check in with your most valuable or elderly members.

Consider putting together a delivery run of complementary heat and serve roast dinners from your takeaway menu for your VIP members. The cost of this is likely be to be covered almost entirely thanks to the federal government’s Job Keeper program, so get creative.

2. Focus on your core products and services

Most venues are guilty of continually adding/evolving their offers in a bid to differentiate themselves from the competition. All too often, this dilutes the quality of your core products and services.

While the path to re-opening is ambiguous, what is clear is that restrictions to our venues will be in place for some time. Focus on doing what you do best and doing it exceptionally well!

Strip back your business model to focus on the products and services most important to your customers. This will not only leave your customers impressed, it will reduce your costs and keep your business lean.

3. A time for change

COVID-19 is the ultimate justification to implement the difficult changes you have always wanted to make.

This, however, comes with a warning: be selective! While the current situation is the perfect time to make changes, your customers will be craving a ‘return to normal’. Too much change and you may find your customers will look elsewhere for their familiar ‘normal’.

Question the real value of any considered changes. If there is not a significant financial return to the business, then now is not the time.

4. Change your trading hours

There are several reasons to change your trading hours. Firstly, restrictions to your venue’s capacity means to generate revenue you must either turnover customers faster or extend trading hours.

Larger gaming venues should also consider maintaining or reducing some of their catering hours and offers to maximise revenue. Limiting the times for full-service catering to allow capacity for more gaming patrons (outside of these hours) will be far more profitable to the venue than a capacity filled by all-day dining.

5. Specials and incentives to promote off-peak times

Promote quieter times to members. This is particularly attractive to those most vulnerable to COVID-19: your elderly members who need to avoid crowds.
Consider early lunch or dinner periods for seniors, restricted opening periods for members in specific loyalty tiers (coupled with exclusive promotions), or promotions during your non-dining hours.

6. Position yourself as low risk

Leading the way in hygiene practices and taking every precaution possible against the spread of COVID-19 is not just a requirement for re-opening, but is now your most important marketing asset. Customers will limit their outings for some time yet, so creating the perception of a safe environment is essential.

Venues should carefully consider their COVID safe plans and market the highlights to members. The effort you invest into this now will position you as the venue of choice for your customers.

7. Augment your products and services

If you’ve implemented all the above, then it’s time to make the most of the current situation. The support of Job Keeper for the immediate future has made the prospect of offering takeaway/delivery more feasible for venues.

It will also become more financially viable to offer such services if you plan to re-open during stages one or two. Consider the value that offering takeaway/delivery services provides by keeping connected to your customers.

Now is also a great time to call on the support of your customers. Think online membership, bonuses for gift cards purchased during the closure period, or pre-purchased food and beverage deals.

8. Keep in communication

The need to keep in regular contact with your customers is critical. Things will not automatically return to ‘normal’ and customers will not flood your venue when restrictions are lifted.

The best way to safeguard against losing customers is to keep in regular contact. Our inboxes have been flooded with “messages from the CEO” from every major institution, so the monthly email update that is only opened by 10% of your membership won’t cut the mustard!

Venues need to draw on their communication assets to reach out to members across all channels. Social media is critical, but so too is personal phone calls or letters to your VIP members to cut through the clutter.