“strategic membership replenishment” presented by rick coyne, president club mark corporation...
TRANSCRIPT
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“Strategic Membership Replenishment”Presented By
Rick Coyne, President Club Mark [email protected]
1-800-266-8119
The Golf Association of Philadelphia’s3rd Annual Presidents Council
•© 2007. All rights reserved. Club Mark Corporation.
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“With members everything is possible; without members
nothing is possible.”
Robert Dedman
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The Private Club Industry is Changing Rapidly, Often as a Result of Outside
Influencers
National TrendsRegional Trends
Local TrendsInternal Core Issues
Let’s Look at National Trends……
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National Trends
National Trends
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National Trends
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National Trends
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Overbuilding – What we provide in the private club is fairly available in the public market, generally less expensively
Leisure Time – Even prospective members that can afford the Club may not join because they have very little time to use the amenities
Economic Perception – Even though the economy has been fairly robust over the past 24 months, consumers are still cautious.
The Reasons for These Trends
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Aging Membership and Population – If we fail to capture the “baby boomer” market, the generation behind them is 5% smaller
Members Referring New Members – The system is broke and it is now up to management to ensure that you explore all of the prospecting opportunities
Pricing is Definitely an Issue – No question we have made some mistakes and we are paying for them today
Core Issues that Compound the Problem
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Negative Press - Every National Publication We Read Seems to be Running an Obituary on Golf and the Private Club in General
Stinking Thinking - The Old “I Don’t Care How Many Members We Lose, We’ll Just Split it Up at the End of the Year”, is Now Sounding More Like, “Will the Last Guy Standing, Please Turn Out the Lights”
Core Issues that Compound the Problem
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According to Surveys, 66% of Members Join Between the Ages of 36 and 45, and 90% Join Before Age 50. Yet Most Clubs Continue to be More “Senior” Oriented to Services, Activities
and Facilities.
Perhaps the Greatest Issue is an Industry Failure to Ingratiate Culturally Differentiated
Programs and Activities in Our Clubs
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And There’s More….
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1. Foreclosures. Industry experts predict as many as 220 over the next 12 months. How will this affect you?
2. Discounting Competitors. In a competitive market, with members shopping before buying, be aware of how the competition can affect you.
4. Same Sex Challenges. What would same sex partners do to the traditional family club’s culture?
5. Continued Attack by the Media – The effect of the media on the continued growth within our industry, or the lack thereof, is absolute. Learn from history.
3. Equity Refundability Issues.
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In almost every club there are core issues that may be
impeding your ability to effectively market!
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Core IssuesMember’s PerceptionMember’s Perception
Directly Affects a Willingness to ReferDirectly Affects a Willingness to Refer
Affects Conversation and Perception in the Affects Conversation and Perception in the CommunityCommunity
Facility Maintenance and UpkeepFacility Maintenance and UpkeepMembers Need to be Proud in Order to ReferMembers Need to be Proud in Order to Refer
Age of MembershipAge of MembershipLeads to Increased Attrition Requiring More Leads to Increased Attrition Requiring More
Aggressive Marketing EffortsAggressive Marketing Efforts
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Core IssuesCommunicationsCommunications
Unmanaged Communications are Unimportant to Unmanaged Communications are Unimportant to the Recipientthe Recipient
Lack of Communication Creates Other IssuesLack of Communication Creates Other Issues
Lack of Transparency in Decision MakingLack of Transparency in Decision MakingIf Members Don’t Trust Leadership They are Likely If Members Don’t Trust Leadership They are Likely
Adversaries of the Club Within the CommunityAdversaries of the Club Within the Community
Pricing Issues – Uncertainty Over FuturePricing Issues – Uncertainty Over FutureLeads to Increased Attrition and Lack of ReferralsLeads to Increased Attrition and Lack of Referrals
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Core IssuesLack of Strategic Direction
Members Need to Know That There is a Plan
Dysfunctional Governance
Cultural DiversityToday’s Members Have Their Own Wants &
Needs
If the Club is Not Addressing This Issue Carefully it Will Affect Both Matriculation and Attrition
Lets take a whimsical look at cultural change…
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Clubs Will Continue to Morph As Each Generation Interjects Its
Own Model for Enjoyment
Change is Just Coming a Little Faster Now….
