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Re-Evaluating “Who Is Your Best Customer?” Presented by: Mitchell L. Stump, CPA www.clubtax.com www.clubtaxnetwork.com www.itsallaboutgolf.com [email protected] Who Is Your Best Customer? Do you know who is your best customer? Formulation of an opinion I hope to engage I hope to inspire I hope to get you to rethink your Club’s existence I hope to get you to re-evaluate your core values I want you to avoid expending efforts and money toward Club activities of minor importance. Who Is Your Best Customer? Questions to which we need answers: Who is your target customer? Who is your best Club Member? What is your primary purpose of existence? How are you treating your best customer? Does your staff understand their role in making your Club GREAT? Who Is Your Best Customer? Two basis theories that work for any business and any Club: Only 4 ways to grow a business “Hedgehog Theory” found in Good To Great by Jim Collins Who Is Your Best Customer? 4 Ways To Grow A Business (any business) 1. Increase the number of customers. 2. Increase the number of times customers come back. 3. Increase the average value of each sale. 4. Increase the effectiveness of each process in the business. Who Is Your Best Customer? 4 Ways To Grow A Club (any Club) 1. Increase the number Members of the type a Club would want. 2. Increase the number of times Members come back to use the Club amenities. 3. Increase the average value of each sale to a Member. 4. Increase the effectiveness of each process in the Club.

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Re-Evaluating

“Who Is Your Best Customer?”

Presented by: Mitchell L. Stump, CPAwww.clubtax.com

www.clubtaxnetwork.comwww.itsallaboutgolf.com

[email protected]

Who Is Your Best Customer?

� Do you know who is your best customer?

� Formulation of an opinion

� I hope to engage� I hope to inspire

� I hope to get you to rethink your Club’s existence� I hope to get you to re-evaluate your core values� I want you to avoid expending efforts and money toward Club

activities of minor importance.

Who Is Your Best Customer?

� Questions to which we need answers:

� Who is your target customer?� Who is your best Club Member?

� What is your primary purpose of existence?� How are you treating your best customer?� Does your staff understand their role in making your Club GREAT?

Who Is Your Best Customer?

� Two basis theories that work for any business and any Club:

� Only 4 ways to grow a business

� “Hedgehog Theory” found in Good To Great by Jim Collins

Who Is Your Best Customer?

� 4 Ways To Grow A Business (any business)

1. Increase the number of customers.

2. Increase the number of times customers come back.

3. Increase the average value of each sale.

4. Increase the effectiveness of each process in the business.

Who Is Your Best Customer?

� 4 Ways To Grow A Club (any Club)

1. Increase the number Members of the type a Club would want.

2. Increase the number of times Members come back to use the Club amenities.

3. Increase the average value of each sale to a Member.

4. Increase the effectiveness of each process in the Club.

Who Is Your Best Customer?

� Increase the number of Members of the type a Club wants

� Do you want wealthy Members or financially struggling Members?� Do you want golfing Members or are you in need of more tennis

Members?� Do you want families or do you only want women?

� Not everybody is a candidate for your Club. � What amenities do you have that match the wants of a particular

segment of society?� What services do you offer that match Members needs?� Don’t think everybody is a viable candidate because they are alive.

Who Is Your Best Customer?

� Increase the number of times Members come back to use the Club amenities

� Do your Members only come to the Club for Sunday brunch?

� What would it mean to your Club if they came Sunday and Wednesday night?

� How about Sunday, Tuesday morning, Wednesday night and Friday afternoon?

� Any idea which Member will stay at the Club when an economic downturn hits?

Who Is Your Best Customer?

� Increase the value of each sale

� Get your Members to spend more money each time they buy a product or service from you.

� Give your Members such value at the Club that they would never consider taking their disposable dollars elsewhere.

� Do you know where your Members are spending their money away from the Club?

� What can Members get at your Club they cannot find elsewhere?

Who Is Your Best Customer?

� Increase the effectiveness of each process in the Club

� This is not just “cutting” costs!� Have you already cut costs so much that your Club actually has

very little to offer?� Increasing effectiveness is doing something in a more efficient way

or in a better way to give more value at the same or less cost.� I argue that some Clubs have cut so much you no longer are a

viable alternative for my disposable dollars.� If you are already doing more with less, are you doing it in the

correct area?� Test everything that moves.

Who Is Your Best Customer?

� “Hedgehog Theory” by Collins in Good to Great

� There are 3 factors that need to be an integral part of operations that are deemed to be used by all “Great”companies and Clubs:

1. Have a real Passion for your business,2. Find something that can be Financially Viable , and3. Be the Best in the world at it!

Who Is Your Best Customer?

� “Hedgehog Theory” by Collins in Good to Great

� Have a real Passion for your business� What are you deeply passionate about?

� Find something that can be Financially Viable� What drives your economic engine?

� Be the Best in the world at it� What you can be the best in the world at?

Who Is Your Best Customer?

� “Hedgehog Theory” by Collins in Good to Great

� Have a real Passion for your business

� My guess is that you have a real passion for this business already.

� Chef’s have a passion for food production

� Tennis Pro’s love the game of tennis

� Golf Professionals could not think of any better game

� Marketing Professionals love people

� Club Managers love Board Meetings!!

� I have a passion for Club tax law. Go figure.

Who Is Your Best Customer?

� “Hedgehog Theory” by Collins in Good to Great

� Find something that can be Financially Viable� Love quilting but there is no money in selling quilts?� Love poetry but can’t figure out how to sell your poems?� Have a passion for Yankee’s baseball but can’t figure out how to

make any money at it?

