Looking for a way to boost your membership base without breaking the bank on a high-price media and membership blitz? Ask your other members for help.
That's right, the simple act of asking current members for the contact information of a friend or someone that they have a person relationship with can, if executed effectively, have a profound impact on a club's membership portfolio and, by extension, its profit base.
Wondering why referrals are so attractive as prospective members? Easy: They're already qualified. Friends are typically cut from the same cloth, so they share similar interests, status, hobbies and lifestyle. And, chances are they're already familiar with your club from their friend's experience. From a sales perspective, it doesn't get much easier than that.
Of course, the trick is enticing members to turn you on to their friends and colleagues, and that requires persuasion. Consider waiving a member's dues for a month. If that doesn't work, think about giving them something fun - perhaps a night on the town or a buddy trip to Cancun or Vegas. Sure, it might cost the club a few thousand dollars, but given that the average lifetime value of a member to a club is $63,000, doesn't the investment seem worth it?
Think about it. Would that member talk about how much fun they'd have in Mexico if his friend joined? Of course. Now would he or she talk to their friend about the $300 they could save in a monthly membership due if they joined? Not likely.
The other key referral success - outside of actually asking for names, which is given - is to avoid overkill. 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 flyers, and send them to your members. Add pages and registration forms to your club Web site.
It's also a good idea to train your staff to ask for referrals. Get everyone who has contact with current members accustomed to asking a crucial question: "Did you know about our referral campaign?" If the answer is yes, they can follow with a statement like, "Great. Who are you going to take to Cancun this year?" If the answer is no, counter with, "Who would you like to take to Cancun this year?" And, by all means, make sure the staff members write down any leads.
Finally - and perhaps most importantly - share with your members the way you plan to treat their referral. Let the member know that you'll send a letter to the referral and follow up with a call to invite them to experience the club for a day. After the introductory experience, mention that you plan to send a thank-you note and place another call to see how they liked the club and its amenities. At that point, you'll politely communicate the benefits of membership. Not intrusive, just informative.
Granted, not every referral will be converted to a member. But if you employ a systematic, low-pressure approach to prospecting and solicitation, you might be surprised how many new names you eventually enter into your member database.