Tag: Ben Hopkinson

Member Satisfaction Trends & the Importance of Continuous Measurement

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Club leaders generally have a strong pulse on the strengths and weaknesses of the member experience at their club. But given the amount of direct member feedback that Club Managers receive and the presence of vocal minorities at every club, it can be difficult to prioritize the needs of the silent majority.  

GGA has the opportunity to facilitate many private club surveys that collect ongoing feedback from tens of thousands of members each year. In doing so, common trends in member satisfaction begin to reveal themselves, and an understanding of what lies beneath the general satisfaction feedback.  

That is why formal member surveys are essential to help club leaders gain a deeper understanding of member satisfaction at their club. We recently released the results of our annual Club Leader’s Perspective industry survey, a 2023 update on pressing needs in club management, including emerging trends, challenges and needs heading into a new year. The feedback from 230 club leaders across the industry uncovered some interesting insights regarding member satisfaction: 

Those who do not measure satisfaction through a survey were more likely to be optimistic about satisfaction levels at their club – 42% of responding club leaders surveyed their members over the past year. Of that cohort, 61% measured an overall increase in satisfaction. In contrast, 74% of the audience that did not measure satisfaction perceived an increase. 

Across our client sample of satisfaction surveys, we observed a relatively flat overall satisfaction trend this past year, and we believe it is unlikely that 3 in 4 clubs this past year experienced improved levels of member satisfaction. As an overall trend, we observed satisfaction levels in 2022 remain slightly elevated from pre-pandemic levels but relatively consistent with 2021. The one area that we noticed a common decrease in satisfaction was food and beverage operations, often driven by low scores in menu variety/selection and service consistency.  

Only 16% of club leaders believe they are facing new and significant challenges related to their membership at their club. 

We were surprised to see ‘membership’ lower in terms of creating new challenges for club leaders. Given the high turnover and member growth that many clubs incurred during the pandemic, we are starting to observe ‘generational divide’ challenges emerge as a strategic issue for many clubs, specifically preserving culture and assimilating new and old generations of members. Member surveys provide great value in mitigating this issue by clearly delineating the key differences and commonalities in wants, needs and priorities for different generations. 

For the club leaders who measured satisfaction, they found older generations to be harder to satisfy than new generations, which is consistent with what GGA has observed the past year. Club leaders who did not quantitively measure satisfaction displayed a more balanced perception of the difficulty of satisfying each generation.  

Club leaders who surveyed their members were also more likely to have increased their membership size in 2022 (or waitlist), and more likely to have deployed an adjustable capacity for membership based on activity access and utilization (rather than a pre-determined rigid cap from the bylaws). Intuitively, this makes sense as regular member feedback can provide club leaders with the confidence to optimize usage at the club, satisfaction with access, and ultimately identify opportunities to increase members or member usage.  

From a membership perspective, the industry remains in a position of strength, with a growing number of waitlisted clubs and member feedback that suggests low attrition risk due to current satisfaction levels. But developing and maintaining a deep understanding of member satisfaction at a private club should not be a cyclical exercise. It requires consistent and ongoing measurement. In high times, like the present, this allows you to optimize members and usage, maintain competitive strengths and foresee any future satisfaction risks like the challenge of bridging a harmonious culture across multiple generations. In down-times, it can provide a valuable roadmap and priority list to address weaknesses and focus on the elements of the member experience that will move the needle the most in terms of restoring satisfaction and retention.  

Connect with the authors:
Ben Hopkinson, Director
ben.hopkinson@ggapartners.com

James Stumpo, Senior Associate
james.stumpo@ggapartners.com

How to Use Performance Evaluation Effectively to Retain Best Talent

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Amidst a global pandemic last year, businesses across the country began to face a new, unfamiliar challenge. 2021 saw the emergence of a global economic trend recognized as “The Great Resignation”, where employees voluntarily left their jobs en masse. Organizations in COVID-sensitive sectors like leisure and hospitality were hit especially hard. According to research from Business Insider, employees within these industries left their jobs at a rate double to the national average (6.4% vs. national rate of 3.0% in September 2021). More recently, the trend has shifted from employees resigning from their roles to increased demand and expectations for the right roles.

