USPA  Cer)fied  Polo  Instructor  Program    

BUSINESS  FOR  POLO  101  Sec$on  3:  Marke$ng  

�1

TABLE  OF  CONTENTS  

What  is  Marke)ng?                                  3     Exchange  vs.  Rela)onship  Marke)ng                          3     Types  of  Marke)ng  Rela)onships                          5     Developing  Loyalty  in  Exis)ng  Customers                        5  What  Do  You  Market  in  Polo?                              6     What  Makes  Your  Polo  Product  Unique?                        6  How  Do  You  Market?                                7     The  Four  P’s                                                      7  Understanding  and  Delivering  Value                            8     Value  Benefits                                8     Sa)sfying  Customers                          10  The  Customer:  A  Business’  Most  Valuable  Asset                    10     Customer  Life)me  Value  (CLV)                                            11     Using  CLV  Informa)on                          12  Cul)va)ng  Customer  Rela)onships                        13     Customer-­‐Focused  Selling                        14  Branding                                14     Posi)oning                              15     Market  Segmenta)on                          16  Finding  Leads                              17     Business  Networking                          17     Following-­‐Up                            18  The  Purchasing  Process                            18  The  Sales  Process                              20     The  Value  of  “Value”                          20     Benefits  Selling                            21     Samples  for  Sales                            21  The  Effec)ve  Sales  Person                          21     Secng  Objec)ves                            22  Aeer  the  Sale                                                  22  

�2

MARKETING  

What  is  Marke4ng?  

In  Principles  of  Marke$ng,  Philip  Kotler  defines  marke)ng  as  a  “social  and  managerial  process  by  which  individuals  and  groups  obtain  what  they  need  and  want  through  crea)ng  and  exchanging  products  and  value  with  others.”  Essen)ally,  marke)ng  is  a  means  of  understanding  consumers  in  order  to  profitably  connect  with  them.  

Marke)ng  is  both  art  and  science.  An  important  part  of  marke)ng  is  knowing  your  ideal  customers  –  those  you  most  want  as  clients.  This  specific  group  of  consumers  is  your  target  market.    

When  evalua)ng  your  polo  program,  iden)fy  your  target  market.  Does  your  club  have  a  thriving  Interscholas)c/Intercollegiate  department  that  you  can  capitalize  on?  Are  you  a  mostly  adult  club  that  thrives  on  the  “margarita  league”  and  bringing  new  adult  players  up?  Do  you  enjoy  working  with  children?  Do  you  excel  at  teaching  new  riders?  Or  do  you  prefer  to  hone  the  skills  of  those  who  have  already  mastered  the  basics?  Evalua)ng  your  students  and  clients  will  help  you  iden)fy  your  target  market.  

Aeer  deliberately  selec)ng  and  studying  target  markets,  marketers  determine  how  best  to  akract  and  keep  customers  in  the  market  segments  or  groups  with  the  most  poten)al.  This  is  done  by  posi4oning:  crea)ng,  delivering,  and  communica)ng  a  product’s  or  company’s  superior  value  in  such  a  way  that  it  posi)vely  affects  the  target  market’s  decision  making.  While  this  is  a  somewhat  simplis)c  overview,  it  nevertheless  conveys  the  essence  of  marke)ng  for  a  sustainable  enterprise.  So,  for  instance,  if  your  target  market  is  growing  kids’  polo,  you  might  do  best  posi)oning  your  business  to  focus  on  local  schools,  4H,  Pony  Club,  and  other  youth  outlets  to  cul)vate  students.  

Exchange  vs.  Rela$onship  Marke$ng  

Tradi)onally,  the  end  result  of  successful  product  marke)ng  is  an  exchange.  In  marke)ng  terms,  an  exchange  is  the  process  of  offering  something  (oeen  money)  in  return  for  obtaining  a  desired  service  or  product,  like  a  lesson  or  )cket  to  a  Sunday  polo  game.    

An  exchange  involves  at  least  two  interested  par)es:  

•   Both  have  something  of  value  that  the  other  wants.  

�3

MARKETING

“Social and managerial process by which individuals

and groups obtain what they need and want through creating and exchanging products and value

with others.”

- Principles of Marketing

•   Both  are  capable  of  communica)ng  with  each  other.  

•   Both  are  capable  of  delivering  what  the  other  wants.  

•   Both  are  free  to  accept  or  reject  an  offer.  

•   Both  desire  to  deal  with  one  another.  

A  tradi)onal  exchange  is  typically  considered  a  one  )me  transac)on,  such  as  a  gate  fee  for  your  Sunday  polo  match.  Rela)onship  marke)ng  stands  in  direct  contrast  to  the  short-­‐term  connec)on  of  the  exchange.    

Rela4onship  marke4ng  (RM)  aims  to  build  mutually  beneficial,  sa)sfying,  long  term  rela)onships  with  customers.  In  the  process,  it  inten)onally  sets  out  to  convert  customers  to  marke)ng  partners.  For  example,  when  a  part-­‐)me  polo  student  purchases  or  leases  a  polo  pony,  that  begins  a  commiked  rela)onship  with  you  and  with  the  sport.    

Rela)onship  marke)ng  is  a  never-­‐ending  process.  It  aims  to  con)nually  create  new  value  for  its  exis)ng  customers  and  share  the  rewards  of  the  mutual  interac)on  over  a  life)me  of  doing  business  together.  In  addi)on  to  reaching  out  to  new  customers,  RM  focuses  on  solidifying  and  expanding  its  connec)on  with  current  customers.    

What  does  this  look  like  in  polo?  A  simple  Sunday  )cket  holder  could  become  a  season  tailgater  holder  or  a  match  sponsor.  

Rela)onship  marke)ng  is  the  key  to  an  individual  who  starts  out  taking  one  lesson  a  week  becoming  a  single  horse  owner,  which  

leads  to  acquiring  mul)ple  horses,  and  eventually  par)cipa)ng  in  a  club’s  polo  leagues,  tournaments,  and  stabling  packages.    

