Fostering Member Loyalty and Advocacy

Transcription

1 Fostering Member Loyalty and Creating Advocates: How to Uncover and Leverage the Triggers to that Drive Member Advocacy and Loyalty Thursday, February 7, 2013, 4:30 p.m. 6:00 p.m. Session 1309 Stephen Tharrett& Mark Williamson 1 Fostering Member Loyalty and Advocacy Insight We begin by seeking to understand, followed by analyzing the data, resulting in a story only the numbers can tell. Inspiration with the numbers in hand, we generate those magic facts that tell you the real story about your business and its impact on your bottom line. Impact with inspiration driven by insight, we assist you with developing and executing strategies that drive greater loyalty and profitability. Mark Williamson, Co-founder and Principal 17 years heading up employee and member insights as VP of Research at ClubCorp International 3 years as Senior Director of the Guest Experience at Brinker International (e.g., Chili s, Maggiano s, On the Border, Romano s Macaroni Grill, Corner Bakery) 2+ years as Executive Director of Consumer Insights at Applebee s 2 years as Director of Research at Match.com Stephen Tharrett, Co-founder and Principal 20 years leading athletic, golf and tennis as VP and SVP of Operations at ClubCorp 2+ years as CEO of the Russian Fitness Group 8+ years as a consultant in the fitness and private club industry Author of 7 business books on the club industry Former president of IHRSA 3 1

2 Instructive Insights I. The Value of Loyal Members II. The Story on Loyal Customers III. Defining Member Loyalty and Advocacy IV. The Advocacy/Loyalty Value Proposition V. The Advocacy/Loyalty Profit Pyramid VI. Describing How to Measure your Clubs Level of Member Advocacy and Loyalty VII. Presenting the Drivers of Member Advocacy and Loyalty VIII. Prioritizing and Leveraging the Most Impactful Drivers of Member Advocacy and Loyalty IX. Creating a Storyline that will Generate Uniform and Passionate Buy-In from All Parties X. Summary 4 Loyal Members Stay Longer, Refer More and Spend More! Remain a Member 2x more likely to remain Membership Referral 9x more likely to refer Dissatisfied Satisfied Delighted Dissatisfied Satisfied Delighted Leave At Risk Stay Never Might Will 5 Loyal Customers are Storytellers and Spenders! 78% 69% 54% 15% Spread the Word Buy more Don't consider other products Join social media site Based on research from Click Fox and Millwood Brown 6 2

3 Member Loyalty and Advocacy Member Loyalty & Advocacy is When Members are Delighted. When Members are emotionally enamored.they LOVE you. Loyal Members are two times more likely to remain. Loyal Members are 10x more likely to refer. Loyal Members spend more. 7 The Value Proposition The Framework for Loyalty and Advocacy Commodities of the Club Drivers of Satisfaction Advocacy/Loyalty Differentiator Product Facility Service Emotional Quality Quality Quality Quality Member s Perception of Value Price Time 8 A Comparison of Two Value Propositions Luxury Club Loyalty Proposition (NYAC, Reebok, Pine Valley, Quarry) Economy Club Loyalty Proposition (LA Fitness, Semi-Private CC) SQ PQ FQ EQ Price High Fees, High Dues Low Fees, Low Dues 9 3

4 The Member Experience Problem Resolution Emotional Engagement Dissatisfaction Outrage Satisfaction Delight Loyalty & Advocacy Customer Delight Principle Tim Keiningham Member Experience 10 The Loyalty and Advocacy Profit Pyramid A Hierarchy of Emotional Engagement and Profitability Emotional engagement and Trust Delighted Loyalty & Love High Trust Advocates & Apostles Won t Leave Satisfied Satisfied with experience Not emotionally engaged Trust contingent Vulnerable to External Choices Tenure, incremental spend and referral Dissatisfied Expectations not met Distrust engendered Angered Potential Detractors & Terrorists 11 Measuring Member Loyalty and Advocacy The Real Picture of the Member Experience Member Experience Member Beliefs & Behavior Future Behaviors Member Pride in Belonging Appearance and Condition of the Physical Environment Staff Knowledge, Attentiveness and Empathy Brand Engagement & Loyalty Connections & Relationships Love My Club Member Delight Brand Advocates Apostles, Advocates & Fans Will Remain a Member Will Recommend Social Environment and Opportunities for Building Relationships and Connecting with Community