Unsurprisingly, human resources has become a major focus. In GGA Partner’s A Club Leader’s Perspective: Emerging Trends & Challenges survey, 67% of club leaders indicated employee retention being a key financial risk to their club and 77% of clubs see employee recruitment and retention being key issues facing the industry moving forward.

The big question facing those charged with governance is, what can we do to retain employees? The immediate solution is to raise compensation, which was indicated in the Club Leaders Survey as the most successful tactic in retaining employees. Clubs seem to be reacting accordingly, indicating planned raises to payroll by an average of 7.8% across all departments. Although increased wages are an important consideration, there’s more to the story.

McKinsey notes the strong connection between employee satisfaction and relational attributes (feeling valued, relationships with management, potential advancement) compared to more transactional attributes (compensation, prestige, role/company). Today, employees are thinking about what they want out of their job now more than ever.

Returning to the original question, how can organizations prioritize relational attributes to increase employee satisfaction?

Understanding the Problem

Surveys are a powerful tool to assess member feedback and provide a quantitative component to member feedback received on a day-to-day basis. The same attitude should be considered with employee relationships. Although results from a full employee survey will mostly be leveraged at the management level, this information is important for all at the club to understand how satisfied employees are through establishment of both an overall and department specific Employee Net Promoter Score, as well as how retention programs are performing.

Start at the Top

Employee satisfaction and retention are key concerns throughout all areas of the business; however, it is important to ensure those charged with governance do not bridge the gap between governance and management. While the board is directly charged with evaluating the General Manager (often its only direct employee report), it can also support establishing the structure and measurement method for evaluating other key management positions, as well as the structure for a comprehensive 360-degree review program for all employees. Boards should aim to establish a policy requiring a quantitative element of performance evaluation to key management figures within the club. This type of formalized, quantitative performance evaluation structure should be “pushed down” from the top level as an example to use throughout the club. This form of evaluation ensures employees are aware they will be provided the opportunity for advancement as well as providing SMART (Specific, Measurable, Attainable, Relevant and Time-Based) goals. The board can then monitor the club’s performance evaluation structure and process through the GM with a requirement for periodic reports at specified intervals.

Determining Quantitative Goals

In developing this performance evaluation technique, identifying which quantitative goals on which to evaluate an employee is an important determination. If the metric does not meet the SMART criteria, the employee may feel as if they are tasked with an impossible goal and satisfaction (as well as ambition) may decrease. Evaluation criteria should relate to key performance indicators established for the entire club that align with organizational goals. For example, if your club is attempting to grow the membership, raising the Net Promoter Score of the membership measured through an annual survey may be a performance evaluator established for the GM/COO of the club. For clubs at capacity, perhaps overall satisfaction score and/or ‘value for dues’ is a more aligned KPI for performance.

Take the below general example of a quantitative approach to evaluation (every club should determine the categories and weightings based on specific KPIs and goals established for their individual club). This score may be used to determine discretionary compensation, such as performance bonuses, raises or be used for evaluating candidates for internal promotions.

Employee retention is a key area of concern for clubs across the country and the world, and those charged with governance can take steps to help improve employee satisfaction throughout their business. These techniques will assist boards in understanding, setting, and maintaining performance standards that flow through the entire club, creating a transparent workplace with clear paths for goal attainment and advancement.

This article was authored by Ben Hopkinson, Director, Evan Van Eerd, Manager, and Adrian Mazzarolo, Senior Associate  for Boardroom Magazine. 

2021 Predictions on the Shape of the Next Normal

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When we were introduced to COVID-19 in March 2020, no one had any indication that ten months later the number of cases and its toll on society would continue to rise. The introduction of a vaccine is promising, but the road ahead remains filled with uncertainty as to when the next normal will arrive – and what shape that normal will adopt.

Since its inception, GGA Partners has traveled the globe working with private clubs, golf courses, investors, real estate developers, resorts, municipalities, and financial institutions. This has provided unique insight into the state of golf, private club, and leisure businesses from many different perspectives.

We have observed that even before the coronavirus pandemic, significant change was underway across the private club landscape. As we prepare for the “new normal” the thought leaders at GGA sat down to predict what they believe is coming in 2021 and beyond.

