Membership Sales as easy as 1-2-3...
Warning: this newsletter is only intended for clubs that want new members. Stop reading if you don't want new members.
In this newsletter, I'm going to share with you an easy, straight forward membership sales plan that you can implement at your facility today and keep in place until you cap out your membership program.
It works for high-end exclusive private clubs, and blue-collar semi-private clubs that offer an annual pass. The high-end clubs will favor the "referral" technique more. And the annual pass clubs will favor the "prospect" technique more. However, both techniques need to be implemented to maximize your membership sales.
Here's the plan and my challenge to you. For every 1 member you have, get 2 referrals, and develop 3 prospects. For example, if you have 300 members, you should have 600 referrals, and 900 prospects for a total of 1,500 prospective members. Close 10% and increase your membership by 50%. Now wouldn't that be dandy?
What's the difference between a referral and a prospect?
Today, I'm going to discuss the referral technique, next week the prospect technique. Keep in mind, depending on your membership program, you will favor one technique over the other, but both apply. Read on.
What is a referral?
A referral is when a member gives you, the membership director, the contact information of a friend or someone that they have a personal relationship with. Additionally, the member believes that the referee would benefit from joining the club. And the member would like the referee to join the club. Why wouldn't you get them?
What is so good about a referral?
They are already qualified. Friends are typically cut from the same cloth. They have the same interests, status, hobbies, and lifestyle. And they are already familiar with the club from the friend's experience. From a sales perspective, how much easier does it get?
How do you get referrals?
Waive a member's dues for a month. "I'm sorry, but that doesn't work. I already have my membership dues budgeted, waiving them doesn't help me. Give me something else, give me something fun, give me something that I can share with my friend that joins."
The average lifetime value of a member to a club is $63,000. "You insult me, by waiving a $300 monthly due. Give me and my friend a night on the town, maybe a trip to Cancun or Vegas." It might cost you $2,000 but isn't it worth it?
Think about it. Would I talk to my friend about how much fun we'd have in Mexico if they joined? Yes. Would I talk to my friend about the $300 I would save if they joined? No. I'd feel like a Amway rep.
So, why don't members give you more referrals?
One, you don't ask for them. Two, they don't want their friends harassed by a membership director.
Ask them.
Members can tolerate two referral campaigns per year. Once in the Spring and again in the Fall. Print signs and banners and post them around the club. Create newsletters and fliers and send them to your members. Add pages and registration forms to your website. Btw, CourseTrends can create all this for you. If you need help, click here.
Train your staff to ask for the referral. Your inside staff, outside staff, pro shop, servers, …get your whole staff trained to ask one question, "Did you know about our referral campaign?". If the answer is yes, "Great who are you going to take to Cancun this year?". If the answer is no, "Who would you like to take to Cancun this year?". Make sure to write down the lead.
Don't sell them.
Explain to your members how you will treat their referral. Let the member know that you are going to send a letter to the referral with a follow up call to invite them as a guest to experience the club for a day. After the experience, you are going to send a letter with a follow up call to see how they liked it. At that point, you are going to politely communicate the benefits of membership. Not intrusive, just informative.
In summary, here's how the "referral" technique works:
1. Change your member referral reward to something fun.
2. Ask your members for referrals twice per year.
3. Use sales letters and email blasts to contact referrals.
4. Keep detailed notes on referrals in your CRM.
Need a CRM? Click here. Need membership sales letters? Click here.
Next week, I'll explain the "prospect" technique. It's much different. It's a no holds barred technique that if executed correctly can generate hundreds of new memberships.
