Marketing Basics With Bruce Davis | Lessons To Remember
When presenting marketing seminars I often ask the audience, “How many ways do you think there are to grow your business?” Typically, the replies range from dozens to hundreds and beyond. Perhaps that's why so many business operators feel that marketing is too complex and time-consuming, and often hand it off to someone else or worse yet, simply avoid working on it.
Years ago, life was different and as bowling operators, we didn't have to work too hard to attract customers, but today is a different day and we're selling to the expectations of very different consumers. To regularly attract customers and profits, you must prioritize generating revenue at the top of your daily to-do list.
Getting back to my previous question, “how many ways are there to grow your business”? Most marketing professionals will answer this quite quickly: three.
There are only three ways to grow your business - adding more new customers to your business, creating more visits from existing ones, and generating more money from each visit. To have a truly positive effect on your operation being proficient at all three and keeping them in sync with each other is vital. If, for example, you lower the price of a product, you'll want to be assured you can gain enough additional visits and/or gain sufficient new customers to keep your growth plans intact. Real marketing success comes to those who make great offers and execute them so well that all three of these growth elements work in harmony.
1. Create New Customers: The goal of finding new customers isn't shocking news to any business operator but it is more crucial than many think. On average a business loses 20-30% of its customer base each year; bowling and entertainment businesses are no exception. While some customers may leave due to dissatisfaction with the center, service, or its products, much of the loss can be due to factors beyond an operator's control. A substantial portion of the population, 20-25%, move each year. Others develop health concerns, become injured, or die. Let's not forget the consistent league bowler who decides to take that proverbial year off, while others face a job loss or schedule changes, while still others encounter life issues that alter their buying habits.
On average a business loses 20-30% of its customer base each year; bowling and entertainment businesses are no exception.
In today's world, few customers find you and come in on their own, so having a plan in place and working it is key! Keep in mind, this first way to grow your business is the most challenging and expensive of the three we will cover; often three to four times more costly than having success with the remaining two. Caution: Without consistent work in this area, no matter how herculean your efforts are in the other two, your growth efforts will stall. In future issues, we will offer some proven ways to find new customers for your operation.
Bottom line: Loss happens. If you're looking to grow your business and find balance in your marketing efforts, developing and implementing a plan of action to replace who you've lost is critical.
2. Increase Number Of Visits From Existing Customers: Increasing the number of times your existing customers visit you is the second key component of growing a business and its profits. A bowling-based business has a variety of obvious ways to do this from offering leagues, tournaments, and special events to hosting fundraisers, parties, and company outings.
Make it easy on your customers. Consumers need your help to be matched with relevant offers they find appealing. Present opportunities to those who have already shown an interest in what you're offering. In the future, we will explore numerous methods you may want to employ ranging from bounce-back offers, local couponing, emailing plans, telemarketing, texting to direct mail, and other strategies to help centers earn more return visits.
The Big Takeaway: The most efficient way to accomplish a bump in visits is to work off of a good customer database. Working to build and maintain a strong database is a essential in today's competitive world. What are they waiting on, an invitation?” The answer is YES!
3. Generate More Money From Each Customer Visit: This is not a suggestion to simply raise prices. While I'm all for charging higher prices, it should only be done once you and your team have gone through the process of reviewing, adjusting, and setting prices according to demand on a regular, perhaps quarterly, basis. But that's a separate conversation for another day.
What we're talking about here is discovering ways to generate more money by increasing additional sales and/or transactions from current customers. From food and beverage sales to gift cards, retail merchandise, upselling, and everything in between, your marketing planning should be exploring ways for your operation to entice customers to spend additional money with your business. One trend many industries have been profiting from are processing and booking fees when customers make online reservations. Consumers have become accustomed to these fees when booking flights, hotel rooms, excursions, dinner reservations, tee times, and so much more.
Brainstorm with your staff on how your center can generate more dollars per visit. Challenge your team to use their experiences with other businesses to apply to this challenge. Over the years I've often been surprised with creative suggestions from some of our unlikely staff members. It's all about perspective and including your team in the process.
Generating more revenue per customer visit will be an important part of what this section, Bowling Industry Marketing Monthly will feature in coming issues.
Final thoughts: Before you begin this process, I recommend you establish a form of measurement to know how you are doing against any upselling plans you employ. Ask yourself, “What is your current revenue per customer visit in each of your categories?” If you aren't certain, your very first step should be to find the answer to that question so you can accurately measure your results and concentrate on the most rewarding methods.