1. COVID-19 accelerates change already afoot in governance

According to Senior Partner Henry DeLozier, the change brought on by the pandemic is going to necessitate even more rapid change in governance, which GGA has seen clubs struggle with this past year.

“In corporate America, the concept of stakeholder capitalism was at the forefront in 2020 and that has transcended to the private club space,” commented DeLozier. “We’re hearing members across the private club spectrum questioning why they do not have a larger voice in their club and how board selections, as well as decisions, are being made.”

Private clubs that do not have current and effective governance will suffer from decreased member satisfaction and a constant churn of its membership base.

2. The capability to communicate effectively and efficiently will be key

Linda Dillenbeck, GGA’s director for the firm’s communications practice, stated that there continues to be a need to assist clubs in their efforts to communicate effectively and efficiently.

“It is basic human nature that people do not like change,” said Dillenbeck. “To minimize the disruption of pending changes, it is incumbent upon the management team and board of directors to clearly communicate the what, how, and why of their decisions then allow members to voice their opinions. This provides the level of two-way communication members are demanding.”

In addition to communications about club finances and capital improvements, clubs need to improve the use of the data they have collected to provide tailored communications to members. For example, notices about evolving restrictions on golf events should only be sent to those who play and those about activities for families with children don’t need to be sent to empty nesters.

Beyond member communications, clubs that will be successful in 2021 will be those which can retool and refine their external communications to ensure the message of what truly makes the club unique is presented clearly.

3. Greater work flexibility will impact club utilization in new and challenging ways

Report after report has trumpeted the tremendous increase in rounds played during the pandemic. According to GGA Director John Strawn, that is in large part due to work-from-home adaptations which are providing greater flexibility in how and when employees complete their daily tasks.

“People have more control over their work lives,” said Strawn. “Golf experienced fewer restrictions during the pandemic and that has brought out many new and fringe players leading to full tee sheets at both private and public golf courses.”

Full tee sheets are causing negative feedback from those who play more frequently as there is a belief that those not paying full dues are taking coveted tee times. To solve the problem, Strawn predicts clubs will need to revisit their strategies and ultimately their business models more frequently to ensure they are meeting this new and different demand effectively. Flexibility will be critical until the long-term impact on golf demand is better understood.

While clubs continue struggling to ensure fair and equitable access to the tee or courts while accommodating increased demand, Senior Associate Andrew Milne added that clubs should expect that best practice solutions may shift regarding reservations and tee sheet management to include lottery systems and Chelsea systems to ensure dissatisfaction among members is minimized. Understanding that new reservation management approaches may change the value proposition for members, a clear plan and message acknowledging this, and for measuring and adapting the approach as the future becomes clearer, will be important.

4. Clubs must better understand what women want from their club

According to the National Golf Foundation, while only one in five golfers are women, females represent a disproportionately higher percentage of beginners (31%).

Women ease into the game for a variety of reasons; to spend time with their family, to compete, to be outdoors, and to enjoy the support, community, and socialization. As these women age and consider joining a club, they will choose the clubs that shape programs, staff, activities, and offerings to blend the female competitive group with the group that is more interested in the social community.

“We’ve known for some time just how important the role of women and the family dynamic is regarding the decision on whether to join a private club,” commented GGA Director Murray Blair. “For clubs to succeed in 2021 and beyond, they will need to understand how women are impacting the decision-making process and implement the necessary adjustments to make them feel welcome, whether they play golf or not.”

5. Operational efficiencies gained during the pandemic will carry forward in 2021, and their challenges will too

Among the most remarkable takeaways from 2020 was the ability for clubs to adapt their operations and service offerings swiftly and effectively in the face of facility closures, variable human resource availability, and rapidly changing restrictions for public health and safety.

Contactless payments, varying tee time intervals, and pace dispersion tactics are pandemic-inspired efficiencies which GGA Associate Andrew Johnson predicts will continue.

Adding to the list, GGA Director Ben Hopkinson expects clubs will become more efficient at managing grab-and-go meals, take-out dining, and mobile ordering, following the best practices of companies like Uber Eats and DoorDash.

New ways of operating have also brought about new challenges, some of which will persist into 2021 and require even more new solutions to be generated at clubs and courses.

