Sunday, September 19, 2010

7 Ways To Get The Toothpaste Back In The Tube

I heard a P&G Senior Product Manager once say, "Once the toothpaste is out of the tube, it's hard to get it back." What he was referring to was the fact that once customers left one of his brands and went to a competitive brand, it was hard to bring them back to the brand. Real hard.

In thinking about our league bowlers who didn't come back this year, we can go through a litany of "things we might try." Here are a few ideas, in no particular order.

1. Invite them into the center for an open house and let them bowl for free
2. Send them a couple of free game passes and hope they will come in ...one of these days.
3. Create a new league called, "The C'mon Backs." Offer them lower prices, specials on food and drink and belly dancers.
4. Put them all on your email list and bury them in an email blast at least once a week.
5. Develop a learn to bowl better program for the lower average bowlers and invite them back to improve their skills. Maybe even for free!
6. Create an adult child program with these dropouts and get them to bowl on the weekends with their children.
7. Build a newsletter just for dropouts and build relationships with them over the next year; create special offers, contests, chances to get bowling equipment and to come in and bowl for free.
8. Forget about them and move on to newer targets.

I have tried all of these strategies at one point or another (well,maybe not the belly dancers) in my career with varying success. If you want to find out which one might work for your center, why not send a questionnaire to your dropouts and ask them to fill it out.

Ask them to rank these ideas; rephrase the 8th one, however! Or call 50 of them, your self, and ask them. Nothing like getting it first hand from the horse's mouth; that way you will be dealing with facts. (There's an idea.)

Or you could just try one and see how it goes. Less scientific of course, but at least you will be doing something.

Or you could just look for another tube of toothpaste.

Thursday, September 16, 2010

Why bother?

Most retailers want to believe that if they reduce price and advertise the reduced price,customers will flock to their doors. After all the product is on "sale" and consumers respond, almost in a Pavlovian manner, by taking out their wallets.

Or do they?

In the mattress industry, furniture industry and appliance industry, there almost always seems to be a sale going on. So it goes for cars, clothes, shoes, pillows and bed linen, towels, toiletries, groceries, health clubs, spa treatments, telephone calling plans, computers and peripheral equipment, televisions and stereos, fast food restaurants. The list goes on and on.

Its probably harder to find a consumer industry that isn't on sale lately. But very few do it like the bowling industry. We put our product on sale and only tell the customers who were going to come there anyway.

Some of us tell them by placing a flier on the main customer service area desk. Sometimes we will even make an announcement. Others send out an email, like its direct mail. And still others don't even have a flier; they just tell their employees and hope their employees remember and tell the customer.

Its harsh to say this. I know, but why bother having a sale and not telling any one?

Yes, I know its expensive to advertise. But what if instead of cutting your price and giving up that revenue, you spent that money and invested it in media. Sure Internet stuff is important. Its contemporary. It's inexpensive. It's a dream...yet less than 15% of your customers even bother to open your email. That means 6 out of 7 people don't even want to look at what you are sending them. Don't take it personally. How many times have YOU said, "I get so many %#%E#^^ emails, i just trash 'em!!!!

GUESS WHAT? SO DOES YOUR CUSTOMER.

So don't go betting the farm on just ONE medium. Layer your approach. Test various campaigns. Test various offers. Work on it till you get it. Be obsessed.

And if you need professional help, give me a buzz. Its what I do...help proprietors to build revenue.

Just "don't do nuthin!"...please.

Wednesday, September 8, 2010

Better Questions

It's time we started asking better questions. We have been measuring our business by the same metrics and segmenting our customers by traditional methodologies based on such variables as league play vs open play, frequency of use over the course of a year, age, income, zip code etc.

But we missed something here. Who are these customers? Who are they as people? Not by segmentation definition: age; income; household size, home value; number of children in the household. No, none of that stuff.

Is past performance still valid as a prognosticator of the future? Are the benchmarks we have been using appropriate.

I think the real test of the health of our business is the number of people that come back and spend money with us after two times
. Last time I looked, that was about the median number of times the typical open play bowler came to our center in a YEAR.

