ROA National Racehorse Owners Survey – Part 2, Identifying the Key Factors in Acquisition and Retention

My wife and I were lucky enough to be at our favourite racecourse – York – to watch the Nunthorpe, won in devastating style by Mecca’s Angel. Such a tough horse, and a superb buy at only 16,000 guineas out of Book 2 Tattersalls October Yearling Sale in 2012. She is the first filly to win the Nunthorpe twice, and it was a delight to watch the turbo-chargers kick in as she scorched through the final furlong. David Metcalfe, the owner, was clearly delighted and the whole experience was everything that owners aspire to. In a rather less restrained celebration, the Here For The Craic partnership couldn’t believe their fortune when – every syndicate’s dream – Heartbreak City won the Ebor for Tony Martin. These results, and the York racecourse experience, sum up what brings owners into the game and keeps them there.

However the backdrop for the first National Racehorse Owners Survey (summarised in the blog on 15th August) is the ongoing decline in ownership since the financial crisis of 2008. Numbers coming in were lower than numbers going out in seven of the last eight years, although encouragingly there has started to be some improvement recently.  The headline messages from the survey, of over 2,200 current and lapsed owners, include:

• 73% of owners start out with others, particularly friends, family or through a syndicate.
• 53% of owners say that speaking to a trainer or visiting a yard is the most influential step in their decision to own. However, 44% of owners say that there isn’t enough information available on costs, income or prize-money in the public domain to make that decision.
• 45% of current owners would increase their number of horses in training if prize-money increased.
• 44% of lapsed owners cite facilities and treatment of owners at racecourses as a key factor in their decision to give up ownership.
• Three out of four lapsed owners would return to owning if the circumstances were right.

The survey has been analysed under three main themes of the owner, the trainer and the racecourse experience. The more the results of the survey were examined, the more it became clear to us that the factors bringing owners into the sport are not necessarily the same as those that drive them out. This is illustrated in our diagram below, while drawing on the survey’s findings.

A Dual Industry-Wide Strategy is Required: Attracting AND Retaining Owners

 

 

Doubtless the analysis and conclusions from the survey will feed into the BHA’s Strategy for Growth and all the operational planning associated with its implementation. Our recommendation is that in the light of the dual factor model outlined, there needs to be a similar dual strategy with different goals and interventions. Acquiring new owners is closely linked to marketing, PR and timely, detailed and transparent provision of information about ownership, particularly while potential owners are visiting trainers. Retaining owners is much more challenging because of the inevitable disappointments of ownership, the high relative costs and dissatisfaction with racecourse facilities. It is essential that the industry doesn’t just concentrate on marketing and PR campaigns, but addresses properly the financial and experiential factors driving unnecessarily high owner churn rates. Indeed we would argue that this should be the prime strategic imperative of the BHA’s Strategy for Growth. 

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ROA National Racehorse Owners Survey – Part 1, A Summary of the Results

When I took part in the BHA’s pillar strategy process a couple of years ago, one of the frustrations was the lack of facts and data on which to ground discussions and the formulation of important initiatives. The Racehorse Owners Association (ROA) felt exactly the same, and were determined to canvass both current and lapsed owners to find out their views, particularly in terms of what brings them into the sport, retains them and indeed drives them out of ownership. In this first blog on the subject I have done no more than list out the results from the survey. In the second part, on 1st September, I’ll do my own analysis and draw conclusions on what I think the survey actually tells us.

Encouragingly there was a good sample size, with 2,203 responses including a number of “hard to reach” owner samples such as new owners with less than two years’ ownership experience (255) and lapsed owners (203). Interesting to see that the average age of a racehorse owner is 59; the percentage of lapsed owners who cite facilities and treatment of owners at racecourses as a factor in their decision to give up ownership is 44%; the duration of ownership is longer for ROA members; the satisfaction rating of the ownership experience is higher for syndicate members than for sole owners; and the percentage of lapsed owners who would like to own horses again is 73%.

Theme 1: Owner Experience Results

1. 73% of racehorse owners started out with others.
2. Nearly one in four owners have taken a break, most due to finances or horse injury.
3. The most influential steps to ownership are speaking to a trainer or other owners.
4. New owners take more decision steps and are more likely to research online.
5. Ownership is born out of family history, keen interest in racing or attraction to the excitement.
6. New and syndicate owners think of the excitement above the expense.
7. Owners are not likely to recommend owning a racehorse to their friends.
8. Costs and prize-money are primary lapse reasons, racecourse and trainer experience crucial.
9. Three out of four lapsed owners would return to owning if the circumstances were right.
10. ROA members are much more likely to remain in ownership for longer.

Theme 2: Trainer Experience Results

1. The most influential steps to ownership are speaking to a trainer or other owners: 53% say that speaking to a trainer or visiting a yard is the key step, and for 22% it is speaking to other owners.
2. Owners want more information on costs and trainers: particularly on training fees, engagement and the owner experience, income and expenditure, and clear cost models so owners know what they are getting into.
3. Trainers are approachable but could communicate more information, more regularly.
4. Costs and prize-money are primary lapse reasons for 80% of lapsed owners; trainer experience (29%) is also crucial.

Theme 3: Racecourse Experience Results

1. The racecourse is the pinnacle of the ownership experience: the primary motivation to become an owner is the enjoyment of watching your horse run.
2. Racecourses are the shop window to ownership, not the salesmen: speaking to someone at a racecourse is not a crucial step in the decision to become a racehorse owner.
3. New owners are motivated more by the social aspects of racing: particularly with combined with the enjoyment of watching your horse run as well as the non-raceday social elements.
4. Winning is an important bonus, not the be-all and end-all: fewer than one in 12 owners believe that winning is everything.
5. Costs and prize-money are primary lapse reasons for 80% of lapsed owners; racecourse experience (44%) is also crucial.

In the second blog on the survey, the intention is to explore whether there may well be a “two factor” model working here. I know that sounds a bit jargony, but it could be that there are subtle but important differences between the factors that bring people into the sport and those that discourage them and ultimately may drive them out of the game. Thinking caps on over the next fortnight on that hypothesis.

I am always interested to hear your views so please do leave a comment. If you can't see the comment box at the bottom of this post then navigate to the post using the right hand navigation or click here > and scroll to the bottom of the page. Look forward to hearing your views. Thanks very much for sharing them.