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SBDC Business Consulting

Penn Club of Philadelphia

Board PresentationMay 12, 2009

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Agenda

Review analysis of membership and sales

Discuss additional suggestions

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Project Scope

Analyze membership activity to identify opportunities to improve clubs performance and drive growth Understand Penn Club’s member and user base

Analyze sales performance

Recommend opportunities to improve performance Additional metrics to track

Opportunities to drive growth

Important issues to consider

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Limited Membership Penetration

100%

38%

16%34%

Less than 7% of local alumni are registered users

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Experiencing Extensive Churn

New membership is growing year over year Consistently churning substantial membership

2007 2008Q1 Q2 Q3 Q4 Total Q1 Q2 Q3 Q4 Total

New Users 28 61 312 59 460 61 50 152 171 434New/Renewed Memberships 13 29 148 33 223 42 71 127 115 355Expired Memberships 26 11 34 22 93 13 29 133 27 202Net Memberships -13 18 114 11 130 29 42 -6 88 153

% of Base Churned 7% 3% 9% 6% 24% 3% 7% 34% 7% 52%

27% of sales have come from 6% of customers 59% of customers have purchased items and failed to

make additional transactions

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Repeat Users Drive Value

6+ Purchases

2-5 Purchases

Single

50

288

485

823

6%

35%

59%

14,592

24,384

14,261

53,237

27%

46%

27%

Note: All figures include only activity over the past 24 months

Customers Total Order ($)

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Membership Concentration

Philadelphia

PA suburbs

New Jersey

Delaware

New York

Other

Members

750

511

107

17

17

32

1,434

52%

36%

7%

1%

1%

2%

Note: 1,490 members do not have a address listed

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Opportunities – Improved Data

Purge member list to focus on strong core 2/3 of users are inactive Reactivate or eliminate dormant accounts

Reach out to non-renewing members Opportunity to understand causes of churn Initiate dialogue to reconnect

Enhance records Track demographic data to target activities Look enhance information on current members

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Opportunities – Membership

Create and reward ambassadors Discount on membership for recruiting friends Status for activity and inclusion

Encourage membership Reimbursement of non-member premium Discount tickets for first purchase

Incentivize long term commitment Discounted multi-year membership Automatic renewal

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Remaining Questions

Pricing – What is the appropriate pricing to drive membership?

Churn – What is the best way to address the extensive churn?

Inclusivity – How do we engage unaddressed members?

Additional data – What else do we need to track to optimize performance?