Fighting Revenue Erosion
One of the hot topics of late has been how to convert customers for the long-term. You’ll see a lot of team sales staffs rely on scripting, that wonderful idea presented by the contracted sales consultant during that 3-day seminar which your new account executives wrote down ever word as if it were the Holy Writ.
The idea implanted into each of your sales staff is that for every 10 calls they make, one call will convert to a sale.
That sounds like a small number for the mass amount of calls your staff is having to initiate for the value they achieve from it.
Especially if those A.E.s are green & wet behind the ears.
But why do we rely on some poor conversion rates?
Because it’s a shotgun approach to sales. Simply blast as many calls forward, and you’re bound to hit something, right?
Here’s the rub though; are we talking random prospecting? Or are we talking your best season ticket holders?
I prefer the rifle approach to sales.
I tend to value season ticket holder conversion rates a lot higher than some single game buyer who usually forgot what he liked about the game he watched by the time that you call.
Season ticket holders don’t need to be converted, though, right? Just renewed? Maybe that’s not the case.
We tend to look at season ticket holders with a lot less effort than those random single game prospects. I’m curious whether that is necessarily a good thing.
Season ticket holders invest in your product through thick and thin. A lot of the single game buyers only want your product when the chips are always stacked up in your favor, and are the same “fans” who will jettison their loyalty the second that you start losing.
They are the independent voters of national elections.
Prospecting for single buyer game buyers up the escalator isn’t a bad thing, but its easy to lose sight of those who have already bought-in to your team long-term.
When looking at the conversion rates, there has become an erosion for season ticket holders. Typically, they are renewing at an 85-89 percent rate. And we take it for granted that we are losing 11 to 15 percent annually in our long term base.
That why conversion rates should start and end with season ticket holders.
Because the single game buyers who grab a multi game pack may be someone you can move up the escalator in three years. But the season ticket holder is at the top of the escalator, and for some reason, they are going down the other end.
How do we fight this erosion?
We cannot begin by presenting “freebies” which allow the season ticket holder to believe that they can be rewarded for negative, complaining behavior.
However, instead of showing great value to single game buyers on the chance that teams might convert them to a longer term package, we should be gifting the right people.
Instead of those premium items going to a random single game buyer, why not put those Bobbleheads into the hands of season ticket holders only? Show the “reason” you want to become a long term buyer.
Word of mouth is king as an advertisement. Once you reward only the longest term buyers with premium items, you’ll start to see people begin to make that same investment who normally wouldn’t. Especially when your long term buyers become your best sales staff.