5 The Drives of Member Loyalty & Advocacy Example of the Underlying Influences on the Big Four Pride in belonging Relationships with other members Ability to be involved on committees Relationships with staff Attentiveness and recognition from club staff Variety of programs for members to get involved in Quality of the golf course Ease of bringing friends as guests Convenience of using facilities Availability of tee times Quality of the fitness center Knowledge of the staff Apperance of the club house Cleanliness of the clubhouse Availability of amenities in the locker rooms Cost of additional services (e.g., food, lesons, etc.) Importance of Driver to Members Prioritizing & Leveraging the Drivers Know How Member Priorities and Club Performance Align! Performance 70 No sig. changes Drinking water availability Improved Professional trainers 50 Image of the brand Declined Clean floor areas Professional sales Responsiveness to managerssatisfaction with Gym Drinking water quality requests/questions Reputation of my club Clean locker rooms Knowledgeable staff Attentive staff Professional reception Physical layout of the spaces 30 Safes for the valuable things Sauna overall Environment in general Temperature of facility Personal assistance if desired Pride in belonging Medical Personell Comfortable environment Towels quality Security for valuables Inform about the club's services Clean showersreference by name Opportunities to include family, Locker rooms are adequately Design and decoration friends 10 supplied Promptness of receiving Background music Quality of locker information room necessities TV broadcast/channels Feeling of exclusivity Opportunities to meet -10 people from the same social circles Latest press Conducive environment for new relationships Varied pricing and Cost-Quality Ratio membership categories Cost of membership Cost as compared to competition Cost of kid's membership Cost for personal training Importance of the attribute 14 Prioritizing & Leveraging the Drivers Create a Game Plan by Quadrant Importance of the attribute Low Importance and High Performance Reallocate resources and talent Lessen focus and reassign accountability Monitor metrics High Importance and High Performance Don t step off the gas Reallocate some of the resources for this attribute without causing performance to drop Monitor metrics and connect to job performance and incentive compensation Low Importance and Low Performance No need to change what you are doing Reallocate all but minimal resources for these attributes Performance High Importance and Low Performance These attributes now become your top priority Prioritize and create a game plan Assign accountability to top performers Monitor metrics and connect to job performance and incentive compensation

6 Measures of Loyalty and Advocacy Member Satisfaction How well are you doing with FQ, PQ and SQ 12% 21% 25%* % 4% 4% 9% 8% 11% Not satisfied 51% 51% 51% Could be better Acceptable 4 Satisfied 35% 37% Fully satisfied September 2009 April 2010 October 2010 *Clubology Metric = Top Bottom 3 as % 16 Measures of Loyalty and Advocacy Highly Likely to Remain Advocate and Emotionally Engaged 19% 19% 27%* % 1% 1% 8% 11% 9% Definitely Will Not 54% 53% 55% Probably Will Not Might or Might Not 4 Probably Will 33% 37% 36% September 2009 April 2010 October 2010 Definitely Will *Clubology Metric = Top Bottom 3 as % 17 Measures of Loyalty and Advocacy Highly Likely to Recommend Advocate and Emotionally Engaged 37% 45% 45%* % 1% 1% 4% 6% 4% 45% 45% 46% Definitely Will Not Probably Will Not Might or Might Not 46% Probably Will Definitely Will September 2009 April 2010 October 2010 *Clubology Metric = Top Bottom 3 as %

7 Creating a Storyline Building a Story and a Culture to Execute on the Drives of Loyalty and Advocacy Create a Story, Brand Promise and Standards Write a story and script to describe the desired member experience based on the high value influencers Build a promise around the story and script make it emotionally engaging Identify the sacrifices and then eliminate them Create a simple, measurable and easily monitored set of standards on the influencers Build a scorecard on the promise and standards 19 Creating a Storyline Building a Story and a Culture to Execute on the Drives of Loyalty and Advocacy Establish an Internal Culture to Support the Promise and Standards Establish a motto that passionately communicates the promise Establish values that insure actions align with the promise Establish artifacts and traditions that speak to the promise, motto and values Identify Storytellers and Apostles Hold everyone accountable to the culture and its outcomes Connect recognition and reward to the culture 20 Summary Loyal Members stay longer, spend more and refer more they are the lifeblood of any club! Loyalty and advocacy are influenced most by emotional quality, which in turn is influenced by those actions that establish memorable relationships! To drive loyalty/advocacy you have to measure and monitor it,identify the drivers and how you are performing on them and establish priority around those drivers! Building Member loyalty and advocacy requires a strong internal culture with a strong brand story and promise!

8 Mark Williamson, Co-founder and Principal Stephen Tharrett, Co-founder and Principal