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50’sGolf
Golf 2005
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GolfAttire1929 Golf Attire Today
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1950’s Swim Attire
Swimwear Today
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Margaret Court 1960’s (34 Years Old)
Maria Sharapova (18 Years Old)
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Jeans in the 50’s
A Fashion Statement Today
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Transportation in the 40’s
Just Keeps Getting Faster
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Communications in the 50’s
The New Millennium
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Formal Wedding in the 50’s
Contemporary Wedding
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Social Gathering in the 50’s
Contemporary Gathering
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The American Bandstand Culture of
the 50’s May Be Gone Forever
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The Point is…
It’s Not Your Daddy’s Club Anymore…
Today’s Culture Celebrates Youth and Individualism
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Consumers today have a desire for convenience in their lives, and
pack more living into shrinking disposable time. However, they are willing to spend disposable income to conserve disposable
and family time.
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Who are these
people and why is it
important to
understand them...
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What Do Your Mature Members Want From
the Club
Lower costs, familiar foods, lower dues
More formal dining and control over club decisions
Social events the way they used to be
Paper communications and lots of it
Invisible children and fewer women on the course
The way it used to be…..
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What Do Your Middle Age Members Want
From the Club
Guaranteed availability of acceptable tee times
Healthy choices in food and activities
E-Communications & ease of access to information
Family activities & smaller, more focused events
Recognition, personalization & connections
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What Do Your Junior Age Members Want
From the Club
Guaranteed availability of acceptable tee times
Challenging golf course
E-Communications & ease of access
Family activities
A justifiable reason to be a member……
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How Each Group Sees the Referral Process
Did not join the club to become a recruiter. Wants to play golf and leave. The dreaded “Trunk Slammer”.
Husband and wife both work and are afraid that by referring more members will restrict their ability to play when they want.
All their members are either members or they are dead.
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Retention of Existing Members and the
Replenishment of Those We Lose are Fundamental to
Success…
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Applying Membership Marketing Concepts to
Private ClubsLet’s Start With Pricing….
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Marketing Strategies
• $350 Bone-In Ribeye • $250,000 Membership Fee
Or
Which is more realistic?
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Positioning Yourself in the Market
Market Area Wealth Density and Participation Rate
Community Perception
Competition
– Pricing
– Perception
Membership Trends & Profiles – Historic Member Usage Patterns & Trends
– Age Segmentation of Membership
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Density of Wealth
Your Marketplace is Rarely More Than 20 Minutes Drive Time From Your Front Door, Usually Less, Depending on Type of Club.
How Many Households Within That Radius Can Afford Membership
How Many That Can Afford Membership Would be Golfers? Yacht Club Potential? City Club Potential?
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Community Perception
How Does Your Community Perceive Your Club?
Often, Clubs are Perceived as:
Full and Too Expensive
Stuffy and Formal
Kid-Un-Friendly or Worse
Old & Not Fun
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Community Perception
You May Be Perceived Worse……….
Frequent Discounting Programs
Deteriorating Physical Plant
Frequent Assessments
More Like a Daily Fee
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Competition
What is Your Club’s Competition?
How Can Competition Affect Your Sales Efforts?
What Happens if They Discount?
What Happens if They Renovate and Your Facilities are Then Viewed as 2nd Rate?
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Competition
Prospects are Shopping Before Making a Decision to Make Application. Price is an Issue.
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Trends and Profiles
How Many Members Do You Have Over the Age of 65? 75?
3 M’s – Mortality, Morbidity & Moving Away
Are You Net Gaining or Losing Members Annually?
Net Loss of 5 Per Year Can Mean Big Losses Over Time
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Normal Attrition is 6 – 8%
But What Happens When Your Age Segmentation Looks Like This…
26
156
168 164
132
172
0
20
40
60
80
100
120
140
160
180
Under 35 35-44 45-54 55-64 65-74 over 75
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Monitoring Trends is Critical
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Total Membership
864861
852
839
826
818
790
800
810
820
830
840
850
860
870
2001 2002 2003 2004 2005 Current
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Total New Adds & Resigns
20
36
30
40
28
33
28
43
38
53
0
10
20
30
40
50
60
2001 2002 2003 2004 2005
Adds Deletes
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Annual Attrition Rates
4%
5%
4%
5%
6%
0%
1%
2%
3%
4%
5%
6%
7%
2001 2002 2003 2004 2005
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Age Segmentation – All Members
26
156
168 164
132
172
0
20
40
60
80
100
120
140
160
180
Under 35 35-44 45-54 55-64 65-74 over 75
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Thank You and May Your Efforts Be Rewarded
Creating Differentiation from Your Competition
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Remember that perception of your Club is not only the golf course & amenities. Each touch that a member or prospective member has with a staff member, each visual and each experience they have at the Club will create their respective “value” perception.
