Industry Ownership Strategy - Diagnosis Report

Industry Ownership Strategy - Diagnosis report 0

Executive summary ▪ The objective of the Industry Ownership strategy is to improve the experience of existing owners ▪ This will grow the investment of existing and new owners in racing, and enhance economic and sporting outcomes for the industry

▪ The current ownership experience is leading to a high churn rate with more owners exiting than entering the sport, and low levels of customer satisfaction as indicated by a negative net promoter score ▪ This is driven by challenges in all ownership segments: – Limited differentiation of experience for owners with high investment in the sport – A growing number of syndicates, without proper governance and structure in place – Inconsistency in raceday and non-raceday experiences for all owners ▪ Three strategic priorities should underpin the design of an enhanced ownership experience: 1.

Provide a differentiated experience to owners with high involvement

2.

Provide a consistent and sustainable experience to syndicate owners

3.

Develop stronger foundations that deliver a consistent baseline experience focused on the areas that most matters to all owners

Source: Portas analysis

1

Contents

Context Identified strategic priorities Supporting findings Next steps

McKinsey & Company

10 2

The investment of Owners is the heart of the racing industry, and is highly dependent upon the quality of their experience

▪ Government

Racecourses

Bookmakers

The investment made by owners brings an enormous range of benefits to stakeholders inside and outside of the racing industry. For example: - Staff: 85,000 people work in the racing industry - Government: British Racing contributes £3.45bn to the UK economy through direct and indirect expenditure (contributing over £275m through tax)

Racegoers Broadcasters

- Racecourses: 5.6m people attended races across the UK, with almost 19,000 individual runners at ~1,300 fixtures

Owners

Trainers

Sales houses

- Bookmakers: Punters spend an estimated £12bn per year betting on horseracing

Jockeys ▪ Staff

Equine welfare

Source: Deloitte, Financial Times; Portas analysis

Non-owners

Their investment is heavily incentivised by the quality of their experience. A quarter of all owners make no prize money, whilst three quarters don’t win enough to cover the cost of a single run.

3

The objective of the Industry Ownership strategy project is to use the HBLB funding to improve the experience of existing owners HBLB funding has been secured

This funding will be to used to improve the experience for all existing owners Examples of key elements of ownership experience (not exhaustive) Raceday experience

Year 1

£860K Year 2 /3

TBC

Source: Portas analysis

Non-raceday experience

•

Feeling valued when welcomed by the racecourse

•

The anticipation before watching your hose run

•

‘Being on the inside’ when standing in the parade ring and speaking with the jockey

•

The thrill and pride of winning, and joy of sharing that moment with friends and family

•

The excitement of becoming an owner

•

The enjoyment of a visit to the stables and seeing your horse close up

•

Getting an inside track to the sport

•

Receiving weekly updates from your trainer about your horse, and exclusive information on ownership

•

The friends gained and fun of attending other events throughout the year

4

Improvements to the ownership experience for existing owners will support growth in the involvement and investment of both existing and new owners An improved experience for existing owner will increase the involvement of both new and existing owners:

This will be measured through clearly defined KPIs (Illustrative examples) # of Horses In Training

1 Incentivise existing owners to increase their current CPO*

% races with 8 or more runners 2

Encourage existing owners to stay in the sport for longer, reducing churn rate and increasing average tenure

3 Attract new owners to the sport, boosting ownership diversity

Churn rate of owners

Average tenure of ownership

Net Promoter Score of owners

Source: Portas analysis

*CPO = Cumulative Percentage Ownership

5

This will be delivered through implementation of 10 initiatives that develop a compelling ownership proposition and enable service providers to deliver it Workstream objectives Developing a compelling proposition for British Racehorse Ownership to retain existing and attract new owners

Phase 1

Workstreams and initiatives Sep

Oct

Nov

Phase 2 Dec

Jan

Feb

Mar

Phase 3 Apr

May Jun

Jul

Aug

Ownership proposition 1. Understand what owners want 2. Develop ownership proposition* 3. Develop British racehorse ownership 4. Promote the proposition and British racehorse ownership Service providers 5. Understand what support service providers need

Delivering the proposition by supporting service providers to serve existing and attract new owners

Racecourse services

Trainer services

Syndicate services

Blueprint by end of phase 3

6. Develop syndicate quality mark 7. Support trainers to enhance customer service & comms

Year 2 aside from quick wins

8. Develop website to facilitate selection of trainers

Year 2 aside from quick wins

9. Develop Industry Quality Mark & ROA Gold Standard

10. Support racecourses with delivery of concierge function *Solution will be calibrated with any required alignments to funding and operating model for ROA/British racehorse ownership

Source: Portas analysis

6

Segmentation analysis of owners was used to gain an understanding of the full spectrum of ownership needs

Likely to increase

New hot

Lapsed hot Up and coming

Future fanatic

Racing club hot Fanatic

Likelihood to increase involvement

Commercial

Likely to maintain

Steady owners Lapsed cold

Likely to reduce

VIP

New cold

Low priority at risk

0 CPO

0 – <1 CPO

1 – 1.5 CPO

At-risk fanatic

1.5 – 10 CPO

Current level of involvement (CPO - Cumulative percentage ownership) Source: Portas analysis

Diehard

10+ CPO Priority segment for analysis Non-priority segment for analysis

7

Benchmarking of equine and non-equine organisations was done to understand how they deliver excellent experiences and support their customers Organisations

Approach Equine

Non equine

â&#x2013;Ş Interviews and site visits for Tier 1 and 2 to identify comprehensive learnings

Tier 1

Areas to investigate Six key areas of interest were identified to focus our research: Rights - what rights and benefits do the members receive?

Structure - how is the proposition is organised and structured?

Tier 2

â&#x2013;Ş Desk research for Tier 2 to identify targeted learnings

Communication â&#x20AC;&#x201C; what communications do members receive?

Support services - what supporting services are provided to owners?

Support organisation - how is the organisation is set up to deliver the membership?

Support for service providers - how are service providers who deliver the proposition enabled?

Source: Portas analysis

8

The project is taking a proactive approach to integrating with ongoing projects that are aimed at addressing key industry challenges impacting ownership Industry challenge Increased levels of public concern and involvement over equine welfare Racing is becoming increasingly less relevant to younger generations

Example of impact on ownership Potential new owners are concerned about entering the sport due to perceived problem

How could ownership help?

How our project will address this?

Educate owners on how they can be an advocate for the industry

▪ Support existing equine welfare programmes

Lapsed owners will not be replaced by Utilising current owners as promoters by young owners – declining owner numbers spreading their positive experiences as and diversity an owner

▪ Support existing Racing Futures and Fan Engagement project (Our focus is on converting existing racegoers to owners)

Insufficient supply of staff to support an increase in HIT

An increase in owners and HIT could provide the added revenue to support training and hiring

▪ Support existing industry projects on supply of training staff (Note - we will assume an increase in HIT would be possible if these projects are delivered)

Owners more likely to lapse if prize money is declining, also less likely to attract new owners

If the ownership experience is improved, people’s perceptions of value for money may increase

▪ Prize money is not in scope of the project.

(Our focus on improving the experience to enhance perceived value for money)

The decline of the popularity of National Hunt racing

Lower demand for National Hunt racing could decrease the quality of supply of services (trainers, racecourses etc.)

Improving the ownership experience across codes will help to retain and recruit owners

▪ Not directly in scope (Although we will utilise opportunities to understand the views of owners on their future interest in national hunt ownership)

The uncertainties caused by Brexit

The involvement of foreign owners could decline (9/10 of top owners in British Racing are from overseas)

Ensuring owners are loyal to British Racing because they have a fantastic ownership experience

▪ Support existing British racing Brexit steering group (Our focus on improving the experience for all owners including foreign owners)

Lack of supply of good quality racing staff

Declining revenue due to closure of FOBTs having an impact on prize money

Source: Portas analysis

9

The delivery of this project will have significant cross industry benefit

Driving increased income

Increasing volume at sales houses

Increasing trainers’ yard sizes

Economic

Increased field sizes driving betting turnover, media rights & raceday income

Boosting diversity in racing

Increased sales/demand for horses at sales houses

Raising the profile of racing

Growing the number of HIT will drive an increase in the size of trainers’ yards Maintaining the UK’s place in the global bloodstock market

Sporting

Greater number and diversity of ‘participants’ in the sport

Source: Portas analysis

Raising owner Net Promoter Score will raise the profile of racing

Supporting UK’s place in the global bloodstock market

10

Contents

Context Identified strategic priorities Supporting findings Next steps

McKinsey & Company

10 11

Strategic priorities

Three strategic priorities will underpin the design of the ownership proposition

Proposed strategic priorities

1

Differentiate the experience of owners with high involvement

2

Define and deliver a consistent and sustainable experience to syndicate owners

3

Source: Portas analysis

Enhance the baseline experience for all owners in the areas that matter most

12

Strategic priorities | Differentiate the experience of owners with high involvement

1

There is considerable investment being ‘left on the table’ by a lack of focus on owners with high involvement

Rationale for strategic priority

▪ There are a small number of owners responsible for a large number of horses: – 4% of owners own 21% of horses in training – >50% of growth in HIT since 2015 has been driven by owners with 5+ CPO

▪ Despite this, there is currently limited focus on engaging and increasing the involvement of these owners: – ROA has no dedicated focus for owners with high involvement

– Feedback from owners that they receive same benefits, levels of customer care and recognition as other owners despite difference in levels of involvement – GBRI supports the experience of international owners, but has a low budget (£400k) and doesn’t cater for domestic owners – Owners receive same benefits despite difference in level of involvement

Source: BHA data, Portas analysis

13

Strategic priorities | Differentiate the experience of owners with high involvement

1

The proposition should differentiate the experience of owners with high involvement to retain and maximise their investment in the sport

Implications for proposition design

Initial hypotheses on how to do this (Non-exhaustive)

Develop an owners’ club and concierge function that provides a personalised, differentiated, luxury offering to owners with high involvement

▪ Develop a ‘Gold club’ for high involvement owners with sub-groups such as a young owners club

Conduct targeted campaigns to attract new high wealth individuals into high involvement ownership

▪ Target events with high income individuals present (e.g.

Wealth Management, Premier League football players through PFA etc.)

▪ Tailor the benefits of this club to the different segments of owners with high involvement – VIPs, commercially oriented owners and diehard horseracing fans

▪ Target foreign owners with limited involvement in UK racing ▪ Target friends & families of existing high involvement owners Support the growth of owner breeders

Source: BHA data, Portas analysis

▪ Provide information on how to enter breeding targeted at owners with horses suitable for breeding

14

Strategic priorities | Deliver a consistent and sustainable experience to syndicate owners

2

Syndicate ownership is growing but future growth in HIT is threatened by a lack of governance and structure

Rationale for strategic priority

▪ There is a growing* number of syndicate owners in the UK reflecting worldwide trends: – Increase in syndication is a global trend (e.g. Ireland, Australia) – Traditional sole owners in the UK are moving into syndicate ownership to ‘diversify their portfolio’ and due to recommendations from syndicate owners who have a net promoter score of +14 – Syndicates are providing an accessible route into ownership for younger and lower income demographics – Trainers increasingly using syndicates to sell shares of unsold horses

▪ Despite this, there is a lack of proper structure or governance on syndicate ownership: – Syndicate managers are not regulated – Syndicate owners are not required to register, and many are not members of the ROA – Limited understanding amongst new/existing owners of the different types of syndicates available

▪ This is resulting in an inconsistent syndicate experience which could have a detrimental impact on the industry if it undermines potential growth in HIT: – New owners ‘dipping their toe’ into racing through syndication discouraged from increasing involvement – Full owners with syndicate shares getting bad experience discouraged from retaining/increasing involvement – Syndicate owners discouraged from going into multiple syndicates – Females joining syndicates less than males

Source: BHA data, Portas analysis

* There is a lack of data on the number of syndicate owners however this is strongly supported by interviews

15

Strategic priorities | Deliver a consistent and sustainable experience to syndicate owners

2

The proposition should define and deliver a consistent and sustainable experience to syndicate owners

Implications for proposition design

Initial hypotheses on how to do this (Non-exhaustive) ▪ Require syndicate managers to register all members with the BHA / ROA – and impose penalties for lack of compliance

Establish visibility of syndicate owners

▪ Simplify the process for registering syndicate members Define an Industry standard offering for syndicate owners ▪ Define the raceday and non-raceday rights and benefits of syndicate owners – possibly based on their CPO ▪ Support service providers to consistently deliver this offer Develop a syndicate quality mark to drive up the consistency of the syndicate owner experience

▪ Develop a quality mark for syndicates

Support service providers (racecourses, trainers) to deliver syndicate owner experience (including attitudes and structural changes)

▪ Work with service providers to shift mindset on syndicate owners

Source: BHA data, Portas analysis

▪ Develop a website that explains how syndicates work, what types of syndicates to join, and which has a quality mark (potentially a development of inthepaddock.co.uk)

▪ Work with service providers to understand and implement what is required to deliver the standard syndicate offering

* There is a lack of data on the number of syndicate owners however this is strongly supported by interviews

16

Strategic priorities | Enhance the baseline experience for all owners in the areas that matter most

3

There is a clear need to address issues in the areas that matter most to all owners

Rationale for strategic priority

▪ In addition to prize money, there are four areas that owners consistently cite in what matters most, however there are deficiencies in how each of them are delivered: – Involvement with horse on raceday: Owner experience is not sufficiently differentiated from racegoers – Watching your horse run: Average number of runs per horse is <5 per year – Winning: Owners cite disappointment with treatment of winning

Involvement with the horse on raceday

20% 18%

Prize money*

17%

Winning O&T facilities

– O&T facilities on raceday: Owners frequently complain about facilities (44% of lapsed owners citing raceday experience as reason for leaving)

Source: 2016 owners survey, BHA data, Portas analysis

“What is your most enjoyable aspect of ownership?” (% responses)

Watching your horse run

* Prize money not in scope for this project

14% 12%

17

Strategic priorities | Enhance the baseline experience for all owners in the areas that matter most

3

An improved proposition should enhance the baseline experience for all owners in the areas that matter most

Implications for proposition design*

Initial hypotheses on how to do this (Non-exhaustive)

Develop Quality Marks and SLAs to ensure consistency in ▪ Develop and promote Industry Quality Mark for racecourses, syndicate managers and possibly trainers, and provide customer experience support for them to achieve this ▪ Establish common goals and SLA between organisations responsible for delivering ownership experience Enhance the “Moments that Matter” for owners by working with service providers to transform them over time Develop stronger enablers for delivering the ownership experience with a focus on marketing, data, digital and continuous improvement

▪ Enhance winning moment & extend to placed owners ▪ Use technology to deliver increased involvement on raceday ▪ Explore methods to increase the number of runs per horse ▪ Proactively market the ownership brand ▪ Develop improved visibility of owner data ▪ Develop a digital strategy for the ownership experience ▪ Establish improved continuous improvement processes

Increase contact time with existing and new owners on and outside raceday to deliver their needs, create strong relationships and continuously improve understanding of what they want

Source: 2016 owners survey, BHA data, Portas analysis

▪ Establish a raceday liaison team at racecourses ▪ Develop an enhanced remote support service for owners

* This excludes implication for trainer component of proposition design as this is not in focus until phase 3

18

Strategic priorities | Priority actions

Additionally, 8 priority actions have been identified to start the process of change Priority actions

Activity

Timeline

1

Develop leasing proposition

▪ Develop a more effective leasing process and improve visibility of leasing opportunities

Jan 19

2

Revise ROA jackpot

▪ Shift focus of ROA jackpot from retention to promotion tool

Jan 19

3

Deliver ownership training to trainers & those new in industry

▪ Deliver customer service training in BRS trainers' module

Nov 18

4

Set up a complimentary ROA offer for low/lapsed/non-owners

▪ Develop a tool for engaging warm prospects amongst lapsed owners and non-members (e.g. syndicate members, enthusiastic racegoers, friends of owners)

Jan 19

5

Share findings of syndicate survey

▪ Encourage syndicate managers to address concerns of members and adopt best practices, whilst demonstrating ROA efforts to support syndicate members

Nov 18

6

Provide training and toolkits to racecourses

▪ Provide training sessions on owner needs to racecourses during off-season

Feb 19

7

Appoint Ownership champions

▪ Appoint and train ‘ownership champions’ who can support the external marketing of ownership and the implementation of ownership proposition

Mar 19

8

Develop strategy for highlighting owners at racedays on TV

▪ Liaise with ITV /RUK /ATR media around interviews with owners on racedays

Jan 19

Source: Portas analysis

▪ Deliver ownership slot on Overview of Racing Industry training day

▪ Develop toolkits that racecourses can use to improve their customer service

▪ Develop process (internal or outsourced) for identifying owners with interesting back stories 19