� Put your “Passion” to work where you can make some money at it.

� Don’t hire somebody for a position they do not have a passion for.� It is easy to come to work when you can make some money at

something you love.� If you can’t figure out the financial viability of your passion, find a

new passion.

Who Is Your Best Customer?

� “Hedgehog Theory” by Collins in Good to Great

� Be the “Best in the World” at it

� Here is where I believe most businesses fail� Collins has found that if you cannot be #1, your company will not rise

to being “Great”� What is your Club #1 in the world at providing?� Be honest with yourself

� Are your Members really friendlier than other Club’s Members?

� Are your employees really better than the competition?

� Do you think your golf course is really one of the best? If Golf Digest ranks you #1 in your State, your course could be one of the best.

Who Is Your Best Customer?

� “Hedgehog Theory” by Collins in Good to Great

Who Is Your Best Customer?

� Let’s talk about your Club:

� Who is your best customer and where do you place your focus? � Is it another nonmember wedding?� Is it another charity event at your Club?� Is it to allow nonmember reciprocal use of the Club amenities?� Or is your best customer one more new Member?� What is the value of one new Member at your Club?

Who Is Your Best Customer?

� What is the value of one new Member at your Club?

� Do the math with me:

1. How much is the joining fee you get to keep when a New Member (highest category) joins the Club. Write that amount down. $$

2. How much are your annual dues coming from this same classification of Member? Write that amount down. $$

3. Multiply the annual dues in step 2 by 10, an average time a Member could stay at the Club.

4. Add the amount in 1 and 3 together. That is the minimum your one New Member is worth.

Who Is Your Best Customer?

� If we know who is our best customer, how do we treat them?

� If the best customer is the Full Equity Family Golf Member, why is the golf bag drop not the most beautiful place on the golf course? (Golfers front door)

� If the best customer is the Full Equity Family Tennis Member, does the Club strive to teach their Members so well that they consistently win the City and State tennis tournaments?

� If the best customer is the Full Equity Family Swim Member, do the teenagers of Members consistently receive College Swim Scholarships?

� If the best customer is the Full Equity Hunting Member, does the Club train Members to be the absolute best shots of any Hunt Club?

Who Is Your Best Customer?

� If we know who is our best customer, how do we treat them?

� If the best customer is the Full Equity Dining Member, are you known as being better than the 5 star restaurants in town?

� If the best customer is the Businessmen and Businesswomen in the community, is your Club known as the required Club Membership to teach business techniques and ethics to your young executives or is your Club known as the Mentoring Club?

� What do you really provide to Members that they could not obtainelsewhere?

Who Is Your Best Customer?

� Consider this:

� I can eat at 5 star restaurants in the Palm Beaches 7 days a week and not eat at the same restaurant twice. You better than 5 Star?

� I can go to a World Renowned Spa at The PGA Resort any time I want. You better than World Renowned Spa?

� Seminole Golf Club is the #1 golf course in Florida, and in the top 10 best locker rooms and bars in the country. Better than that?

� For $29.00 monthly, I can join LA Fitness and have gym, racquet ball, basketball and exercise equipment. How much are your duesagain?

� Now why should I join your Club?

Who Is Your Best Customer?

� How have I been treated as a Member?� Marketing Director failed to provide an application in my Membership

package.� Marketing Director did not follow on why I had not joined on first day of

opportunity.� Dining Members cars are valeted to closest parking lot while Golf

Members park in the lot furthest from the Clubhouse.� Bag Drop has button to push if I want their help with my bag at Bag Drop.� In a 12 month period, I saw a Locker Room Attendant 6 times. Due to

budget cuts, Attendant goes home at 2:00pm.� I had to go outside to get a glass of lemonade because beverages are not

available in the Locker Room.� I KNOW…IT’S ONLY BAD SERVICE WHEN I SHOW UP, RIGHT?� When I left this Club, they did not conduct an exit interview.

Who Is Your Best Customer?

� Hedgehog Theory and 4 Ways To Grow A Business

� Lets tie things in:� Who is your best customer?� Are you the best in the world as serving your best customer?� Be brutally honest with yourself.

� If only you had a lot of money to throw at the problem?� This is a people business. � This is the Hospitality Industry� It is all about training and attitude� You can be a “Great” Club with the right people on the bus and the

wrong people on the curb.

Who Is Your Best Customer?

� Hedgehog Theory and 4 Ways To Grow A Business

� Lets tie things in� Quit making excuses.� Hire givers vs. takers: Givers have a passion for giving.� Most Clubs offer Great service in the Dining Room.� Suggestion: Take your Dining Room Manager to other Departments

to teach them about Customer Service.� Test everything that moves and document what you do best and do it

more often.� At every touch at a Club, one of three things happen.� Good� Neutral� Bad

Who Is Your Best Customer?

� 4 Ways To Grow A Club (any Club)

1. Increase the number of Members of the type a Club would want.2. Increase the number of times Members come back to use the Club

amenities.3. Increase the average value of each sale to a Member.

4. Increase the effectiveness of each process in the Club.

� Have Passion and become #1 in what you are doing!

Who Is Your Best Customer?

� Who is your Best Customer?

� It is an existing Member coming back often to use your most profitable service, yacking it up with potential prospects about what a GREAT Club they are a Member of.

� GOOD LUCK!!!

Who Is Your Best Customer?

� Want more information regarding your Best Customer?

Club “It’s All About Golf” BookAuthored by

Mitchell L. Stump, CPA

www.clubtax.comwww.itsallaboutgolf.com