Sports Club: How to Generate More Revenue?

In most cases, venue rental alone cannot guarantee the profitability of a sports club. Here are our 5 tips for growing your sports facility’s revenue!

I. BUILD LOYALTY AMONG YOUR SPORTS CLUB MEMBERS

Attracting customers is good; bringing them back is even better! To do that, there are several loyalty strategies you can put in place. These are tools your sports club management software should be able to handle.

Offer Memberships

This model is used by fitness clubs. It involves a monthly recurring fee for your customers that grants access to specific services. It can be adapted to any activity. For example, a padel club can create a membership limited to off-peak hours.

Advantage : Recurring revenue every month and loyalty pushed to the maximum

Disadvantage : Be careful when structuring your offers. Unlimited memberships, for example, can seriously undermine your profitability 

Create Credit Packs

Credit packs or session cards are a powerful and flexible loyalty lever. The concept is simple : sell prepaid cards that give access to specific services. For example, an indoor soccer venue offers customers the option to buy 10 games in advance for the price of 9.

Advantages :

• You generate cash upfront

• You commit the customer to 10 services. They will be more inclined to schedule their activities at your club rather than with your competitor.

Disadvantage : It can sometimes be difficult to keep track of everything. However, sports facility management software like Doinsport can help you manage these aspects.

The virtual wallet

The virtual wallet represents a dematerialized amount of money available from your customers’ member account. This balance can be spent at any time and for any type of purchase in your sports center. By topping up their virtual wallet, a customer can pay for sports activities as well as snacks, drinks, or a product purchased in your pro shop. To encourage top-ups, you can imagine a recharge model such as 30 euros paid = 35 euros credited to the wallet

Advantage :

• Extreme loyalty

• More cash for children/teens

• VAT differences managed

Disadvantage : Not widely developed. In France, Doinsport is the only management software to offer this option to sports clubs.

How does Doinsport software help me retain my customers?

II. LEVERAGE YOUR SPORTS CLUB’S CUSTOMER BASE

Your existing customers are a goldmine. By putting a few techniques in place, you can grow your revenue easily.

Develop your add-on sales 

Too often, add-on sales are overlooked by facilities. Yet they can represent a significant source of revenue.

The Bar/Catering Area, the must-have for a sports club

A sports club is a place for socializing and entertainment. Playing football, padel, tennis, or any other activity is an opportunity for your customers to share a friendly moment. Rooted in the tradition of French sports centers, the clubhouse has become essential. This activity can represent up to 25% of a facility’s turnover.

Increase your average basket with add-on sales

During online booking, offer customers the option to rent a racket or pre-order their round of drinks. With these cross-sells, you will increase the average spend in your facility.

 Pro Shop

 You do not need to become Amazon to start making money from merchandise resale. Do not overlook the image customers have of you. More often than not, your members see you as an expert in the sport they play. This means you can easily sell rackets, shoes, balls, or any other merchandise in your facility.

COMMUNICATE WITH YOUR CUSTOMERS

Leverage the data you have. When they book with you, prospects enter your database. Use the information provided to follow up with them. Often, if they stop coming to your facility, it is not because they are ignoring you but because they simply do not think about you. A regular reminder with targeted offers will give you a repeat booking rate of around 70% versus 48% without communication.

What integrated communication tools does Doinsport offer ?

• Email

• SMS

• Push notifications (app)

III. REDUCE CANCELLATIONS IN YOUR SPORTS CLUB

The number one enemy of your sports club is customers who do not honor their booking. It is difficult, just a few minutes before the time slot, to rent out the activity again.

What solutions can you put in place to limit the impact of cancellations on your revenue ? 

PAYMENT METHODS 

Online booking and the associated payment methods are an extremely effective solution against losses caused by cancellations.

By requiring full payment, whether your customer cancels or shows up, they will have paid the amount corresponding to their booking. However, this lack of flexibility can frustrate the person making the booking, given the significant upfront outlay.

However, another solution is available. Setting up a deposit has the main advantage of requiring a smaller financial commitment than full payment. At the same time, it secures the booking. However, if the customer does not show up, you will only recover the deposit amount.

So, choose flexibility! Card pre-authorization is a security deposit requested from the customer without the amount being charged. In the event of a no-show, you can collect all or part of the amount due. It is also possible to take a commercial approach and not charge your regular customer !

CONNECTING PARTICIPANTS

Often, one participant pulling out is the cause of a cancellation. Doinsport is the only software on the market to offer an app that connects players.

In practical terms, if one person is missing to play the activity, your customers can create a match to look for partners. Once the match is created, all members using the app and with similar playing preferences (level, geolocation) are alerted via a notification. They can then complete the match and avoid the cancellation. 

IV. DELIVER AN UNMATCHED CUSTOMER EXPERIENCE

At a relatively similar price, would you prefer a hotel with or without a pool ? The answer seems obvious. This shows only one thing: the services you offer will set you apart from the competition.

How can you offer more services to your customers ?

3 BOOKING PATHS FOR YOUR SPORTS CLUB

Today, your customers want to book easily and online. Teens, young adults, or executives—all profiles have adopted digital booking. However, not everyone has the same habits. That is why we have developed 3 distinct booking channels.

The essential channel: your sports facility website

Older customers will readily prefer the web. A dedicated booking section should appear on your website and the process must be simple. No lengthy account creation and easy to use. We chose sign-up via phone number and account validation by SMS code. 6 seconds are needed to create an account with Doinsport. Result : an online booking rate of more than 75%.

 The most connected channel: your club’s Facebook page

It is possible to integrate the booking gateway on your Facebook page. The goal is simple : your “millennial” customers use Messenger to organize their games. They are constantly connected to Facebook. It is therefore easier for them to stay on this channel to make their booking.

The future: the app in your brand colors

Finally, the youngest customers cannot do without their smartphone. That is why we offer you an app for your customers. A true touchpoint with your sports club, they can keep all of your facility’s services in their pocket. 

V. CREATE OFFERS FOR PROFESSIONALS

Offer dedicated packages for works councils

Sport clubs have a strong prospect base with works councils. In fact, France has more than 40,000 of them. These employee committees are constantly looking for activities to offer staff. More importantly, they organize seminars and team-building events. All opportunities you can offer as services.

Market the spaces around your activity zones!

A sports club is a place where people stay for at least 45 minutes to two hours. Few places see private individuals spend that much time there. A great opportunity for companies looking to communicate and advertise. At €500 excluding VAT per location, renting advertising spaces around your activity areas can represent a significant source of revenue for your facility.

Like a professional sports club, choose naming

You may know the Orange Vélodrome, the Etihad Stadium, or the Matmut Atlantique. Naming has become commonplace for professional football clubs. Why not offer a company in your region the opportunity to sponsor one of your activity areas.