Rela)onship  marke)ng  includes  employees,  partners,  and  even  members  of  the  community,  in  addi)on  to  focusing  on  developing  and  maintaining  loyal  customers.  The  ul)mate  goal  of  RM  is  to  create  win  /  win,  ongoing  customer  rela)onships.    

Like  exchange  marke)ng,  rela)onship  marke)ng  begins  with  the  crea)on  of  something  of  value.  However,  aeer  the  ini)al  transac)on  is  completed,  RM  deliberately  con)nues  with  the  intent  of  developing  more  emo)onal,  visceral  rela)onships.  RM  in  ac)on  might  evolve  naturally  in  such  a  way  as  allowing  a  student  to  regularly  use  a  favorite  lesson  horse,  allowing  that  student  the  op)on  to  lease  the  horse,  then  eventually  selling  it  to  them,  if  your  program  is  structured  to  allow  for  such  things.  U)lizing  RM,  it  is  possible  for  customers  to  become  partners.  

�4

How can you use Relationship Marketing

to strengthen your program?

Types  of  Marke$ng  Rela$onships  

•   One  of  the  most  basic  marke)ng  rela)onships  is  the  transac)onal  exchange  that  is  purely  financial.  A  single  )cket  sold  at  a  polo  club’s  gate  is  a  purely  financial  transac)onal  exchange.  

•   Social  bonding  refers  to  posi)ve  interpersonal  rela)onships  between  the  buyer  and  seller,  such  as  the  friendship  that  oeen  develops  between  student  and  instructor.  

•   Structural  bonding  occurs  between  two  par)es  that  make  investments  that  cannot  be  retrieved  when  the  rela)onship  ends.  When  a  business  provides  a  solu)on  to  a  client’s  problem  that  is  prohibi)vely  difficult  or  expensive  for  the  client  to  acquire  otherwise,  a  structural  bond  is  built.  Structural  bonds  are  among  the  strongest  rela)onal  bonds.  Leasing  polo  ponies  to  student  riders  and  providing  transporta)on  for  clients’  ponies  to  and  from  polo  matches  are  examples  of  structural  bonding  to  encourage  client  loyalty.        

Financially  based  rela)onships  tend  to  be  reac$ve,  with  a  direct  correla)on  between  pricing  and  gaining  or  retaining  customers.  Social  and  structural  bonds,  however,  are  more  proac$ve.  Customers  who  feel  more  personally  invested  in  the  rela)onship  are  less  likely  to  switch  between  sellers  of  similar  products.  

Developing  Loyalty  in  Exis$ng  Customers  

RM  depends  upon  repeat  business  and  upon  a  par)cular  business’  share  of  customer.  In  marke)ng  terms,  share  of  customer  refers  to  an  individual’s  brand  loyalty,  or  the  percentage  of  an  individual’s  product  purchases  that  are  of  a  single  brand.  This  can  refer  to  the  amount  of  business  a  specific  client  gives  you  over  another  instructor.  If  two  instructors  are  teaching  at  the  same  club  and  a  client  takes  lessons  from  both,  then  each  instructor  

has  a  50%  share  of  that  customer.  

Because  rela)onship  marke)ng  depends  on  its  current  customers  for  its  future  business,  it  is  heavily  invested  in  developing  

loyal  customers.  This  is  achieved  by:  

•   Knowing  who  your  customers  are  (iden)fying  your  key  consumers).  

•   Knowing  who  isn’t  your  customer.  

•   Knowing  your  share  of  each  customer.  

•   Determining  how  to  increase  your  share  of  each  customer.  

�5

Customers who feel more personally invested in the relationship are less likely to switch between

sellers of similar products.

In  the  RM  marke)ng  model,  consumer  sa)sfac)on  is  key.  Every  transac)on  with  a  customer  is  viewed  through  the  lens  of  an  ideal  life)me  associa)on.  

 

What  Do  You  Market  in  Polo?  

A  business  or  organiza)on  must  market  the  products  it  offers  in  order  for  those  who  want  or  need  those  products  to  find  them.  When  determining  what  to  market,  you  must  first  know  what  you  have  to  sell.  

You  may  sell  things  (like  a  baseball  cap  or  polo  pony)  or  you  may  sell  services  (like  a  polo  lesson).    

Remember:  sellers  make  up  an  industry.  Buyers  make  up  the  market.  

What  Makes  Your  Polo  Product  Unique?  

A  product  is  a  tangible  good,  service,  idea,  or  some  combina)on  of  these  that  a  buyer  expects  will  deliver  sa)sfac)on.  

Dis)nguishing  features  of  the  Polo  product:  

•   Team  compe))on.  

•   Providing  the  client  with  enjoyable  leisure  )me.    

•   Learning  and  abiding  by  the  rules  of  polo.    

•   Enhanced  physical  fitness  through  riding  and  playing.    

•   Requires  specialized  facili)es  and  equipment.  

•   A  posi)ve  Polo  Experience.    

•   Contains  strong  personal  and  emo)onal  iden)fica)on.  

•   Produced  and  consumed  simultaneously.    

•   Dependent  upon  social  facilita)on.  

•   Offering  a  unique  life  experience  each  )me.    

One  of  the  key  characteris)cs  of  Polo  is  that  the  marketer  is  unable  to  control  the  core  product.  

The  core  product  or  service  is  the  principal  element  that  your  business  sells.  It  is  the  business’  bread  and  buker.  Lessons  are  oeen  polo  instructors’  core  products.  

�6

PRODUCT

A tangible good, service, idea, or some combination

of these that a buyer expects will deliver

satisfaction.

Ancillary  products  or  services  are  those  things  outside  the  primary  service.  They  supplement  a  business’  bokom  line  and  enhance  the  consumer’s  experience  with  the  core  product.  Examples  include  managing  feed  regimens  for  your  client’s  horse,  or  ac)ng  as  a  purchasing  agent  when  a  client  is  in  the  market  for  a  new  horse.    

