Is it preferable to encourage customer rotation or to build customer loyalty?
Depending on some characteristics of the club, such as, location, type of facility, rate of potential customers, average occupancy rate, viability of each activity in the padel area, number of complementary services and their relevance in the club’s balance sheet, degree of competition and management model, from management, we can propose strategies to achieve one objective or another.
We list two strategies that you may carry out:
- Try to expand the database and encourage the circulation of different clients through the club and thus favour the ROTATION of clients.
- To ensure that “our ideal client” settles in the club and stops being nomadic or is as little as possible to achieve LOYALTY.
My opinion is not that you should choose between one of the two objectives (in fact, a correct combination of both can be ideal in the medium to long term), but you should be clear about what you want to achieve in order to plan an appropriate strategy, as there will be circumstances in which you are interested to a greater or lesser extent: ROTATE versus LOYALTY.
These clubs look for:
– To promote complementary services
– Not to depend on certain groups or collectives
Viability and profitability
On the other hand, we know that customer loyalty is a key element to achieve the viability of many businesses and of course it is also a key element in padel clubs.
Keeping existing customers is always more profitable than attracting new ones as we will not have to invest in marketing campaigns and it will also provide us with two fundamental advantages: recurrence and revenues in off-peak periods or time slots.
The loyal customer
In addition, a LOYAL CUSTOMER often has very positive characteristics for the club:
– Identifies with the club and acquires a sense of belonging.
– They recommend the club to potential customers.
– It helps us to detect failures or even to prevent them.
– It is their only alternative practice. Loyal customers do not usually go to the competition.
Once the concept and the advantages of a loyal customer for the club are clear, in future articles we will explain how the transformation of the potential customer into a user and subsequently into a loyal customer takes place.