fostering member loyalty
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Fostering Member Apostles and Advocates
“Win hearts and you have hands and purses”Lord Burleigh - 1500’s
Customer Loyalty Breeds Storytellers and Spenders!Percentage of loyal customers who exhibit storytelling behaviors
Spread the Word Buy more Don't consider other products
Join social media site
78%
69%
54%
15%
Delighted and Loyal Members Stay Longer and Refer More Often!
Dissatisfied Satisfied Delighted0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Remain a Member
Leave At Risk Stay
2x more likely to remain
than a satisfied
members
9x more likely to
refer than a satisfied member
Dissatisfied Satisfied Delighted0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
Member Referral
Never Might Will
The Member Experience Relationship
Loya
lty, A
dvoc
acy,
and
Spe
nd
Member Experience
Dissatisfaction and Outrage
Satisfaction Delight
Source: Customer Delight PrincipleTim Keiningham
Problem Resolution
Emotional Engagement
The Pyramid to ProfitabilityA Hierarchy of Emotional Engagement and Profitability
Emoti
onal
eng
agem
ent a
nd T
rust
Tenu
re, i
ncre
men
tal s
pend
and
refe
rral
Delighted Loyalty & Love
High TrustAdvocates & Apostles
Won’t Leave
Satisfied Satisfied with experienceNot emotionally engaged
Trust contingentVulnerable to External Choices
Dissatisfied Expectations not metDistrust engendered
AngeredPotential Detractors & Terrorists
The Member Value EquationThe operating framework for member loyalty and advocacy
Member’s Perception of
Value
ProductQuality
FacilityQuality
ServiceQuality
EmotionalQuality
Price Time
Commodities of the ClubDrivers of Satisfaction
Advocacy/Loyalty Differentiator
A Comparison of Two Club Value Propositions
High Fees, High Dues
EQ
SQ PQ
Low Fees, Low Dues
Price
FQ
Luxury Club Loyalty Proposition Budget/Economy Club Loyalty Proposition
FQ
The Member Value EquationHow one club’s members expressed it!
Emotional Quality (EQ)
Service Quality (SQ)
Facility Quality (FQ)
Product Quality (PQ)
Price and Time (PT)
• Members are proud to belong to the club• Members have established enduring friendships• The Club helps Members achieve fitness goals
• Tenured staff provides comfort and security• Staff demonstrate sincere caring and attentiveness• The club communicates transparently and
frequently
• The facilities are very clean and well maintained• The club offers a variety of high-tech equipment• The wet areas with sauna, steam and whirlpool are
unique in the market
• The club has a great spa offering• The club has cutting-edge mind body classes• The club regularly introduces new programs and
services targeted toward our interests
• The bonus program provides great opportunity to get discounts on in-club services
•The 30 minute classes make it easier to get in and out
The Experience Creates Loyalty and Advocacy The Real Picture of the Member Experience
Member Experience Member Beliefs & Feelings Future Behaviors
Member Pridein Belonging
Appearance and Condition of the Physical
Environment
Staff Knowledge, Attentiveness and Empathy
Social Environment and Opportunities for Building
Relationships and Connecting with Community
Love My Club Member Delight
Will Remain a MemberWill Recommend
Brand EngagementConnections & Relationships
Brand AdvocatesApostles, Advocates & Fans
Measures of Loyalty and AdvocacyMember Delight…How well are you doing with FQ, PQ and SQ?
30% 35% 37%
51%51% 51%
11%9% 8%
7% 4% 4%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
September 2009 April 2010 October 2010
Not satisfied
Could be better
Acceptable
Satisfied
Fully satisfied
12% 21%
*Clubology Metric = Top – Bottom 3 as %
25%*
Measures of Loyalty and AdvocacyHighly Likely to Remain…Emotionally Engaged and Don’t Want to Be Without You!
19% 19%
*Clubology Metric = Top – Bottom 3 as %
27%*
33% 37% 36%
54%53% 55%
11% 9%8%
2% 1% 1%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
September 2009 April 2010 October 2010
Definitely Will Not
Probably Will Not
Might or Might Not
Probably Will
Definitely Will
Uncover Key Loyalty DriversExample of the Underlying Influences on the Big Four
Pride in belonging
Relationships with other members
Attentiveness and recognition from club staff
Club's image in the community
Relationships with fitness staff
Variety and quality of group X programs
Ability to get assistance with fitness program
Ease of bringing friends as guests
Convenience of using facilities
Availablity of fitness equipment
Ability to meet other members with similar interests
Variety of fitness equipment
Cleanliness of the club facilities
Availability of amenities in the locker rooms
Cost of additional services (e.g., food, lessons, etc.)