GGA Senior Associate Andrew Johnson expects that the increased costs associated with COVID-19 mandated protocols such as labor for sanitation and cleaning, as well as elevated maintenance expenses due to increased rounds, will remain through 2021.

Clubs that effectively determine what increased interest and golf participation means for facility accessibility, program creation, membership categories and associated privileges will find increased membership satisfaction and interest from new prospects.

6. The pandemic’s impact on club finances will remain uncertain, expect to see more measurement, flexibility, and experimentation

Despite successful adaptations in club operations and economic relief opportunities afforded by governments and municipalities, the full extent of the pandemic’s economic impact will remain varied across club types depending on business structures and market areas.

GGA Senior Manager Martin Tzankov, remains concerned about the financial position of many clubs and believes the brunt of the economic impact has yet to be seen.

“The reliance of clubs on dues increases and capital assessments has been particularly apparent this year and may have stretched the value proposition too far for some,” stated Tzankov.  “2021 will show the clubs where a clear and present value proposition is being presented to members, who in turn, will continue to pay the cost of belonging.”

GGA Partner Derek Johnston believes there are clubs that will be able to increase pricing and sustain the increases in the long-term and there are clubs that will overshoot the mark. Johnston expressed concern that some clubs may move joining fees too high, too fast; golf businesses may move their green fees too high, too fast; and some may move away from tee sheet management practices too quickly.

“Nobody knows what’s coming.  If clubs have experienced less attrition than in the past, it may be due to members being unwilling to give up their safe sanctuary, but when things begin to stabilize post-vaccine that may not persist,” he explained.  “I believe that a portion of the historical attrition hasn’t been abated, just held back.  There will be increased attrition over the next 12-24 months and there may not be the same demand there to replace those who leave, especially as other social and lifestyle pursuits become more widely available again.”

2021 will be a time for clubs to experiment.  A measured, flexible approach to joining fees and dues will be a prudent approach this year.

7. A club’s success will in part be driven by its sum of parts in 2021

Craig Johnston, a partner and head of GGA’s transaction advisory practice, emphasized that the success of clubs during and following the pandemic will in part be driven by its sum of parts. Johnston explained “A private club may include a fitness center, retail store, several restaurants, a golf course, and a marina. The pandemic has impacted the utilization and thus success of all those ‘parts’ differently, and therefore the overall success of the club will largely be dependent on the club’s product or shall we say parts mix.”

“Every club is going to be different depending on its type of business and the operations which comprise it, the extent and variability of pandemic-related changes means that comparatives are going to need to be refined,” continued Johnston.  “Clubs that understand and appreciate the challenges and successes of the various parts of their business will be in a better position to realign and optimize heading into the ‘new normal’.”

8. The movement of people and relocation of companies will reshape markets

Our news feeds have been full of stories about high-profile people and companies moving out of California into Texas, as well as the movement of bankers to Florida from New York. If looking at this as a trend, you might imagine seeing increased need and greater attrition among clubs in the California and New York markets and, conversely, excess demand for clubs in markets like Texas and Florida.

According to GGA Manager Alison Corner, it will be important for clubs to understand the movement of people – not just the movement away from major urban centers and into the suburbs, but also the movement of companies and the actual physical locations of corporations – because they may have drastic impacts to how certain club and leisure businesses perform over the next 5 – 10 years.

Clubs that are mindful of these relocation trends will help themselves to recognize and either seize new opportunities, or mitigate future risks.

A Member’s Perspective: The Shifting Private Club Landscape

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New GGA Partners Research Report Highlights Private Club Members’ Perspective on COVID-19 Impact

More than 6,300 private club members share their attitudes toward the club industry in the wake of the COVID-19 pandemic and how they expect clubs to respond. Now available for download.

TORONTO, Ontario – GGA Partners – international consulting firm and trusted advisor to many of the world’s most successful golf courses, private clubs, resorts, and residential communities – has released the results of a global research survey of more than 6,300 private club members across six countries on four continents.

The research, which incorporates clubs in the United States, Canada, Europe, Australia and China, measures the attitudes and preferences of private club members on club operations and finance in the wake of the COVID-19 global health crisis.

