Private Club Marketing looks at strategies to maximize your budget to grow and retain your membership after the COVID-19 lockdown
The prolonged lockdown to counter the spread of COVID-19 has been lifted or is being eased in phases. Private clubs are resuming operations in whatever capacity possible, but uncertainty is still staring everyone dead in the eye. The conundrum to save money wherever possible, or to grab the attention of members and prospects, is plaguing GM’s, Membership Directors and BODs all around the globe. Some clubs have eliminated their Membership Director’s position, adding additional stress to the GM and Catering team’s already full plates. Others have frozen membership sales and retention budgets and plan to wait it out until they deem it safe to resume.
FREEZING MEMBERSHIP MARKETING AND RETENTION BUDGETS MAY BE THE WRONG IDEA
Freezing membership sales and retention budgets will land these clubs in trouble. A survey by the American Association of Advertising Agencies states that 43% of consumers find it reassuring to hear from brands during this lockdown. Without an allocated budget, the business will not be able to reach out to their customers. So, a competitor could market to the business’ customers and steal them away, leading to a reduction in business. This is a perilous situation for any business (or club).
To maximize these limited budgets and achieve effective targeting, data science and user segmentation can make all the difference. Data analysis can help you set up an optimized member retention and sales program. Machine learning techniques can use insights from buying behavior to segment loyal members into user clusters. A separate promotion strategy specific to each user cluster is an efficient way to leverage member retention budgets. This clustering and targeting technique enables clubs to maximize revenue from existing members while driving new member referrals.
With marketing budgets being tighter than ever, user segmentation will help membership teams use their budgets efficiently. With businesses currently struggling with reduced revenue, loyalty programs operating with efficient member retention budgets can prove to be their silver bullet for growth. Retention is the new growth. With a targeted approach, your Club can be the success story that others want to emulate.