0.00 0.10 0.20 0.30 0.40 0.50 0.60 0.70 0.80 0.90
Importance of Driver to Members
Prioritizing & Leveraging the DriversKnow How Member Priorities and Club Performance Align!
Attentive staff
Background music
Clean floor areas
Clean locker rooms
Clean showers
Comfortable environment
Conducive environment for new relationships
Cost as compared to competition
Cost for personal training
Cost of kid's membership
Cost of membership
Cost-Quality Ratio
Design and decoration
Drinking water availability
Drinking water quality
Environment in general
Feeling of exclusivity
Image of the brand
Inform about the club's services
Knowledgeable staff
Latest press
Locker rooms are adequately supplied
Medical Personell
Opportunities to include family, friends
Opportunities to meet people from the same social
circles
Personal assistance if desiredPhysical layout of the spaces
Pride in belonging
Professional reception
Professional sales managers
Professional trainers
Promptness of receiving informationQuality of locker
room necessities
Reference by name
Reputation of my clubResponsiveness to
requests/questions
Safes for the valuable things
Satisfaction with Gym
Sauna overall
Security for valuables
Temperature of facility
Towels quality
TV broadcast/channels
Varied pricing and membership categories
-70
-50
-30
-10
10
30
50
70
0.25 0.3 0.35 0.4 0.45 0.5 0.55 0.6 0.65
No sig. changes
Improved
Declined
Reallocate Resources Protect
Focus on Improvement
Mem
ber S
atisf
actio
n
Importance of the attribute
The Impact of Member Tenure on LoyaltyHow Member Tenure in One Company Held a Few Surprises
35 % 33 %32 %
27 %
13 %
52 %50 % 51 %
45 %
39 %
21 %23 %
25 %
30 %35 %
0 %
10 %
20 %
30 %
40 %
50 %
60 %
Less than 6 months
Half a year One year Two years More than 2 years
Overall Evaluation
Likely to recommend
Likely to renew membership
Find Out What Your Members Say About the Value Proposition!• Discover what the members have to say and measure it• Uncover the drivers of the value proposition (FQ, PQ, SQ, EQ, Price and Time)• Clarify the major drivers of each component of the value equation
Focus On Identifying the Strategic Priorities of Your Value Proposition !• Create a matrix and determine what drivers need your focus • Develop a master strategy around the priorities (what resources need to be applied
where)
Craft Your Brand Promise and the Brand Story!• Create a compelling brand message (purpose, tone, and story)• Build your story and script, and use that to model the experience(s) you deliver• Create standards for the brand’s delivery and share them with everyone
Foster Your Internal Culture to Execute on the Brand Promise!• Clarify and codify the underlying cultural imperatives needed to deliver the promise.• Measure performance against the standards (specific metrics )• Share the results, and reward achievement of your metrics
Getting to Member Loyalty and AdvocacyA Business Progression to Enhance Loyalty and Advocacy
Member Loyalty and AdvocacyWhat business experts have said about customer loyalty and its consequences
“Win hearts and you have hands and purses”Lord Burleigh
“Do what you do so well that they want to see it again and bring their friends.”
Walt Disney
“You don’t earn loyalty in a day. You earn loyalty day-by-day.” Jeffrey Gitomer
“Talk to people in their own language. If you do it well, they’ll say, ‘ God, he said exactly what I was thinking’. And then they will follow you to death”.
Lee J. Iacocca
“Repeat business or behavior can’t be bribed. Loyalty has to be earned.”
Janet Robinson
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.
Stephen Tharrett, Co-founder and Principal | stevet@club-intel.com | 972.746.7605• 20 years leading athletic, golf and tennis as VP and SVP of Operations at ClubCorp • 2+ years as CEO of the Russian Fitness Group• 10+ years as a consultant in the fitness and private club industry• Author of 8 business books on the club industry• Former president of IHRSA
Mark Williamson, Co-founder and Principal | markw@club-intel.com | 214.232.2389• 17 years heading up employee and member insights as VP of Research at ClubCorp International • 5 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
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