Since 2016, the Olympics has seen a 45% drop in traffic which ultimately resulted in this year’s losses totaling $13 billion (ouch! That’s a big number). Keep in mind, the hosting city usually does not make a profit from doing so.
This huge loss is especially troublesome when you take into account the recent turmoil Covid has had on the economy.
So Why The Drastic Drop?
We can speculate that it could be a result of the apprehension for social gathers due to Covid, and the fact that most people have switched from cable to other streaming services (due to cost and/or convenience). Which kind of beg the question – are we really surprised?
I’m no Nostradamus, but I feel like this could have been anticipated, given the number of things that have happened and that this is a wild card of a year.
How does this relate to you as a business owner?
Let this year’s Olympics be a cautionary tale. Being knowledgeable in regards to your company’s numbers so you can get ahead of any potential difficulties will enable you to create contingency plans. This planning with allow you to make prompt and informed pivots to prevent losses.
Anticipating is a position of power, while reacting after the fact puts you at a great disadvantage. If you know that people are turning away from cable as their top source of media, then you can make adjustments that better utilize how you spend on advertising. Social media and streaming services get the traffic that would have the most impactful results for most businesses.
Another tactic to get ahead of anything that could lead to a loss in revenue for your business is really investing a number of forms of customer retention programs. Below you will find a list of some effective methods to implement retention strategies:
- Events
- Posting customer success stories
- Referral Incentives
- Loyalty offers
- Adding membership perks
- Sending gifts to clients for birthdays/anniversaries/etc.
- Calling clients up for renewal
Check out our blog: Keeping Customers Coming Back – and learn how relationship building can lead to more repeat customers and save you on marketing costs.
Utilizing the retention strategies mentioned above is a worthwhile investment of your time and resources.
You might also want to consider asking your customers to complete a survey every 6 – 12 months. This will provide insight to areas where the customer experience needs improvement.
We may not have the means to see into the future…
However, if you are setting milestones for your team and checking in at regular intervals – you will have more opportunity to make the necessary tweaks that could act as a safety net and prevent your business from taking a huge, unexpected hit.
Think of yourself as playing a defensive position in a game of metaphorical football. Your jobs is to assess and tackle any potential threats. Having processes in place to check your progress towards your company objectives is not only smart, but necessary if you are to overcome the obstacles that arise as a business owner and score the winning touchdown.
Depending on the category of your business and where you are located, there are specific times when the volume of your business will fluctuate. For example – Gyms see an uptick of memberships in January, as a result of people making New Year’s resolutions having to do with their health. Retail clothing companies can see an increase in revenue during back to school season.
The same can be said about how certain holidays or times of the year can impact your business in a negative way. Utilize the retention strategies during these times, or craft your own. It also is in your benefit to be strategic with your marketing budget. For those businesses that have products or services geared towards children, upping your budget for a back to school campaign may help to capture new clients.
Takeaways
If you haven’t already done so, you should be establishing a number of quantifiable goals with smaller, actionable steps that will allow you to track the progress within your company. That way, when any issues arise you will be prepared to take the appropriate measures. These types of preparations will save you valuable time and minimize losses.
It is important to have a roadmap for success if you plan to achieve it. It rarely happens by mistake. As business owners, we want to increase the longevity of our company’s successes and we do this when we have a clear vision with measurable targets.
With the setbacks we’ve seen with the 2021 Olympics – it could be easy to count it as a failure compared to previous years. If we shift our perspective slightly, we see an opportunity for redemption. The data from this year can be analyzed and used to make improvements for the future. The experience we gain from our missteps and how we use the knowledge acquired is what truly establishes us as winners and losers.
In the end, we all want to bring home the gold.