Contents

Context Identified strategic priorities Supporting findings Next steps

McKinsey & Company

10 20

Findings | Approach

The strategic priorities were identified based on a synthesis of findings from a diagnosis that consisted of a wide-ranging consultation, research & analysis and benchmarking Wide-ranging consultation

Research and analysis

Benchmarking

▪ Targeted and representative (i.e. size, regional, code) interviews with:

▪ Segmentation analysis of 2016 owner survey (2,203 respondents)

▪ International equine benchmarks such as British Eventing, Hong Kong Jockey Club, Racing Australia, Magic Millions, France Galop and Japanese Racing Association

– 148 owners (interviews + regional meetings)

– 12 racecourses and representatives – 6 syndicate managers – 16 fanatics ▪ Extensive engagement key ownership stakeholders, such as ROA, BHA, RCA, RSA, NARS, GBR, GBRI, Horsemen Group

▪ Additional online surveys for hard to reach segments not well covered in 2016 survey:

– 497 syndicate and racing club members

▪ International sports benchmarks such as Club Wembley, MCC, Goodwood, RHS, RFU, Arsenal, Bayern Munich, RYA, British Airways, Ferrari

– 22 syndicate/racing club managers ▪ Gathering and analysis of existing data and research, such as ROA data, BHA data, Racecourse data

Findings and design implications

Source: Portas analysis

21

1

Differentiate the experience of owners with high involvement

22

Findings | Provide differentiated experience to owners with high involvement

1

Summary of findings | Provide differentiated experience to owners with high involvement

Summary of findings for owners with high involvement

1a

Owners expect a luxury product experience

1b

Owners want recognition for their investment

1c

Owners prioritise winning

1d

High CPO owners are passionate about being involved with training and racing plans

1e

Most new high involvement owners come from outside the pool of existing owners, however some make the jump from syndicate owner

1f

There is little provision of benefits outside of raceday

1g

There is limited knowledge and focus on engaging owners with high involvement

1h

There is limited support provided to owners to encourage them to become breeders

1i

There is an opportunity to pull through younger people into high involvement ownership

Source: Portas analysis

23

Findings | Provide differentiated experience to owners with high involvement

1a

Owners with high involvement expect a luxury product experience

Finding

Supporting evidence

1a. Owners with high involvement expect a luxury product experience % of owners who spend £20K+ on lifestyle / hobbies [TOB readers]

Cars

11.0%

Hobbies

11.0%

Travel

Wine

Watches

9.0%

2.0%

1.0%

Source: TOB Survey; Portas analysis

▪ Managers of high end syndicates report that their members see ownership as a luxury good, rather than just a hobby and therefore expect a similar level of service ▪ Insight from GBRI shows that owners want access to ‘money can’t buy experiences’ and are willing to pay for them

Implications for delivery of strategic priority ▪ Develop a ‘gold club’ for owners with high involvement that provides higher levels of hyper-personalised service and benefits ▪ Work with racecourses to develop ‘luxury facilities’ at racecourses in addition to complementary O&T facilities (e.g. VIP entrance, owner restaurants)

▪ TOB found that readers surveyed spent their leisure time and money on premium goods such as cars, watches and travel, with 1 in 10 spending £20K annually on cars ▪ Luxury car makers such as Ferrari and Bugatti have a hyper-personalised service with a dedicated resource available at all times and a detailed knowledge of who the customer is and their preferences

24

Findings | Provide differentiated experience to owners with high involvement

1b

Owners with high involvement want recognition for their investment

Finding

Supporting evidence

1b. Owners with high involvement want recognition for their investment % who answered ‘recognition’ as their most enjoyable aspect of raceday

▪ Owners with high involvement over-index for “recognition of owner role and contribution” as their most enjoyable aspect of ownership (fanatics are 13% vs. 8% for all owners) ▪ Observations of limited recognition provided to owners today

13%

Fanatic

Average

Implications for delivery of strategic priority ▪ Work with racecourses and broadcasters to increase recognition of owners on and outside of raceday. For example: -

Owners mentioned during commentary

-

Owners more visible on big screen

-

Winning owners more visible

-

Owners name mentioned in media (i.e.

TV stories, sports articles)

▪ Positive feedback provided to small steps taken by courses such as Musselburgh that recognizes its top 10 most loyal owners, with a plaque and a press release

8%

Source: 2016 owner survey, Portas analysis

25

Findings | Provide differentiated experience to owners with high involvement

1c

Owners with high involvement prioritise winning

Finding

Supporting evidence

1c. Owners with high involvement prioritise winning

▪ 49% of owners state that winning is everything or important

Owner net promoter score (NPS)

▪ Owners with “low success” have a Net Promoter Score of -34 compared to +22 for those with “high success”

+22

High success owner

-10

Average owner

-34

Low success owner

Source: 2016 owner survey, Portas analysis

▪ Die-hards over-index for winning compared to other owners for winning being the most enjoyable aspect of ownership (22% vs. 17%)

Implications for delivery of strategic priority ▪ Establish a proactive approach to engage with owners with high involvement that have not won as this is a leading indicator of lapsing ▪ Enhance the experience of placing for owners – e.g. expanding the winning connections space ▪ Proactive racecourse liaison who invites placed owners into winning connections if Winning owner is not present

▪ Trainers revealed that their success and track record in having winners was the biggest draw to owners (rather than customer service etc.) when they were choosing a trainer

26

Findings | Provide differentiated experience to owners with high involvement

1d

High CPO owners are passionate about being involved with training and racing plans

Finding

Supporting evidence

1d. High CPO owners are passionate about being involved with training and racing plans What is your most enjoyable aspect of ownership?

26%

Involvement with training & racing plans

▪ Diehard owners over-index (compared to average) for involvement with training and racing plans (26% vs 19%) ▪ The diehard is passionate about involvement with the horse and is less concerned with other raceday benefits / elements

Implications for delivery of strategic priority ▪ Work with trainers to highlight the importance of keeping diehard owners involved with their horse’s training (e.g. videos of the horse on the gallops, updates from the trainer, pictures via WhatsApp

19%

22% Winning 17%

10% Attending racedays

▪ Diehards choose sole ownership because it enables them to have the most contact with their horse, rather than being q1 of 10 or 20 people at a stable visit or on a raceday, they are able to have sole contact with the horse / jockey / trainers

19%

5% Social 4%

Diehard Total (excl. diehard)

Source: 2016 owner survey, Portas analysis

27

Findings | Provide differentiated experience to owners with high involvement

1e

Most new high involvement owners come from outside the pool of existing owners, however some make the jump from syndicate owner

Finding

Supporting evidence

1e. Most new high involvement owners come from outside the pool of existing owners, however some make the jump from syndicate owner

▪ There is a disparity in income between owners with low and high involvement.

For example, 78% of diehards earn greater than £250k compared to just 26% of fanatics

To what extent are you likely to increase your ownership by in the next 2 years? [Syndicate members who indicated they would increase]

▪ High-end syndicates have had success in recruiting new members through targeting events with wealthy attendees such as wealth management conferences

Small increase

31%

Moderate increase

Large increase

49%

19%

Implications for delivery of strategic priority ▪ Boost the GBRI model to better recruit and retain international owners ▪ Run targeted campaigns to attract new high wealth individuals into high involvement ownership

▪ 19% of syndicate members who said they wanted to increase their involvement indicated that this increase would be significant, either through sole ownership or through multiple partnerships and syndicates

Source: 2016 owner survey; Syndicate survey; Portas analysis

28

Findings | Provide differentiated experience to owners with high involvement

1f

There is little provision of benefits outside of raceday for owners with high involvement

Finding

Supporting evidence

1f. There is little provision of benefits outside of raceday for owners with high involvement

▪ There are few events provided to owners with high involvement outside of raceday ▪ Contrastingly, many syndicates proactively provide extensive benefits to members such as owner socials, sales & stud visits ▪ Club Wembley provides year round events to its members beyond matches including dinners with legends and golf days ▪ GBRI offers its members access to money can’t buy experiences (paid for by owners) ▪ The MCC provides regular high quality communications with all members through their preferred channel (i.e. email, letter) ensuring members are up to date with the Club’s activity but are not bombarded with emails ▪ The RAC club offers reciprocal access rights to clubs around the globe, allowing members a high-end experience beyond their ‘home club’

Source: 2016 owner survey, Portas analysis

Implications for delivery of strategic priority ▪ Develop a ‘gold club’ to owners with high involvement that provides exclusive and comprehensive year-round benefits alongside tailored support ▪ Utilise GBRI capacity and enhanced understanding / visibility of high CPO owners to offer tailored events outside of raceday to enhance their ownership experience

29

Findings | Provide differentiated experience to owners with high involvement

1g

There is limited knowledge and focus on engaging owners with high involvement

Finding

Supporting evidence

1g. There is limited knowledge and focus on engaging owners with high involvement Number of horses owned by top 10 largest owners in the UK

267 182 111 107 86 83 81

▪ No proactive process in place for identifying and engaging owners with high involvement who might increase 347 their involvement or lapse

▪ Develop a ‘gold club’ to owners that is supported by an effective system, process and people which enables targeted engagements ▪ Create working partnerships with high-end brands based on understanding of current High CPO owners’ leisure interests and hobbies

▪ 9 out of top 10 owners by number of horses in training are foreign investors and are not members of the ROA ▪ We currently lack information on why high involvement owners choose to have horses in the UK or why they decide to remove their horses from the UK

105 85

▪ There is limited visibility and knowledge of the 4% (~300) owners who own 20% of HIT

Implications for delivery of strategic priority

Domestic owner Foreign owner

Source: BHA; 2016 owner survey; Portas analysis

30

Findings | Provide differentiated experience to owners with high involvement

1h

There is limited support provided to owners to encourage them to become breeders

Finding 1i. There is limited support provided to owner breeders to start/grow their business

Supporting evidence ▪ There is limited visibility of the number, sizes and needs of owner breeders ▪ Fewer than 1% of respondents in the Ownership Survey identified as owner breeders, meaning there is a lack of understanding around their motivations ▪ Interviews with current owner-breeders illustrated the lack of support available to owners who want to go into breeding, with the majority relying on their own contacts / knowledge to make the jump

Implications for delivery of strategic priority ▪ Work with TBA to develop a model for supporting owner breeders to grow their businesses. For example, providing grants or targeted support ▪ Ensure information is easily accessible around how to get into breeding

▪ Utilise new database / understanding of owners to identify and contact owners who are thinking of becoming breeders

▪ Lack of proactivity in identifying horses that would be valuable to breed from and encouraging / supporting their owners to do so (although businesses such as Darley Club are proactive) ▪ Little / no regulation or oversight of breeders Source: 2016 owner survey, Portas analysis

31

Findings | Provide differentiated experience to owners with high involvement

1i

There is an opportunity to pull through younger people into high involvement ownership

Finding

Supporting evidence

1h.There is an opportunity to pull through younger people into high involvement ownership

▪ Young people are interested in racing but are not getting into high involvement ownership - 23% of racing club and syndicate owners are aged 25-44 compared to 10% for owners with higher involvement

Average age of Low CPO* owners vs high CPO** owners 8%

16-24

0%

24-35

0%

15%

Low CPO High CPO

8% 10%

35-44

▪ There has been limited focus on converting young people associated with existing owners into ownership (e.g. friends and family)

▪ Develop a “young owners club” – possibly within the gold club that provides engaging service and benefits for younger owners.

For example – more digital communication, events and benefits relevant to younger people ▪ Work with racecourses to enhance the “family experience” for owners – with a focus on the horse

23% 23%

45-54

31% 33%

55-64 8%

65-74 75+

Implications for delivery of strategic priority

31%

8% 3%

Source: 2016 owner survey, Portas analysis

*Racing Club members and Syndicate members

**Diehard . fanatics

32

Graphic divider page for deliver a consistent and sustainable experience to syndicate 2 Deliver consistent and sustainable experience to syndicate owners owners >>> a a horse with syndicate owners

33

Findings | Deliver a consistent and sustainable experience to syndicate owners

2

Summary of findings | Deliver a consistent and sustainable experience to syndicate owners

Summary of findings

2a

Syndicate members have been involved in racing for longer than commonly perceived

2b

Syndicate managers and trainers are looking to grow their number of HIT

2c

Syndicates represent an opportunity to boost diversity in ownership

2d

Syndicates represent an opportunity to retain at-risk owners and re-engage with lapsed owners

2e

Syndicate members want to feel “on the inside” and “part of the club”

2f

There is large variation in the different types of syndicate available to owners

2g

There is a lack of understanding of the number of syndicates owners and their contribution to HIT

2h

Syndicates get an inconsistent experience, especially around badge allocation and O&T facilities

2i

There is no proactive approach in place to ensure potentially high CPO owners who dip their toe in syndicates have a good experience and move onto higher involvement

2j

Service providers are not set up for dealing with current syndicates owners and the potential growth of syndicate owners

2k

Syndicate owners are unaware of the role of the ROA and their right to join

Source: Portas analysis

34

Findings | Deliver a consistent and sustainable experience to syndicate owners

2a

Syndicate members have been involved in racing for longer than commonly perceived

Finding

Supporting evidence

2a. Syndicate owners have been involved in racing for longer than commonly perceived How many years have you been involved in ownership?

<1 1-2

•

50% of syndicate members had been involved in ownership for more than 10 years, with over 2/3rds involved for more than 10 years -

4% 9%

2-5

18%

5-10

19%

10+

Source: Syndicate survey; Portas analysis

-

50%

This supports anecdotal evidence from syndicate managers that syndicate members are often experienced owners with a high level of racing knowledge

Implications for delivery of strategic priority ▪ Recognise the experience and knowledge of syndicate owners and tailor the experience offered accordingly e.g. involvement with the horse on raceday and ability to talk to the trainer and jockey in the parade ring ▪ Actively market syndicates to at risk owners who want to decrease their investment but maintain their involvement in the sport

Interview evidence also indicates that sole owners are becoming syndicate members because there is limited differentiation between their experience with 100% of a horse or with multiple small shares of horses

▪ 32% of current syndicate owners are currently involved / have been at some point in sole ownership

35

Findings | Deliver a consistent and sustainable experience to syndicate owners

2b

Syndicate managers and trainers are looking to grow their number of HIT

Finding

Supporting evidence

2b. Syndicate managers and trainers would grow HIT if they received help with the admin side and assistance with recruiting members What is your plan for the size of your syndicate (number of horses managed)?

50%

Stay the same

46%

Increase

Decrease

4%

Source: 2016 owner survey, Portas analysis

▪ Almost half of syndicate managers indicated that they are looking to increase the size of their syndicate (number of horses managed) ▪ Syndicate managers want help with recruiting new members (55%), reducing member churn (27%) and the admin side of racing (18%)

▪ Syndicate managers are mostly reliant on word of mouth for attracting new syndicate members

Implications for delivery of strategic priority ▪ Provide industry support to targeted syndicates to help them grow their # HIT (e.g. promoting good practices, giving them training on what owners want, sharing survey findings) ▪ Simplify the leasing proposition for trainers and syndicate managers to ensure it is robust and is promoted as a viable option that reduces risk on both sides

▪ Syndicate managers cite challenges with selling all their shares for syndicates which prevents them from increasing the number of horses in their syndicate ▪ Obtaining badges are the biggest challenge facing syndicate managers, which impacts on both the recruitment and retention of members

36

Findings | Deliver a consistent and sustainable experience to syndicate owners

2c

Syndicates represent an opportunity to boost diversity in ownership

Finding

Supporting evidence

2c. Syndicates represent an opportunity to boost diversity in ownership What is your annual income? [Syndicate members] Under £50,000

42.1%

£50,000 - £100,000

£100,000 - £150,000

£150,000 - £250,000

£250,000 +

Pefer not to say

27.6% 11.8%

▪ Syndicates are an affordable route into ownership, with syndicate owners are at the lower end of the income scale (42% <£50,000 per year) ▪ Females are under-represented in syndicates (20% of syndicates owners are female compared to +30% in owners with higher involvement)

Implications for delivery of strategic priority ▪ Use syndicates as a tool to attract younger owners into the sport. For example: - Syndicates marketed at young people - Syndicates for young people related to sports teams (football) etc.