What  may  be  a  core  product  for  one  business  may  be  an  ancillary  product  for  another.  For  example:  one  trainer  may  determine  that  lessons  are  her  business’  core  service,  while  conduc)ng  clinics  and  training  and  selling  horses  are  ancillary  products.  Another  trainer  may  train  and  sell  horses  as  his  business’  core  product,  with  lessons  as  an  ancillary  service.  In  any  case,  both  core  and  ancillary  services  are  important  to  the  business’  well-­‐being.  The  consumer  may  be  unable  to  differen)ate  between  core  and  ancillary  products.  

How  Do  You  Market?  

The  Four  P’s  

In  1960,  Edmund  Jerome  McCarthy  suggested  that  marke)ng  is  defined  by  four  “P’s”  –  Product,  Price,  Promo)on,  and  Place.  The  four  “P’s”  represent  the  seller’s  view  of  marke)ng  tools  available  for  influencing  buyers’  decisions.    

•   Product:  What  you  have  to  sell.  

o   Example:  polo  lessons,  horses.    

•   Price:  What  you  charge  your  clients  for  your  services.  

o   Example:  $75  per  lesson,  $1500  for  monthly  horse  rental.    

•   Promo$on:  Includes  sales  promo)ons,  personal  selling,  adver)sing  and  other  public  rela)ons  efforts.  

o   Example:  Local  newspaper,  Groupon.    

•   Place:  Where  you  provide  the  product  or  service  OR  where  clients  consume  your  product  or  service.  

o   Example:  Barn,  field,  arena.    

Marke)ng  experts  all  over  the  world  have  embraced  and  further  refined  McCarthy’s  marke)ng  concepts.    

Today’s  consumers  are  knowledgeable  and  ac)vely  par)cipate  in  all  facets  of  the  produc)on  and  consump)on  cycles.  They  are  prosumers,  both  producing  and  consuming  the  products  or  services  in  ques)on.  

The  purpose  of  every  marketer  is  to  design  marke)ng  programs  that  create,  communicate,  and  deliver  value  for  these  customers.    

�7

PRODUCT

PRICE

PROMOTION

PLACE

Understanding  and  Delivering  Value  

The  value  proposi4on  is  the  cluster  of  benefits  that  a  company  promises  to  deliver  to  the  consumer.  This  is  a  statement  about  the  experience  customers  will  gain  from  both  the  offering  and  from  their  rela)onship  with  the  supplier.  Polo’s  value  proposi)ons  may  

include  such  things  as  fun,  improved  polo  skills,  and  game  knowledge.    

When  evalua)ng  a  transac)on,  customers  take  their  experiences  into  considera)on.  Every  experience  the  customer  has  while  purchasing,  obtaining,  and  ul)mately  using  what  a  business  has  to  offer  is  all  part  of  the  value  delivery  system.    

For  this  reason,  a  company  must  align  the  value  proposi)on  of  its  brand  with  what  customers  want.  It  must  also  make  certain  that  its  focus  on  brand  image  

and  posi)oning  accurately  reflects  its  actual  product  or  service  performance.  For  example,  do  your  customers  

want  intensive  training  for  quick  improvement  or  a  laid  back  “margarita  league”  approach?  Adver)se  appropriately  for  what  

you  want  to  akract.  As  an  instructor  can  you  cater  to  mul)ple  types  of  students?  Remember  the  importance  of  knowing  and  solici)ng  your  target  market.  

Value  Benefits  

Customer  loyalty  is  one  of  the  greatest  benefits  of  a  company  delivering  a  product  of  value.  Such  loyalty  may  take  one  of  three  forms:  

•   Behavioral:  The  customer  purchases  the  product  or  service  and  ac)vely  consumes  it.    

o   Ex:  Buying  and  taking  lessons.    

•   Affec$ve:  The  consumer  may  not  purchase  at  the  level  of  a  company’s  best,  most  frequent  customers,  but  makes  purchases  at  a  higher  level  of  emo)onal  loyalty  than  many  others.  

o   Ex:  Once  a  week  “date  night”  group  lessons.    

•   Cona$ve:  Both  high  behavioral  and  highly  affec)ve  loyalty.  (Purchases  a  lot,  oeen,  with  strong  commitment  to  a  par)cular  brand.)  Cona)ve  loyalty  is  the  “Holy  Grail  of  Loyalty.”  

o   Ex:  Whole  family  plays,  takes  lessons,  buys  horses,  and  plays  tournament  polo.    

�8

PRO TIP

“As an instructor I design different lesson packages to

offer to different groups. Kids lessons often have a different goal than the adult league.”

- Kris Bowman

Customers  will  purchase  from  companies  they  perceive  as  offering  the  highest  value.    

When  a  customer  assesses  a  transac)on’s  value,  one  of  the  key  influencers  of  the  perceived  benefits  is  the  rela)ve  quality  of  the  product  or  service.  

Quality  refers  to  all  of  the  product’s  features  and  characteris)cs  that  affect  its  ability  to  sa)sfy  the  customer’s  needs.  Some)mes  the  customer  knows  what  those  needs  are.  Some)mes  the  customer’s  needs  are  unknown  or  implied.  

Other  benefits  include:    

•   The  percep)on  and  approval  of  others.  

•   Psychic  income  –  Intangible,  non-­‐monetary  gains,  such  as  power,  influence,  excitement,  or  recogni)on,  winning  a  game.    

•   Enhanced  well-­‐being.  

The  Customer  Perceived  Value  (CPV)  is  the  difference  between  all  the  expected  benefits  of  a  transac)on  and  all  the  costs,  weighing  those  costs  against  available  alterna)ves.  It  means  that  the  success  of  a  product  or  service  (and,  ul)mately  a  business)  depends  on  whether  or  not  customers  believe  that  product  will  sa)sfy  their  needs.    

