Focus on Nightlife

A lot of promoters judge the quality of their master guest list by the number of names on it. A different way of looking at it is to evaluate your guests by how ’sticky’ they are — how reliably they attend the events you promote. A highly sticky guest is one that is likely to attend whatever you promote. A non-sticky guest is just a name on your list with no particular propensity to attend your events.

This isn’t about ‘labels’ — it is about understanding the profile of your guests so that you can identify which of them are the most valuable, what their characteristics are, and how best to leverage their ’stickiness’. Handled properly, understanding the stickiness of your guests can significantly improve the payoff you get from your master guest list.

Regularly analyze your master guest list and categorize each of your guests according to their stickiness. How, exactly, you do that depends on your particular needs and interests. A typical approach, though, would be to look at their turnout patterns — which you should be tracking, if you don’t already (use tracking codes on your invites, for example). Set some specific parameters for each ’stickiness’ category. For example, guests that turn out for at least one event / function per week might be classified as Category A guests. Those that attend one to two per month might be Category B, and so on. Create a special ‘holding’ category for guests where you don’t have any suitable information yet.

Once you’ve categorized your guests:

1. Give some thought to any consistent characteristics of each category of guests. If there are any similarities, you will know where to focus your list-building efforts. You want to invest heavily to obtain your Category A guests and you want to minimize expenditures on lower-level guests.
2. Try to find ways to move guests from the ‘holding’ category to their appropriate category (using tracking codes, etc.). Guests in the ‘holding’ category cannot be leveraged to their full limit.
3. Assign a specific value to each guest according to their category. This would typically take into consideration the per-visit and ‘lifetime’ spend. For example, you might determine that your Category A guests are worth, on average, $450 to you. A Category D guest, on the other hand, might only be worth $35 to you. Having clear, quantitatively-generated numbers in this way can make a material difference to your promotional efforts!
4. Look for ways to treat your top-level guests better, to bind them more closely to you and to encourage them to help bring you other top-level guests. This can include everything from ensuring that non-suitable mailouts aren’t done to them (don’t spam them about every single event you are running) to ensuring they get top treatment at the venues.
5. Look for ways to minimize your expenditures on lower-quality guests. This doesn’t mean treating them poorly (low-quality guests frequently become top-level guests), but you do want to generate the maximum overall results from your limited resources.
6. Constantly study your top-level guests to find out how best to leverage them. You don’t want to over-promote to them as they’ll get burned out and cease to be as sticky as they once were. Conversely, you don’t want to under-promote and miss out on potential revenue. By studying them, you’ll learn their characteristics and can best determine how to leverage them.
7. Study your less sticky guests too to find out why they aren’t as sticky. In many cases the reasons will be things beyond your control — no matter how great a job you are doing, you can’t satisfy everyone. However, often you’ll discover factors that you can manage. For example, maybe some of your current lower-quality guests are sticky, but only for certain types of events. If that is the case, then you need to revise your criteria for stickiness to reflect this. Maybe you shouldn’t be focusing only on the frequency of visits, but on the ratio of visits (ie, every time you have an event tailored to a certain guest, what percentage of the time do they attend?). Ultimately, you are looking to move as many of your guests as possible from lower-level categories to higher-level categories.
8. Track the trends in your master guest list over time - what is the rate of change in each category? what is the unsubscribe rate in each category? And so on. Critical info!
9. Be systematic in this process. It is most effective when done as a regular part of your promotional activities.

Of course, managing all this is best done through database software (though it can be done in Excel too, though not so easily). Depending on your software, you can probably automate the entire tracking process — all you’d need to do thereafter would be to review the reports periodically and identify new strategy / tactics to address the trends you find.

Nightclubs are featured everywhere in the media these days. There are write-ups in the newspapers, big features on television, and there’s always an abundance of info on the web. But what is the media talking about? They’re not talking about a worldwide increase in bar sales, a great new venue that recently opened in Denver, or a hot new DJ night in New York City. They only seem to pick up on one topic: violence.