- Syndicates with events and networking opportunities focused at younger owners - Syndicates providing digital content and use of social media - Appointing a good mix of younger syndicate ownership champions

▪ Translate female interest in watching horse racing into more female syndicate owners

5.9%

- Creating female only syndicates

4.5%

- Promoting syndicates as a social way to get more involved in racing

8.1%

- Developing year-round events that appeal to females - Appointing female ownership champions

Source: Syndicate survey; Portas analysis

37

Findings | Deliver a consistent and sustainable experience to syndicate owners

2d

Syndicates represent an opportunity to retain at-risk owners and re-engage with lapsed owners

Finding

Supporting evidence ▪ 73% of lapsed owners would probably or definitely return (Lapsed hot owners)

2d. Syndicates represent an opportunity to retain at-risk owners and re-engage with lapsed owners

▪ 20% of lapsed hot owners are just waiting for the right opportunity to return

What would encourage you to return to ownership?

Waiting for the right opportunity

Change in personal circumstances

▪ Promote syndicates to lapsed owners as an opportunity to get back involved with the sport at a lower cost ▪ Launch lapsed-alumni groups to keep lapsed owners engaged in ownership (e.g. newsletters, ownership opportunities through leasing, syndicates, owner for a day etc.)

20%

▪ 16% of lapsed hot owners miss the excitement and sense of being involved

Miss the excitement / involvement Increased prize money

▪ 52% of lapsed hot owners earn have an income per annum of less than £50,000

Implications for delivery of strategic priority

16%

▪ Launch an engagement tool (complimentary newsletter and event invitation) to maintain contact with lapsed / at-risk owners

10%

9%

Source: 2016 owner survey, Portas analysis

38

Findings | Deliver a consistent and sustainable experience to syndicate owners

2e

Syndicate members want to feel “on the inside” and “part of the club”

Finding

Supporting evidence

2e. Syndicates want to feel “on the inside” and “part of the club” Rank the following based on their importance to you [Syndicate members]

Ability to watch your horse run O&T facilities Parade ring access

Implications for delivery of strategic priority

▪ The most important aspects of ownership to syndicate members are: ability to watch your horse run, O&T facilities, Parade ring access and access to trainer / jockey on raceday – elements that are central to feeling ‘on the inside’

▪ Clarify and communicate the number of badges that syndicates are entitled to manage syndicate member expectation

▪ Up and coming and racing club owners over-index for exclusive access/involvement with the horse as their most enjoyable aspect of raceday (20% vs. 16%)

▪ Work with trainers / jockeys to increase contact with syndicate members on raceday – an important aspect of ‘feeling on the inside’

▪ Develop a tiered membership with clear stipulations on levels of access

Access to trainer / jockey

Winning connections experience Non raceday involvement

▪ Racing club members over-index significantly for welcome by the racecourse as what would enhance their raceday experience (33% vs. 14%)

Car parking availability Tailored comms

Source: 2016 owner survey; Syndicate survey; Portas analysis

39

Findings | Deliver a consistent and sustainable experience to syndicate owners

2f

There is large variation in the different types of syndicate available to owners, and limited information available on how syndicates work and which is the ‘right one’ to join

Finding

Supporting evidence

Implications for delivery of strategic priority

2f. There is large variation in the different types of syndicate available to owners, and limited information available on how syndicates work and which is the ‘right one’ to join

▪ In the Paddock not kept up to date and has minimal impact in recruiting new owners ▪ Huge variety of syndicates, with limited information available to owners / potential owners to help them to decide

Illustrative

▪ Develop In the Paddock / design new website to offer new owners a centralized source of information on syndicates to help them understand how syndicates work and make the right choice – 38% of members chose their syndicate through their own research, therefore increasing the information available would assist their decision making How did you choose your syndicate?

Friends / family

44.0%

Own knowledg…

Trainer / breeder Other*

Low cost

Source: Syndicate survey, Portas analysis

38.0% 11.0% 7.0%

High end

40

Findings | Deliver a consistent and sustainable experience to syndicate owners

2g

There is a lack of understanding of the number of syndicates owners and their contribution to HIT

Finding

Supporting evidence

2g. There is a lack of understanding of the number of syndicates owners and their contribution to HIT

▪ Whilst there is a requirement for syndicate managers to register their members, only 54% of managers do so – there is limited / no enforcement of this requirement

Do you record all members with Weatherbys?

Yes

▪ Syndicate managers are required to share their members information with Weatherby’s however the process is highly administrative so many managers do not comply with it, and many report Weatherby’s does not properly store the data

54%

No

46%

Why do you not record members?

Too difficult / too much admin

64%

No point for small share syndicate members

Other**

Implications for delivery of strategic priority ▪ Enforce the requirement for all syndicate managers to register their members ▪ Work with BHA to reduce the admin in the registration process to make it as simple as possible ▪ Acquire syndicate owner data by: -

Targeting syndicate members to become full members of the ROA

-

Offering them engaging newsletters/ offers they can sign up to receive

-

Considering an ROA syndicate membership

27%

9%

Source: syndicate survey; Portas analysis

41

Findings | Deliver a consistent and sustainable experience to syndicate owners

2h

Syndicates get an inconsistent experience, especially around badge allocation and O&T facilities

Finding

Supporting evidence

2h. Syndicates get an inconsistent experience, which is highly dependent on their syndicate manager Please score the following based on your level of satisfaction [Syndicate members]

▪ 26% of syndicate members were detractors, rating their likelihood to recommend to a friend between 1-6 ▪ 40% of syndicate members were promoters, rating their likelihood to recommend to a friend a 9 or 10

Parade ring access Access to trainer / jockey Ability to watch your horse run

▪ O&T facilities are incredibly important to syndicate members, but rank bottom in satisfaction

Non raceday involvement Tailored comms Winning connections experience Car parking availability

▪ The average satisfaction with syndicate managers was 89% (from the syndicate survey)

Implications for delivery of strategic priority ▪ Promote high performing syndicates in ROA communications ▪ Create a quality mark for syndicates and make this visible through a website such as inthepaddock.co.uk - 79% of managers would support an In the Paddock style selection website Would you support an ‘inthepaddock.co.uk’ style selection website [managers responses] No 21.0%

Events outside of raceday Ability to bring friends and family Attending without a runner O&T facilities

Source: 2016 owner survey; Syndicate survey; Portas analysis

Yes 79.0%

42

Findings | Deliver a consistent and sustainable experience to syndicate owners

2i

There is no proactive approach in place to ensure potentially high CPO owners who dip their toe in syndicates have a good experience and move onto higher involvement

Finding

Supporting evidence

2i. There is no proactive approach in place to ensure potentially high CPO owners who dip their toe in syndicates have a good experience and move onto higher involvement Do you upsell to members to encourage them to buy more shares in horses you manage?

[Syndicate managers]

No 40.9%

Yes 59.1%

▪ The ROA has no current process in place to monitor or reach out to these high CPO owners ▪ Syndicate managers are aware of these owners, and attempt to upsell to them to increase their involvement through purchasing more shares – however the ROA has no oversight of these owners and therefore cannot offer support to them ▪ Syndicate managers are focused on increasing involvement within their syndicate, there is no incentive to pull members through to sole ownership

Implications for delivery of strategic priority ▪ Facilitate small / moderate increases in ownership (through syndicate shares or partnerships) by ensuring the joining process is straightforward ▪ Take a targeted approach to identifying and supporting the small number of high potential owners who want to significantly increase their involvement in ownership To what extent are you planning to increase your ownership involvement over the next 2 years?

Small increase Moderate increase Large increase

Source: Syndicate survey; Portas analysis

31%

49%

19%

43

Findings | Deliver a consistent and sustainable experience to syndicate owners

2j

Service providers are not set up for dealing with current syndicates owners and the potential growth of syndicate owners

Finding 2j. Service providers are not set up for dealing with current syndicate owners and the potential growth of syndicate owners

Supporting evidence ▪ Most racecourse facilities are not structurally set up for high number of syndicate owners (e.g. limited space in Parade ring/O&T facilities) however there are some exceptions such as Chester/Bangor

Implications for delivery of strategic priority ▪ Work with racecourses to improve their attitudes and customer service provided to syndicate owners ▪ Create a quality mark for syndicates and make this visible through a website such as In the Paddock

▪ Syndicate owners cite that racecourse staff often do not provide good customer service to syndicate owners ▪ Trainers – in particular small trainers – cite struggling with accommodating large numbers of syndicate owners

Source: Syndicate survey; Portas analysis

44

Findings | Deliver a consistent and sustainable experience to syndicate owners

2k

Syndicate owners are unaware of the role of the ROA and their right to join

Finding

Supporting evidence ▪ 49% of syndicate members didn’t know that the ROA existed / how to join, therefore membership rates were lower than in the general owner population

2k. Syndicate owners are unaware of the role of the ROA and their right to join Why are you not a member of the ROA?

I don’t know what the ROA does / how to join

49%

I didn’t know syndicate owners could be members

21%

It is too expensive

12%

I don’t care about the benefits / I’m not interested

12%

Source: Syndicate survey; Portas analysis

Implications for delivery of strategic priority ▪ Run a communications campaign to highlight the work that the ROA does as an advocate for all owners ▪ Develop an ROA syndicate

▪ Many syndicate members believe that ROA membership is only for sole owners and that the ROA doesn’t represent them – a finding supported by anecdotal interview evidence ▪ 12% of syndicate members do not join the ROA because they find the membership fee too high

45

3

Enhance the baseline experience for all owners in the areas that matter most

46

Findings | Enhance the baseline experience for all owners in the areas that matter most

3

Summary of findings | Enhance the baseline experience in the areas that matter most

Summary of findings*

3a

The raceday is a critical, but inconsistent, part of the experience for all owners

3b

The pinnacle for all owners is winning a race â&#x20AC;&#x201C; but the experience could be amplified and shared by placed owners

3c

All owners love watching their horse run â&#x20AC;&#x201C; but for many this is fewer than 5 times per year

3d

All owners want increased involvement with the horse on raceday

3e

(Small) trainers have limited capacity for providing owners with the comms, customer service and non-raceday horse access they want**

3f

Racecourses want to deliver to owners, but donâ&#x20AC;&#x2122;t know who they are or what they want

3g

There is a lack of a coherent identity for racehorse ownership

3h

There is insufficient visibility of owner data

3i

The ownership experience can be impersonal and administrative, with limited support available to owners

3j

There is limited use of digital technology to enhance the baseline experience of owners

Source: Portas analysis

* Findings on prize money excluded as it is out of scope of the project

**initial findings, further analysis to be completed in year 2 of the project

47

Findings | Enhance the baseline experience for all owners in the areas that matter most

3a

The raceday is a critical, but inconsistent, part of the experience for all owners

Finding

Supporting evidence

3a. The raceday is a critical, but inconsistent, part of the experience for all owners

▪ Enjoyment of watching your horse run on raceday is the top reason for getting involved in ownership (>70%)

Why did you lapse your ownership?

▪ However, 44% of owners who lapse cite their racecourse experience

Cost of keeping a horse in training

82.0%

Lack of prizemoney

Racecourse experience

▪ Owners cite significant variation in their raceday experience at different racecourses

65.0%

44.0%

Trainer experience

26.0%

Limited success

24.0%

Source: Syndicate survey; Portas analysis

▪ Syndicate owners value the ability to watch their horse run on raceday the highest

Implications for delivery of strategic priority ▪ Develop an Industry Quality Mark to deliver a more consistent raceday experience across all racecourses -

Work with racecourses to help them to improve their Quality Mark score by improving aspects of the owners’ raceday experience

▪ Revise the Gold Standard to encourage racecourses to provide excellence in the owner’s raceday experience

48

Findings | Enhance the baseline experience for all owners in the areas that matter most

3b

The pinnacle for all owners is winning a race – but the experience could be amplified and shared by placed owners

Finding

Supporting evidence

3b. The pinnacle for all owners is winning a race – but the experience could be amplified and shared by placed owners What is the most enjoyable aspect of ownership?

Involvement with training and racing plans

19.0%

Winning

17.0%

▪ Winning is important to owners - 49% of owners state that winning is everything or important - 17% of owners state winning is the most enjoyable aspect of ownership - 30% of owners entered ownership for the dream of winning races

▪ Many owners however cite their winning experience could be optimized, such as - Limited time/space in winning connections - Not being able to watch / re-watch the race

Attending racedays

14.0%

- One small trophy - Lack of atmosphere in winning enclosure

Social

Status

Source: Portas analysis

4.0%

1.0%

▪ A key driver of owners considering reducing their involvement is not winning (At-risk owners over-index for “winning” being the most enjoyable part of ownership)

Implications for delivery of strategic priority ▪ Work with racecourses to enhance the winning experience. For example: - Provide multiple trophies / mementos - Have the Jockey / Trainer present with the winning owner for longer than just the winners enclosure - If possible, present winning owners with their trophies at the end of the race in front of the grandstand

▪ Work with racecourses to enhance the experience of placed owners. For example: - Proactive discretionary entry into winning connections if winner is not present - Ensuring name of owners is always announced at the finish - Placed owners’ room, equivalent to a winning connections room

49

Findings | Enhance the baseline experience for all owners in the areas that matter most

3c

All owners love watching their horse run – but for many this is less than 10 minutes per year

Finding

Supporting evidence

3c. All owners love watching their horse run – but for most, this is fewer than 5 runs per year What motivated you to become an owner?

Enjoyment of watching your horse run

76.0%

Non Raceday elements

42.0%

Dream to win races

33.0%

Social aspect

31.0%

Source: BHA; 2016 owner survey; Portas analysis

Implications for delivery of strategic priority

▪ Enjoyment of watching your horse run on raceday is the top reason for getting involved in ownership (>70%)

▪ Work with racecourses and broadcasters to provide owners with replays of their horses running

▪ However, the average runs per horse in 2018 was 4.8 (flat - 5.2, jumps 3.7), with many owner being unable to attend all races due to time commitments, difficulty travelling or late notice from the trainer

▪ Work with trainers to understand opportunity to increase numbers of runs per horse per year

▪ Liaise with racecourses and broadcasters to provide new “views” for owners on raceday

50

Findings | Enhance the baseline experience for all owners in the areas that matter most

3d

All owners want increased involvement with the horse on raceday

Finding

Supporting evidence

3d. All owners want increased involvement with the horse on raceday What is the most enjoyable aspect of raceday? [syndicate members]

Ability to watch your horse run

Implications for delivery of strategic priority

▪ Exclusive access and involvement with the horse was the most frequently cited by owners as their most enjoyable aspect of raceday (16%)

▪ Work with racecourses to provide more opportunities on raceday for owners to be involved with the trainer and jockey e.g. talking strategy in the parade ring

▪ Syndicate owners rated access to the trainer / jockey as the 4th most important aspect of the raceday

▪ Identify opportunities for owners to access / see their horse ‘behind the scenes’ e.g. when it is being saddled up

O&T facilities Parade ring access Access to trainer / jockey Winning connections experience Non raceday involvement Car parking availability Tailored comms Attending without a runner Ability to bring friends and family Events outside of raceday

Source: Syndicate Survey; 2016 owner survey; Portas analysis

51

Findings | Enhance the baseline experience for all owners in the areas that matter most

3e

(Small) trainers have limited capacity for providing owners with the comms, customer service and non-raceday horse access they want

Finding 3e. Small trainers have limited capacity for providing owners with the comms, customer service and non-raceday horse access they want

Supporting evidence ▪ Interviews with trainers have highlighted an industry shortage in qualified and capable staff ▪ Anecdotal evidence from trainers that constantly changing BHA regulations and forms take up a large portion of their time that should otherwise be devoted to training / customer engagement ▪ Small trainers cite often being overwhelmed by syndicate owners

Implications for delivery of strategic priority ▪ Support small trainers by: - Reducing their non-training workload (i.e. stabilizing changes in regulations) - Developing models to outsource their ‘nontraining’ workload (i.e. support centres, increased use of syndicate managers)

▪ Support small trainers by developing a quality mark for syndicates so that trainers can select which syndicates they work with ▪ Support trainers to enhance customer service and communications through training and technology

▪ Fully utilise syndicate managers as frontline customer liaison managers – simplifying comms as they only need to communicate with the manager who then passes the message

Source: Portas analysis

52

Findings | Enhance the baseline experience for all owners in the areas that matter most

3f

Racecourses want to deliver to owners, but don’t know who they are or what they want

Finding

Supporting evidence

3f. Racecourses want to deliver to owners, but don’t know who they are or what they want

▪ The majority of racecourses have demonstrated desire to improve owners experience and have real incentive to do so with new media rights deal

Visibility of owners within the racing industry

▪ However, racecourses have very limited data available on owners, and are often reliant on syndicate managers and trainers for contacting and providing information to owners

All owners

Known, registered owners

Implications for delivery of strategic priority ▪ Provide racecourses with improved understanding of owners, and access to owner data ▪ Incentivize trainers and syndicate managers to communicate more effectively with owners on racecourse behalf

▪ Operate an ROA / BRO customer liaison service at racecourses – with the ROA utilizing the data they have on owners to ensure a personalized welcome to the course

Unknown owners

Source: Portas analysis

53

Findings | Enhance the baseline experience for all owners in the areas that matter most

3g

There is a lack of a coherent identity for racehorse ownership

Finding

Supporting evidence ▪ The ownership journey is made up of contact with a number of organisations (e.g. register as an owner with Weatherby's, register as a member with ROA, register as a syndicate manager owner with RSA)

3g. There is a lack of a coherent identity for racehorse ownership What word do you most associate with racehorse ownership?