For  example,  does  the  customer  think  your  program  will  make  them  a  beker  polo  player?  If  so,  does  the  customer  believe  the  expected  costs  of  par)cipa)ng  in  your  program  make  it  worthwhile  when  compared  to  other  things  the  customer  could  do  with  the  same  investment  of  resources?  

When  evalua)ng  costs,  a  customer  will  oeen  factor  in  things  other  than  money,  such  as:  

•   Opportunity  costs  –  What  else  might  the  person  have  done  with  his  or  her  resources?  When  considering  the  opportunity  costs,  a  prospec)ve  client  might  compare  the  cost  of  a  golf  or  tennis  lesson  to  a  polo  lesson.    

•   Time  costs  –  What  other  things  crowd  the  calendar?    

•   Percep)on  –  How  will  this  transac)on  affect  the  way  the  person  sees  him-­‐  or  herself?  How  will  it  affect  others’  percep)on?    

�9

Value = Benefits - Costs

Sa$sfying  Customers    

To  increase  CPV,  the  business  owner  must  increase  the  customer’s  sa)sfac)on.    

Many  factors  influence  customer  expecta)ons.  Some  factors  are  outside  the  business  owner’s  control.  For  instance,  if  it  rains  on  the  day  a  new  student  comes  to  take  a  lesson,  and  the  weather  limits  the  amount  of  riding  )me,  the  customer  may  be  disappointed  in  the  experience.  Even  if  you  understand  the  reason  for  the  disappointment,  you  cannot  control  the  weather.  You  can,  however,  control  much  of  the  customer’s  experience.  In  the  event  of  inclement  weather,  for  example,  you  could  s)ll  deliver  a  foot  mallet  or  chalk  talk  lesson  in  place  of  a  mounted  lesson.  

Successful  companies  focus  on  providing  customer  experiences  that  are:  high  quality,  consistent,  and  branded.    

So  it  is  safe  to  say  that:  

Sa)sfied  customers  share  certain  characteris)cs,  including:  

•   Staying  loyal  longer.  

•   Buying  more  products  more  oeen,  such  as  addi)onal  lessons.    

•   Spreading  favorable  word-­‐of-­‐mouth  to  friends  and  poten)al  clients.    

•   Remaining  more  brand  loyal  (with  less  price  sensi)vity).  

•   Offering  feedback.  

•   Reducing  transac)on  costs  (less  up-­‐front  marke)ng  costs,  fewer  returns)  

But  mere  sa)sfac)on  is  not  enough.  A  customer  must  be  more  than  sa)sfied  if  a  business  does  not  want  to  risk  losing  that  customer  to  a  compe)tor.  The  smallest  opening  –  a  poor  experience,  rude  staff,  perceived  neglect,  inappropriate  school  horses,  or  unsafe  facili)es  –  can  lead  to  defec)on.  

The  Customer:  A  Business’  Most  Valuable  Asset  

An  important  aspect  of  Rela)onship  Marke)ng  is  understanding  that  a  customer  is  worth  more  to  a  business  than  what  that  customer  spends  in  a  single  transac)on.  

�10

Customer Satisfaction = Benefits - Costs

Customer  Life$me  Value  (CLV)  

Customers  should  be  viewed  as  assets.  Each  customer  asset  produces  an  on-­‐going  stream  of  cash  flow  to  a  business.  

Never  underes)mate  the  value  of  an  exis)ng  customer.  The  costs  of  gaining  new  customers  can  be  five  $mes  (or  more)  as  high  as  the  costs  of  retaining  current  customers.  However  polo  tends  to  have  a  high  turnover.  Rarely  does  an  instructor  retain  a  client  for  that  client’s  full  “life)me.”  Children  grow  up,  change  hobbies,  and  go  off  to  college.  Furthermore,  clubs  change,  instructors  move,  members  change.  Polo  exists  within  an  ever  evolving,  rather  erra)c  environment.  For  that  reason,  it  is  vital  for  instructors  to  con)nually  cul)vate  new  students  while,  at  the  same  )me,  inten)onally  retaining  those  students  they  have.  Treat  it  as  a  cycle,  they  may  come  back  later  in  life.    

According  to  F.  Robert  Dwyer,  PhD,  Customer  Life)me  Value  is  determined  by  taking  the  present  value  of  expected  benefits  (the  gross  margin  of  reasonably  expected  future  sales)  and  subtrac)ng  the  burdens,  including  the  direct  costs  of  servicing  and  communica)ng  with  customers.  

Over  two  decades  ago,  A.  M.  Hughes,  Adjunct  Professor  of  Economics  at  the  University  of  Maryland,  postulated  that  compu)ng    provides  a  business  with  a  compe))ve  edge  by  secng  a  ceiling  on  the  money  worth  expending  in  order  to  maintain  customer  rela)onships.    

It  is  true,  some)mes  the  cost  of  retaining  a  customer  can  outweigh  the  benefits.  But  sa)sfied  customers  are  the  bread  and  buker  of  a  business.  Every  business’  focus,  then,  should  be  on  repeat  business,  while  con)nuing  to  cul)vate  new  students.    

When  determining  CLV,  remember:  not  all  customers  are  created  equal.  Some  are  dedicated,  life)me  fans.  Others  require  hand-­‐holding,  constant  aken)on,  and  coddling  in  order  to  get  them  to  stay  –  and  even  then,  may  not  ever  be  completely  sa)sfied.  

When  determining  customer  profitability,  it  helps  to  remember  the  80  /  20  rule  (though,  in  prac)ce,  it  might  be  more  accurate  to  call  it  the  80  –  20  –  30  rule).  

The  top  twenty  percent  of  your  customers  are  the  most  profitable  and,  oeen,  the  most  sa)sfied  and  the  biggest  fans.  These  are  those  who  not  only  buy  what  you  sell,  but  who  also  love  what  you  do.  They  are  engaged  and  ac)vely  market  for  you.  