“The coronavirus pandemic has shifted the private club landscape in many ways and these research findings offer insight into the near-future ripple effects with which club leaders must reckon,” explained Derek Johnston, a Partner in the firm. “As an industry advisor for trends shaping private club strategy, our team at GGA Partners is doing all that we can to help club leaders navigate the crisis and strengthen their understanding of how to react and adapt in order to meet the morphing needs and expectations of members.”

Overall results are encouraging; members feel highly positive about the crisis-management performance of their clubs and indicate that the importance of “the Club” in their lives has not been negatively impacted by the pandemic, but rather reinforced.

“In terms of correlation, the more effectively clubs have performed during the COVID-19 pandemic, the more important they became in the lives of members,” stated Ben Hopkinson, Director Client Success and Sales at GGA Partners.  “Together, these results suggest that, for members, the importance and relevance of their club experience is strengthened during emotionally challenging times.”

However, despite the enduring importance of the club in their lives, members’ high-level economic outlook over the next 12 months is more somber: 43% expect their disposable income to decrease and 58% believe their overall consumer spending will as well.  Perhaps most disheartening is members’ outlook on how their club’s financial position will change: 71% envisage a decline, with 20% characterizing the anticipated decline as ‘significant’.

In response to anticipated downward financial pressures, members expect their clubs to adapt operationally by scaling back certain high-touch areas of operations to simultaneously reduce club operating costs and the risk of COVID-19 transmission.  The extent of operational changes is predicted to be moderate in nature – only 12% of participants envision changes characterized as ‘significant’ or ‘drastic’.

The majority of private club members indicate their understanding of the need for operational adaptions to reduce costs, showing stronger support for changes which reduce service offerings and availability than those which increase their cost to belong.

The good news for club operators is the implication that operational scale-backs, service reductions, and restricted/limited access to amenities and activities – essential maneuvers to safely and responsibly navigate a virus-ridden social environment – are unlikely to cause significant membership attrition.  The tough news is that increasing dues beyond the norm – or allowing the value and quality of club amenities to diminish – just might push members away in the short-term.

According to Patrick DeLozier, Director at GGA Partners, constant evolutions in the COVID-19 pandemic place enhanced pressure on the planning capabilities of club leaders.  “It’s really a day-to-day for managers,” he said. “The stop-and-start reality of new case development and safety protocols requires club managers to have up-to-date information and the support of very sound research and data to work through challenges with the club’s board of directors.”

This means that club leaders need to have a plan for what they’re going to do next as the situation evolves quickly and unexpectedly. “The need for data-driven analysis, diligent financial monitoring, and a prepared communications strategy is more prevalent than ever,” DeLozier clarified.  “To sustain forward-thinking, club leaders need to have a ‘Plan C’ for the ‘Plan A’.  Pandemic-related changes are so rapid that, if you can’t adapt quickly, you’re well behind the eight ball.”

These results and more are detailed in a report titled A Member’s Perspective: The Shifting Private Club Landscape, now available for download.

Click here to download the report and see the findings

 

About GGA Partners

GGA Partners™ is an international consulting firm and trusted advisor to many of the world’s most successful golf courses, private clubs, resorts, and residential communities.  We are dedicated to helping owners, asset managers, club and community leaders, investors and real estate developers tackle challenges, achieve objectives, and maximize asset performance.

Established in 1992 as the KPMG Golf Industry Practice, our global team of experienced professionals leverage in-depth business intelligence and proprietary global data to deliver impactful strategic solutions and lasting success.

For more information, please visit ggapartners.com.

 

Contact

Bennett DeLozier
GGA Partners
602-614-2100
bennett.delozier@ggapartners.com

Not the Time to Wait

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Henry DeLozier highlights three important points for club leaders to ramp up club operations and refine their game plan.

When asked what steps they are taking to prepare their business for the post-COVID-19 environment, many small- and medium-sized business owners and managers say they’re taking a “wait-and-see” approach. While that attitude is understandable, with conditions and health and safety guidelines changing by the day, it’s also not advisable.

The more effective strategy is the one that many other businesses are taking to navigate the crisis in creative and productive ways: Anticipating and preparing for a post-COVID-19 business, whenever that may come and whatever it might resemble.

