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.