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• Marketing Director
• Department Heads
• Direct Contact Staff
• Telephone Reception
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Telephone Reception
• This is the First and Sometimes Last Impression of Your Club.
Who’s Training the Receptionist?
What Impression Does Your Receptionist Exude?
Manage This Point of Contact
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Boards & Committees
• Classic Misconceptions• The “Vaporizing Effect”• Planning Vs. Implementation,
Who’s Job Is It?
There is nothing quite so stupid as an educated man, once you remove him from his field of education..
Will Rogers
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Seeking the Appropriate Sustainable Membership Solution
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Programs That Have Worked Seem to Have This in Common
Something to Do With Pricing
Discounting
Extended Payment Plans
Pricing Accommodations for Younger Members
Trial Usage Before Financially Committing
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Pricing Issues
Set Price on the Basis of Your Market, Not on Ego or Emotion
Research Market Demographics
Study Your Competition
Discounting Should be a Last Resort
Look at Accommodations
Extended Payment Plans
Junior/Intermediate Programs
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Programs That Have Worked Seem to Have This in Common
Something to Do With Incentives to Existing Members
Dues Rebates
Cash Credits
Food and Guest Credits
Making the Referral Process Painless
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Referrals
If Less Than 10% of Your Existing Members are Participating in the Process, Something’s Wrong
Communicate the Issue Honestly
Review Alternatives to Keeping Pace With Attrition
Assessments
Reduced Services
Increased Costs to Remaining Members
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Programs That Have Worked Seem to Have This in Common
Something to Do With Generating Non-Member Traffic
More Diverse Member Activities
Complimentary Guest Usage
Complimentary Participation in Events
Creating Member Pride
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Programs That Have Worked Seem to Have This in Common
Something to Do With Differentiating the Experience
Making Every Experience Memorable
Orchestrating Tours
Team Marketing
Personalizing
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• Let’s Review a 9 Point Strategy for Success…..
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Number One
• Determine Your Specific Membership Needs– How many members do you want or need to
matriculate over what period of time– This process will help identify the level of
aggressiveness that may need to be employed in the process
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Number Two
• Understand Your Own Specific Market Demographics. – Knowing the depth of your market capable of
affording membership at your Club is critical to creating membership categories and setting the right membership fees
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Number Three
• Know and chart your competition. – Its subject to change….
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Number Four• Have Competent Staff to Complete the
Membership Mission.– Hire a Trained Membership Director– Team market using department heads and staff.– Help staff understand “managing every point of
contact”. Differentiate!
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Number Five• Competitively Position your Club. It’s Too Easy
to Simply Discount.– Once you know the market and competition determine if your
fees are too high, too low or just right. – Determine if there are membership categories that fit better to
the market’s demographic profile.
– Before you discount, look at payment plans or incentives to
encourage referral participation. – If your price is way too high, adjust.
– If it’s not too high, set lower payments and wait for the market to
catch up to your pricing.
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Number Six• Create a Program That Fits Your Need.
– Set the aggressiveness of the program based upon your needs. Don’t overreact.
– If members are not referring, create an incentive program. Communicate effectively!
– Be sure that what you do in the short term does not negatively affect the long term viability of the club or its ability to charge specific fees. Think strategically and do an impact analysis before you implement.
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Number Seven• Communication is the Key!!
– The best ideas fail because we fail to communicate. Create good graphics for your program.
– Share data and information with the members. Rational people agree when given the same data from which to make a decision.
• Use Town Hall meetings, focus groups and surveys as a vehicle
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Number Eight• Manage Each Point of Contact
– Engage the Team Concept of selling– Personalize whenever and wherever possible. Differentiate!– Create connections– Data warehouse– Offer members the opportunity to showcase the club to non-
member prospects– Create an Ambassador’s program– Generate non-member traffic as creatively as possible. Let a
prospective member see your club in its best possible light
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Number Nine
• Dynamic Programming of Events– Create smaller more focused events to meet the varied needs of
your membership– Drive-In movies, Harley parties, Hot rod parties– Father – Daughter camp outs– Boxing exhibitions– Pig races
Remember, members want to have fun…..
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Finally, Liberate Your Thinking
Our industry has been described as static in its thinking. Others have judged us more harshly, suggesting that our thinking may be constipated.
We deal today with a new culture of consumers and members, as well as a new level of competition. Being the same is opening the door for your competition.
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Look to the Future
“In any moment of decision, the best thing you can do is the right thing.
The worst thing you can do is nothing."
Theodore Roosevelt
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The Future is in Your
Hands and There is Much At Stake
Do Well My Friends…..