In a wide range of businesses, preemptive leaders are driving revenue through new marketing tactics and sales channels, putting new incentives in place to spur immediate purchasing and capture pent-up demand, moving more of their in-person interactions online, pivoting their business to address new needs and developing new products to position their business when customer demand returns to normal.

Others are enhancing their digital presence by sprucing up their website with new content or fixing online issues for a better customer experience. And many businesses are strategizing by mapping out potential scenarios for the future.

Three important points to consider when ramping up club operations:

1. Update the club’s financial plan.

The business interruption and financial impacts will be profound and may even threaten the club’s existence. The board must reset the club’s financial plan by evaluating the current in-flow of dues revenue and the realistic projection of pending banquet and catering activity. Refer to the club’s historic reference points for revenue as the key component in ramping up successfully. Balance revenue projections with the probable attrition rate caused by members who will leave the club for health and financial reasons.

Look realistically at the club’s expenses and prepare yourself – they will be discouraging. Plan to restart programs and services in a phased manner that focuses on the most popular and engaging programs in the eyes of your members.

It’s important to remember that members may have different priorities in a post-recession world. Knowing what those are through surveys and focus groups is far more advisable than assuming the old normal is also the new normal. Keep in mind that the club may not be able to restart at a level and pace that meets members’ expectations without what may be significant investments.

In a financial sense, the club is starting over financially. This can be good for clubs overloaded with expensive debt since it gives them incentive to renegotiate their debt structure. Interest rates are at historic lows and will remain so for some time. This makes it a good time to restructure the club’s financial plan to remove historic flaws, such as membership-optional communities and outdated governance practices.

2. Strengthen your team.

Every club in your area is being affected differently by the pandemic. Some will retain staff with little change. Others will be forced to reduce operations, programs and staff. Some of your own employees will decide not to return or may be unavailable. Be prepared and recruit aggressively to fill and strengthen key positions on your team. It’s also a good time to review and update personnel records, roles and benefits.

3. Introduce new social programs.

As leaders hit the reset button, remember that private clubs enjoy an emotional relationship with their members far more than a transactional one. When evaluating and creating programs, consider the following:

Members will want to see one another and be seen. There will be a great opportunity for friends to be reunited and reminded that their club is a safe haven for their families and friends.

Look at events that are either successive – where one event sets the stage for the next – or part of a series of similar events. Give members the sense of ongoing relationships rather than one-off types of events.

Host member information exchanges. As members anticipate their clubs reopening, they will have lots of questions, which can be boiled down to “What’s changed – and what hasn’t?” Assemble a team of staff members who constitute the Answers Team.

Get ahead of questions by anticipating as many as you can and communicating the answers widely through email, newsletters and social media.

Creating a Reliable Game Plan

The most effective transitional leaders will be those who can manage information aggressively. Keep your stakeholder groups of members, employees, suppliers, and extended business partners – like bankers and insurance carriers – well-informed.

Your members and stakeholders want information, to be sure. Even more importantly, they want confidence that their club is in steady hands. They want to see evidence – action more so than talk – that the club is taking measured steps and addressing the key strategic issues without distraction with petty short-term matters. This capability requires a reliable game plan.

In May, GGA Partners conducted a series of weekly webinars to help club leaders construct their game plan and illustrate the thought processes that go into reopening and operating again in the wake of COVID-19. The sessions offered a deeper look into these three important points and tactics to prepare for a post-pandemic business environment.

The archive of each webinar and accompanying slide deck (if applicable) are available on CMAA University, complimentary to all CMAA members. Once you are signed in to CMAA University, you can find the recording and accompanying resources under CMAA Member Education, COVID-19 Resources. The content is then organized by topic area, see below for where each of the four webinars are housed:

Crisis Management and Communications

Changing Communications for Changing Times – Linda Dillenbeck & Bennett DeLozier – May 27, 2020

Member Surveys in Uncertain Times – Michael Gregory & Ben Hopkinson – May 20, 2020

Reopening Your Club

Transitional Leadership: Restarting Your Club – Henry DeLozier – May 6, 2020

If you don’t know your login information, please contact CMAA through this online form.

 

This article also featured in Golf Course Industry magazine. 

