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Customer_Member_Loyalty_Presentation

Golf Club - Customer Service Approach
by Dean Murphy on 19 September 2013

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Transcript of Customer_Member_Loyalty_Presentation

CUSTOMER/MEMBER
'LOYALTY'
15. eCommerce spending for new customers is on average $24.50, compared to $52.50 for repeat customers –

McKinsey.

3. The probability of selling to an existing customer is 60 – 70%. The probability of selling to a new prospect is 5-20% –
Marketing Metrics.
7. A dissatisfied customer will tell between 9-15 people about their experience. Around 13% of dissatisfied customers tell more than 20 people. –
White House Office of Consumer Affairs.
8. Happy customers who get their issue resolved tell about 4-6 people about their experience. –

White House Office of Consumer Affair.
9. 70% of buying experiences are based on how the customer feels they are being treated –

McKinsey.
11. Customers who rate you 5 on a scale from 1 to 5 are six times more likely to buy from you again, compared to ‘only’ giving you a score of 4.8. –
TeleFaction data research.
12. It takes 12 positive experiences to make up for one unresolved negative experience –
“Understanding Customers” by Ruby Newell-Legner.
13. A 5% reduction in the customer defection rate can increase profits by 5 – 95% –
Bain & Company.
14. It costs 6 – 7 times more to acquire a new customer than retain an existing one –
Bain & Company.
WHAT'S ALL THE FUSS ABOUT?
10. 55% of customers would pay extra to guarantee a better service –
Defaqto research.
5. A 2% increase in customer retention has the same effect as decreasing costs by 10% –
Leading on the Edge of Chaos, Emmet Murphy & Mark Murphy.
4. For every customer complaint there are 26 other unhappy customers who have remained silent –
Lee Resource.
2. A customer is 4 times more likely to defect to a competitor if the problem is service related than price or product related –
Bain & Company.
1. Price is not the main reason for customer churn; it is actually due to the overall poor quality of customer service –
Accenture global customer satisfaction report 2008.
FIRST 5 REASONS...
NEXT 5 REASONS...
6. 96% of unhappy customers don’t complain, however 91% of those will simply leave and never come back –
1st Financial Training services.
FINAL 5 REASONS...
Building member/customer loyalty in the competitive marketplace is the single most important element of modern golf club business.
KEY MESSAGE


“If you are only trying to satisfy your members/customers expectations, then you are failing to deliver on their needs.”

WHY BOTHER TO BUILD CUSTOMER/MEMBER LOYALTY?
"someone calling themselves a member says they want something called service"
so long as the person or business meets our NEEDS, we TRUST them and they genuinely CARE about us.
Do we live in a CONSUMER DRIVEN world?
Do our members and customers treat our products and services as merely another COMMODITY?
The simple answers is
YES we have more CHOICES!
It's human
nature to be LOYAL!
Lifelong Hairdresser Relationship
The hairdresser:
meets your needs
(they cut your hair the way you like it)
has
gained your trust
(they have always met your needs over time)
comes across as
someone who cares about you
(recall all of those conversations where you predominantly talk about yourself).
Customer Loyalty Defined
An emotional and attitude-based preference resulting
in the behaviour of
spontaneous
personal recommendation
and/or purchase.
'A person’s willingness to stake their reputation on the future performance of your golf club.'
CUSTOMER SATISFACTION IS...
rational and less emotional.
CUSTOMER LOYALTY IS...
emotional and attitude based.
So HOW do you BUILD customer loyalty?...
with LBEs
Impressing customers/members is what's NEEDED!
Satisfying customers/members is what's EXPECTED!
We impress
customers/
members
LOYALTY BUILDING EXPERIENCES
(LBEs)
LBEs are
precious techniques
for building valued and valuable
relationships with customers
. They come in many shapes and forms and the following five
have been adapted
to work within a
golf club
environment.

Does your golf club 'genuinely'
CARE
about your customers/members?
Do your customers/members
TRUST
your golf club?
Does your golf club strive to meet your customers/members
NEEDS
?
......................
Do you KNOW how many Loyal Customers/Members you already have?
Net Promoter Score, or NPS®
is based on the fundamental perspective that every company’s customers/members can be divided into three categories:
are loyal enthusiasts who will keep buying and refer others, fueling growth.



Detractors:
Passives:
Promoters
:
are satisfied but unenthusiastic customers who are vulnerable to competitive offerings.
are unhappy customers who can damage your brand and impede growth through negative word-of-mouth.


