Page 34 - December 2020 January 2021

RLI LEISURE INSIGHT

Radical Rethink Required

Anthony Tattum, a marketing communications
specialist and CEO of Big Cat Agency, the recently
rebranded company that creatively applies
human insights and behavioural science to their
communications, addresses how leisure businesses can
thrive in 2021 by adapting to novel consumer trends.

A Look At the Leisure industry invest in innovAtion
With the uncertainty around lockdown restrictions and consumer Reduced demand and capacity require out-of-the-box thinking to achieve
confidence at its lowest since the financial crisis, there has been a resultant results. Expanding a product range, enhancing communication channels and
volatility in spending behaviour throughout the leisure industry. customer bases are just a few methods to reduce reliance on physical space
The services on which one spends however are slightly different. For and increase flexibility.
instance, following the 2008 recession, people traded down to low-cost gyms However, innovative leisure businesses have not only made this shift in
but now, with the advancement of technology, we are seeing exponential response to the crisis but added their own creative spin. For example, gyms
growth in online retail and e-commerce, home gym equipment, digital fitness, are renting out equipment, holding classes outside, investing in online platforms,
telehealth and gaming. But does this surge in digital leisure mean that traditional offering televisual personal training sessions and integrating technology for
outlets should give up hope? NEVER! holistic performance tracking.
Indeed, the Covid-19 crisis is the most substantial challenge the leisure We must take advantage of these evolutionary technologies that have
industry has faced. The sector has retained talent and maintained solvency helped businesses strive through uncertain times. Through adoption and
despite the circumstances, but now is the time to start planning for the future. flexibility, the leisure industry opens itself up to a wide array of innovative
solutions in uncertain times.
resiLience is key
In Autumn, we begin to budget and plan for the year ahead, but this new consumer trends vs
annum, long-term thinking has never been more important. Operators need unchAnging humAn nAture
to re-evaluate their business model, establish how to capitalise on changing But how do you relate to consumers in these changing times? Look to
consumer trends, and embed long-term resilience among their industry. behavioural science!
Margins in the leisure sector were tight before the pandemic hit, but large Habit is a cognitive bias notoriously difficult to budge. We are prone to
reductions in demand and capacity, combined with the uncertainty of the fall into the same patterns to help us steer clear of danger, navigate through
tiered coronavirus restrictions and the spectre of a ‘circuit breaker’ national uncertain circumstances and (from a psychological perspective) avoid mental
lockdown will make growth much more difficult. exhaustion by providing short cuts and heuristics.
Operating models and business propositions will need altering to optimise But the old idiom: “You can’t teach a dog new tricks” is one to be taken
performance in 2021. For example, operators can relocate service and till with a pinch of salt in my humble opinion. Playing upon a habit starts at the
points for more spacious layouts, adopt new technologies for booking classes unconscious level through constant communication and a true understanding
and enhance their customer communications. of one’s audience.
Building resilience into business models means preparing for disruption, For instance, it is well known that the younger demographics prefer to
planning for a range of scenarios, right-sizing the fixed cost base and investing spend more on experiences as opposed to products. Indeed, we have seen
in diversification. With these practical tools, organisations within the leisure strong growth in emergent activities that include an element of competitive
industry can find flexible solutions for survival. socialising, such as escape rooms, go-karting and mini golf. Tapping into this habit
and finding creative ways to guide young consumers who WANT the leisure
experiences your business can provide will play on their missed experiences
during lockdown and help lead to a resurgence in demand.
Habits are therefore malleable and you can indeed teach an old dog new
tricks. That said, you must understand, research and define your demographic.
This foundation will ensure your communications meet your business and
behavioural objectives to capitalise on the long-term, accelerating trends and
avoiding those activities that will revert back to redundancy once restrictions
have been lifted.

optimistic About the Long term
In the long term, the leisure sector will bounce back stronger. Consumers
crave experiences, which plays to the leisure industry’s strengths.
Although the end of the furlough scheme and the new three tier lockdown
system will likely see contraction and consolidation across the retail and leisure
sectors and we may see businesses exiting the market or closing loss-making
sites, it is not all doom and gloom.
Successful operators will be the ones that ensure the basics are achieved:
laser audience focus, getting the product right for the right demographic and
providing clear differentiation.
Operators that are willing to reshape their business and adapt to new
consumer behaviours quickly will capitalise on novel opportunities to thrive
in 2021 and beyond.

34 RETAIL & LEISURE INTERNATIONAL DECEMBER 2020 / JANUARY 2021