Benefits of long term retained customers:
Responsible for majority of your income
Will repeat their bookings more regularly and at a higher value
More likely to buy into additional revenue earning activities at the centre
Less likely to complain
Will not ask for discounted fees
Will be good payers and reduce bad debts to ZERO
Word of mouth ambassadors creating more quality business
Change will be more readily accepted and even supported
It will be clear that customers accessing more facilities and activities will be the higher spending, higher value customers. These clients can be worth up to 80% of income but may only represent 20%-30% of the customer base.
This concept of focussing on the high value, high spending customers is important to the future viability of many riding centres. These ‘bonded’ or ‘invested’ customers are loyal, valued, treat the yard as their go to place of leisure, are generally more knowledgeable and buy a wider range of products and services.
Setting up, marketing, selling and implementing each of these additional services will attract customers to the centre, increase turnover and grow a more profitable riding centre. An important point to note – acquiring more customers through good marketing will only create long term invested customers if continuous exemplary service is provided every time the customer has contact with the business.
Equine Business Consultancy has a wealth of tips and information available on how to improve the lifetime value of customers. Simply follow our webinar programmes.