Here are just a few recent headlines: “Serious assault in Newcastle nightclub” - “CCTV shows arsonist in torched nightclub” - “Man, 29, charged over Joondalup nightclub brick attack” - “Bystander injured in fight outside nightclub” - “Nightclub shooting victim dies” - “Nightclub Shooting Leaves Three People Hospitalized” - “Man, 21, hurt in nightclub fight”

Leave it to the press to make the nightlife industry seem like a war zone. Whether your club is a dive or a gem (or both), there are a few ways to help make sure your venue is splashed on the headlines for the good reasons.

Stress the importance of ID checks to your staff. The kids that are trying to sneak in to your club are likely to cause trouble if they do get in. Make sure your door staff are up-to-date on identification types and know how to spot a fake.

Invest in some video cameras. Whether you have them inside or out, they are a major deterrent to trouble in and around clubs. While it can be an expensive investment, many owners agree that the benefits of installing security cameras are a huge payoff. Don’t worry about ruining the aesthetic of your club. There are many ways to discretely place cameras so your valued guests won’t feel uncomfortable.

Be active about keeping up your club’s image. It shouldn’t surprise anyone that rough bars attract rough customers. Maybe it’s time to clean up your venue a little bit. The best way of weeding out the seedy nightlifers is to take them out of their element. You don’t have to completely overhaul your space. Embrace the genuine vibe of your club and take pride in it. Make sure your staff are on top of all the routine tasks like keeping the bathrooms spotless, clearing out the empties, and keeping the bar clean.

MarketWatch recently reported on Zoom Media and Marketing’s push into the nightlife industry. According to the article, Zoom has “expanded its digital footprint to over 500 installed billboards in nearly as many venues throughout the nation’s top 10 DMA markets including New York, Chicago, Los Angeles, Atlanta, and Dallas”.

Building on the traditional poster ads found in club restrooms and other high-traffic locations, Zoom’s digital signage features a “mix of paid advertising messages and promotional content that Zoom’s venues use to highlight their menus, events, and specials” on 37″ to 50″ LCD panels.

So what does this mean to the actual venue owners? Obviously, a chance to create revenue through advertising with a steadily growing marketing company. On the flip side, there are a few things to keep in mind when considering bringing outside media into your venue. For example, how significantly is your club’s aesthetic affected by a hulking 50″ panel? Also, would there be any conflicts of interest with the type of advertising your club promotes vs. the image you want your club to promote? How will your customers react?

While the possibilities of revenue options abound in the nightlife industry, it’s important to always step back and evaluate the overall trade-offs before diving in headfirst. Even if you’re getting a wide-screen LCD out of it.

Happy holidays to everyone!

I hope you enjoy the holidays yourself — and that it is profitable business-wise.

This is a hugely important time for many venues and promoters.  For some, December does over 40% more than their average month. This is especially the case for those that emphasize private parties - a lot of booking revenue is available (though in many locations the competition for it is brutal…).

That brings to mind the importance of maximizing revenues during your peak times.  Many operators run into capacity issues during the peak periods and cannot truly maximize their revenues. What do you do to maximize your results during peak periods? Do you have a systematic / strategic plan for periods like this? How far in advance did you start your marketing activities? What did you try this season that is new or different?

The fun thing about this industry is that there are always new ways to do things, new opportunities to apply creativity, and new techniques to leverage your marketing initiatives. It is never boring!

Have a great holiday season!

Rookie nightclub owners (and vets alike) often ask how they can better organize and manage their VIP and guest list reservations. It doesn’t take long to realize that a no-show or a booking error can significantly impact your revenues on any given night. How do you make sure you’re bringing in the most business you can and maximizing your profits on reservations? The truth is, there are many different ways of staying organized though most build upon the same fundamental principles.

Get a system in place. It can be as detailed or loose as you’d like but make sure you have a system you and your staff can follow so that everyone is on the same page. For example, do your VIP reservations have a minimum spend? Do you have cancellation or no-show charges? Do your guest list customers get perks like no cover or queue jumps? Do all of your staff understand how these policies are applied on different nights of the week? By keeping these policies in place, you’ll always know what to expect and your VIP customers will understand that you take your reservations seriously.