The  remaining  eighty  percent  of  customers  form  the  less  profitable  sector  of  your  clientele.  However,  just  below  the  top  twenty  percent  are  the  mid-­‐range  customers  who  may  eventually  become  a  solid  part  of  a  company’s  core  customers.  

�11

Customer Lifetime Value = Present Value of Future Cash Flow - Service Burdens

The  boUom  thirty  percent  of  customers  are  the  least  profitable.  Those  at  the  very  bokom  may  actually  be  unprofitable,  demanding  )me,  resources,  and  energy,  but  reluctant  to  pay  for  them.  An  example  of  this  is  a  student  that  never  commits  to  buying  a  horse  but  constantly  uses  your  lesson  horses,  preven)ng  you  from  gaining  new  clients.  A  company  can  oeen  improve  performance  and  profitability  if  it  “fires”  those  customers  in  the  bokom  30%  and  concentrates  instead  on  improving  rela)onships  with  the  customers  who  remain.  

Heavy  users  are  your  best  customers;  you  must  pay  aken)on  to  them.  However,  the  only  way  to  grow  your  business  is  by  increasing  the  frequency  of  transac)ons  with  the  lighter  users,  and  adding  new  clients.  You  will  inevitably  lose  some  customers  at  each  level,  due  to  the  circumstances  of  life,  so  you  must  have  enough  customers  in  the  pipeline  to  replenish  those  who  are  lost.  

Using  CLV  Informa$on  

The  CLV  may  be  determined:  

•   by  individual  client,  

•   by  sector  –  a  specific  subset  of  your  clientele  –  such  as  an  Interscholas)c/  Intercollegiate  team,  or    

•   by  channel  (the  various  plauorms,  such  as  the  internet,  mailing  lists,  and  physical  shops  that  connect  a  business  to  customers).    

When  evalua)ng  CLV,  do  so  in  a  way  that  makes  the  most  sense  for  your  business.  

�12

Knowing  a  CLV  can  help  you  make  beker  business  decisions.  For  instance:  

•   It  can  help  you  make  sound  decisions  regarding  how  you  should  treat  your  very  best  customers,  especially  when  compared  to  the  cost  of  acquiring  new  customers.    

•   It  can  help  you  develop  strategies  for  moving  your  mid-­‐range  customers  up  to  the  higher,  more  profitable  )ers.  For  instance,  it  can  help  you  determine  the  ideal  )me  for  clients  to  lease  or  buy  horses.    

•   It  can  illustrate  how  important  client  reten$on  is  to  your  business’  success.  

•   It  can  help  you  iden)fy  those  customers  who  are  not  worth  keeping,  including  those  who  take  more  than  they  are  worth,  either  emo)onally  or  monetarily.    

For  those  customers  worth  keeping,  the  value  you  create  and  provide  to  them  becomes  the  key  differen)ator  between  your  business  and  your  compe)tors.  Remember:  a  service  or  offering  is  only  value-­‐added  if  your  customers  perceive  it  to  be  value-­‐added.  

Cul4va4ng  Customer  Rela4onships  

Customer  Rela4onship  Management  (CRM)  is  the  process  of  managing  detailed  informa)on  about  individual  customers,  including  all  the  data  rela)ng  to  customer  “touch  points.”  Such  informa)on  may  include  horse  preferences,  available  )me  for  lessons,  budget,  etc.    

CRM  allows  you  to  analyze  your  share  of  the  customer,  as  opposed  to  your  share  of  the  market.  In  other  words,  it  helps  you  determine  how  invested  the  customer  is  in  con)nuing  to  do  business  with  you.  In  a  sense,  CRM  is  the  strategy  you  use  to  help  you  assess  customer  loyalty.  

CRM  iden)fies  both  prospects  and  customers.  It  differen)ates  customers  according  to  both  their  needs  and  their  value  to  your  company.  

In  prac)ce,  CRM  involves  interac)ng  with  individual  customers  on  a  personal  level,  gaining  informa)on  about  their  needs  while  at  the  same  )me  building  rela)onships  with  them.  As  a  polo  instructor,  you  develop  personal  rela)onships.  Most  people  play  polo  for  fun  or  leisure  and  are  looking  for  an  instructor  they  connect  with  personally  as  well  as  professionally.    

With  healthy  CRM  you  can  customize  products,  services,  and  messages  to  each  customer  to  beker  meet  both  their  needs  and  yours.  On  a  prac)cal  level,  this  can  affect  such  things  as:  

�13

PRO TIP

“By the time my polo school kids were getting ready to go

to college I already had a group of new kids just starting out.”

- Kris Bowman

•   How  you  conduct  your  lessons.  

•   What  horses  the  customer  rides  regularly.  

•   How  you  schedule  your  )me  with  the  customer.  

•   In  what  way,  and  how  oeen,  you  communicate  with  the  customer.  CRM  can  help  you  determine  whether  a  customer  prefers  to  stay  in  contact  via  text,  email,  or  phone  call.    

Good  CRM  can  have  a  direct  impact  on  the  length  of  each  customer  rela)onship,  increasing  the  length  of  those  customers  who  provide  the  most  value.    

•   It  can  enhance  the  growth  poten)al  of  each  customer  through  prac)ces  such  as  cross-­‐selling  (selling  addi)onal  items  or  services  like  lesson  packages)  and  up-­‐selling  (selling  a  higher-­‐end  version  of  what  the  customer  originally  intended  to  purchase,  such  as  a  beker  horse  or  a  specialty  clinic.)  

•   It  can  help  you  readily  iden)fy  low-­‐profit  customers  and  enable  you  to  act  on  them.  

•   It  can  allow  you  to  focus  a  dispropor)onate  amount  of  effort  on  the  highly  loyal,  high-­‐value  customers.  

Customer-­‐Focused  Selling  

Every  customer  is  unique.  In  order  to  retain  a  customer,  you  must  develop  a  rela)onship  that  meets  that  customer’s  needs  and  wants.  A  good  prac)ce  to  implement  is  to  have  clients  discuss  their  goals  at  the  beginning  of  your  professional  rela)onship  so  you  can  beker  cater  to  their  needs.  