And while we all have the omnipresent "price special" even these great summer offers have failed to prevent the atrocious open play summer we experienced in North America this year. Why, even with price specials like 25 cent bowling, $1 bowling and FREE bowling, was open play off?

Why? Because consumers did not have enough money? They still went to the movies and to baseball games (both minor league and major league) and vacation travel was even up a bit. But not bowling.

It sure as heck wasn't price. We gave them that. It sure wasn't because they had to wait! We had enough extra lanes open to build a new Giants Stadium!!

Here it is: we just aren't cool any more.
There's no media build up of "cosmic bowling", that's already old. There's no Hollywood stars or professional (non bowling) athletes going bowling or viewed going bowling. They're at baseball games, basketball games, US Open, Olympics, Formula One races, Golf, etc. But there are no shots of them going bowling. And if these shots exist why doesn't someone share it with local proprietors.

So here's my solution. Take whatever you can Mr. BPAA and buy a Superbowl spot this year. (Heck, take what you spent on Bowlopolis.) You bought it for Master Lock and it put them on the map. How about doing the same thing for bowling?

The residual effect from the advertising promotion world would carry us for months. The spot would be played and replayed in front of millions of people. It would have to be an edgy spot.

Some of the industry "fuddy duddies" would have to get out of the way. No crash of pins, no kid throwing a ball, no hugging Grandpa and going YAY.

And after the Superbowl, we would be cool...and our centers would be busier.

Thursday, September 2, 2010

Which One Are You?

Some of the greatest mistakes entrepreneurs make is in their follow-up efforts with their customers and prospects. You see, most small business owners fit into one of two categories.

1. Those that don't follow up often enough. (99 percent of small business owners don't follow up at all.) When your follow-up is inconsistent and infrequent, you're simply wasting your time and marketing dollars. Your contacts won't remember who you are...and those that do will simply regard you as "the occasional pest."

2. Those that follow up too often. When you send too many messages to your contacts, you are going to be viewed as a mass marketer. In fact, a recent email study shows that 65% of men and 56% of women define spam as "email from a company that I have done business with that comes too often."

So how do you determine the best pace at which to follow up with your clients? Well that's the tricky part. Each group of prospects and customers is going to react to your follow-up differently. So ultimately, you are going to have to "test" your group. But here are some key, follow-up principles to keep in mind:

Follow-up must be consistent.

Send frequent enough messages to keep your name fresh in your contacts' minds.

Send valuable and educational materials as well as your marketing message. What if you sent "Halloween Safety Tips for Kids along with your marketing message and/or coupon for a kids Halloween party? Wouldn't Moms appreciate that and be more likely to trust you? You betcha!!

Your messages, therefore, should be building a relationship with your contacts.

Be personal, be real and a little entertaining.
By following these principles, I have no doubt you will find the follow-up pace that is perfect for you, your customers, and your prospects!

So which one do you want to be?

Saturday, August 28, 2010

Overlooked Markets

1 out of 4 children registered for kindergarten this year are Hispanic. 1 out of 7 are African American. Only 53% are Caucasian. This is down from 59%, from just two years ago. One out of 6 are Asian Americans. American demography is changing. And it is not just in Arizona, California, Texas or Florida. It is nation wide. Clients in Iowa and Washington state tell me that their towns and cities have a lot more Mexican people than ever. I'm not here to debate the politics of this or to cast judgment. It is what it is.

And yet when I ASK these clients how they have adapted their marketing efforts to accommodate these new segments, more often than not I get the "deer in the headlights" look. Uh oh, I know what that means. Simply stated, they have done nothing. They are still marketing to a vision that their customers are all "Leave it to Beaver Caucasian families with 2 children and a stay at home Mom! Or worse I get, "those folks don't bowl."

Duh. Of course not!!

You probably have not made a serious attempt to get their business or to tap into their culture. So why should they bowl? They don't even know who you are or what you offer.