Get the most out of taking reservations. Sure, a reservation can just be a name and a date but with today’s technology why not get as much as you can out of it? When someone calls to book a reservation, you should add that person to a customer database and grab as much information out of them as you can (without seeming overbearing). Get their email address, their cellphone number and why not ask them if they’d like a bottle waiting for them on their table when they arrive? Keeping a credit card on file for VIP guests never hurt either.

Make sure to confirm and remind. If you know how much a lost reservation costs your business, then you know how important it is to make sure your guests arrive. By getting customer contact info (see above), you’re greatly increasing your chances of avoiding a no-show or a cancellation. Send a confirmation email a few days before a reservation or a text message reminder a few hours in advance - and automate this process as much as possible. You can even up-sell with a confirmation by letting your VIP know what your club has to offer. Confirmations reassure your guests that you are on top of their reservation and that you value their business. Plus, when you tell your guests that they’ll receive a confirmation email with the details of their reservation, you have a legitimate reason to request their email address — and they have a reason to agree to giving it to you! With the ever-growing importance of good email lists in nightlife marketing, this is a key benefit.

Keep your staff informed. Nothing is more frustrating for staff and customers than a mix-up at the door or with a food & beverage order. Make sure you have a way of notifying your staff about important reservations. Nothing says VIP like your club’s bus boy asking your customers, by name, how their evening is going. Nothing turns a good customer off faster than the customer turning up at the door, their own guests / friends in tow, and finding their name missing from the list.

Always follow-up. Checking in with your VIP customers after a reservation is critical. You can make sure they had a great time or, if they didn’t, find out why and make sure it’s fixed for next time. You can also take the opportunity to invite them back and let them know of any deals or theme nights they might be interested in.

This is just the tip of the iceberg, of course, but making sure that even just these core systems and processes are reliably in place can make a huge difference to the bottom line.

Young Entrepreneur recently interviewed the CEO of Tatango, a start-up text-messaging service that launched in 2007. For some club owners, text-messaging services have provided significant advantages as far as marketing/promotions and Tantango is looking to join the fray. In the interview, CEO Derek Johnson boasts having already helped send “15 million text messages to a wide variety of groups, including college clubs, religious organizations, non-profit associations, athletic teams and businesses since the launch.” With an easy-to-use interface and unlimited mass-texting at a monthly cost, Tatango might be a good solution for club owners who like to keep it simple.

Competitors like FireText are much more geared to the nightlife scene. Their products include Text to Screen, Bulk Text Messaging to customers, and Private Flirt Messaging - services that the tech saavy club owners could get behind.

The idea of an ecologically-friendly nightclub is coming to fruition in London. Dubbed the “most ecological dance venue on the planet”, Surya has started multiple initiatives to keep their venue and patrons environmentally aware, while creating a self-sufficient club. Here are a few of the things owner Andrew Charalambous has implemented to keep his club green:

• Customers who can prove they arrived by foot, bicycle, or public transportation are granted free cover (as opposed to paying a £10 cover).
• They will be asked to sign a pledge promising to help curb climate change upon entry.
• Surya sells organic spirits in polycarbon cups.
• Charalambous has started plans to start a recycled water system.
• The dancefloor is being designed to generate energy from customer movement.
• Plans to erect a wind turbine on the roof are on their way.

While this is just one example of a “green” nightclub, a few others have started pushing an environmental message to help clean up the world and, just as importantly, drive customers through their doors. For example, Greenhouse in New York collects rainwater, is built from Earth-friendly materials, and uses lighting that will last for 20 years. Hollywood’s first eco-friendly club, Ecco Ultra Lounge, offers free valet for hybrid cars, has power supplied by the LA Department of Water & Power’s Green Power resources and provides superior organic cuisines and liquors.

Of course, there are costs associated with ‘going green’, and every club owner has to look at the financial impact on the business. Luckily, “green” is increasingly becoming a lifestyle issue for clubbers and, within reason, they are often willing to pay a premium for eco-friendly solutions. Building legitimate eco-friendly characteristics into the marketing plan can be a useful point of differentiation and can drive new business through the doors. Done right, going green can be an investment, not just a cost — while also making a real difference on the environment.

