Ownership Strategy - 2018 Annual Report update

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ROA Annual Report 2017-18

Ownership Strategy for British Racing For the first time, significant industry funds have been committed to the promotion and marketing of ownership.

Chief Executive Charlie Liverton explains how the ROA will lead this exciting and far-reaching project, the main aim of which is to increase the number of racehorse owners for the benefit of the whole racing industry.

In 2016, the ROA and BHA undertook an owners’ survey with the aim of finding a consistent way to measure the experience of owning a racehorse and to understand the attitudes and motives of owners, both current and lapsed. Since the results have been unveiled, the ROA has led the development of an Ownership Strategy for British Racing.

This process followed the industry’s launch in 2015 of the Strategy for Growth, one of the key aims of which was to achieve an increase of 1,000 in the number of horses in training by 2020.

The strategy has focused on delivering this through the retention of existing owners, through the enhancement of their experience and through the growth of new owners.

To this end, we are delighted to report a Levy Board funding application has been successful. It means, for the first time, significant industry funds have been committed to focus on the delivery of an Ownership Strategy for British Racing to support the Industry’s Strategy for Growth.

Background and Process

Ownership Promotion

The development of a collaborative and inclusive Ownership Strategy for British Racing builds on the findings of the 2016 National Racehorse Owners Survey which provided comprehensive data and key insights into owners and their experiences.

Investment in the development of a united identity for ownership will open the door to further simplification and streamlining of the ownership journey.

Our project highlights the continued importance of the role of owners within racing. It will give owners an enhanced brand and identity, emphasising their role as supporters of the sport in so many different ways.

Four work streams have been developed within the framework of the Ownership Strategy for British Racing: ● ● ● ●

Retention Ownership Promotion Trainers Racecourses

Retention The project focuses on the key elements of retention of existing owners. Trying to “sell” the proposition of racehorse ownership is futile without addressing the issues affecting current owners and targeting those points that drive the churn rate of owners.

ROA members typically remain owners for an average of eight years against five years for non-members. Existing owners, and particularly ROA members, are seen as one of the industry’s best sales teams in recruiting new owners.

There is a concern that British racehorse ownership currently lacks a coherent identity and that the ownership journey is now made up of contact with a number of disparate organisations, with unclear guidance and information being generated by each. Unified communications, presented under a consistent identity, will make ownership more accessible and welcoming to both existing and new owners.

As we tackle the issues currently affecting ownership, there will be an increasing focus on the welcome that is received by owners to the sport and the on-going support they receive. These initiatives will build on the development of the identity for ownership, using information flowing from the project.

A Welcome Pack is being developed using the increasing knowledge we gain of the ownership experience. The Welcome Pack will acknowledge the investment owners make in terms of financial expenditure, emotion and time.

It will also ensure that communications are simplified and streamlined and give us a greater understanding of customer-expectation.

These key elements not only help us to create an identifiable brand for British racehorse ownership, but also allow us to build a suitable foundation for the recruitment for new owners.

This work-stream develops the valuable insights gained through the National Racehorse Owners Survey with regard to owners’ experiences and expectations.

A 2017 survey undertaken by Thoroughbred Owner Breeder magazine also provided us with helpful information on owners’ consumer behaviour outside of racing.

Increase focus on the welcome that is received by owners to the sport

ROA Annual Report 2017-18

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Goals Going the extra furlong for racecourses experience

Trainers

Racecourses

A key element of the project relating to trainers is about the enhancement of the service and the improvement of information provided by trainers for owners.

Of those lapsed owners who responded to the ROA/BHA National Racehorse Owners Survey, 44% of them cited the racecourse experience as a key factor in their decision to leave the sport.

The development of a benchmarking website to assist owners with the selection of a trainer will provide an important tool. It will run in parallel with Inthepaddock.co.uk which already carries out a similar function for syndicate ownership.

This work-stream addresses owners’ racecourse experience on a number of levels. There will be a focus on creating minimum racecourse standards and assisting courses to deliver these, while the Gold Standard will be further developed as a means of pursuing excellence.

The project will also assist with the drive to provide enhanced communications and marketing support for owners. “Not a good trainer experience” was cited by 29% of owners as a reason for their departure from the sport. Improved communication and better use of information technology will help to bring this percentage down.

The ROA is already working with the RCA on their RCA Year of Service initiative – a programme designed to ensure exceptional customer service from all staff at racecourses. The significance of the ownership experience within this will be further emphasised as our communication with racecourses improves and becomes more structured.

This work-stream will also examine the need to differentiate the racecourse experience according to ownership involvement. We recognise that owners do not solely go racing with a runner and their experience on these occasions should also be enhanced.

Help trainers provide enhanced communications

The strategy and budget set out for the project is designed to build the foundations to achieve the key aims of improving retention of existing owners, and increasing the numbers of horses in training, while developing the brand to facilitate the promotion of racehorse ownership to a new audience.

Within these headline aims, the project overall has targets in the following areas: ● Increase average length of ownership tenure. ● Improve the ownership experience both on and off the racecourse. ● Increase ownership’s Net Promoter Score (measures willingness of customers to recommend products). ● Reduce the percentage of owners citing racecourses and trainers as the reason they have lapsed their ownership. ● “Future proof ownership” and increase the appeal and awareness to a wider demographic. ● Target opportunities to enhance commercial returns through third-party partnerships. ● Improve retention rates within existing ownership population.

A key tool for the measurement of these objectives will be the commissioning of the next National Racehorse Owners’ Survey.

In parallel with delivering improvements to the racecourse experience for owners, it is important to address the issue of education regarding the role of owners across the whole industry. Since owners are the lifeblood of the sport, an understanding of their role, motivations and importance should be part of any training programme.

This will facilitate the development of structured training modules to be rolled out across the industry and is closely aligned with the delivery of an improved on-course experience as key elements involve the education of racecourse staff aligned with the RCA Year of Service.

Increase average length of ownership tenure