Exciting

76%

Expensive

66%

Fun

Frustrating

49% of syndicate members don’t know what the ROA does or how to join

Implications for delivery of strategic priority ▪ Develop a coherent identity and brand for British racehorse ownership with other racing entities providing support through clearly defined SLAs ▪ Improve the ownership experience to readdress the perceived value for money that ownership delivers ▪ Clarify the rights and benefits of all levels of owners to manage expectations

▪ Expensive is the second most popular word that that owners associate with racehorse ownership

53%

41%

Source: Syndicate Survey; 2016 owner survey; Portas analysis

54

Findings | Enhance the baseline experience for all owners in the areas that matter most

3h

There is insufficient visibility of owner data

Finding

Supporting evidence

3h. There is insufficient visibility of owner data

Do you register your members with Weatherbys? [Syndicate managers]

54%

Yes

Why don’t you register members? [Syndicate managers] Too difficult / too much admin

64%

No point for small share syndicate members Other**

▪ Only 54% of syndicate managers register their members with Weatherbys – because the system is too complex / time consuming

▪ Work with BHA to evaluate possibility to share data more effectively ▪ Develop data on owners using new ROA member database ▪ Work with service providers to provide them with enhanced data on owners on raceday

▪ ~30% of syndicate members are not ROA members

46%

No

▪ There is limited syndicate owner data (i.e. only those who have chosen to become members of the ROA)

Implications for delivery of strategic priority

▪ ROA has limited ability to access BHA data on owners (only ROA members)

▪ ROA has limited understanding of which owners are lapsing and why

27% 9%

Source: Syndicate survey; Portas analysis

▪ Racecourses have limited ability to access BHA or ROA data on owners

55

Findings | Enhance the baseline experience for all owners in the areas that matter most

3i

The ownership experience can be impersonal and administrative, with limited support available to owners

Finding 3i. The ownership experience can be impersonal and administrative, with limited support available to owners

Supporting evidence ▪ Extensive complaints from members about usability and level of administration in the registration, and reregistration process ▪ There are no relationship managers assigned to owners - Club Wembley has a dedicated relationship manager and hotline for its highest tier members, for lower tier members a helpdesk is available on matchdays

Implications for delivery of strategic priority ▪ Develop a “owners club” with relationship manager and information portal available to members ▪ Develop a concierge function for owners on raceday to personalise their raceday experience ▪ Create a members portal where owners can view their horse’s entries and declarations

▪ France Galop developed a dedicated online account where owners can visualise their earnings and monitor their horse’s entries and decs ▪ Limited personalization of experience for owners on raceday, although the pilot of the owner liaison support at Newmarket was evaluated as a success

Source: Portas analysis

56

Findings | Enhance the baseline experience for all owners in the areas that matter most

3j

There is limited use of digital technology to enhance the baseline experience of owners

Finding 3j. There is limited use of digital technology to enhance the baseline experience of owners

Supporting evidence ▪ The PASS system is used by most racecourses to assist in the badge allocation process for owners and trainers with a runner, however it is perceived to be sub-optimum ▪ There is limited use of technology in enhancing the raceday experience for owners (e.g. jockey cams, stable pit lane cams, instant replays, raceday app)

Implications for delivery of strategic priority ▪ Develop a digital strategy for enhancing owners experience ▪ Work to develop the concierge system which uses technology to supplement and assist an on course liaison team

▪ There is limited use of technology by trainers and syndicate managers to serve owners, although some technologies are emerging (e.g. Racing Manager) ▪ Bayern Munich’s ArenaCard is a cashless, contact card system used by season ticket holders for entry, parking, food and drink and more

Source: Portas analysis

57

Contents

Context Identified strategic priorities Supporting findings Next steps

McKinsey & Company

10 58

Next steps

Our two key next steps are to implement quick wins and further develop the blueprint

1) We will progress the execution of the quick wins

Source: Portas analysis

2) We will develop a high level design for the blueprint of the ownership proposition

59

Next steps | Developing a blueprint

2

The blueprint will be further developed in the remaining part of phase one

Next steps for blueprint design in phase 1 ▪ Design ownership proposition including: – Benefits offered to members

Next steps for blueprint design in phase 2/3 ▪ Conduct feasibility study for design of ownership proposition (e.g. benefits and eligibility criteria)

– Tiering of benefit packages

– Pricing of membership packages

▪ Develop the business model for delivering the ownership proposition

– Branding of ownership proposition ▪ Identify key next steps to develop business model for delivering ownership proposition

Source: Portas analysis

60

Industry Ownership Strategy - Syndicate survey 0

This syndicate survey insights deck is designed to provide detail on the findings from the survey that can be used to inform the proposition design Purpose of this deck and next steps

This deck: Focused insights report

Next steps: High level informational report

▪

The current deck is for use by the project team / ROA

▪

▪

It should be used as a base of understanding that can then be utilised to inform the design of the proposition

To be shared with syndicate managers, the RSA and available to members if requested

▪

Delivers a complete, descriptive summary of the findings of the syndicate survey

▪

High level comment on what the data shows and any notes to be aware of

▪

It cherry picks the most interesting elements of information from the survey and provides insight

1

The syndicate survey gives us a greater understanding of syndicate members and managers, an area of ownership that was missed in the 2016 survey Approach

Results Syndicate member

1

2

Identify syndicates as an area where data and understanding were limited

Design and deliver comprehensive surveys to members and managers to address gap

•

490 responses over the course of 11 days

•

197 respondents provided their details for follow up contact

Syndicate manager 3

Analyse data collected and utilise insight gained to inform proposition

4

Utilise contact details provided by respondents to test ideas / gather further information as needed

•

22 responses over the course of 11 days

•

13 managers provided their contact details for follow up

Note: When reading this report it should be considered that the survey respondents are likely to have been those who have a good manager, therefore their responses may be more positive than the average syndicate member (the same applies to the syndicate manager survey) 2

SYNDICATE MEMBERS

Syndicate member headline findings [1/2] Element 1

2

Ownership history

Involvement

Insight •

•

•

•

Evidence

Syndicate members are involved in ownership for a significant period of time, dispelling the view that they are only involved in syndicates for a couple of years before moving up the ‘ownership pyramid’

•

50% of respondents have been involved in ownership for over 10 years

•

The majority of syndicate members have never been sole owners, however 30% are currently sole owners or have been at some point

Tailored support should be offered to syndicate members who want to increase their involvement significantly

•

Most owners expect their ownership level to stay the same in the next 2 years, however 27% say they will likely increase

•

Those looking to increase would mostly use syndicates (54%) or partnerships (62%), however there is a small group that would make the jump to sole ownership (23%)

•

72% indicated that they would not increase their involvement as they couldn’t / didn’t want to take on the financial burden

Ensure the syndicate joining process is simple and straightforward to facilitate those who want to make a moderate increase to their involvement

If targeted changes were made, the majority of those who are not looking to increase their involvement would reverse their decision 3

SYNDICATE MEMBERS

Syndicate member headline findings [2/2] Element 3

Code

Insight •

•

4

5

Benefits

The ROA

•

•

Evidence

Flat racing should be used to both entice warm leads into ownership and encourage ‘newer’ owners to increase their involvement More experienced owners should be targeted with Jumps racing offers when encouraging an increase in involvement

•

Average ownership per code was roughly equal between jumps (23%) and flat (20%), with dual purpose (2%) lagging behind

•

Members at the start of their ownership journey (<2 years) have a greater involvement in Flat racing (13%) compared to Jumps (8%)

•

More experienced members who have been involved in ownership for longer (5+ years) have a greater involvement in Jumps racing (26%) compared to Flat (21%)

The issue of O&T facilities must be addressed, either by expanding the syndicate access rights or clarifying and communicating the limits to ensure expectations are realistic

•

Owners rated ability to watch their horse run, O&T facilities, Parade ring access and access to trainer / jockey as most important to them

•

Satisfaction generally correlated with importance in all aspects aside from O&T facilities which ranked second in importance but bottom in satisfaction

Communicating the role of the ROA for syndicate members and simplifying the joining process would increase the number of members from syndicates

•

70% of respondents were ROA members

•

70% of non-ROA members did not join because they didn’t know that the ROA was for syndicate owners or they didn’t know its role

4

SYNDICATE MEMBERS

1

Syndicate owners have been involved in racing for longer than commonly perceived

50% of respondents have been involved for 10+ years with nearly a third involved in sole ownership at some point How many years have you been involved in ownership?

Insight <1 1-2

4%

▪

9%

2-5

18%

5-10

19%

10+

– This is supported by interviews with syndicate managers who indicate that lots of their members were previous or current sole owners that want to spread their risk

50%

– Interview evidence also indicates that sole owners are becoming syndicate members because there is limited differentiation between their experience with 100% of a horse or with multiple small shares of horses

Are you currently a sole owner?

Yes No, but I used to be No, have never been

This supports the theory that the ‘pyramid of ownership’ is a myth as people do not necessarily move into sole ownership over time

15% 17% 68%

5

SYNDICATE MEMBERS

2

Syndicate members are most likely to increase by moderate amounts into other syndicates or partnerships, however there are a few who would make the large jump to sole ownership

28% of owners indicated that they would increase their ownership with 23% choosing sole ownership to achieve this

In the next two years, how is your ownership involvement likely to change?

Increase

Which methods of ownership would you choose to increase your involvement?

Racing clubs

28%

Small increase

9%

Syndicates

Stay the same

57%

15%

Sole ownership

31%

62% 54%

Partnerships Decrease

To what extent are you likely to increase your ownership by?

23%

Moderate increase Large increase

49%

19%

Insight ▪

The majority (57%) of syndicate owners want to maintain their level of involvement, however a significant proportion (28%) want to increase

▪

This increase is mostly small to moderate (80%) through syndicates and partnerships – the pathway for these members should be made simple and straightforward

▪

Syndicates and partnerships are the most popular way to increase involvement, however 23% of owners indicate that they would want to increase through sole ownership

▪

Those who indicate a large increase would manage this through partnerships and sole ownership – these owners should be identified and given support to facilitate their increase

6

SYNDICATE MEMBERS

3

Syndicate ownership goes against the trend decline in jumps ownership

Average ownership per code was roughly equal between jumps (23%) and flat (20%), with dual purpose (2%) lagging behind What is your % involvement (CPO) in each code of racing?

Insight

(Average per code of all respondents)

▪

Syndicates could be an effective way of halting the decline in popularity of jumps racing in the Britain with a roughly equal popularity

▪

Syndicate members at the start of their ownership career (<2 years of ownership) tend to favour Flat racing

23%

Jumps 20%

Flat

Average % CPO by tenure 29%

<1 25%

1-2

22%

2-5 18%

16%

5-10

17% 15%

-

▪

Syndicate members with 5+ years of experience in ownership tend to have a higher involvement with Jumps racing -

8% 4%

4% 0%

Flat

Introductory offers and the engagement tool to warm leads should have a heavier focus on Flat racing

10+

12%

Jumps

Events outside of raceday

2%

Dual

1% 1%

2%

Incentivising more experienced owners to increase their involvement should maintain a focus on Jumps racing

Dual 7

SYNDICATE MEMBERS

4

Syndicate members are generally satisfied with the benefits they value most, however O&T facilities are an important element to owners and one they are least satisfied with

O&T facilities is the 2nd most important benefit yet it has the lowest satisfaction with members

Please rank the following based on their importance to you Ability to watch your horse run O&T facilities Parade ring access Access to trainer / jockey

Winning connections experience Non raceday involvement Car parking availability Tailored comms Attending without a runner Ability to bring friends and family Events outside of raceday

Please score the following based on your level of satisfaction

Insight ▪

Owners value being able to watch their horse run for free because they become owners for the love of the sport

▪

O&T facilities are incredibly important to syndicate members and feeling ‘part of the inside’

Parade ring access Access to trainer / jockey Ability to watch your horse run Non raceday involvement Tailored comms Winning connections experience Car parking availability Events outside of raceday Ability to bring friends and family Attending without a runner

– This supports interview evidence that the exclusive elements of the raceday are the most important

O&T facilities

8

SYNDICATE MEMBERS

5

A lack of information around the role of the ROA and the benefits it gives to members is the main reason syndicate members do not join

Although the majority of respondents (70%) are ROA members, the survey revealed that lack of information is a major joining barrier Why are you not a member of the ROA?

Insight I don’t know what the ROA does / how to join

The roles of the ROA / BRO must be clearly defined to ensure there is no confusion

▪

ROA / BRO membership must be clearly communicated to all owners to ensure they are aware of how it relates to them and the benefits that are available

▪

They joining process must be clear and simple with support offered to ensure all who want to become members can become members

▪

12% of respondents cited expense as their reason for not joining, highlighting the potential impact of a lower cost ‘associate membership’ offering

49%

I didn’t know syndicate owners could be members

21%

12%

I don’t care about the benefits / I’m not interested

12%

Events outside of raceday

It is too expensive

I used to be a member

▪

6%

9

SYNDICATE MANAGER

Syndicate manager headline findings [1/2] Element A

B

Member registration

Growth support

Insight •

•

Evidence

The number of syndicate members registered would increase if the registration process was simplified for managers and they were given support / encouragement to register their members

•

46% of managers failed to register their members with Weatherbys with the recurring reason being too much admin / effort

•

Managers indicated that simplifying the registration process would encourage them to register their members

There must be industry support to match the syndicate managers’ desire to increase the size of their syndicate (number of horses managed) – this could be through information availability, support services for members and managers etc.

•

46% of managers are looking to increase the size (number of horses managed) of their syndicate but would need industry support and help in recruiting members to achieve this

•

60% of managers upsell to their members, by delivering an excellent experience and providing them with all the information needed to decide

10

SYNDICATE MANAGER

Syndicate manager headline findings [2/2] Element C

D

Member relationships

Racecourse access

Insight •

•

Evidence

Potential for managers to be used as frontline customer liaison officers due to their understanding of and relationship with members

•

Managers fundamentally understand the importance of aspects of racing to their members – never being more than 2 places different on 10 out of the 11 categories

•

Syndicate managers overestimate the importance to members of bringing family to the races (over estimated by 4 places)

The issue of badges needs to be tackled, either by increasing the allowance for syndicate members or by communicating clearly the badges they are permitted to manage expectations

•

Managers’ biggest challenges are obtaining badges (84%), retaining members (52%), admin (42%) and the racecourse experience (31%)

11

SYNDICATE MANAGERS

A

Syndicate managers do not register all of their managers because the admin side is too difficult / time consuming

46% of syndicate managers do not register all of their members, contributing to the lack of visibility on syndicate members* Do you record all members with Weatherbys?

Insight 54%

Yes

46%

No

Too difficult / too much admin

64%

No point for small share syndicate members

Other**

Source: Portas analysis

Events outside of raceday

Why do you not record members?

â&#x2013;Ş

Simplifying the registration process would help to ensure more members are registered with Weatherbys, which in turn would help to increase visibility of syndicate members

â&#x2013;Ş

Incorporating member registration into the syndicate quality mark to encourage registration -

Interview evidence suggests that members are not being registered currently because there is no consequence or penalty to managers if they do not register their members â&#x20AC;&#x201C; the syndicate quality mark will introduce an element of accountability

27%

9%

*based on the response of 22 manager

**horses are leased

12

SYNDICATE MANAGERS

B

Syndicate managers are actively seeking to increase the size of their syndicate (number of horses managed), however they require support to do so

Almost 50% of syndicate managers indicated that they wanted to increase the size of their syndicate (number of horses managed)* What is your future plan for your syndicate(s)?

Insight 50%

Stay the same

This supports the hypothesis that syndicate ownership is likely to grow in the immediate future, with managers looking to increase the number of horses they manage and in turn, the number of members they have – it is important that we understand who syndicate members are and what they want in order to cater for this growth

▪

Simplifying the admin process should enable syndicate managers to spend more time on recruiting new members and keeping existing members satisfied

▪

With word of mouth being the biggest route into syndicates, enhancing the syndicate ownership experience will help syndicate managers to recruit more members

46%

Increase

Decrease

▪

4% Events outside of raceday

What help do you need to achieve an increase in size?