How to use
Net Promoter Score (NPS )
in your golf club.
Detractors
Passives
Promoters
Just ask one simple question:
How likely is it that you would recommend [
your golf club name
] to a family member, friend or colleague?
Not Likely
Neutral
Highly Likely
Presentation by
Kenny Halliday
Net Promoter Score (NPS )
Calculator
®
®
(%) Promoters
-
(%) Detractors
Golf Club NPS
=
Golf Club 'A'
Membership = 620 (100%)
Detractors = 145 (23.4%)
Passive = 270 (43.5%)
Promoters = 205 (33.1%)

NPS = 9.7
TROON HONORS FACILITIES AND ASSOCIATES FOR OUTSTANDING PERFORMANCES - 2012

TROON "ROCK STARS"
Several evaluation surveys revealed the following top performers in areas of leadership, member and guest satisfaction, and overall performance.

Associate Satisfaction (Overall) - The Revere Golf Club
Associate Satisfaction (NPS) - Whirlwind Golf Club
Guest Satisfaction (Overall) - Yocha Dehe Golf Club
Guest Satisfaction (NPS) - The Westin La Cantera Resort
Member Satisfaction (Overall) - The Rocks
Member Satisfaction (NPS) - Fieldstone Golf Club
You don't just stop being friends with someone when another person comes along!
Warren Collett
Chris Davies
Steve Hinton
Mike Reid
So what does all of this mean?
LOYALTY-BUILDING EXPERIENCE
“It’s easy to access someone who can help.”
The first loyalty-building feeling will only apply if the customers/members really do feel that the golf club with whom they are interacting really cares about helping them and has numerous ways of doing it.
Implications to your golf club: You must ensure that you have multiple methods for customers/members to communicate with the golf club if they have a comment, question or complaint. This can be can be through direct face-to-face interaction, via telephone or answer machine, and through feedback forms that are strategically placed throughout the club.

LOYALTY-BUILIDING EXPERIENCE
“I spoke to a person who appeared/sounded positive and eager to help.”

The second loyalty-building experience is reliant on your golf club having a great customer service culture where your employees/volunteers have a “how can we help?” type of attitude as opposed to a “what do you want?” attitude.


Research proven that people’s first impressions are based
55% on appearance and body language
38% on style of speaking
7% on what is actually said
In other words, body language may be the most important “relationship building tool”, but vocal signals come a very close second.
Implications to your golf club: You must ensure that everyone who has contact with your customers/members show ‘genuine’ interest through their body language and vocal tones, pitch, volume and speed. This is a team effort, it only takes one person from within your golf club to undo all of the good work.

LOYALTY-BUILDING EXPERIENCE
“I receive regular communication asking me how I am feeling about my customer/membership experiences”
The third loyalty-building experience relates to the ambulance at the top of the cliff as opposed to the bottom. The customer/member needs to feel that you personally contact them because you value what they have to say and you value your relationship.
Implications to your golf club: It is not only ‘good practice’ but ‘needed practice’ to periodically ask your existing members how they are feeling about their membership and how you can add more value. As a rule of thumb you should start off more regular with new members (3-4 times in the first 3 months) and finish off asking quarterly with existing members (every 3 months).
You should also take every opportunity to ask your visiting customers about their experiences and feelings during their time at your club. This is distinctly different to your member quality assurance survey and should be short enough to gather insightful information.
LOYALTY-BUILDING EXPERIENCE
“I’m not only a membership fee, they know who I am and what’s important to me”
The fourth loyalty-building experience relates to how well your golf club values each member all of the time; not just when they pay their membership fee. Members need to feel that your golf club takes a vested interest in who they are and what makes them tick.
Implications to your golf club: When you interact directly with your members you should know some relevant information about them, their playing habits or mention something that would interest them. This is made much easier if you initially gather ‘other’ information about your members that could be of interest. This could be family related, career related or other interesting information that shows that your care about them as a person; not just a membership fee.
LOYALTY-BUILDING EXPERIENCE
“I genuinely feel listened to when I have a question, feedback comment and/or complaint”
The fifth loyalty-building experience refers to the most important of all communication skills. It doesn’t come naturally to most people, so we need to work hard at it. Asking open questions encourage customers to give detailed replies, providing your golf club the opportunity to build further rapport, surface additional service or product needs, and provide additional advice and reassurance.
Implications to your golf club: All your employees/volunteers should be reminded of a very important expression: “Seek first to understand, and then to be understood” – Stephen Covey (Seven Habits of Highly Effective People) which serves as a constant reminder of the need to actively listen to the other person before expecting to be listened to.
Effective listening nurtures a sense of deepening trust and rapport with customers for three key reasons:

Customers are much more inclined to trust a person who shows respect for them and for what they say.
Customers are much more likely to trust a person when he or she has listened carefully and helpfully to their problems.
The more customers trust you, the more they will share.
Effective listening nurtures a sense of deepening trust and rapport with customers for three key reasons:

Customers are much more inclined to trust a person who shows respect for them and for what they say.
Customers are much more likely to trust a person when he or she has listened carefully and helpfully to their problems.
The more customers trust you, the more they will share.
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