Bearing  in  mind  each  customer’s  life)me  value,  create  a  customized  presenta)on  that  highlights  how  your  products  and  services  sa)sfy  the  customer’s  desires.  Approach  your  products  from  the  customer’s  perspec)ve.  Present  each  product  and  service  in  a  way  that  creates  win  /  win  situa)ons  for  both  the  customer  and  for  you.  

Above  all,  in  addi)on  to  providing  the  customer  with  a  product  that  meets  his  or  her  immediate  needs,  remember  your  long-­‐term  commitment  to  customer  service.  

Branding  

When  you  create  meaningful  differences  that  provide  a  compe))ve  advantage  to  a  par)cular  product  or  service,  you  are  building  a  brand.  Branding  is  the  ongoing  process  

�14

Most people play polo

for fun or leisure and are looking for an

instructor they connect with personally as well

as professionally.

of  designing  and  execu)ng  marke)ng  ac)vi)es  to  create  and  strengthen  a  brand’s  equity.  

A  brand’s  equity  is  the  sum  of  the  assets  (or  liabili)es)  that  are  linked  to  a  brand’s  name  and  symbol  which  add  (or  detract)  from  that  product  or  service.    

Brand  equity  adds  value  to  your  business  in  the  following  ways:  

•   It  tells  those  who  are  not  yet  customers  what  you  do.    

•   It  sets  you  apart  from  your  compe))on.  

•   It  enables  customers  to  iden)fy  what  makes  you  superior  to  your  compe))on,  such  as  a  Cer)fied  Polo  Instructor  Cer)fica)on.  

Posi$oning  

A  cri)cal  aspect  of  building  a  brand  is  determining  your  company’s  posi4oning  –  the  specifics  that  set  your  business  apart  from  its  compe)tors.    

Posi)oning  doesn’t  create  something  from  nothing.  Instead,  it  works  with  what  the  poten)al  customer  already  knows.  Posi)oning  a  brand  creates  a  “window”  in  the  consumer’s  mind,  adding  to  connec)ons  that  already  exist  there.  

As  you  read  each  of  the  following  items,  quickly  name  a  brand  that  you  associate  with  it:  

Mallets     (brand  name)  ___________________________  

Grain     (brand  name)  ___________________________  

Boots         (brand  name)  ___________________________  

Helmets   (brand  name)  ___________________________  

The  brands  you  named  are  the  brands  that  have  the  top  posi)oning  in  your  mind.    

The  goal  of  posi)oning  is  to  have  your  brand/program  obtain  top-­‐of-­‐the-­‐mind  awareness.  For  that  to  happen,  you  must  make  your  current  and  future  customers  able  to  differen)ate  your  offerings  from  that  of  your  compe)tors  in  such  areas  as:  

•   Product  or  service  

•   Price  point  

•   Personnel  

•   Image  

These  are  some  akributes  that  give  you  a  compe))ve  advantage.  There  may  be  others.  As  you  examine  the  market  you  are  in,  iden)fy  what  makes  you  different.  Clearly  

�15

ar)culate  the  unique  aspects  of  your  product  or  service  that  you  can  leverage  to  influence  your  target  markets.  These  aspects  may  include  such  things  as  on-­‐site  stabling,  field  access,  and  flexible  lesson  )mes.  

Market  Segmenta4on  

The  process  of  dividing  a  market  into  homogenous  groups  of  various  sizes,  based  on  certain  characteris)cs  is  called  market  segmenta4on.  Market  segments  might  include:  

•   Demographic  (the  customer’s  state  of  being  according  to  factors  such  as  age,  gender,  income  level,  or  educa)on  level)  

•   Geographic  (a  loca)on;  area  of  city,  county,  region,  na)on,  or  world)  

•   Psychographic  (state  of  mind;  likes  /  dislikes;  lifestyle)  

•   Product  or  service  benefits  

•   Product  or  service  usage  

Effec)ve  posi)oning  creates  awareness  among  those  in  your  desired  market  segment.    

You  can  segment  customers  based  upon  how  frequently  they  use  your  services,  or  upon  their  profitability,  or  some  other  criteria.    

If  you  have  an  exis$ng  customer  base,  one  way  to  segment  your  market  might  be  according  to  how  frequently  a  customer  uses  your  services.  You  could  then  create  customer  profiles  for  high-­‐,  mid-­‐,  and  low-­‐frequency  clients.    

If  you  do  not  have  an  exis$ng  customer  base,  it  might  be  in  your  interests  to  segment  according  to  important  akributes.  You  could  focus  on  a  demographic  segment  that  takes  income  and  educa)on  into  considera)on,  as  well  as  segmen)ng  according  to  psychographic  actudes  toward  equine  events,  sports,  pres)ge,  etc.  

Another  way  to  assess  customers  is  based  upon  their  level  of  commitment  to  a  business’  product  or  service.  This  assessment  takes  three  things  into  considera)on:  

•   Frequency  –  How  oeen  does  the  customer  engage  with  the  product  or  service?  

•   Dura4on  –  How  long  does  the  customer  engage  with  the  product  or  service?  (May  be  measured  in  hours,  days,  weeks,  years,  etc.)  Is  your  client  in  town  for  the  whole  polo  season,  or  just  part  of  it?  

�16

The goal of positioning is to

have your brand/program obtain top-of-the-mind awareness.

•   Intensity  –  Similar  to  cona)ve  loyalty,  this  assesses  how  into  the  product  or  service  the  customer  is.  How  invested  is  the  individual  in  polo?    

All  segments  are  not  created  equal.  Each  segment  may  require  its  own  unique  posi)oning  strategy.  For  example,  polo  seasons  are  rarely  year  round.  The  marke)ng  efforts  that  will  appeal  to  high  goal  players  may  not  hold  the  same  appeal  to  those  players  in  the  “margarita  league.”  Furthermore,  each  segment  may  have  its  own  preferred  method  of  communica)on  or  media  consump)on.  It  is  in  your  best  interests  to  learn  as  much  about  each  market  segment  as  possible  and  find  the  mo)va)on  for  each  segment.    