Any club owners interested in environmental tips for their own clubs should visit these sites:

club4climate.com

greenhouseusa.com

eccohollywood.com

Sense Networks recently debuted two highly sophisticated software tools that will give businesses and their clients a new perspective on nightlife. The new technology uses mobile location data to pinpoint high traffic locations in real-time, allowing consumers to see what location is popular on any given night. Essentially, if your cell phone is turned on, you’re anonymously contributing to your location’s “traffic”.

“Just as Google indexed pages on the Internet to optimize web discovery, Sense Networks has indexed the real places in a city and characterized them by activity, versus proximity or demographics, to better understand the context of consumers’ offline behavior,” said Tony Jebara, Chief Scientist and co-founder of Sense Networks.

Described as a social navigation and nightlife discovery application, CitySense will show BlackBerry and iPhone users nightlife hotspots in real-time. Clubbers will now have the option of dropping in on the hottest party of the year or spending some quiet time at an old haunt, without the guessing.

MacroSense is the flipside of Sense Networks’ technology. Businesses can use the software to analyze, in real-time, consumer trends and adjust accordingly. Put to good use, business owners won’t have to rely on dated facts and figures. One quick look will show them where their target market is spending their money at any given moment.

For nightlife venue operators, this technology should change the way businesses adapt to a rapidly-changing industry.

Getting more customers in the door usually requires entertainment in one form or another. Whether you’re the owner or a promotions manager, you need to find tasteful talent that will compliment your club and drive revenues. Hiring entertainment is a great way to bring energy to a venue and introduce new faces to your business. Depending on your club, there are many different options available to mix-up your nightly events.

Many venues prefer to hire DJs to add ambiance to a small space or a pulsing beat to a club with a larger dancefloor. Hiring a DJ is great for several reasons. For one, their setup is usually very compact so space is never a problem. Also, costs are relatively low because you’re often just dealing with them one-on-one. Another reason is that you’re not only paying the DJ for entertainment, you’re also getting free promotion. DJs come with a built-in fanbase that you get free access to. Online resources like The DJ List can give you an idea of what artists live in your area and how to get in touch with them.

Some owners reap the benefits of hiring celebrities to come in and, well, be celebrated. Depending on your talent budget, their are a variety of different personalities that clubs can bring in a few times a year. The financial benefits of these events are huge. Companies like RealityRox organize celebrity events with reality television stars, while other entertainment groups have no problem finding Hollywood talent if you’re willing to spend the money. It’s also a good idea to hire local celebrities (athletes, public figures, etc.) to bring in a crowd.

Musicians tend to fall in the same category as DJs but usually the logistics are a little trickier because you end up dealing with more people. One of the things an owner can always count on is that bands are constantly touring through their city and looking for a space to play. This works in the owner’s favor because it gives them the ability to negotiate a fair cost that will benefit both sides. Depending on the popularity of a given band, it’s often up to the owner or promoter to make sure customers get to the door.

Talented new visual artists can also pull people out to a small to medium sized venue. Leveraging the art or photography exhibit trends is an inexpensive way to draw people to your club. Most new artists are just happy to have a place to display their work and that means no cost to the venue owner. Press for these shows can usually be obtained in local weeklies and daily newspapers.

Club owners must constantly adapt to stay competitive in the nightlife industry. When you focus too heavily on one aspect of the business, you can be losing out on another important area. That’s why balancing your responsibilities becomes so crucial.

One quick (and free) way of promoting your business is by creating Facebook events. By creating a company account on Facebook you can easily gather information on your customers and let them know what’s happening by creating events.

Here’s why you should consider using Facebook events to market your nightclub:

• It’s free and takes very little time. If you are hosting a certain DJ or a theme night you just plug in the details.
• Guests can become “fans” of your club. This will show up on their Facebook profile and inevitably spread to their friends.
• You can instantly send your guests updates about a specific night.
• It’s a great excuse to engage in conversation with your guests. You’ll get to know them.
• Posting flyers was never so easy. Just post them to your profile and invite your customers to do the same.
• It’s the start of a great database of information.

Once you start using these events, you’ll get a better understanding of your customers and learn when heavy online promotions are useful or when you should hold back to really drive another night.