2008 Pres Council Frank Vain Presentation

7/29/2019 2008 Pres Council Frank Vain Presentation

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Strategic Planning and

Membership Development for

Private Clubs

GOLF ASSOCIATION OF PHILADELPHIA

Presidents CouncilWaynesborough Country Club

March 25, 2008

A Clubs Li feblood

On average, dues account for about:

y 49% of revenue in a Country Club

y 35% of revenue in a City/Athletic Club

y 30% of revenue in a Yacht Club

Most Private Clubs Need Members

Nearly one-half of p rivate clubs in the UShave fewer members now than they did in2001.

About 75% of Country Clubs

About 99% of City/Athletic Clubs

About 70% of Yacht Clubs

Clubs without waiting lists:

Membership Development

Clubs will typically lose 5% of theirmembership each year; mostly fromuncontrollable reasons of death, relocationand illness.

The greatest challenge for clubs in the pastdecade has been the failure to replace thisannual shortfall.

Disconnect

Any organizations with members needs anorganizational structure and an on-goingplan for Membership Development.

Membership Directors on Staff:

y About 33% of Country Clubs

y About 44% of City/Athletic Clubs

y About 15% of Yacht Clubs

Most Common Actions i n Response to

Membership Challenges

Cut entrance fees

Offer a trial membership

Offer payment plans on initiation fees Cut budgets to respond to new reality

Tactical versus Strategic Thinking


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Why Not Try This?

Private clubs that understand their

marketplace and membership dont havemembership problems.

A strategic approach toward membershipretention and recruitment is critical tosustained success.

Why Do So Many Clubs Have Unfilled Memberships?

1. Too much competition

2. Lifestyle changes3. Lack of strategic direction

4. Micro-Management

5. Quality deficiencies

6. Outdated facilities

7. Ineffective membership marketing plans

Membership Dynamics

Golf Goes Public

20%2010

30%2000

50%1960

60%1950

90%1900

% PrivateYear

Private clubs are down by both % and number.

More Americans Are Giving Up Golf

The New York Times, February 21, 2008 Number of frequent players (25+rounds per year)

declined by 33% since 2000. Was it the economy?

Changing family dynamics? A glut of golf courses? A surfeit of etiquette rules like not letting people use

their cellphones for the four hours it typically takes to playa round of 18 holes?

Or was it just the four hours?

Average Rounds/Year

0

5

10

15

20

25

30

35

40

30 - 40 41 - 49 50 - 59 60 - 69

1985

2005

Down 25%+

Age of Golfers

#

R

O

UN

D

S


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Golf Market

Projections for future aremixed

Participation constant;frequency down

TIME is key control factor;critical issue for under 50set

Membership Diversity

y Up and Comers: Least satisfied segment

of club membership. Want morerecreational activities, family orientation,casual lifestyle and events, femalefriendly atmosphere.

y Tradition: Inflexible club culture amongsatisfied older members not recognizingor sensing need to change.

Up and Comers (under age 45)

Broad athletic andrecreational interests

Casual lifestyle

Family oriented

Gender equality

Building relationships

Somewhat restrictedincomes

Prime Timers (age 46 65)

Golf begins at 50

Growing affluence

More free time

Family almost grown

Hosting lifetime events

Couple activities

Leisure Liv ing (over age 65)

Much less strenuousrecreational activities

Retirement/fixed income

Abundant free time

Empty nesters

Established patterns(resistant to change)

The Power Years

Interests beyond old golfand card playing:y Health and wellness

programsy Sport specific trainingy Diverse recreational

activitiesy Lifetime learning

opportunitiesy Part time work in

new/second careersy Volunteer opportunitiesy Travel


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The Generation Gap

Lowest satisfaction exists among members under

age 45.

Barriers to satisfaction among young:y Limited access and appeal to family

y Level of formality and informality

y Lack of entertainment options

y Restrictions on use by gender and families

y Lack of programming

Personal and Professional Success

The first rule of successful selling

is to have something good to sell.

Not Your Fathers Private Club

New Core Elements:y Up to date Bylaws and Access

y Great Golf Course and Practice Areas

y Diverse dining options from family casual to upscale informal withvaried menus and good wines

y Health and Fitness Facilities and Programs

y Resort-style Pool Complexes

y Fun Social Programs

y Summer Youth Camps

y J unior Instruction Programs

y Family Holiday Events

Leadership Roles in the MembershipDevelopment Process

It Starts at the Top

Leaderships chief role is to focus on High-Level StrategicIssues

Membership Development must be a total club effort Requires participation from

y Presidenty Boardy Committeesy Membershipy GM/COOy Membership Directory Staff

Leadership

Todays leaders are expected toprovide for the organization and itsconstituents:y Creativity and Vision

y An Understanding of the Environment

y Sense of Purpose

y A Sense of Trust

y Positive Outlook

y Catalyst to Achieve Results


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Mission

Strategic Issues

SWOT Analysis

Goals

Strategies

Strategic PlanBoard and

General Manager

Vision and Values

Strategic

Management

Process

Schedule

Objectives and Action Steps

Accoun tabi li ty/Responsibility

Evaluation Criteria

Resources

Operational PlanGeneral Manager

and Staff

Strategic

Management

Process

Satisfaction Responsibility

Private clubs are in the Satisfaction Business.

