Insight for sore eyes
And then someone — your BDM, a supplier rep, a pushy member of staff, or even a magazine editor — presents to you a document full of ‘insight’ and suggests you change your business model or risk being left behind. Irritating, isn’t it? But annoyingly, that’s exactly what I’m going to do, and I won’t apologise for that.
I genuinely do recommend that you take some time to digest the findings of the latest Carlsberg UK Consumer Insights report 2014, and use it to think about how your pub is going to stand the test of time.
To slightly misquote a captain of industry: “Business people who ignore research are as dangerous as generals who ignore enemy intelligence.” It’s tempting to focus all your time and energy working ‘in the business’ — that’s where you can make an immediate difference, right? But working ‘on the business’ — at a strategic rather than tactical level — is hugely important for the modern licensee.
You can no longer rely on a steady stream of trade just because you exist. These days you have to earn every customer’s visit, and justify every pound they spend in your pub.
Do you understand where your customers (and potential customers) are spending their leisure time and money, if not with you? Carlsberg’s research suggests shops, cafés, sports centres, gyms or restaurants — in that order. Some of these are compatible and complementary with a pub visit, others not.
But other pubs remain your biggest competitors. The average pubgoer’s annual repertoire of outlets is now around eight pubs. Which begs the question: why should they come to yours? Are you a specialist or a generalist? A pub for a reason or a pub for all seasons?
If you are catering for a particular group of customers, do you understand what drives them; how and when they use pubs? Do you have a CRM (customer relationship management) system that helps you calculate the value of the opportunity they present and attract that business?
Carlsberg says: “Know who’s in your outlet and why — then give them the products, service and atmosphere that will delight them.” To that I’d add: “Know who’s not in your outlet and why, and go and get them.”
Consider aligning your activities to the segments of the market that are in growth: young families and ‘SWAGS’ (single, wise, affluent grown-ups); rather than those in long-term decline: ‘young, free and singles’ (who are demonstrating a less-committed relationship with alcohol than their predecessors) and ‘nesting couples’.
Ensure you provide the things that are in increasing demand, including table service where appropriate, free Wi-Fi and engagement with a local audience via social media.
And get good at spotting an opportunity — eg, if you can better engage women (with the right environment, product range and service levels, plus appropriate events) you will also attract more men to the pub.
I appreciate that all this is easier said than done, but no one’s saying this business is easy any longer. And it’s got to be better than the alternative, which is what Albert Einstein described as the definition of insanity: “Doing the same thing over and over again, and expecting different results.”
