Increasing revenue is the name of the game. No business is out there to lose money or remain stagnant in its earnings. Private clubs are no different. There are several ways to increase revenue. But only a few of them are fun, rewarding, and have a positive lasting effect on your membership through engagement and experiences. Let’s talk Revenue, Loyalty, and Group Travel.
REVENUE: When people buy additional services, revenue goes up. It’s that simple. So, let’s get your members into the club house and pro shop more often! Let’s get your membership utilizing that great kitchen and magical chef you have. Let’s encourage participation at the monthly meet ups or holiday banquet events. Let’s incentivize them to bring guests to dinner or to play golf. Let’s do all of this and then do what our parents and grandparents taught us: Say THANK YOU!
LOYALTY: Loyalty programs are everywhere from airlines to hotels to the movie theaters to your local coffee shop. The philosophy behind a customer loyalty program is simple: Repeat customers are rewarded (thanked) and businesses increase sales.
For instance, My Starbucks Rewards™, the coffee giant’s customer-retention program, significantly contributes to the company’s record growth. Starbucks claims that the loyalty program played a key role in its 26 percent rise in profit and 11 percent jump in total revenue in 2013’s second quarter fiscal results.
A well-designed loyalty program can help any size business scale and reach new heights. Small Businesses who adopt a customer loyalty program recognize the program makes more money than it costs. In short, loyalty programs should matter to the private club industry.
Private clubs have a unique position. They have a membership that pays annually to be a repeat customer. In the public arena a repeat customer spends 67 percent more on a given purchase than a new customer does. A member of a private club absolutely spends more than they would elsewhere. It’s time to reward your members for this action. Say thank you for the continued business and motivate them to continue to be the brand ambassador of the club. Subtly encourage them to spread the word about the deals, the rewards, the experiences, the friendships, and the perks of being a member.
Competing against the large brands is difficult. The famous restaurants, box stores, and online retailers have more marketing dollars and ability to offer lower prices. However, a good customer loyalty program is an effortless way for a private club to show their personal side and remain competitive in spaces dominated by big business.
Chances are, your club’s point of sale software has the ability to track individual spending. USE IT! If a loyalty program was not bundled into your software when originally installed, perhaps its time to upgrade the software? More and more software companies are recognizing the need to provide loyalty programs to small businesses; ask for it!
GROUP TRAVEL: Group travel is a bonding experience. Group travel is something everyone can look forward to. Group travel provides a cost-effective way for people to do things they wouldn’t normally do but have always wanted to. BUT as far as you, the private club, is concerned, group travel is the promotional tool and ultimate reward to be used within your loyalty program. It’s the reward that you can use to drive profits, bring members together, increase food and beverage sales, boost catering and event bookings, and finally to drive membership enrollment. Travel is the ultimate thank you for the member’s loyalty.
Consider this; your club has decided to announce the Inaugural Club Trip to Costa Rica in June 2018. To promote this trip, the club is reaching out to all the members in January and February – contact is important. The club house has planned an amazing Costa Rican themed dinner to generate excitement and bring the members together – new food and beverage revenue has just been realized. Members are excited and are already planning who will be in their foursomes or which day they are going to go deep sea fishing for the prized Marlin and Sailfish! Word of mouth is spreading around town about the value of the club’s trip. AND THEN BOOM – the loyalty program is announced!
Members who spend x amount will receive points. These points can earn tours, private dinners, or even room upgrades on the trip! For the members who choose not to travel this year for whatever reason, they can accrue points throughout the fiscal year to pay for the club’s trip the following year; or buy-in to the club’s trip at a highly discounted rate in 2019.
SUMMATION: To quickly recap:
- Every club can increase its revenue through group travel
- Customers love loyalty programs and will spend more to earn rewards especially if its travel related
- Group travel will drive your loyalty program to great heights while increasing member engagement and loyalty
Think about how your club can use an annual group travel package to drive revenue, gain loyalty, and encourage member engagement. Give us a call to brainstorm! We’d be delighted to talk.