So here are a couple of tips to market to these NEW segments:

1. Visit or attend business meetings within their communities. Do your research and find out more about them. For examples, Hispanic people are VERY family oriented. Appeals to the family for a bowling event will resonate stronger than will a date night option. Birthday parties for children as well as teen parties also have a high appeal.

2. Make sure that you communicate in their language. Not speaking to them in their language is a sign that you don't care.

3. Visit their churches and stores. These are "touch points" where people meet and mingle and exchange the "daily gossip" going on in their communities

4. Look at your food menus. Are you offering foods that are familiar to their palate or are you still trying to force your own style food down their throats?

5. Church fund raisers and organizations/clubs are very high priorities in this community. Are you tapped into these groups?

6. Communicate in their newspapers, radio stations and TV programming. You can't get eyeballs and ears by not being where they are most likely to be

7 And the last tip of the day is the sign on your front door that says "Habla Espanol Aqui." (We speak Spanish here).

In today's economic environment, you need to explore every niche and cranny that can bring revenue to you.

And yes it will take time. Trust is like that.

Sunday, August 22, 2010

The Ice Cream

"Where is the ice cream?, he asked, as he walked into the den. "In the washing machine. Where do you think it would be?", she answered. Grumbling, he headed off to the refrigerator to get his chocolate chip fix. Settling into his easy chair, he was finally happy to get what he wanted.

Where are you looking for customers?
They're right there; every day and every night.

Is anybody telling them about the ice cream.

Saturday, August 21, 2010

Readers Write

Last week I posted my thoughts about bowling proprietors expanding into other venues within their existing structure. I received a very erudite letter from one of my blog readers, Joe Shumacker, past President of the BPAA, with a commentary on that blog.

Here is his letter in full:

Fred,

In addition to Borders filing for bankruptcy, Barnes and Noble is in the middle of a proxy battle for control of the company. Clearly a marketplace disruption is occurring in the "publishing" industry. The changes will be major and life will never quite be the same, for the companies or consumers.

Bowling enjoyed a very strong marketplace disruption in the 1950's - 60's with the advent of the second generation of bowling (Gen2). The third generation Gen3) has been a much weaker disruption, far below it potential for creating a positive future for bowling. Although the results are disappointing to date there is still time to get it right.

There is a counter point to your position on creating multiple functions within a bowling box. There are many examples where the bundling of functions has not worked. The car-boat concept has been around for years. Efforts to make your TV your PC have failed to gain much traction. The jury is still out on medical clinics located in drug stores. There is an appeal in attempting to do everything for a customer (client).

Comcast is attempting just such a bundling with cable, Internet and telephone service. There seems to be two keys to success or failure in the bundling of functions strategy. One is whether the component functions are a product of common skill and expertise on the part of the provider. Comcast believes it has the skill and expertise to pull it off. The second is whether the consumer is comfortable in sourcing the varied functions from a common provider. As an example I once saw a Mobil gas station in an upper middle class community with a sign stating it had a sushi bar inside. I did not stop for lunch. Another example is found in the old joke about the guy who went to veterinary and taxidermy school at the same time. The strategy was that either way you got your dog back.

I am a firm believer in the strength of bowling as the core of an operating business. The core can supported with ancillary and complementary revenue sources with a marginal expansion of skills and expertise. There is also little or no customer resistance to the expanded products and services, it fits into the expected experience. As an operator moves from complementary functions to truly parallel functions such as destination sports bars, major arcades or restaurants, the level of complexity increases greatly.

The cost of operation is much larger. The risk involved is far greater. The fundamental questions remains; 1. Can we do right (skills & expertise), and 2. Will the customer buy into our selling proposition?

The bundling of parallel functions can lead to significant success. It is however an exercise the operator needs to enter with his or her eyes wide open and with the support of experts. The use of experts (consultants) in the planning and development phases will reduce the risk of totally missing the mark with what seemed to be a very logical proposition.

My first question for someone considering a such an expansion is whether he or she is getting the most she can out of the bowling operation. If yes and further profitability is desired or required then do some serious homework on the business you are lashing onto the side of your bowling business.

Joe