2008 pres council frank vain presentation
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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 Outdated facilities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 Responsibilities
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.
Board Responsibilities
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?
Presidents Responsibilities
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.
Presidents Responsibilities
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
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