Decrease Member churn

27%

Improve recruitment

Help with admin

Industry Support**

Source: Portas analysis

55%

-

One response from a manager recommended the provision of a ‘Jargon Buster’ upon joining to help recruit members from outside of racing

-

Presence of a website / quality mark demonstrates the industry’s willingness to provide greater support to managers and members

18%

36%

*based on the response of 22 managers

**i.e. helpline offering advice, information on a website etc.

13

SYNDICATE MANAGERS

C

Managers understand what is important to their members, therefore they should be utilised to help deliver an enhanced ownership experience

Managers were never more than 2 places different on 10 out of the 11 categories* Please rank the following based on their importance to you / your members

Insight Member Ability to watch your horse run O&T facilities Parade ring access Access to trainer / jockey

Manager

Ability to bring friends and family Non raceday involvement

Tailored comms

Tailored comms

Attending without a runner Ability to bring friends and family

Car parking availability

Source: Portas analysis

Managers overestimate the importance to members around bringing family and friends to racing – to members, the social aspect of racing comes from meeting and going racing with likeminded syndicate members

▪

Managers fundamentally understand their members and work hard to offer them the experience they expect – therefore the ROA should find ways to support and collaborate with syndicate managers as they operate as a type of customer service liaison officer to multiple owners

Ability to watch your horse run Access to trainer / jockey Winning connections experience

Winning connections experience Non raceday involvement Car parking availability

Events outside of raceday

▪

O&T facilities

Parade ring access

Attending without a runner Events outside of raceday

*based on the response of 22 managers

14

SYNDICATE MANAGERS

D

The raceday experience is still the largest challenge that managers face, alongside recruiting and retaining members

Badges were cited as the biggest challenge 84% of the time* What are the biggest challenges you face as a syndicate manager?

Insight Badges

â&#x2013;Ş

Clarifying the badge allowance for syndicate members within the ownership proposition will help to manage expectations that owners have and therefore simplify the managerâ&#x20AC;&#x2122;s job

â&#x2013;Ş

Whilst it is often quoted anecdotally, getting updates from trainers and arranging visits with trainers was far lower down the list of challenges than expected

Retaining members

Admin

Racecourse experience

Events outside of raceday

Updates from trainers Purchasing horses Recruiting new members

Other**

Source: Portas analysis

*based on the response of 22 managers

-

Evidence from interviews suggests that streamlining the admin that managers are required to do will enable them to focus more time on providing an excellent service to their members which in turn will assist with recruitment and retention

**other included: managing finances; managing opinions within the syndicate

15

Industry Ownership Strategy - Syndicate survey 0

The syndicate survey gives us a greater understanding of syndicate members and managers, an area of ownership that was missed in the 2016 survey Approach

Results Syndicate member

1

Identify syndicates as an area where data and understanding were limited

•

490 responses over the course of 11 days

2

Design and deliver comprehensive surveys to members and managers to address gap

•

197 respondents provided their details for follow up contact

Syndicate manager 3

4

Analyse data collected and utilise insight gained to inform proposition

Utilise contact details provided by respondents to test ideas / gather further information as needed

•

22 responses over the course of 11 days

•

13 managers provided their contact details for follow up

Note: When reading this report it should be considered that the survey respondents are likely to have been those who have a good manager, therefore their responses may be more positive than the average syndicate member (the same applies to the syndicate manager survey) 1

Member insights

2

SYNDICATE MEMBERS

Syndicate member headline findings [1/3] Element Demographics

Ownership history

Survey result

1

77% are aged 55+

2

77% are male, 23% are female

3

42% have an income lower than ÂŁ50,000 per year

4

51% are retired, with 44% employed

5

Finance, consulting / management and property / construction were the most represented industries

6

50% of respondents have been involved in ownership for over 10 years

7

The majority of syndicate members have never been sole owners, however 310% are currently sole owners or have been at some point

8

65% are members of multiple syndicates, however only 31% are members of racing clubs

9

Average ownership per code was roughly equal between jumps (23%) and flat (20%), with dual purpose (2%) lagging behind

10

57% had been racing 5+ times with a runner, whilst racing without a runner was more varied

3

SYNDICATE MEMBERS

Syndicate member headline findings [2/3] Element Joining

Involvement

Survey result

11

When choosing a syndicate, recommendation from a personal contact (44%) or own knowledge / research (38%) were the most common methods

12

Love of horseracing (80%), behind the scenes access (52%), the raceday experience (47%) and the social aspect (46%) were the most important reasons becoming owners

13

80% maintain the same motivation for being involved in racing as when they joined

14

Most owners expect their ownership level to stay the same in the next 2 years, however 27% say they will likely increase

15

Finding the right horse (20%), an increase in financial returns (20%) and winning (13%) were the biggest factors that would motivate a member to increase their involvement

16

Those looking to increase would mostly use syndicates (54%) or partnerships (62%), however there is a small group that would make the jump to sole ownership (23%)

17

Flat racing was the most popular code to increase into (50%)

18

Financial and time pressures are the major reasons for members not wanting to increase their involvement

19

71% of owners who said that they do not want to increase indicate that they might change their decision 4

SYNDICATE MEMBERS

Syndicate member headline findings [3/3] Element Benefits

Syndicate managers

The ROA

Survey result

20

Owners rated ability to watch their horse run, O&T facilities, Parade ring access and access to trainer / jockey as most important

21

Owners were least satisfied with access and quality of O&T facilities

22

Syndicate members are on average very satisfied with their manager (4.46/5)

23

Good communication (77%) is the most cited reason for satisfaction

24

To improve the syndicate, members want better information / communications (20%) and improved running of the syndicate (i.e. financial transparency, more careful vetting of members) (8%)

25

70% of respondents were ROA members

26

70% of non-ROA members cited not knowing what the ROAâ&#x20AC;&#x2122;s role was and not knowing that it was for syndicate members as the reason they did not join

5

MEMBER DEMOGRAPHICS

Member demographics

1

2

What is your age?

Under 18

What is your gender?

0.0% Female 22.6%

18-24

25-34

35-44

45-54

55-64

65+

0.4%

1.8%

6.1%

14.6%

30.9%

Male 77.4% 46.1%

6

MEMBER DEMOGRAPHICS

Member demographics

3

4

What is your annual income?

Under £50,000

Are you currently in employment?

42.1% Yes

£50,000 £100,000

27.6%

£100,000 £150,000

11.8% No

£150,000 £250,000

£250,000 +

4.5%

5.9%

4.5% Retired

Pefer not to say

44.5%

51.0%

8.1%

7

MEMBER DEMOGRAPHICS

Member demographics

5

Which business sector are / were you employed in? (top 4)

Finance

14.9%

Engineering

Business / management

Property / construction

8.3%

6.6%

6.4%

8

OWNERSHIP HISTORY

Ownership history

6

How many years have you been involved in ownership?

<1

7

Are you currently a sole owner?

4.3% Yes

1-2

2-5

5-10

9.4%

No, but I used to be a sole…

17.3%

16.9%

19.1%

No, I have never been a…

10+

15.3%

67.8%

49.9%

9

OWNERSHIP HISTORY

Ownership history

8

Are you a member of multiple syndicates?

9

What is your % involvement in each code of racing?

(Average of all respondents)

No 35.0% Jumps

23.0%

Yes 65.0%

Flat

Are you a member of a racing club?

20.0%

Yes 31.00%

Dual

2.0%

No 69.00%

10

OWNERSHIP HISTORY

Ownership history

10

In the past 12 months, how many times have you been racing with a runner?

0

10

In the past 12 months, how many times have you been racing without a runner?

0

7.2%

1-2 1-2

7.9%

13.3%

9.3% 2-5

2-5

17.2%

5-10

25.1%

19.8%

10-15 5-10

31.6% 15-20

10+

14.0%

26.7%

20+

10.7%

17.2%

11

JOINING

Joining

11

12

How did you choose your syndicate?

Why did you decide to become an owner?

Love of the sport Friends / family

44.0% Behind the scenes involvement (E.g. visits to trainers yards)

Own knowledge / research

Trainer / breeder

38.0%

11.0%

52.2%

Raceday experience

47.5%

Social aspect (E.g. camaraderie with fellow Racing enthusiasts)

46.4%

Winning

Other (please specify) Other*

80.7%

20.7%

9.4%

7.0% Prize money

5.9%

12

JOINING

Joining

13

Has your motivation for being involved in ownership changed from when you first started?

Yes 21.9%

No 78.1%

13

INVOLVEMENT

Involvement

14

In the next two years, how is your ownership involvement likely to change?

Increase

15

27.6%

What would motivate you / cause you to increase your ownership?

Finding the right horse

20.0%

Increase in prize money / decrease in costs

20.0%

Winning more Stay the same

56.6% Being more involved with the horse Change in personal finances

Decrease

11.0%

9.0%

15.8% Other*

Source: Portas analysis

13.0%

*improved racecourse experience, more enjoyment, breeding

27.0%

14

INVOLVEMENT

Involvement

16

Which methods of ownership would you choose to increase your involvement?

Racing clubs

17

Which code of racing are you likely to increase your ownership in?

9.4% Jumps

Syndicates

42.7%

62.4%

Flat

Partnerships

Sole ownership

50.4%

53.9%

23.1%

Dual Purpose

20.5%

15

INVOLVEMENT

Involvement

18

Why do you not want to increase your ownership?

Expense

19

Is there anything that can be done to change your decision to not increase involvement?

71.0% No, I am certain

Happy at current level

Time

28.5%

10.0%

8.0% Maybe, things might change

Syndicate experience

3.0%

Racecourse experience

2.0%

Other*

Yes, if elements are improved (please specify)

43.3%

28.2%

6.0%

Source: Portas analysis; *Elitism, lost interest, lack of success, age

16

BENEFITS

Benefits

20

Rank the following based on their importance to you Ability to watch your horse run O&T facilities Parade ring access Access to trainer / jockey

Winning connections experience

21

Score the following out of 5 based on your level of satisfaction Parade ring access Access to trainer / jockey Ability to watch your horse run Non raceday involvement

Ability to bring friends and family Events outside of raceday

O&T facilities

Car parking availability Tailored comms Attending without a runner

Source: Portas analysis

4.4 4.4 4.3

Tailored comms Winning connections experience Car parking availability Events outside of raceday Ability to bring friends and family Attending without a runner

Non raceday involvement

4.4

4.1 4.0 3.6 3.6 3.5 3.4 3.4

17

SYNDICATE MANAGERS

Syndicate managers

22

How satisfied are you with your manager?

23

What is the element that your manager is best at?

Communication

4.5 / 5

Source: Portas analysis

74.0%

Admin

6.0%

Making it fun

6.0%

Making you feel welcome / on the inside

3.0%

Finding / managing horses

3.0%

Badges

2.0%

Racday organisation

2.0%

Being accessible

2.0%

Events

1.0%

18

SYNDICATE MANAGERS

Syndicate managers

24

What is the main thing that your manager could improve on?

Nothing

55.0%

Communication

Syndicate running*

Choose a better horse

Events

Other**

20.0%

8.0%

6.0%

5.0%

6.0%

Source: Portas analysis; *vetting members, keeping people happy, future planning; **embracing tech, realism, badges

19

THE ROA

The ROA

25

26

Are you an ROA member?

Why are you not an ROA member?

Lack of information (Unaware of ROA existence / benefits / how to join)

No 29.9%

42.0%

Didn’t know syndicate owners could be members

Yes 70.1%

18.0%

Don’t care about the benefits

10.0%

Too expensive

10.0%

Doesn’t represent owners

I used to be

3.0%

2.0%

20

Manager insights

21

SYNDICATE MANAGERS

Syndicate manager headline findings [1/3] Element Syndicate information

Recording members

Survey result

1

Syndicate managers fall into 3 size categories, small (<50), medium (50-150) and large (150+)

2

Flats horses were the most popular horse (153), ahead of jumps (82) and dual (10)

3

61% of syndicates lease at least one horse, however leased horses account for just 24% of all syndicate horses

4

Members per horse fell into 3 distinct categories 0-10, 11-20 and 20+

5

91% of syndicates contain members who are in multiple syndicates

6

50% of syndicates have at least one member who is a sole owner

7

46% of managers failed to register their members with Weatherbys with the recurring reason being too much admin / effort

8

Managers indicated that simplifying the registration process (60%) would encourage them to register their members

22

SYNDICATE MANAGERS

Syndicate manager headline findings [2/3] Element The ROA

Syndicate Growth

Survey result

9

The majority (58%) of managers thought that only 0-10% of their members were ROA members

10

83% of managers are ROA members

11

46% of managers are looking to increase the size of their syndicate (number of horses managed)

12

Help with recruiting new members (55%) and wider industry support (36%) would be the biggest facilitators in enabling syndicates to achieve growth

13

59% of managers upsell to their members

14

Syndicate managers upsell by discussing options / giving owners information on how to buy another (42%) and ensuring the current experience is enjoyable so that they will want to buy in again (25%)

15

Word of mouth is the most effective recruiting tool (82%)

23

SYNDICATE MANAGERS

Syndicate manager headline findings [3/3] Element Member behaviour

Running the syndicate

Survey result

16

Lack of badges (53%), lack of prize money (47%), cost (31%) and lack of access to O&T (26%) are the main problems members complain about

17

The cost of ownership (63%) is the number one reason syndicate members lapse

18

Managers rated O&T facilities, ability to watch their horse run and access to trainer / jockey as the most important elements to their owners

19

67% of managers rated the contact from their trainer as regular or very regular

20

Stable visits (95%) and lunches (53%) were the events most commonly arranged by managers outside of raceday

21

Email (89%) and phone (68%) were the most popular means of communication

22

Managers contacted members most about upcoming racedays (95%) and to give updates on their horses (95%)

23

Managersâ&#x20AC;&#x2122; biggest challenges are obtaining badges (84%), retaining members (53%), admin (42%) and the racecourse experience (32%)

24

79% of managers were supportive of an In the Paddock style selection website

24

SYNDICATE INFORMATION

Syndicate information

1

How many members do you manage across all of your syndicates?

<50

50.0%

50-150

150+

Source: Portas analysis

29.0%

21.0%

2

How many horses do you manage in each code (cumulative total, all respondents)

Flat

153.0

Jumps

Dual

82.0

10.0

25

SYNDICATE INFORMATION

Syndicate information

3

4

Do you lease any horses?

No 39.0%

Yes 61.0%

What is the average number of members per horse?

0-10

55.0

11-20

% of horses managed owned vs leased

36.0

Leased 24.0%

Owned 76.0%

Source: Portas analysis

20+

9.0

26

SYNDICATE INFORMATION

Syndicate information

5

Are any of your members part of another syndicate

6

Are any of your members sole owners?

No 9.0%

No 50.0%

Yes 50.0%

Yes 91.0%

Source: Portas analysis

27

RECORDING MEMBERS

Recording members

7

8

Do you record all members with Weatherbys?

Yes

What would help you to register members?

54.0% Simplified process / made easier

No

46.0%

Nothing

Why do you not record members?

Too difficult / too much admin

Source: Portas analysis

20.0%

64.0%

No point for small share syndicate members Other*

60.0%

27.0%

New software

10.0%

9.0%

*horses are leased, racing club

28

THE ROA

The ROA

9

10

What % of your members are ROA members

0-10%

58.3%

10-20%

16.7%

20-30%

16.7%

30-40%

4.2%

40-50%

4.2%

50%+

Source: Portas analysis

0.0%

Are you a member of the ROA?

No 16.7%

Yes 83.3%

29

SYNDICATE GROWTH

Syndicate growth

11

12

What is your future plan for your syndicate?*

Stay the same

50.0%

What help do you need to achieve an increase in syndicate size?

Decrease Member churn

27.0%

Improve recruitment Increase

46.0% Help with admin

Decrease

Source: Portas analysis

55.0%

4.0%

*number of horses managed

Industry Support**

**centralised support office, funding

18.0%

36.0%

30

SYNDICATE GROWTH

Syndicate growth

13

Do you encourage members to increase their involvement by purchasing shares in other horses that you manage?

14

How do you encourage members to increase their involvement?

Discussing with them / giving them information on available horses

42.0%

Yes 59.1%

No 40.9%

Source: Portas analysis

Giving a good syndicate experience

25.0%

Stable visits

17.0%

Current horse wins a lot

17.0%

31

SYNDICATE GROWTH

Syndicate growth

15

How do you recruit new members?

Word of mouth

81.8%

Networking

Advertising (social media E.g.

Facebook) Advertising (traditional print E.g.

