Top 10 Club Marketing Predictions for 2022

It’s that time of year again! Time to say goodbye to 2021 and look ahead at what’s in store for the year ahead.

2021 saw an influx of changes with the continuing challenges of COVID-19. While we started the year hoping for a return to normality, we quickly recognised that a constantly evolving landscape of change was here to stay.

As we look towards 2022, we take a look at Maer Group’s Top 10 Club Marketing Predictions for 2022.

1. DECLINING NEW MEMBER AND RENEWAL NUMBERS

The trial of the 0km visitor radius rule has reduced barriers to entry for community clubs.

While this brings benefits, we are now starting to see the effect on new member and renewal numbers. The easing entry restrictions, coupled with the adoption of the Check In Qld App makes it more difficult for clubs to upsell membership.

Gone are the days where you had to join to be allowed entry, and reception staff now have reduced time with members.

These declining numbers are a huge worry for clubs across the state. With our benchmarking indicating the average member is worth $650 per annum, clubs need to re-think their value proposition and marketing to convert visitors to members.

2. PERSONNEL SHORTAGES

The number one issue facing many clubs is a major shortage in staff. What started  as challenges in the kitchen is now extending across all departments – driven further by the recent introduction of vaccine mandates.

Some practical advice to help business suffering personnel shortages is to consider outsourcing areas of the business where efficiencies can be gained. External support in the areas such as accounting, WPH&S, stock control, human resources, training and marketing can free up key personnel to focus on the most important areas of the business.

Clubs should also invest in automation through online and mobile ordering, reservation software, rostering software, websites with ecommerce, inventory management, accounting and cash reconciliation, POS systems and communication platforms.

3. RATIONALISATION OF GAMING GROWTH

As travel opens back up, competition for the leisure dollar will increase.

During the pandemic, people have been spending locally and many whose incomes weren’t negatively affected by the pandemic had extra cash to flash. Retail and online sales boomed, with gaming turnover following. However, experts are predicting this will slow in 2022.

The easing of border restrictions will open up travel and members will gradually look to re-introduce themselves to travel and holidays. This, coupled with a small percentage of members locked out of venues due to vaccine mandates, will place pressure on club revenues.

While we anticipate this to be a gradual decline in 2022, clubs must ensure they adjust their operational budgets accordingly. Most clubs have enjoyed healthy EBITARD results in 2021, but as the revenue mix shifts back towards traditional levels, pressure will be placed on our operating margins.

4. DIGITAL FIRST STRATEGY

Digital has become the primary way customers find, research and interact with your business.

Clubs need to focus on improving their digital footprint and updating all digital touchpoints. You can’t put your head in the sand – your customers are interacting with you digitally, whether you’re monitoring or not!

Jump online and see – take the journey as if you were a customer and see if your digital presence matches your physical one.

Clubs invest millions in renovations, but often underinvest in their digital presence.

Your website should redesigned at least once every 3-5 years to keep up with technology. A budget of $100-$150 per EGM is a good starting point for what you should spend on a new or redeveloped site.

Clubs also need to adapt the way they spend their advertising dollar. Advertising budgets should be set with a minimum of 40% spent on digital advertising and clubs should look at engaging an expert or agency to optimise this spend.

5. LOYALTY SHIFT FROM REWARD TO EXPERIENCE

More and more clubs are looking at ways to reduce their spend on rewards and entitlements. As revenues tighten in 2022, this cost centre will come under more scrutiny for clubs.

Successful execution of this strategy involves creating more tangible rewards that are remembered by members, rather than the traditional points and rebates. You need to shift members from a feeling of entitlement to a mindset that values the rewards offered.

Key to the success of this strategy is creating unique customer experiences that enrich their relationship with your business and staff.

6. VIP HOSTING & GAMING SERVICE

An improved focus on VIP hosting and gaming service looks set to be a trend for 2022, as new tools hit the market.

Odyssey’s Real Time platform (integrated with a paging provider), continues to provide venues with fantastic options to tailor their service workflow, reward and attract members.

For Max customers, the upcoming release of real-time data integrations with partners will be a game changer for venues adopting the technology.

These tools will allow venues to take their customer service to the next level and improve relationships with their customers.

However, like most software solutions, they don’t come as an out-of-the-box solution. Technical and workflow design, procedures and loyalty program integration all needs to be considered as part of this deployment.

7. COMMUNITY IS KEY

Clubs do amazing work in the community, but often fail to tell people about it!

2022 will see an increased importance for clubs to promote their community involvement.

Millennials and Gen Z’s are actively moving into our market, and they are looking for their values to be shared and reflected in a brand before supporting it.

Clubs in the South-East Queensland market are also preparing for the opening of Queens Wharf and highlighting your community value should be a key part of your artillery in defining your point of difference as a community club.

Don’t underestimate the power of community involvement. Get creative with new ways to promote it and drive business.

8. ENTERTAINMENT OUTSIDE OF THE BOX

2021 has seen a lot of clubs steer away from traditional club entertainment offerings.

The shift in our customer demographics, spending patterns and behaviour called for clubs to think outside of the box – and it’s been positively received!

Many clubs have scrapped the traditional morning melodies and introduced more daring styles of entertainment with a focus on event experiences or experiences around food and beverage.

We think these styles of events are here to stay in 2022. Some of our favourites include drag queen bingos, themed trivia events, pub choir, murder mysteries, rockaoke, paint & sip, cocktail making classes, kids school holiday events and floral workshops.

9. MOBILE ORDERING IS HERE TO STAY

One of the positives to come out of the pandemic has been the accelerated acceptance of mobile ordering.

We are now seeing more and more clubs jump on board, and it’s easy to see why.

These platforms are now offering the ability to integrate with loyalty and deliver upselling capabilities, customised venue branding, and easy to manage menus and pricing (not to mention reduced print costs).

Venues are consistently seeing a 20-35% growth in spend per head via mobile-ordering apps compared to traditional methods.

10. A NEW BREED OF FUNCTIONS

Function revenues have been hit hard by COVID-19 restrictions.

While the adoption of Zoom meetings is likely to pose a long-term impact on corporate functions, clubs are well placed to focus on generating increased function revenue from their database.

Through time afforded by COVID closures, clubs have realised that many functions weren’t generating profitable outcomes for their business. In fact, they would often negatively impact on their business by reducing carparks or increasing operational costs.

However, smaller functions such as milestone birthdays or engagement parties continue to provide profitable opportunities for clubs. And with access to member details, clubs need to utilise their database to market to these customers.