It’s no secret that COVID has provided some silver linings. Amidst the challenges of the pandemic, has been the opportunity to streamline business operations, reduce AEMP and increase profitability.
After a difficult Christmas holiday period, we’re starting to see a return to trade. Australia Day was a catalyst for many – a turning point as public fear abided and patrons returned to the bricks and mortar.
The decline in revenue for clubs has been driven by an average decrease in the number of unique visitors to our venues. For most clubs, this was around 30% for the December/January period.
However, throughout this time the average member spend has remained steady (or increased). Members have continued to respond to promotional activity and loyalty activations.
These are encouraging signs for our industry.
As we begin our path to recovery it’s important that we remember the value of our members.
Our research across Queensland clubs shows that the average value of a member is over $500 per year. Benchmarking suggests that 28% of these members will visit a direct competitor’s venue at least once every week.
Despite what we might like to think, our members are not loyal!
Old marketing adages say it’s six times more expensive to attract a new customer than retain an existing one. However, with clubs across Queensland tracking 65% of turnover using a member’s card, it’s likely to be closer to 25 times easier to keep/grow your existing customers.
When we asked members how they keep up to date with club activities, the overwhelming response was via SMS, email and mail. Each of these mediums ranked more than two times higher than the next best method (Facebook).
So ask yourself, are you communicating effectively with your members via direct marketing?
Are you utilising the industry tools at your fingertips to communicate to members at the critical stage in their customer journey?
The most effective tool for direct marketing in clubs is SMS. It provides the opportunity to instantly connect with members and attracts a far higher redemption rate than email.
However, mail should not be forgotten! It consistently provides the highest rate of redemption (above SMS), but campaigns need to factor in additional costs and time.
To help, we’ve developed three steps to get you started with your direct marketing in 2022.
1. Setup automated communications
Industry tools like Alveo (Max) and Talkbox (Odyssey) have some great automation features. Start by planning out your opportunities, then design and setup your campaigns. Measure results after one month, then review annually.
2. Create a monthly calendar
Take the time each month to plan out what communications you should send and when. Align to your marketing calendar and ensure the timing of your messages is optimal.
3. Target smaller groups with greater value
Ensure your communications are highly targeted. Use your gaming and POS data to identify the members to which your offer is relevant and include frequent value in your communications to keep them engaged.
Remember, your average member is worth more than $500 per year to your club. So make sure you are taking the time to engage with them – via the personal details that they have gifted you with their membership.
About the author
Matt Rafton
Matt has over 20 years of experience working in the licensed club, hospitality, and marketing industries. His experience extends across marketing, operations and technology, and is an industry leader on direct marketing & CRM solutions. Matt’s experience and analytical focus allows him to craft solutions for clients that are at the forefront of our industry.