Webinar: Member Surveys in Uncertain Times

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This webinar continues a series of communications from GGA Partners to help private club leaders address challenges confronting their businesses and their employees as a result of the global health crisis. Whether your club is operational or waiting to return to business as usual, now is a crucial time to keep members engaged.

Leverage Surveys to Engage Members During COVID-19

Last week, MemberInsight – a Jonas Club Software company, and the industry-leading member survey platform – together with GGA Partners co-hosted a webinar to discuss the power of member surveys in the time of COVID-19 and how clubs, regardless of their survey platform of choice, can better utilize members surveys during this difficult time.

“Many clubs send member surveys as a regular part of conducting business.” Said Trevor Coughlan, Vice President of Marketing at Jonas Club Software. “The problem is, many clubs only send them annually, and they think about surveying in a linear fashion – capital & long term planning. I believe surveys relevant to the moment and the action taken as a result of them have the opportunity to invigorate the way members feel about a club and its staff. There is no better time for clubs to be stepping into action than now which is why we are proud to make our platform available at no charge for three months.”

“In the current environment staying connected with members is a real challenge, but it’s more important than ever,” explained Michael Gregory, a Partner at GGA Partners. “Surveys are a tool all clubs can be using to stay engaged with their members, to capture important feedback, and to provide a level of comfort to members knowing their club is working hard to come out of this stronger and more capable of meeting their needs, wants and expectations.”

Webinar Playback

The webinar presented the MemberInsight feature set, the science behind survey based communications, and specific examples of surveys clubs can put into action as they remain committed to serving their members.

If you’d like to share the webinar recording with a colleague or watch it again please view the video below.

 

Survey Templates

GGA Partners has provided 5 complimentary survey templates. Download the templates below and use them to give your members a voice during these unprecedented circumstances so you can start taking action on member feedback.

MemberInsight is the optimal platform to start using these templates and gathering member feedback. The company recently announced that their survey functionality is being made available to clubs at no charge for three months.

If you would like to sign up for three free months and no setup fees*, fill out this MemberInsight form or contact Michael Gregory at GGA Partners.

Crystal Ball Thoughts on the Shape of the Next Normal

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This article continues a series of communications from GGA Partners to help private club leaders address challenges confronting their businesses and their employees as a result of the global health crisis. Today, Henry DeLozier highlights GGA Partners’ crystal ball thoughts on what the post-crisis environment will look like for club and leisure businesses.

Gordon Gecko wasn’t the good guy in the Faustian tale Wall Street and, yet, the character played in the 1987 movie by Michael Douglas left behind some memorable advice, “The most valuable commodity I know of is information.”

In early April, GGA Partners gathered its team of trusted advisors and thought leaders for the express purpose of developing strategic tenets to guide GGA clients across the globe. Following are glimpses of impacts for private clubs and club leaders:

Expect Longevity

Murray Blair and Fred Laughlin, directors at GGA Partners, observe that the effects of the epidemic will be lasting and may be sortable now into certain phases:

Pre-Vaccine – Until a reliable vaccine is developed, tested, and made available for widespread usage, conditions for most clubs will change only slightly from current circumstances. Baseline operational methods will change significantly as partial- and full-closures are showing operators and members new – more attractive, in some cases – methods which satisfy members’ concerns for caution and dining at their clubs. Many clubs are finding that demand for dining options at the club is growing as so many previously competitive restaurants are closed.

Operating costs will vary widely. Housekeeping budgets will increase substantially as members want to experience highly obvious signs of the club’s emphasis on sanitary conditions, cleanliness, and personal safety for members and staff. Labor costs will vary widely based upon local supply/demand balance as many workers will be less mobile than before.

Post-Vaccine – After a vaccine has been found and put into use, members will renew their active usage of their clubs differently. Bennett DeLozier observed that club members who previously were nonchalant on matters of strategic planning at the club will demand that their club have a clearly stated and broadly understood game plan. Many members who are responding GGA attitudinal surveys observe that there was no expectation of a health pandemic and, yet, believe “The club should have had a disaster preparedness plan.” Strategic planning, which was previously an indicator of the best leadership in clubs, will be important to most private clubs more so in the future.