Finding  Leads  

A  business  owner  is  always  prospec)ng.  Poten)al  customers  can  come  from  prac)cally  any  area  of  your  daily  life,  including  family,  friends,  and  organiza)ons  to  which  you  belong.  Don’t  neglect  to  ask  customers  for  names  of  friends  who  might  also  be  interested  in  what  you  have  to  offer.  Adver)sing  in  newspapers,  television,  and  online  can  further  extend  your  reach.    

Some)mes  simply  driving  within  your  ideal  sales  territory  can  provide  marke)ng  ideas.  Purchasing  a  list  of  prospects  for  a  targeted  email  or  snail-­‐mail  campaign  is  another  strategy,  as  is  pucng  flyers  on  local  grocery  store  cars  or  nearby  mailboxes.  

Business  Networking  

The  best  way  to  find  clients  who  will  value  what  you  provide  is  through  networking,  making  contacts  and  exchanging  your  business  informa)on  with  like-­‐minded  business  people  in  order  to  develop  rela)onships  that  are  mutually  beneficial.    

Networking  eliminates  the  need  for  cold-­‐calling.  It  helps  you  get  known  by  the  “movers  and  shakers”  in  your  business  community.  

Done  correctly,  networking  will  gain  you  more  prospects,  help  you  make  more  contacts,  and  result  in  more  sales  than  any  other  method  of  lead  genera)on.    

Networking  is  about  building  rela$onships.  In  addi)on  to  bringing  you  high-­‐quality  clients,  networking  can  help  advance  your  own  career  while  simultaneously  building  your  reputa)on.  

�17

PRO TIP

“It is crucial to do your homework in your local area; ‘cull the herd’. Popular places to find

new polo customers include country clubs, private schools and local

word of mouth.”

- Elizabeth Hedley

Network  where  like-­‐minded  people  congregate.  This  might  include:    

•   Chamber-­‐of-­‐Commerce  events,  Business  Journal  events,  and  events  for  other  business  and  civic  organiza)ons    

•   Cultural  occasions  and  charitable  benefits  

•   Classes,  hobbyist  groups,  and  special-­‐interest  clubs  

•   Private  clubs  and  health  clubs  

•   Trade  associa)ons  

•   Sports  events/other  riding  disciplines    

Following-­‐Up  

Design  and  implement  procedures  for  following-­‐up  with  prospec)ve  customers.  These  will  determine  if  the  prospec)ve  client  is  really  interested  in  partnering  with  your  business.  

Follow-­‐up  on  a  prospec)ve  customer  immediately.  Having  a  boilerplate  email  that  you  slightly  tweak  to  personalize  for  each  client  will  save  )me.  

When  following-­‐up,  reinforce  what  the  poten)al  customer  has  already  learned.  Remain  focused  on  the  customized  proposal  that  you  developed  to  meet  the  

prospec)ve  customer’s  needs.  Reiterate  the  theme  of  your  earlier  mee)ng  and  recap  the  strategies  you  mutually  

developed  to  achieve  the  prospect’s  objec)ves.  

The  Purchasing  Process  

Many  factors  influence  consumers’  purchasing  decisions.  Some  of  the  strongest  influencers  are  found  in  the  consumer’s  immediate  environment.  These  environmental  factors  include:  

•   Significant  others  (spouse,  family,  friends,  associates)  

•   Cultural  norms  and  values  

•   Social  class  

•   Race  and  ethnicity  

•   Gender  and  iden)ty  

•   Climate  and  geography  

�18

PRO TIP

“When I work with a club the first thing I have them do

is join the Chamber of Commerce.”

- Elizabeth Hedley

Individual  factors  that  strongly  influence  a  consumer’s  purchasing  decision  include:  

•   Personality  

o   Is  this  person  adventurous  or  cau)ous?    

o   Do  you  have  an  appropriate  horse/program  for  various  personality  needs?  

•   Physical  characteris)cs  

o   Is  this  person  able  to  ride?    

o   Do  health,  size,  or  physical  strength  play  a  part  in  the  person’s  decision?  

•   Percep)on  

o   Does  the  customer  perceive  your  opera)on  as  successful?    

o   Do  you  seem  professional  as  an  instructor?  

•   Mo)va)on  

o   Do  you  know  why  your  client  wants  to  play  polo?  

•   Actude  

o   Is  your  client’s  actude  appropriate  for  the  situa)on  presented?    

o   Is  the  client  excited  or  reserved  about  taking  lessons?    

•   Quality  and  Quan)ty  of  the  product  or  service  

o   If  the  client  is  buying  a  horse,  are  they  beker  off  buying  mul)ple  less-­‐skilled  horses  or  one  solid,  more  skilled  horse  for  the  same  price?  

•   Time  commitments  

o   Does  your  client  have  a  job?  A  family?    

o   Is  the  client’s  schedule  busy  or  flexible?  

•   Cost  (including  total  cost  and  available  payment  op)ons)  

o   Can  your  student  afford  to  play  polo?  In  what  capacity?  

Regardless  of  what  mo)vates  a  purchase,  a  7-­‐step  progression  is  typical  of  the  consumer  buying  process:  

1.   Need  recogni)on.  

2.   Awareness  or  search  for  informa)on.  

3.   Evalua)on  of  choices.  

4.   Purchase  decision.  

5.   Experience  with  product  or  service.  

�19

6.   Post-­‐experience  evalua)on.  (“Did  this  meet  my  needs  and  expecta)ons?  Would  I  purchase  it  again?”)  

7.   Post-­‐evalua)on  behavior.  (Repeat  purchasing  or  avoidance.  Recommenda)ons  or  nega)ve  reviews  to  others.)    

