In today’s digital age, where options for family outings are numerous and the competition fierce, Family Entertainment Centers (FECs) must not only provide exceptional experiences but also make sure that potential customers know about them. Here’s why marketing is essential for FECs and a guide on budget allocation. Why Family Entertainment Centers Must Prioritize Marketing & Budgeting Right 1. Visibility in a Crowded Market According to a report by IBISWorld, the number of FECs has been steadily increasing, making the market more crowded. The world of family entertainment is broad and diverse, encompassing everything from arcades to mini-golf, trampoline parks to bowling alleys. To stand out in such a market, it’s crucial for an FEC to establish a robust marketing strategy. This ensures that when families are looking for a fun outing, your facility is top-of-mind. 2. Building Brand Loyalty As noted by the Harvard Business Review, acquiring a new customer can be between 5 to 25 times more expensive than retaining an existing one. Regular communication through channels like emails, social media, or even SMS can help remind past visitors of the great time they had, nudging them to return. Special promotions or loyalty programs can be effectively communicated through these channels. 3. Promoting Special Events Eventbrite’s survey found that 69% of Americans believe attending live events and experiences make them feel more connected to other people, the community, and the world. Hosting special events, such as birthday parties, corporate outings, or holiday-themed nights, can be a significant revenue source for FECs. Marketing these events ensures maximum turnout and profitability. 4. Engaging the Community A Cone Communications study highlighted that 87% of Americans will purchase a product because a company advocated for an issue they cared about. Being actively involved in the community can work wonders for an FEC’s brand image. Sponsor local events, collaborate with schools, or run charity events. Such activities not only give back to the community but also serve as powerful marketing tools, building goodwill and local support. 5. Adapting to Trends As per the Digital Marketing Institute, insights derived from marketing analytics can lead to better decision-making in terms of offerings and can increase efficiency by 39%. By analyzing trends and feedback, FECs can adapt, innovate, and offer experiences that resonate with their audience. How Much Should FECs Allocate for Marketing? The U.S. Small Business Administration suggests businesses allocate 7-8% of their revenues to marketing. However, depending on specific circumstances, like if an FEC is just starting out or in a highly competitive region, this percentage can vary. The right marketing budget largely depends on the size of the facility, its location, target audience, and competition. A general guideline for businesses is to allocate anywhere between 7% to 12% of their total revenue towards marketing. For FECs specifically: – Start-ups or New Centers: Newer establishments looking to make a mark might consider investing closer to 12% or even slightly more to build brand awareness quickly. – Established Centers: Once you have a loyal customer base and steady footfall, this percentage can be reduced to around 7%-10% of your total revenue. – High Competition Areas: If your FEC is in an area with a lot of similar establishments, you might want to consider a higher budget, leaning towards the 10%-12% mark, to ensure you stay ahead of the competition. In Conclusion Investing in marketing is not just a luxury but a necessity for Family Entertainment Centers. In a world where consumers are bombarded with choices, effective marketing ensures that your FEC is the preferred choice for families looking for fun and memorable experiences. Always remember, though: It’s not just about how much you spend, but how effectively you spend it. Focus on strategies that resonate with your target audience and continuously adapt to the changing landscape.
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