Abstract

In any business, referrals are one of the most efficient and easy ways to refill a pipeline and gain new customers. According to Forbes, the best source of new business is referrals from happy customers or clients.

In the club sports space, with many options available to families, referrals are a vital part of gaining new customers. This paper will explore this business idea in the club sports space.

Introduction

The power of referrals in business is well documented. Referrals and word-of-mouth advertising are two of the biggest ways in which a business can attract customers.

Referrals are a powerful business tool that can have a positive impact on a club.

In a 2014 study conducted by Ogilvy, it was noted that 74 percent of consumers identify word-of-mouth as a key influencer in their purchasing decision. In the greater business sense, this makes sense. But how does this trend translate to club sports?

This paper will explore a macro business trend as it relates to the club sports business, noting two keys as they relate to the power of referrals and what organizations can do to harness this business necessity.

Have a Referral System in Place

Key Stat

92 percent of consumers around the world say they trust earned media – such as word-of-mouth and recommendations from friends and family – above all other forms of advertising.

What It Means

Stated simply, a recommendation from a friend or family member is the most trusted source of marketing possible for any business.

Analysis

This is a way to think of club sports in the greater macro business sense, because the same rules apply.

For club sports teams – which are, at their core, small businesses – having a proper referral system in place is imperative, because it is the single best way to refill the pipeline of customers.

Most sports communities are fairly small, and word in 2015 travels not only by word of mouth, but also by message board, Internet post and other forms of modern communication. With such free access to information, it is vital that the reputation of a club is high.

Having a system in place to procure referrals is imperative. Whether this system is online, or during phone or face-to-face meetings, the only real way to get a family to refer you is to ask. Per Kern Lewis in piece for Forbes, the best time to ask for referrals is in the midst of delivering excellent service, and regularly thereafter.

For club sports teams – which are, at their core, small businesses – having a proper referral system in place is imperative, because it is the single best way to refill the pipeline of customers.

Clubs should constantly be asking for referrals, and having a system and plan in place to procure them is something that should implemented if it does not yet exist for your club.

Have a Clear Recruiting System/Plan

Key Stat

59.27% of a SportsRecruits survey noted that they chose their club team primarily for the coaching and level of recruiting expertise.

What It Means

Families are looking primarily for recruiting assistance when choosing a club, meaning in order to foster positive word-of-mouth referrals this greatest need must be met.

Analysis

Whereas the first point in our paper was dealing with club sports in a macro business sense, this point is very specific to the club sports landscape, and the logic is fairly simple:

If a club is looking to create positive referral and word of mouth in order to increase its ability to grow, and families are primarily concerned with recruiting when choosing a club, then it would behoove a club to provide the best recruiting experience possible.

Power of Referrals

In order to do this, a club should clearly articulate its plan for recruiting. While having contacts and boasting an impressive list of commitments is a good start, it is even more useful to show a plan that shows how you assist all players interested in playing collegiately.

Now that you have an articulated plan and roadmap, what are the actual steps you take to help?

This is where technology can come into play. Any number of online tools can help, while simply updating your club’s website to show your plan in action are good steps to consider.

Whatever you can do to make transparency and accountability a mainstay of your recruiting infrastructure is paramount in ensuring every player on your club has a clear idea of how you are assisting them.

Conclusion

Referrals are a powerful business tool that can have a positive impact on a club. With increasing competition in the club sports space, it is imperative to ensure the reputation of your club is positive, which can foster the positive word-of-mouth marketing that ensures a club can gain new customers while keeping its current members happy.