The  Sales  Process  

The  sales  process,  like  the  customer’s  buying  process,  also  follows  a  recognizable  path.    

1.   Iden$fy  your  poten)al  customers.  

2.   Communicate  with  those  customers.  

3.   Increase  poten)al  customers’  awareness  of  your  brand  and  interest  in  what  you  have  to  offer.  

4.   Persuade  poten)al  customers  to  act.  

A  robustly  effec)ve  sales  process  requires:  

•   Maintaining  an  effec)ve  database  of  poten)al  and  current  customers.  

•   Using  appropriate  communica)on  methods.  (Email,  newsleker,  text,  phone  call.)  

•   Crea)ng  and  dispersing  messages  that  inform,  educate,  and  persuade.  

•   Ac)ng  upon  available  informa)on  and  opportuni)es.  

•   Developing  rela)onships.  

The  Value  of  “Value”  

A  successful  company’s  long-­‐term  sales  strategy  is  all  about  delivering  value  and  developing  rela)onships.  

In  sales,  “value”  is  something  the  company  does  for  the  customer  that  is  in  the  customer’s  best  interests.  The  rela)onship  with  the  customer  is  strongest  if  the  company  first  delivers  value,  such  as  a  safe,  fun,  informa)ve  experience.  

If  there  is  no  discernible  value,  price  is  all  that  is  lee  for  the  customer  to  base  his  or  her  purchasing  decision  upon.  

Know  the  value  your  product  or  service  delivers.  Communicate  that  value  to  your  customer  using  proof  points,  clear  and  compelling  statements  that  provide  evidence  suppor)ng  your  claim  of  value.  Proof  points  can  occur  in  the  form  of  tes)monials  from  other  students,  online  ra)ngs,  etc.    

�20

60  –  70  percent  of  customers  –  fully  two-­‐thirds  of  your  clientele  –  will  buy  according  to  what  they  perceive  to  be  of  value.    

Benefits  Selling  

Sales  tend  to  be  emo)onally  driven,  then  logically  jus)fied.  In  other  words,  the  customer’s  heart  is  akached  to  the  wallet,  but  the  customer’s  head  is  akached  to  the  price.    

Don’t  focus  on  the  sale.  Rather,  focus  on  the  use  (ideally,  the  long-­‐term  use)  of  the  product  or  service.  

In  the  case  of  “budget  police”  clients  who  are  extremely  mo)vated  by  price,  it  is  oeen  advisable  to  start  a  sales  pitch  with  a  product  at  a  higher  price  point,  highligh)ng  the  benefits  and  the  value,  with  the  intent  of  closing  the  sale  with  a  product  at  a  slightly  lower  price  point.  

Know  the  answer  to  the  ques)on  “what  is  my  product  or  service  worth?”  Use  that  knowledge  to  educate  your  customers.    

Samples  for  Sales  

People  oeen  find  it  easier  to  purchase  something  if  they  have  firsthand  experience  with  it  or  if  they  have  used  it  before.  This  accounts  for  the  success  of  people  purchasing  lesson  horses,  “lunch  and  learn”  seminars,  and  Groupon  offers.    

Ways  to  connect  with  customers  in  order  to  educate  them  include  product  samples,  free  trials,  and  open  houses.  

•   Experience  allows  for  a  prospec)ve  customer  to  provide  valuable  feedback  on  customiza)on.    

•   Experience  also  allows  the  salesperson  an  opportunity  to  explain  the  valuable  akributes  of  a  product  or  service,  which  can  help  with  both  sales  and  client  reten)on.  

The  Effec4ve  Salesperson  

Without  doubt,  an  effec)ve  salesperson  has  excep)onal  communica$on  skills.  He  or  she  is  able  to  quickly  establish  a  person’s  trust  and  to  maintain  that  trust.    

Empathy,  persistence,  follow-­‐through,  and  compe$$veness  are  all  part  of  the  salesperson’s  makeup.  So  are  accountability,  responsibility,  integrity,  and  op$mism.  

�21

Know the value your product or service

delivers. What makes you better than the competition?

To  be  an  effec)ve  salesperson  requires  an  understanding  of  the  company’s  mission  and  a  knowledge  of  the  benefits  the  product  or  service  provides.  

Finally,  a  good  salesperson  possesses  several  abili)es,  including:  

•   Able  to  learn  from  other  successful  salespeople  such  as  seasoned  polo  instructors  and  mentors.  

•   Able  to  ask  good  ques)ons,  as  well  as  able  to  listen  to  and  assimilate  answers.  

•   Able  to  show  prospects  how  a  product  will  meet  their  needs  and  wants.  

•   Able  to  persuade  prospects  regarding  a  major  product  benefit.  

•   Able  to  ask  for  a  sale.  

•   Able  to  reinforce  the  sale.  

•   Able  to  overcome  rejec)on.  

•   Able  to  make  prospec)ve  customers  feel  as  if  they  are  buying  –  not  as  if  they  are  being  sold.  

Se^ng  Objec$ves  

Always  have  an  objec)ve  when  dealing  with  a  prospect.  Your  sales  objec)ves  must  be  measurable,  specific,  and  reasonable.  

Secng  sales  objec)ves  for  yourself  and  your  business  allows  for  constant  evalua)on  and  improvement.  

A\er  the  Sale  

Once  a  prospect  become  a  customer,  it  is  important  for  a  business  to  have  a  plan  to  maintain  and  con)nue  the  rela)onship.  A\ermarke4ng  refers  to  the  service  a  business  gives  aaer  the  sale  in  order  to  retain  a  customer’s  loyalty.  

Con)nually  monitor  customers,  listening  carefully  to  their  likes  and  their  dislikes.  If  they  have  complaints  or  problems,  address  them.  It  is  beker  for  your  bokom  line  to  regularly  check  in  with  your  customers  and  address  their  issues  than  to  ignore  them  and  risk  losing  their  business.

�22

Providing a positive Polo Experience to your customers will influence

their decision in a positive way.