Cutting budgets and services to offset a shrinkingdues line only serves to drive the club into adownward spiral.

Too many clubs spend their time figuring out howto dumb down the cost of membership anddiminish the value of the experience.

Must continually appeal to active users and upperechelon of membership to grow and prosper.

Board Responsibilities

Board must provide a Strategic Plan thathas clear goals and specific timelines.

Regularly survey members to stay abreastof expectations and track progress.

Closely monitor new member opinions as amethod of measuring relevance to potentialnew members.


Board and GM/COO must provide allcommittees with concise goals andobjectives.

Board members should chair everycommittee to clearly delineate theirresponsibilities and assure follow throughon recommendations.


Establish and assure adherence to aneffective new member orientation system toassure new members are quickly madecomfortable users and are indoctrinated intothe culture of the club.


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Presidents Responsibilities

What type ofClub must webecome in thenext five years?


Leads others in identifying club purpose

and direction, and scope of services andactivities.

Makes certain club maintains competitivepresence.

Requires annual strategic planning retreatto adapt to changes and set improvementgoals.


Develops vision/future position.

Promotes development of a long range plan toguide continuous upgrading of deficientfacilities.

Gets as many members as possible involved onCommittees.

Brings in fresh faces so old guard cliques dontdominate club leadership, especially inmembership area.

Membership Chairman and Committee Responsibilitie

Membership Chairman

Encourages development of a marketing mindset.

Assures Membership Process is understood and userfriendly:

y Review new member admission process

y Identify potential changes in classifications to promote membergrowth

y Nomination forms easy to complete and readily available tosponsoring members

y Review eligibility and rules for Sponsors

y Makes certain Membership Committee and board meetfrequently to approve nominations

y Streamlines procedures regarding number of required forms,posting, etc.

Membership Chairman

Enlists support from Membership to serveas Ambassadors for club.

Must have strong 3, 6 and 9 month follow-up contact program to assure newmembers satisfaction.


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General Manager

Responsibilities

General Manager Responsibili ties

Unrelenting focus on increasing member

satisfaction:y Evaluating service delivery systems

y Adding value

y Finding ways to attract new members

General Manager Responsibil ities

Must continually seek out memberfeedback:

y Satisfaction surveys

y Quality assurance programs

y Focus Groups

y Management by walking around

General Manager

After collecting member feedback, theremust be a Response:y Operational Plan to support Strategic Vision

y Push staff and committees forward

y Clear, effective recommendations to Board

y Galvanize leadership to act

y Urge formation and continuous support forMembership Department

Membership Director Responsibilities

Oversee a personalized approach tomembership development.

Activate the Membership Network throughstructured program befitting clubs culture.

Marketing Mindset

Clubs must take a proactive approach formarketing to both existing and prospectivemembers.

Internal marketingy Social programs are low/no cost way to add value

y Motivation of existing members

External marketing

y Organized membership marketing plan


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Membership Development

Member

Survey

Develop

Strategy

Evaluate

MarketplaceMonitor

Results

Communicate

Program

Step One: Member Survey

How satisfied are they?

Do problems exist?

What do the members hear when they proposemembers?

Are members recommending new members?

What actions will they support?

FIRST, A CLUB MUST

UNDERSTAND ITS OWN MEMBERS

Step Two External Analysis

Identifies outside factors that can and willaffect the club:

y Membership Trends

y Evaluation of Competition

y Population and Household Demographics

Identifies Opportunities and Threats.

Step Three Marketing Plan

Identifies how the club will achieve asustainable competitive advantage:

yVision

yTarget Market

yDifferentiation

yOpportunities

yMarketing Goals

Step Four Action Plans

Define Action Stepsy Evaluate Membership Plany Identify Personnel Needsy Determine Need for Collateral Material

y Special P rograms

Establish Responsibilities:y By the Special Committee

y By Standing Committees

y By the Board

y By Management

Monitor accomplishments on a regular basis and update as needed.

Strategic Action Steps

Membership Services Director

y Effective Communications Plan

y

Update Internal Marketing PracticesyTargeted Social Programming

y Ambassador Committee

y Effective New Member Orientations

y Real Estate Relationships


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Traits of Successful Clubs

Clarity of Mission and Purpose

Quality Facilities

Food and Beverage Excellence

Excellent Staff and Service

Sound Leadership and Communication

Time for a Change in Approach

Most private clubs are engaged in a battle for

market share. Membership development will be an increasingly

important function going forward. Club leadership and operating management must

align their thinking and functions (StrategicManagement Process).

Opportunity exists for Membership Directors toplay an ever-increasing role in private clubsuccess.

Takes Aways

Membership must become a full-fledged department inevery club.

Current challenges represent a major opportunity forindividuals and clubs.

Once established, push forward a proactive agenda:y Know your members

Surveys are your friend

y Know your marketplace Up-to-Date information of area demographics and competition

y Activate Membership Referral Network

Thank You.

Your QuestionsAre Welcome

Documents

2008 Pres Council Frank Vain Presentation