So a new member is committed to joining the club. Congratulations! The dotted line has been signed and initiation fees have been paid. The club has begun what it hopes will be a long-lasting, “profitable” relationship. But how does the club ensure that the new member will be satisfied with their decision when research shows that 25-40 percent of members who resign do so within the first year of membership?The clock is ticking … is member retention high on the club’s list of priorities?
Being a club member is about belonging and building relationships. It’s an emotional purchase as well as a lifestyle investment. So how does the club hold up its end of the commitment—to provide value, benefits, and first class service to members? Just like any other human relationship, trust is gained through quality communication between both parties at just the right frequency. In addition to exceeding expectations within the physical boundaries of the club, nurturing relationships can be achieved through consistent, brand-focused e-publications (e-magazines, e-newsletters) that keep the club top of mind, even when members are outside of the club’s walls.
Mass or “Blast” versus Targeted Approach
The marketing and communications trend at today’s private clubs has shifted from a mass (or “blast”) approach to a more personalized, targeted approach. Club members are probably being inundated by hundreds of irrelevant promotional messages, many of which they typically tend to ignore or discard. So how does the club break through the clutter? Rather than having a reactive approach to the club’s e-communication strategy, where e-mails are sent at random whenever something time-sensitive pops up at the club, try planning ahead so that communications are sent out on a consistent schedule; one that is more likely to be valued and welcomed by members. Here’s a motto to consider: “Just because you can doesn’t mean you should.” E-mail has opened up new doors in terms of communicating with members; however, respecting members’ time and being sensitive to their needs is a key factor in retaining their trust. Set expectations with an introductory e-mail letting members know exactly when and what types of content they can expect, and at what frequency (as well as what day and time). Obviously, the objective here is not to lose a member’s interest, so what exactly is the key to preventing them from unsubscribing? What matters most is personalized content that matters to them.
Quality of Communication
E-publishing through newsletters stresses quality. An e-newsletter is about relationships and communicating using a human voice. It gives the club an opportunity to provide diverse and engaging content that members will want to read. A quality e-newsletter sells the club’s value to members by building its brand and providing useful information relevant to member needs. By keeping members interested and engaged in future communications, it is relationship-building rather than being merely a sales pitch. Think about it in these terms: Individuals are introduced to new people on a daily basis but the relationships that flourish are the ones that offer each party a reward (or perceived value). By combining club-related content with articles relevant to your members’ lifestyle, you’re providing them with an added benefit—one that may displace e-communications that compete for your members’ time and attention.
Personalization of Communication
E-newsletters also have the added advantage of being personalized to the club’s audience. Implementing member surveys and looking closely at transactional data can help the club gain deeper insight into members’ interests, spending habits and preferences, and allow electronic communication with members to occur on a more targeted basis. Here is where the two-way communication takes place. Taking the time to recognize repeat activity and involvement based on interests and demographic profiles will yield measurable results for the club. Establishing points of contact with members to gather important personalized data will allow the club to provide targeted and tailored messages to segments of the membership based on their feedback.
So what type of data should clubs be looking for?
- Frequency Preferences: How often do members prefer to receive communications from the club? Daily? At random? More likely the answer is once a week or bi-weekly.
- Amenity/Activity Interests: What aspects of their membership are they most involved with? Are they more interested in recreational activities or social and dining events?
- Content Preferences: Do they prefer receiving notifications about upcoming events, special offers, club news, or do they prefer entertaining content relevant to their lifestyle?
A major advantage of e-newsletters and e-magazines is that they allow members to “self select.” They can read what they want, when they want. This enables the club to get to the pulse of the readers. The real beauty of e-publications is that they are backed by sophisticated metrics reporting, allowing the club to analyze data and make adjustments to content based on user-generated feedback. By leveraging collected data and segmenting members, the club can fine tune the content they receive and ultimately create deeper relationships to drive greater member retention, activation and spending.
Like any other human relationship, there is always an element of trial and error. Testing variables such as frequency, time and day of distribution, and relevant content is essential in determining what works and what doesn’t.
By collecting data from members, the club sets their expectations, and by leveraging this data to better service members, the club is delivering its promise of more value and more benefits.
In summary, leveraging e-mail and the Internet is an important step for a club, but it is just the first step in what should be an ongoing two-way conversation with members that focuses on brand—not blast. Nurturing member relationships through effective e-communication is an investment that is sure to reciprocate in terms of both member satisfaction and loyalty.
Stephen Ready is President and CEO of VCT, an industry leader in custom e-publishing and outsourced member communication solutions for private clubs. Ready can be reached at 617-566-7055 ext. 212 or via e-mail at [email protected]. For more information on VCT, please visit www.vctcorp.com.