Racing post) Other (please specify)

Source: Portas analysis

59.1%

36.4%

31.8%

27.3%

32

MEMBER BEHAVIOUR

Member behaviour

16

What are the main problems your members complain about?

Lack of badges

Why do your members lapse?

52.6%

Lack of prize money

47.4%

Cost

31.6%

Owners and Trainers access

26.3%

Availability and quality of car parking on raceday

21.1%

Lack of ability to watch the horse run on raceday for free or at a reduced admission price

21.1%

Lack of information

15.8%

Others (please specify)

15.8%

Winning connections experience on raceday

5.3%

Access to trainer / jockey on the raceday (e.g. in the parade ring)

5.3%

Space in the parade ring

5.3%

Involvement with the horse (outside of raceday)

0.0%

Events outside of raceday that owners can attend (e.g. owner socials)

0.0%

Source: Portas analysis

17

Too expensive

63.2%

Unhappy with racecourse experience

21.1%

Move on to partnership or sole ownership Lose interest in racing

15.8%

10.5%

Unhappy with level of contact with horse

5.3%

Unhappy with their trainer experience

5.3%

33

SYNDICATE GROWTH

Syndicate growth

18

Please rank the following according to how important you think they are to your members O&T facilities Ability to watch your horse run Access to trainer / jockey Winning connections experience Parade ring access Ability to bring friends and family Non raceday involvement Tailored comms

Car parking availability Attending without a runner Events outside of raceday

Source: Portas analysis

34

RUNNING THE SYNDICATE

Running the syndicate

19

20

How regular is contact from the trainer?

Very regular

36.8%

What events do you put on outside of racedays?

Stable visits

94.7%

Lunches Regular

52.6%

31.6% Sales visits

Moderate

15.8%

Limited

Very limited

Source: Portas analysis

36.8%

15.8%

0.0%

Talks

10.5%

Non-racing related activities (e.g. other sporting events) (please specify in comment field)

10.5%

Other (please specify in comment field)

10.5%

35

RUNNING THE SYNDICATE

Running the syndicate

21

22

How do you contact members?

Email

89.5%

Phone

42.1%

Website

94.7%

Upcoming racedays

94.7%

26.3%

Letter

21.1%

Apps

21.1%

Source: Portas analysis

Updates on the horses 68.4%

Social media

Other (please specify)

What do you contact members about?

Upcoming events (outside of races)

Other (please specify)

52.6%

5.3%

0.0%

36

RUNNING THE SYNDICATE

Running the syndicate

23

24

What are your biggest challenges as a manager?

Badges

84.2% No 21.0%

Retaining members

52.6%

Admin

42.1%

Racecourse experience

31.6%

Getting updates from the trainer

21.1%

Purchasing horses

21.1%

Other (please specify) Arranging visits with the trainer

Source: Portas analysis

Would you be supportive of an â&#x20AC;&#x2DC;In the Paddockâ&#x20AC;&#x2122; style selection website

21.1%

Yes 79.0%

0.0%

37

[Appendix] Industry Ownership Strategy Segmentation approach and analysis 0

We deep dived into the 2016 ownership by survey by conducting a segmentation analysis based on the respondents CPO and likelihood to increase involvement

Likely to increase

New hot

Lapsed hot Up and coming

Future fanatic

Racing club hot

Fanatic

Commercial

Likelihood Likely to to increase maintain involvement

Steady owners Lapsed cold

Likely to reduce

VIP

New cold

Low priority at risk

0 CPO

0 – <1 CPO

1 – 1.5 CPO

At-risk fanatic

1.5 – 10 CPO

Current level of involvement (CPO - Cumulative percentage ownership) Source: Portas analysis

Diehard

10+ CPO Priority segment for analysis Non-priority segment for analysis

1

We identified a set of emerging findings from this segmentation analysis that was used to inform the design of the proposition Overall findings ▪ There is a need to address larger structural changes as these are the enhancements most wanted by owners including: – – –

O&T facilities Opportunities for involvement with horse on race-day Prize money (currently outside scope of the project)

▪ These points can also (but not fully) be addressed by “doing the small things well” in the delivery of the experience such as providing good customer service and year-round benefits/club ▪ There is an opportunity to boost diversity by converting younger owners from low to higher CPO, and attracting females into lower CPO segments

Segment specific findings* VIP

Want hyper-personalised treatment and benefits

Commercial

Want support with growing their business (and clarify TBA vs. ROA role)

Diehard

Want to win and be more involved in training. Growing # diehards will require attracting new owners due to cost barrier in upgrading fanatics

Fanatic

Want to enjoy all aspects of racing. They want recognition and a differentiated experience that reflects their involvement and contribution

At risk fanatic

Want the ‘winning feeling’ again and a more social/shared experience.

Retaining them will require individual attention

Future fanatic

Want to watch their horse run and enjoy their ‘big day out’. They also want information on ownership and how to increase their involvement

Up & coming* Racing club*

Want to feel “inside the racehorse ownership experience”, in particular opportunities for involvement with the horse. They also want a fair consistent experience. Syndicate managers with up & coming members want ROA support

Lapsed hot

Want to be involved, be part of the excitement & are waiting for the right opp to return. Getting them back in requires keeping them connected, and offering them suitable – possibly lower cost – opportunities

*Hypotheses led for segments with no or very limited data in 2016 survey Source: Portas analysis

2

All segments indicate a desire for enhanced involvement with the horse on raceday, prize money and O&T facilities Non-exhaustive

Overall emerging insight (All segments) O1 Owners most enjoy the

exclusive access and involvement with the horse Involvement on raceday

O2 Improving prize money is the

most desired enhancement to ownership

O3

Improving the O&T facilities is the most desired enhancement for owners on raceday

Evidence

Example implication for proposition

▪ Exclusive access was the top answer for “what is your most enjoyable aspect of raceday”

▪ Work with racecourses and trainers to identify ways to boost the involvement and number of contact points with their horse for owners on raceday

▪ Prize money was clearly the top answer for “what would enhance your ownership experience” ▪ 45% of owners would increase their number of HIT if prize money was increased

▪ Further increase engagement with BHA to discuss methods for boosting prize money, particularly at grassroots level ▪ Communicate record level of prize money in 2018 ▪ Improve education and promotion of the Appearance Money Scheme for owners

▪ O&T facilities was clearly the top answer for “what would enhance your raceday experience” (Many owners indicated that some racecourses were providing excellent facilities already)

▪ Use Industry Quality Mark (and tailored support programmes) to increase consistency of experience ▪ Support racecourses to secure funding required to deliver material improvements in O&T facilities

Whilst items such as prize money and O&T facilities can be partly addressed through ‘doing the small things well’ – this also indicates there is a need for more structural changes to enhance the ownership experience Source: Portas analysis

3

There is a need to focus on attracting females into lower CPO segments, and pulling younger owners through into higher CPO segments Non-exhaustive

Overall emerging insight (All segments)

Evidence

▪ 25% of racing club/up and coming segment are aged 25-44 through younger people involved in lower CPO segments to higher ▪ Compared to just 10% aged 25-44 in all CPO segments higher CPO segments

O4 There is an opportunity to pull

O5 There is an opportunity to

increase the number of females in lower CPO segments

Source: Portas analysis

▪ Females are under-represented in lower CPO segments (20% female owners in future fanatic segments vs. 33% in fanatic segment) ▪ Females are over-represented in lapsed hot segment (35% females in lapsed hot owners)

Example implication for proposition

▪ Our proposition should focus on pulling younger people through into higher CPO segments: – Events and networking opportunities focused at younger owners – Providing digital content and use of social media – Focusing on ‘the experience’ in marketing – Appointing a good mix of younger ownership champions ▪ Our proposition should encourage increased number of females in lower CPO segments: – Creating female only syndicates – Promoting syndicates as a social way to get more involved in racing – Developing year-round events that appeal to females – Appointing female ownership champions

4

Owners most enjoy the exclusive access and involvement with the horse Involvement on raceday O1 Overall emerging insight % total response to: “What is your most enjoyable aspect of raceday?”

Exclusive access / involvement with the horse

16% 12%

The race

Socialising with guests

9% 8%

O&T facilities 6%

Hospitality

Winning Recognition

Source: Portas analysis

Insights ▪ The most enjoyable aspect of raceday for all segments is the involvement and exclusive access to the horse (parade ring, stables, saddling up etc.)

▪ Many owners indicate that the this involvement is more enjoyable than the race itself ▪ This suggests: – Work with racecourses to boost the number of contact points for owners on raceday

– Work with racecourses to identify safe ways for owners to have more contact with their horse on raceday

3% 2%

5

Improving prize money is the most wanted enhancement to ownership

O2 Overall emerging insight % total response to: “What would enhance your ownership experience?”

35%

Prize money 8%

Welcome by the racecourses* Recognition of owner role & contribution

6%

Information, guidance & support for owners

4%

More fixtures relevant to my horse

4%

Winning

4%

Increased year-round interaction with trainer

3%

Lower training costs

3%

Source: *information received, staff, discounts and upgrades; Portas analysis

Insights ▪ Enhancing prize money is the most cited ownership experience enhancement across all segments ▪ This suggests:

– Further increase engagement with BHA to discuss methods for boosting prize money, particularly at grassroots level – Communicate record level of prize money in 2018 – Improve education and promotion of the Appearance Money Scheme for owners

6

Improving the O&T facilities is the most wanted enhancement for owners on raceday

O3 Overall emerging insight % total response to: “What would enhance your raceday experience?”

Insights

37%

Better O&T facilities

14%

Welcome by the racecourses* Recognition of role & contribution

6%

▪ Improving O&T facilities is the most cited raceday experience enhancement across all segments (excl. racing club hot)

▪ Many owners indicate a lack of consistency across racecourses in the facilities ▪ Owners want to feel recognition for their contribution to raceday and the O&T is an opportunity to do so ▪ This suggests:

More badges Increased involvement on race day Racecourse inclusivity

4%

3%

– Support racecourses to secure funding required to deliver material improvements in O&T facilities – Use Industry Quality Mark (and tailored support programmes) to increase consistency of experience

1%

Source: *information received, staff, discounts and upgrades; Portas analysis

7

There is an opportunity to pull through younger people involved in lower CPO segments to higher CPO segments O4 Overall emerging insight

% of respondents per segment for age:

13% 25%

23%

9%

13%

22% 30%

27%

23%

Insights

10% 23%

26%

29% 20%

33% 28%

27%

31%

27% 8% 7%

16%

Racing club hot

Up and coming

Source: Portas analysis

18-24 25-44 45-54 55-64 65-74 75+

▪ 25% of racing club/up and coming segment are aged 25-44 ▪ Compared to just 10% aged 25-44 in all higher CPO segments ▪ Our proposition should focus on pulling younger people through into higher CPO segments: – Events and networking opportunities focused at younger owners – Providing digital content and use of social media – Appointing a good mix of younger ownership champions

30% 24%

10%

10%

7%

Future fanatic

At risk fanatic

Fanatic

31%

Diehard

8

There is an opportunity to increase the number of females in lower CPO segments

O5 Overall emerging insight

% of respondents per segment for gender:

23%

77%

20%

80%

Racing Up and club hot coming

Source: Portas analysis

20%

80%

Future fanatic

Insights

30%

32%

28%

70%

68%

72%

At risk fanatic

35%

65%

Female Male

▪ Females are under-represented in lower CPO segments (20% female owners in future fanatic segments vs. 32% in fanatic segment) ▪ Females are over-represented in lapsed hot segment (35% females in lapsed hot owners) ▪ Our proposition should encourage an increased number of females in lower CPO segments: – Creating female only syndicates – Promoting syndicates as a social way to get more involved in racing – Developing year-round events that appeal to females – Appointing female ownership champions

Fanatic Diehard Lapsed hot

9

There are also clear areas of difference between the specific segments in terms of needs and demographics (1/5) Non-exhaustive

Segment

Segment specific emerging insight

Diehard D1 ‘New’ diehards are more likely to come (10+ CPO, non-VIP, noncommercial interest)

from outside existing owners than from lower CPO owners

D2 Diehards are passionate about

winning and being involved in training

D3 Diehards are less interested in

attending the raceday

Source: Portas analysis

Evidence

Example implication for proposition

▪ 78% of diehards earn greater than £250k compared to just 26% of fanatics

▪ Identify potential recruitment events for new diehards outside of racing (e.g. attend wealth mgt. conferences) ▪ Focus on retaining majority of fanatics, rather than upselling them

▪ Diehards over-index (compared to average) for Involvement (26% vs. 19%) and winning (22% vs. 17%) in ‘what is your most enjoyable aspect of ownership?’

▪ Work with trainers to increase engagement for diehards in particular (e.g. yard visits, involvement in training plans, increased communication during non racing days)

▪ Diehards significantly underindex for attending race-days (10% vs. 20%) in ‘what is your most enjoyable aspect of ownership?’

▪ De-prioritise raceday benefits when designing proposition for diehards

10

‘New’ diehards are more likely to come from outside existing owners than from lower CPO owners D1 Segment specific emerging insight

% of respondents per segment for income:

▪ Income is a major factor in having have 10+ horses in training

20% 15% 19%

35%

Opportunities

Less than £49,999 £50,000-£99,999 £100,000-£249,999 £250,000+

▪ 78% of diehards earn greater than £250k compared to just 26% of fanatics – Identify potential recruitment events for new diehards outside of racing (e.g. attend wealth mgt. conferences) – Focus on retaining fanatics, rather than upselling them

78%

26%

Fanatic Source: Portas analysis

Diehard 11

Diehards are passionate about being involved in training and winning

D2 Segment specific emerging insight % diehard and % total (excl. diehard) response to: “What is your most enjoyable aspect of ownership?”

26%

Involvement with training & racing plans

19% 22%

Winning

17%

10%

Attending racedays

Social Behind the scenes access to the horse

Status of ’being an owner’

Source: Portas analysis

19% 5% 4% 2% 5%

Opportunities ▪ Diehards over-index (compared to average) for involvement (26% vs. 19%) and winning (22% vs.

17%) in ‘what is your most enjoyable aspect of ownership?’

▪ The diehard is passionate about involvement with the horse – Work with trainers to increase involvement and comms for diehards (videos, picture, weekly updates)

Diehard Total (excl. diehard)

2% 1%

12

Diehards are less interested in attending the raceday

D3 Segment specific emerging insight % diehard and % total (excl. diehard) response to: “What is your most enjoyable aspect of ownership?”

26%

Involvement with training & racing plans

19% 22%

Winning

17%

Behind the scenes access to the horse

Status of ’being an owner’

Source: Portas analysis

▪ Diehards significantly under-index for attending racedays (10% vs. 20%) in ‘what is your most enjoyable aspect of ownership?’

– De-prioritise raceday benefits when designing proposition for diehards

10%

Attending racedays

Social

Opportunities

19% 5% 4% 2% 5%

Diehard Total (excl. diehard)

2% 1%

13

There are also clear areas of difference between the specific segments in terms of needs and demographics (2/5) Non-exhaustive

Segment Fanatic

Segment specific emerging insight F1 Fanatics value all aspects of

(1.5-10 CPO, will increase or maintain CPO)

ownership (winning, watching the race, involvement in training)

F2 Fanatics want more recognition and

differentiated treatment

At-risk R1 At-risk fanatics have been owners for fanatics 10+ years (1.5-10 CPO, will decrease CPO)

Evidence

Example implication for proposition

▪ Fanatics show similar weighting on aspects of ownership experience

▪ Increase owner involvement pre-race (e.g pre-race planning) to appeal to increase HIT of higher CPOs ▪ Utilise the Industry Quality Mark to maintain and improve raceday experience

▪ Fanatics over-index in welcome ▪ Continue to develop the concierge system to be by racecourses (21% vs. 12%) able to provide a tailored welcome to the course and recognition of owner role ▪ Include owners’ names in all race cards and and contribution (13% vs. 8%) race announcements to recognise contribution ▪ 72% of at-risk fanatics have tenure greater than 10 years

▪ Identify and monitor owners with 10+ years of ownership to minimise churn ▪ Increase network of ownership by creating social clubs (e.g. the ‘10+ club’ for owners)

R2 At-risk fanatics crave the winning

feeling, and want to share their experience with others

Source: Portas analysis

▪ At-risk fanatics over-index for winning (21% vs. 16%) and socialising (15% vs. 8%) for most enjoyable aspect of ownership/raceday

▪ Improve benefits for placing to ‘create winning feeling’ ▪ Boost family/friends participation and involvement in racing and train racecourse staff on customer service 14

Fanatics value all aspects of ownership (winning, watching the race, involvement in training) F1 Segment specific emerging insight % fanatic and % total (excl. fanatic) response to: “What is your most enjoyable aspect of ownership?”

