In last month’s issue of ClubSolutions, we started talking about “Edge Method” (Seth Godin) and how this powerful process can be used to tap into your own creativity, resulting in revenue and retention breakthroughs for your club. Breakthroughs come when you give your members more than they realized they wanted – A “free prize!”
Last Month’s Exercise: Write down what would be your perfect club in a perfect world.
If you did not do last month’s exercise, do it now. You may think, “But my team and I are always brainstorming…It really helps!” Generally, brainstorming does not work, and at best, it results in small improvements. On the other hand, a shared vision holds the power to make a real change. Brainstorming, or nonlinear thinking, does not start with a final vision because:
• We naturally pick apart ideas if they are not within a larger, shared, committed vision.
• Ideas versus a shared vision is simply more work.
Apple did not start with brainstorming sessions to come up with a new product. Brainstorming would have gone something like this: “You want us to enter a new industry (electronics), develop a product for an overcrowded market, set low margins, and on top of this, the units are maxing out at under $200!” Like
Apple, you need to set an ultimate vision and see how close to the “edge” of the vision you can come.
Step 4: The Edge: How close can I get to my perfect club?
The hard part of the “edge” is that it is not always clear; it is not usually what you think you need to improve or solve. We get to the “edge” by creating something fun, personalized, or even quirky that will be embraced by the marketplace. You don’t create a better hotel by redecorating the rooms. You do it by creating unique rooms, offering remarkable personalized service, and always being available to your guests.
This Month’s Exercise: Take your perfect club through “the edge process.”
The Edge Process:
1. Vision: Identify your top one or two high level concepts.
2. Critical Step: You and your team must personally commit to fulfilling the vision.
3. Past: Do not allow a blame game… “We can’t do this because customer service has never…” Move forward, and have team members volunteer for tasks with completion dates.
4. Edge Steps are powerful tools in creating The Prize.
5. Avoid Pitfalls: Avoid basing your vision on “common edges” (newer, cleaner, faster…). If members aren’t blown away, they won’t talk about it, and member’s talking is the key to growth!
Step 5: Powerful Edge Tools: Systems support to make your perfect club viable.
• Edge: Communication/Community
Push communication to the “edge” to instantly make your club remarkable.
• Edge: Ergonomics
Be remarkable and redefine the member’s experience.
• Edge: Lead
Have members look to you for guidance.
• Edge: Variety
Be remarkable in all three elements: choices, support, and a welcoming environment.
• Edge: Time
Help to save time by making joining easier and offering training that fits into each member’s lifestyle.
• Edge: Technology
Leverage technology to meet your vision.
Step 6: The Prize Inside: Finally Earning $1 Per Member And More
Your Prize must be the best to create a true breakthrough! Remember that 75 to 80 percent of customer satisfaction is not based on your facility, basic customer service or your due rate. You need strong member services and fair pricing just to enter the marketplace (the “common edge”). Clubs must get the functional parts right, but the emotional attachment leads to high-density loyalty from members.
People who are spending more than $6 for a cocktail are not only buying a drink. They can have the same drink at a local pub for a lot less. So, is everyone who pays more foolish? Let’s assume that people who pay more aren’t foolish; what is really going on?
Organizations like The Ritz Carlton don’t sell cocktails or hotel rooms. The Ritz Carlton offers the ultimate in personalized interaction. Their goal is: “…You go into their bar and the bartender puts a martini in front of you without having to ask what you want.”
You need to change the function of your club to add a unique element, and create personal bonds that lead to high-density loyalty! Like the $10,000 watch or the $15 martini at The Ritz Carlton…Create the prize that is worth paying for!
The Ritz Carlton has distinguished itself as the top U.S. hotel chain for the past several years based on customer experience. This recognition has come from empowering one-to-one communication.
Great companies have leveraged customer emotional management software to better manage and understand each customer’s journey. They deliver on these needs through excellent customer service: in person, online, and through the mail. While information and technology may have played enabling roles for these organizations, they are not the keys to their success.
Let us go and create the “free prize” inside your club…Something potential and existing members won’t be able to resist!
Scott Johnston is the CEO of InTouch. He can be contacted at 877.521.9937, or by email at sjohnston@intouchtrainer.com.