Opportunities

21% 19%

Involvement with training & racing plans

20%

Winning

16% 18% 20%

Attending racedays

Behind the scenes access to the horse

Social

Source: Portas analysis

▪ Fanatics rate show similar weighting on aspects of ownership experience – Increase owner involvement pre-race (e.g pre-race planning) to appeal to increase HIT of higher CPOs – Utilise the Industry Quality Mark to maintain and improve raceday experience

6% 5% 4% 5%

Fanatic Total (excl. Fanatic)

15

Fanatics want more recognition and differentiated treatment

F2 Segment specific emerging insight % fanatic and % total (excl. fanatic) response to: “What is your most enjoyable aspect of ownership?”**

Opportunities 21%

Welcome by the racecourses*

12% 21% 20%

O&T facilities

13%

Recognition of owner role & contribution

8% 8%

Information, guidance and support

16% 8%

Lower training costs

12% 8%

More fixture relevant to my horses

16%

8%

Winning

Increased year-round interaction with trainer

▪ Fanatics over-index in welcome by racecourses (21% vs.12%) and recognition of owner role and contribution (13% vs.8%) – Continue to develop the concierge system to be able to provide a tailored welcome to the course – Include owners’ names in all race cards and race announcements to recognise contribution

12%

7% 4%

Fanatic Total (excl. Fanatic)

Source: *information received, staff, discounts and upgrades; **excl. prize money; Portas analysis

16

At-risk fanatics have been owners for 10+ years R1 Segment specific emerging insight

% of respondents per segment length of tenure:

11%

▪ 72% of at-risk fanatics have tenure greater than 10 years – Identify owners with 10+ years of ownership and monitor their involvement to minimise risk of churn

13%

13% 18%

72%

At risk fanatic

Source: Portas analysis

Opportunities

Less than 12 months 1-2 years 3-4 years 5-9 years 10+ years

– Increase network of ownership by creating social clubs (e.g. the ‘10+ club’ for owners with exclusive benefits and access)

63%

Fanatic

17

At-risk fanatics crave the winning feeling, and want to share their experience with others R2 a Segment specific emerging insight % at risk fanatic and % total (excl. at risk fanatic) response to: “What is your most enjoyable aspect of ownership?”

Opportunities

21% Winning 17%

▪ At-risk fanatics over-index for winning (21% vs. 16%) Support at risk fanatics with buying horses – Improve benefits for placing to ‘create winning feeling’ (champagne, race DVDs)

19%

Involvement with training & racing plans

20%

18% Attending racedays 19%

Behind the scenes access to the horse

Source: Portas analysis

3% 5%

At risk fanatic Total (excl. at risk fanatic)

18

At-risk fanatics crave the winning feeling, and want to share their experience with others R2 b Segment specific emerging insight % at risk fanatic and % total (excl. at risk fanatic) response to: “What is your most enjoyable aspect of raceday?”

22%

Exclusive access / involvement with the horse

15% 15%

Socialising with guests

12% 8% 11%

Hospitality

Source: Portas analysis

▪ At-risk fanatics over-index for socialising (15% vs.

8%) for most enjoyable aspect of ownership/raceday – Boost family/friends participation and involvement in racing and train racecourse staff on customer service

9%

O&T facilities

Recognition

Opportunities

5% 1%

At risk fanatic Total (excl. at risk fanatic)

67%

19

There are also clear areas of difference between the specific segments in terms of needs and demographics (3/5) Non-exhaustive

Segment Future fanatics

Segment specific emerging insight

Evidence

Example implication for proposition

FF1

Future fanatics want to enjoy their big ▪ Favourite aspect of raceday is days out (experience the winning the race (17%) feeling for the first time, enhanced O&T ▪ They over index in O&T facilities) facilities (11% vs. 9%) and winning (8% vs. 3%)

FF2

Future fanatics want to see their horse run

▪ Future fanatics over-index for watching their horse run (11% vs 4%)

▪ TBC – need to discuss if there is an opportunity to increase this

FF3

Future fanatics want more information, guidance and support

▪ Future fanatics over-index for wanting more guidance from the industry (11% vs. 4%)

▪ Produce industry content to increase clarity on: – How ownership works – How to increase involvement ▪ Provide a resource to manage enquiries / support owners with their queries

(1 – 1.5 CPO, will increase CPO)

Source: Portas analysis

▪ Improve number and quality of race viewing spots for owners ▪ Show replays in the O&T facility after the race ▪ Acknowledge all owners with a runner in the race in commentary ▪ Support racecourses with targeted feedback about their O&T facilities

20

Future fanatics want to enjoy their big days out (experience the winning feeling for the first time, enhanced O&T facilities) FF 1 Segment specific emerging insight % at future fanatic and % total (excl. future fanatic) response to: “What is your most enjoyable aspect of raceday?”

17%

The race

13%

Exclusive access / involvement with the horse

13% 17% 11%

O&T facilities

9% 8%

Socialising with guests

Winning

10%

Source: Portas analysis

▪ Favourite aspect of raceday is the race (17%) ▪ They over index in O&T facilities (11% vs. 9%) and winning (8% vs. 3%) – Improve number and quality of race viewing spots for owners – Show replays in the O&T facility after the race – Acknowledge all owners with a runner in the race in commentary – Support racecourses with targeted feedback about their O&T facilities

8% 3%

6% 6%

Hospitality

Recognition

Opportunities

Future Fanatic Total (excl. future fanatic)

4% 2% 21

Future fanatics want to see their horse run FF Segment specific emerging insight 2 % at future fanatic and % total (excl. future fanatic) response to: â&#x20AC;&#x153;What is your most enjoyable aspect of ownership?â&#x20AC;?

24%

Attending racedays

19% 18%

Watching horse run well and safely

12% 10%

Winning

Social

17%

8% 5%

14%

Involvement with training and racing plans Behind the scenes access to the horse

Source: Portas analysis

Future Fanatic Total (excl. future fanatic)

20% 12% 5%

22

Future fanatics want more information, guidance and support FF 3 Segment specific emerging insight % future fanatic and % total (excl. future fanatic) response to: “What would enhance your ownership experience**?”

14%

O&T facilities

9%

11%

Information, guidance & support for owners

4%

More fixtures relevant to my horse

4%

Lower training costs

11%

Recognition of owner role & contribution

▪ Future fanatics over-index for wanting more guidance from the industry (11% vs.4%) ▪ Produce industry content to increase clarity on: – How ownership works – How to increase involvement ▪ Provide a resource to manage enquiries / support owners with their queries

9% 3%

9%

Welcome by the racecourses* Winning

Opportunities

8% 9% 4% 6% 6%

Future Fanatic Total (excl. future fanatic)

Source: *information received, staff, discounts and upgrades; **excl. prize money; Portas analysis

23

There are also clear areas of difference between the specific segments in terms of needs and demographics (4/5) Non-exhaustive

Segment

Segment specific emerging insight

Up and U1 Up and coming owners want exclusive coming access and involvement with the horse (<1 CPO, will increase CPO)

U2 Up and coming owners put equal

importance on social side as other owners Racing

R1 Racing club members want to be

club hot

treated like owners by the racecourse (Racing club (include badges) member, will increase CPO) R2 Racing club members crave increased

involvement with the horse on raceday

Source: Portas analysis

Evidence

▪ These owners over-index (20% vs.16%) for access to the horse pre-race

Example implication for proposition

▪ Clearly define access rights for syndicates to areas such as the parade rings and pre-race access to the trainer/jockey ▪ Use increased involvement as teaser/ motivator for increasing involvement

▪ Up and coming owners and the total other owners both value the social side at 10%

▪ Don’t over prioritise social aspects of proposition for this segment

▪ Members over-index in welcome by the recourse (33% vs. 14%) and more badges (17% vs. 4%)

▪ Promote syndicate badge numbers and access rights ▪ Clearly define access rights of racing clubs to manage expectations

▪ Members over-index in involvement with the horse (19% vs.17%)

▪ Clearly define access rights of racing clubs to manage expectations ▪ Encourage trainers / racing club managers to provide / circulate updates or race reports on racing club horses 24

Up and coming owners want exclusive access and involvement with the horse U1 Segment specific emerging insight % up and coming and % total (excl. up and coming) response to: “What is your most enjoyable aspect of raceday?”

Exclusive access / involvement with the horse

20% 16% 10%

The race

13%

8% 9%

O&T facilities 4%

Hospitality

Recognition

Source: Portas analysis

▪ These owners over-index (20% vs.16%) for access to the horse pre-race – Define access rights for syndicates to areas such as the parade rings and pre-race access to the trainer/jockey

10% 10%

Socialising with guests

Winning

Opportunities

7% 3% 3%

Up and coming Total (excl. up and coming)

2% 2%

25

Up and coming owners put equal importance on social side as other owners U2 Segment specific emerging insight % up and coming and % total (excl. up and coming) response to: “What is your most enjoyable aspect of raceday?”

Exclusive access / involvement with the horse

20% 16% 10%

The race

13%

8% 9%

O&T facilities 4%

Hospitality

Recognition

Source: Portas analysis

▪ Up and coming owners and the total other owners both value the social side at 10% – Define badge limits across racecourses to manage expectations

10% 10%

Socialising with guests

Winning

Opportunities

7% 3% 3%

Up and coming Total (excl. up and coming)

2% 2%

26

Racing club members want to be treated like owners by the racecourse R1 Segment specific emerging insight % racing club hot and % total (excl. racing club hot) response to: “What would enhance your raceday experience?”

Opportunities ▪ Members over-index in welcome by the recourse (33% vs. 14%) and more badges (17% vs. 4%) – Promote syndicate badge numbers and access rights – Clearly define access rights of racing clubs to manage expectations

33%

Welcome by the racecourses*

14%

17% O&T facilities

37%

Increased involvement on raceday

17% 2%

Racing club hot Total (excl. Racing club hot)

17% More badges

4%

Source: *information received, staff, discounts and upgrades; **excl. prize money; Portas analysis

27

Racing club members crave increased involvement with the horse on raceday`

R2 Segment specific emerging insight % racing club hot and % total (excl. racing club hot) response to: “What is your most enjoyable aspect of raceday?”

Exclusive access / involvement with the horse

Opportunities

19% 17% 16%

Socialising with guests

10%

▪ Members over-index in involvement with the horse (19% vs.17%) – Clearly define access rights of racing clubs to manage expectations – Encourage trainers to provide updates or race reports on racing club horses

10% The race

13% 6%

Hospitality

6%

Racing club hot Total (excl. Racing club hot)

6% Winning

3%

Source: *information received, staff, discounts and upgrades; **excl. prize money; Portas analysis

28

There are also clear areas of difference between the specific segments in terms of needs and demographics (5/5) Non-exhaustive

Segment

Segment specific emerging insight

Lapsed L1 Lapsed hot owners want to be kept hot involved in ownership

Evidence

Example implication for proposition

▪ 16% miss the excitement and sense of being involved

▪ Launch lapsed-alumni groups (with newsletters / emails) to keep lapsed owners in touch with news and ownership opportunities (leasing, syndicates) ▪ Offer ‘owner for the day’ events at racecourses to tease and excite lapsed owners

▪ 20% are just waiting for the right opportunity to return ▪ 52% are in the £49,999 and below category ▪ 46% are aged below 55 (an over-index of 8%)

▪ Promote syndicates and partnerships as lower cost opportunities to get involved in racing

(0 CPO, will increase CPO)

L2 Lapsed hot owners should be offered

lower cost opportunities to return to ownership

Source: Portas analysis

29

Lapsed hot owners want to be kept involved in ownership L1 Segment specific emerging insight % of lapsed hot owners responses to “why would you return to racehorse ownership?”

19%

Want to return / waiting for right opportunity

Syndicate, club, partnership

Opportunities

6%

▪ 16% miss the excitement and sense of being involved – Launch lapsed-alumni groups (with newsletters / emails) to keep lapsed owners in touch with news and ownership opportunities (leasing, syndicates) – Offer ‘owner for the day’ events at racecourses to tease and excite lapsed owners

10%

Miss the excitement / involvement

10%

Increased prize money

9%

Improved personal situation

Lapsed hot Sub-category

Miss year-round involvement with the horse

6%

Source: *information received, staff, discounts and upgrades; **excl. prize money; Portas analysis

30

Lapsed hot owners should be offered lower cost opportunities to return to ownership L2 Segment specific emerging insight % of lapsed hot for income and age:

Opportunities 52%

£49,999 and below

28%

£50-000-£99,999

16%

£100,000-£249,999

5%

£250,000 and over

18-24

1% 7%

25-34

14%

35-44

24%

45-54

33%

55-64 18%

65-74 75+

▪ 20% are just waiting for the right opportunity to return ▪ 52% are in the £49,999 and below category ▪ 46% are aged below 55 (an over-index of 8%) – Promote syndicates and partnerships as lower cost opportunities to get involved in racing

3%

Source: *information received, staff, discounts and upgrades; **excl. prize money; Portas analysis

31

The strategic priorities were identified based on a synthesis of findings from a diagnosis that consisted of a wide-ranging consultation, research & analysis and benchmarking Wide-ranging consultation

Research and analysis

Benchmarking

 Targeted and representative (i.e. size, regional, code) interviews with:

 Segmentation analysis of 2016 owner survey (2,203 respondents)

 International equine benchmarks such as British Eventing, Hong Kong Jockey Club, Racing Australia, Magic Millions, France Galop and Japanese Racing Association

– 148 owners (interviews + regional meetings + ownership matters)

– 12 racecourses and representatives – 6 syndicate managers – 16 fanatics  Extensive engagement key ownership stakeholders, such as ROA, BHA, RCA, RSA, NARS, GBR, GBRI, Horsemen Group

 Additional online surveys for hard to reach segments not well covered in 2016 survey:

– 497 syndicate and racing club members

 International sports benchmarks such as Club Wembley, MCC, Goodwood, RHS, RFU, Arsenal, Bayern Munich, RYA, British Airways, Ferrari

– 22 syndicate/racing club managers  Gathering and analysis of existing data and research, such as ROA data, BHA data, Racecourse data

Findings and design implications

Source: Portas analysis

0

The wide ranging consultation gave us a complete and balanced view of the stakeholder landscape 148 Owners

6 Syndicate managers

 Sandown Park regional meeting (35)

 Edinburgh Ownership matters (20)

 Sam Hoskins (Hot to Trott / KVT)

 Chepstow regional meeting (30)

 Visits to Goodwood and Wolverhampton

 Dan Abraham (Foxtrot Racing)

 Southwell regional meeting (47)

 Targeted interviews with fanatic owners (16)

 Randy Weeks (Circle of Friends)

12 Racecourses and representatives  Racecourse working group: JCR & Kempton (Steve Parlett), ARC (Sam Cone), Ascot (Olivia Hills), Goodwood (Alex Eade), Newton Abbot (Pat Masterson), Ffos Las & Chepstow (Phil Bell), Musselburgh (Bill Farnsworth)  Other Scottish Racecourses engaged: Hamilton Park (Sulekha Varma), Perth (Hazel Peplinksi), Socttish Racing (Delly Innes), Carlisle (Molly Dingwall)

Source: Portas analysis

 Harry Herbert (Highclere)  James Ramsden (Chelsea Thoroughbreds)  Simon Double (Solario Racing)

16 interviews with targeted Fanatics       

Laurence Bellman George Godsman Colm Donlon Lee Taylor Martin Taylor Jonny Allison Peter Swann

      

Ian Buchanan Norman Turnbull Ailsa Russell William Orr Jim Wilson John Elliott Ken McGarrity

 Ed Walker  George Godsman

1

Industry Ownership Strategy - Benchmarking report 1

Benchmarking has been completed to identify elements of best practice in key areas of ownership experience and service provision Approach

Benchmarking focus areas

Rights - what rights and benefits do the members receive?

1

Identify key focus areas of ownership experience and service provision Structure - how is the proposition is organised and structured?

2

3

Identify elements of best practice from equine and non-equine organisations in these areas

Validate which elements are feasible and could be incorporated

Communication â&#x20AC;&#x201C; what communications do members receive?

Support services - what supporting services are provided to owners?

Support organisation - how is the organisation is set up to deliver the membership?

4

Feed elements of best practice into the ownership and service provider workstreams

Support for service providers - how are service providers who deliver the proposition enabled?

2

Comprehensive benchmarking was carried out of both equine and non-equine organisations Type

Equine

Non-equine

Approach ▪ Interviews and site visits for Tier 1 to identify all relevant points

Tier 1

▪ (Output: detailed learnings slide per organisation ▪ Desk research for Tier 2 to identify targeted points ▪ (Output: brief on selected relevant key learnings)

Tier 2

Source: Portas analysis

3

Best practice summary findings [1/2] Non-exhaustive

Rights

▪ Simple but thoughtful and well presented joining pack ▪ Clear communication of benefits up-front so members know what to expect ▪ Enhanced levels of involvement and access during and after the experience

▪ Access to exclusive benefits only available to members ▪ Reciprocal rights with other parties (e.g. other countries, organisations) ▪ Desirable status and sense of exclusivity from being a member (it’s a lifestyle) ▪ Opportunity to develop social network ▪ Year-round events (centrally and locally run)

Source: Portas analysis

Structure

Communication

▪ Tiering of membership rights based on level of member spend/investment – with clear benefits for each tier

▪ Exclusive, unique and interactive communications delivered through range of channels including social media

▪ Meaningful loyalty rewards provided based on tenure and involvement

▪ Direct communications that provide ‘inside/expert knowledge’

▪ Lifetime membership provided to retain connection with ‘lapsed’ members

▪ Personalised communications based on member actions and segment analytics

▪ Associate/low cost membership options provided as tool for identifying, engaging and attracting those interested in membership but not ready to pay full fee (e.g. younger audience, audience with emerging interest)

▪ Facilitation of communication between members to build social connection ▪ Regular campaigns to attract younger, family and female demographics

▪ Targeted “recruitment” plans for new members ▪ Exclusive behind the scenes content

4

Best practice summary findings [2/2] Non-exhaustive

Rights Support services

▪ Hyper-personalised treatment and benefits for the “top 1%” ▪ Relationship managers responsible for individual members (in particular high value or at risk members) ▪ Simple joining process with support if needed ▪ Provision of added services outside core offering ▪ Provision of one-stop shops (e.g. portals) for all member information

▪ Regular surveys and data collection to enhance understanding of members

Source: Portas analysis

Structure Support organisation

Communication Support for service providers

▪ Single membership card/app that is used for entry and all purchases on and outside event day

▪ Support with capability building through online resources and dedicated liaison team

▪ CRM system with extensive data on owners enabling tailored comms and benefits

▪ Support organisations to adjust offer for younger, family and female demographics

▪ Membership team constantly focused on continuous improvement of offering with feedback provided to owners

▪ Provision of funding to service providers to make targeted improvements

▪ Centralised ‘horses for sale’ website that is regularly updated and maintained to offer a ‘one stop shop’

▪ Provision of affiliation ▪ Centralised participation fees (paid down to 8th place) to help maintain field sizes

5

Club Wembley is the hospitality side of operations at Wembley Stadium Rights

▪ ▪ ▪ ▪

Partnerships e.g. hotels, golf resorts.

Joining pack Car parking on matchdays Priority access to non-football events e.g. dinners, golf days ▪ Money can’t buy ‘Connections Events’ for members including legends dinner, training sessions VIP breakfasts

Support services ▪ Dedicated member support team (with presence at matchdays and 24/7 online/phone support ▪ Members portal on the website that is being upgraded to be more comprehensive and personal

Structure

▪ 5 tiers of membership each with different levels of benefits and access ▪ Explicitly structured to be an experience led strategy, enhancing members’ lifestyles

Support organisation ▪ Membership card that allows owners to enter the ground and recognises their right to parking (unable to pay for food or drinks yet but is in the development phase) ▪ Developed a tailored customer journey for each type of membership (how to engage, when they typically lapse etc.)

Communication

▪ Newsletter and constant communication regarding upcoming events, matchday news, visitor information ▪ Communications campaigns year round (linked to the time of year e.g. summer break, FA cup, winter internationals)

Other key learnings ▪ Mindset of constant improvement and refinement – looking to respond to micro adjustments (member feedback and complaint) and macro (changes in football e.g. Nations League, viewing habits, economic trends)

6

The MCC is a members club with 18,000 full members and is the owner of Lord’s Ground and the guardian of the Laws of the game Rights

Structure

▪ Access to the famous clubhouse at Lords

▪ Full and associate membership available

▪ Ability to watch any game of cricket hosted at Lords

▪ Periodically offer lifetime memberships

▪ Red hardback book listing all events (also doubles as access / ID to the clubhouse)

Support services

▪ Waiting list for membership ▪ New members must be proposed and seconded by existing members

Support organisation

▪ The MCC has a Secretariat to run the day-to-day operations of the club

▪ Membership card to gain entry to the Clubhouse

▪ Members are expected / asked to fill roles on the committee

▪ Online members’ portal allowing members to monitor their subscriptions

Communication

▪ Monthly update emails ▪ Emails for members attending a game with information for the day ▪ Members contacted via letter – all communications executed to a professional standard

Other key learnings ▪ Part of membership fee is used ‘for the betterment of cricket’ – funding the Chance to Shine programme as well as the university (MCCU) scheme

7

Club Godolphin is the overarching organisation that encompasses both racing and breeding interests of Sheikh Mohammad Rights

▪ Events for members to ensure year round engagement ▪ Exclusive, insider content for members that satisfies their passion for all things equine

▪ Discounts on nominations

Support services ▪ Dedicated, professional liaison team ▪ Regular surveys of members behaviours and preferences ▪ Recognise the value of personal connections / relationship building – therefore do all they can to understand and connect with their members to upsell

Structure

▪ Segmented website visitors (~140K) into three categories: #thoroughbred #horselife, #lovehorses ▪ Members gain access to content online by signing up (for free) with an email address and some other info ▪ Darley Club runs in parallel to support the promotion of the breeding function Support organisation ▪ Darley Club members have personal webpages with all admin / invoicing / pedigree held on the page ▪ Professional CRM style system recording members data

Communication

▪ Text messaging service (every time a stallion that has been used has a Black Type winner) – for Darley Club members ▪ Heavy print and digital advertising ▪ Active email and social media channels

▪ Coordinated comms strategy to maintain year round contact with members Other key learnings ▪ Godolphin / Darley’s has a strong identity thanks to three core pillars that govern its operations: - To be a byeword for sporting excellence - To promote Dubai (and Sheikh Mohammed) - To contribute to the greater good of racing 8

HKJC is a non-profit organisation that operates horse racing and ownership in Hong Kong Rights

▪ Car parking space – highly valued asset to Hong Kong residents ▪ Access to exclusive events at the racecourses (including Sha Tin in China) ▪ Welcome dinners for new members

▪ Metal badge and membership card

Support services ▪ Liaison officer whose responsibilities include: - Contacting owners before raceday - Booking restaurant tables for owners

Structure

▪ 4 types of ownership (sole, partnership, syndicate, racing club) ▪ The right to become an owner comes through being drawn from a ballot ▪ Sole owners are only able to have 4 horses registered to their name (however owners get around this by registering under spouses / children’s names) Support organisation ▪ Membership card doubles as a mastercard payment card – enables HKJC to track owners’ spending habits as well as entry and attendance rates

▪ Dedicated information website for owners

Communication

▪ Text messages on entries sent to owners if they have registered their mobile number

Other key learnings ▪ Membership of the HKJC is a status symbol in Hong Kong society ▪ HKJC acts ‘continuously for the betterment of society by creating economic and social value

9

The Governing body for the sport of Eventing in Great Britain, combining Dressage, Showjumping and Cross Country.

Rights

Structure

Communication

▪ High quality member joining pack with pin and notebook

▪ 9 levels of ownership from full to associate and day pass

▪ Bi-monthly newsletter (electronic or hard copy)

▪ Discounted / free entry to events

▪ Free associate membership allows access to e-Newsletter and online community access

▪ Regular email updates on industry news and events

▪ Third party liability insurance ▪ Access to horse on event days (highly valued access right)

Support services

▪ Liaison officer who is key to building and maintaining relationships with owners

Support organisation ▪ Host a ‘horses for sale’ section on the website to simplify the process for owners and prospective owners

▪ Online owner portal to monitor horse’s activity

Other key learnings ▪ Created a training module for trainers to improve their ‘soft-skills’ in client relations ▪ Owners want recognition above all else, they are happy to put up with a tent in a muddy field because they are recognised for the role they play in the sport 10

Rights [1/2] Organisation

Context

Best practice

Potential ROA offering

Arsenal

•

Supporters can become members of the club for £35 a year, gaining the right to buy tickets

•

All members are given a joining box with a personalised scarf, lapel pin and booklet on the upcoming season, adding to the excitement and sense of occasion

•

The ROA could develop a small joining pack containing some branded merchandise in the owner’s colours (e.g. a notebook, pencil) and an ROA badge

Highclere

•

Highclere’s status as a high end syndicate means that its members expect service equivalent to that of a luxury good

•

Membership joining pack containing a glossy coffee table book on racing, a Highclere badge and a book on racing jargon

•

The joining pack would contain information / material that makes first time owners feel like insiders and not worried about lacking knowledge

The RAC

•

Private member’s club with • historic clubhouses in London and Surrey, offering a vast range of activities

Part of the offering of the exclusive membership is reciprocal rights to over 80 similarly exclusive private members clubs around the world

•

Reciprocal rights with France Galop, AIRO or other international associations to offer a truly global ownership experience

British Eventing

•

Equestrian organisation with • similar training cost levels but far lower levels of expectation from service provision

The level of involvement with the horse that owners are afforded at events (i.e. contact with horse in stables etc.) trumps all other benefits, with owners less concerned with other benefits so long as they get access to their horse

•

Identify instances in the raceday where owners can have contact with their horse e.g. pre-parade ring, picking grass 11

Rights [2/2] Organisation

Context

Best practice

Ascot

•

Need to attract consumers to the racecourse in an increasingly competitive leisure landscape

•

Popular social media channels due to a wide range of engaging and informative content (behind the scenes interviews, analysis pieces) – has been useful in attracting younger

•

Create engaging social media channels that offer exclusive and unique content to members to ensure year round engagement

GRRC

•

Operates a fine balance • between offering an exclusive experience whilst remaining a part of the wider motoring enthusiasts

GRRC metal badge seen as a status symbol, allowing access into member only areas that are situated within main areas of the event

•

Offer an ROA metal badge that allows access to member only areas (such as the tent at Glorious Goodwood) that are situated at the racecourse

The RHS

•

The RHS had the challenge of a large, older membership body in all regions of the country with a vast range of activities on offer

•

They deliver tailored weekly emails to members that give information on events in your area (such as garden visits, drinks evenings) that members can attend and connect with other likeminded horticulturalists

•

Host regional ROA social events outside of racedays to foster social connections beyond racing

•

The MCC is primarily centred around cricket, however they want to foster a social atmosphere between members beyond the sport

•

Put on ‘money can’t buy’ events for members, such as dinner with famous jockeys and trainers, a press pass at Royal Ascot etc.

MCC

•

Members are encouraged to set up and run clubs and societies within the MCC to create a social spirit within the membership

Potential ROA offering

12

Structure Organisation British Airways

GRRC

Context •

•

Best practice

Need a way to retain • customers and also to reward those customers who are most valuable as they choose British Airways often

The popularity of the GRRC means that it has a long waiting list, however the club wanted to keep these future members engaged and ensure they do not lapse out

Avios loyalty points collected based on number of flights taken – points total determines the membership tier which in turn decides the benefits that a member is able to access e.g. free flights, lounge access etc.

•

Recognising the sustained loyalty of members by offering a lifetime membership with an array of benefits

•

Introduced a ‘Fellowship’ which is a small yearly fee (deducted from that grants you a range of small benefits, making potential members feel as though they are part of the club and keeping them engaged

Potential ROA offering •

Introduce a points scheme whereby owners accumulate points for attending raceday with their runner, with levels of points unlocking various benefits

•

Continue running badge recognition scheme with GBRI for the highest involvement owners

•

Develop an associate membership for potential members who show an interest in joining (benefits could include a magazine, events calendar and small discounts on merchandise)

13

Communication Organisation

Context

Best practice

GRRC

•

Motoring organisation that puts on a limited number of events, therefore needs to find additional ways to engage with members

•

Unique content / social media coverage of events with behind the scenes access and interviews (available to stream if you cannot attend an event) available only to members

•

Work with trainers to ensure owners are receiving videos and updates of their horses to provide engagement beyond seeing them on raceday

England Golf

•

England Golf identified a lack of gender diversity that was harming its long term sustainability

•

#thisgirlgolfs campaign with targeted offerings to get more women involved in the sport, for instance targeting working women who are new to golf with evening taster activities followed by wine and cake with a relaxed dress code

•

RYA

•

Wanted to attract children to the sport to foster a lifelong love for sailing from an early age

•

Multiple youth membership types (and family memberships) designed to get young people into yachting

Utilise an improved understanding of the membership body to offer more tailored membership types targeting areas for improvement (I.e. gender diversity)

•

Introduce a student racing scheme to universities to encourage young people to get into racing

London based supercar club that charges members an annual fee for access to a fleet of supercars

•

•

Utilise understanding of members’ leisure pursuits outside of racing to offer tailored events and experiences e.g. Golf days

Rotate

•

Have curated a range of partnerships with restaurants, tailors, jewellers, hotels etc. based on members’ interests outside of cars – members are contacted with offers and activities relevant to their interests

Potential ROA offering

14

Support services Organisation

Context

Best practice

Ferrari

•

Historic luxury car maker that wants to convey its recognition to its top 1% of owners by differentiating their experience

•

Bugatti

•

Delivering hyper personalised • service to all clients who have made the significant investment into ownership

France Galop

•

Owners were confused by multiple sources of information and sites that had to be visited to monitor their horses

•

Cunard

•

Cruise company who recognise the high level of investment people are about to make and want to support them when they are booking

•

Potential ROA offering •

Offer a hyper-personalised approach to the very top 1% of customers – ensuring their value is recognised and their needs are catered for e.g. a helicopter to and from the raceday (facilitated b the ROA, paid for by the owner)

They developed a dedicated online account where owners can visualise their earnings and monitor their horse racing activity, seeing the number of entries to date and the planned entries

•

Concierge system alerting owners to entries and providing an online interface system to manage their horse e.g. paying a trainer, collecting winnings

Have developed a ‘voyage personaliser’ to allow you to create and customise your voyage, with a support team offering help via online chat and over the phone

•

Ensure that anyone who wants to become an owner is directed to a clear joining page and that support via phone is prompted at an early stage for support

Targeted at the most exclusive customers, recognising their value and contribution to the company by offering them the opportunity to become part of an exclusive test programme of unique track only cars Offer hyper personalised customer engagement with ‘flying doctors’ who are on call 24/7 to answer questions on the car and will fly to wherever you are in the world to fix any issue

15

Support organisation Organisation

Context

Best practice

Racing Australia

•

Racing Australia gathered feedback from owners that they were unhappy with the lack of information and clarity around training costs

•

Bayern Munich

•

Due to the high demand for • season tickets, Bayern Munich wanted to simplify the gameday experience for season ticket holders

RAC

•

As a social club, they have to vary their offering and ensure that all members are catered for and engaged

•

Potential ROA offering

Initiatives introduced to improve clarity around the costs involved with having a horse in training e.g. clear stipulations of the fee structure for trainers and the components included within the training

•

Communicate clearly to members about current industry issues and initiatives to demonstrate that their interests are at the forefront

Bayern’s ArenaCard system is a cashless, contact card system used by season ticket holders for entry, parking, food and drink and more

•

Introduce a concierge card system to cover course entry and badge allocation with additional functionality of purchasing food and drinks

Hold an extensive CRM database of members, including family members (who get a discounted rate if they want to join), interests, where they live and how often they attend events

•

Utilise the new database to record all interaction with owners to build up a comprehensive picture and personalize their experience

16

Support for service providers Organisation

Context

Best practice

England Golf

•

Governing body for Golf in England that looks after the interests of 1,900 clubs and over 675K players

•

Produced a comprehensive Club Support guide covering Membership (growth & retention), Business Support, Funding, Governance, Competitions and Promotion – alongside an online ‘one stop shop’ for information & support

RYA

•

Responsible for the standards and safety at the 1,500 clubs and associations in the boating landscape

•

The RYA offers affiliation to clubs and associations to offer support through information and advice provision, promotion and communications, training and development and discounts

England Hockey

•

Recognised the importance of Clubs in people’s playing experience and wanted to help them to improve

•

Developed the ‘ClubMark’ accreditation system for clubs, detailing the level of service expected for all aspects from playing to safeguarding and offering a support system to help clubs achieve compliance

Potential ROA offering •

Produce material similar to the ownership guide for racecourses detailing owner expectations to help courses improve their offering

•

Create a Quality Mark accreditation scheme supported by feedback with the racecourse to help them improve their provision

17