Continued & Reinvigorated Family-First Focus

Barb Ralph, one of GGA’s most tenured team members, opined that members will seek more family-oriented facilities, programs and services. The notion of “clanning”, first suggested by futurist Faith Popcorn in her 1996 book, Clicking: 7 Trends That Drive Your Business–And Your Life, documents Barb’s thinking on the importance that causes many to want to keep those dear to them in a safe haven – like their club.

A New Normal

Linda Dillenbeck, a director for the GGA Partners Club Communications Practice, looks beyond the pandemic to underscore the critical importance of effective and trusted member communications from the club to its stakeholders: members – their families and friends, employees, neighbors, suppliers, and vendors.

Linda suggests that in a time when new standards are being established, the necessity of effective communications from clubs to their members will be a difference-maker to the clubs’ future economic durability. “Club’s with a proactive communications approach will be at a distinct advantage throughout and after the coronavirus epidemic,” according to Dillenbeck.

Shifting Operational Needs

Speaking from the perspective of the millennial generation, Alison Corner, Ben Hopkinson, Andrew Johnson, Mingye Li, and Andrew Milne agree that clubs will change significantly and – in some ways – toward operational needs and priorities previously reported through GGA Partners’ millennial research installments.

To summarize the ideas from these brilliant young minds, clubs will shift dramatically into (a) high-gear focused on membership recruitment and retention; (b) new activities, like musical events and performance art; and (c) new membership types, categories, rights, and privileges.

Martin Tzankov, a GGA manager, expects the new normal to bring a focus to financial durability to clubs. Martin notes the importance for club leaders to mind the strategic priority of balance sheet management and the financial health of their clubs.

Many club leaders forget the four cornerstones of board service: leadership, governance, strategy, and finance. Looking ahead, the clubs that perform best after the coronavirus pandemic will be those holding the best information. Perhaps Gecko was right.

Webinar 4/23: Leverage Surveys to Engage Members During COVID-19

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MEMBERINSIGHT ANNOUNCES NO CHARGE FOR THREE MONTHS

JOINS GGA PARTNERS FOR A WEBINAR FOCUSING ON HOW TO LEVERAGE SURVEYS TO ENGAGE MEMBERS DURING COVID-19

Markham, ON Canada – MemberInsight, a Jonas Club Software company, and the industry-leading member survey platform, announces today that their survey functionality is being made available to clubs at no charge for three months. Together, MemberInsight and GGA Partners, the leading consulting firm to many of the world’s most successful clubs and communities, will also co-host a webinar to discuss the power of member surveys in the time of COVID-19.

“Many clubs send member surveys as a regular part of conducting business.” Said Trevor Coughlan, Vice President of Marketing at Jonas Club Software. “The problem is, many clubs only send them annually, and they think about surveying in a linear fashion – capital & long term planning. I believe surveys relevant to the moment and the action taken as a result of them have the opportunity to invigorate the way members feel about a club and its staff. There is no better time for clubs to be stepping into action than now which is why we are proud to make our platform available at no charge for three months.”

In addition to the special offer, MemberInsight and GGA Partners are co-hosting a one time webinar focusing on how clubs, regardless of their survey platform of choice, can better utilize members surveys during this difficult time. The webinar will be co-hosted by Trevor Kluke and Matt Cooper of Jonas Club Software, and Michael Gregory and Ben Hopkinson of GGA Partners and will take place on Thursday April 23, at 14:00 ET.

“In the current environment staying connected with members is a real challenge, but it’s more important than ever,” explained Michael Gregory, a Partner at GGA Partners. “Surveys are a tool all clubs can be using to stay engaged with their members, to capture important feedback, and to provide a level of comfort to members knowing their club is working hard to come out of this stronger and more capable of meeting their needs, wants and expectations.”

The presentation will cover the MemberInsight feature set, the science behind survey based communications, and specific examples of surveys clubs can put into action as they remain committed to serving their members.

Clubs can take advantage of three months of MemberInsight at no charge by visiting:
https://memberinsight.clubhouseonline-e3.net/Special_Offer

The webinar will be held on Thursday April 23, 2020 at 14:00 ET.

Those interested in attending the MemberInsight and GGA Partners co-hosted webinar can register here:
https://register.gotowebinar.com/register/1880267544344608526

About Jonas Club Software – www.jonasclub.com

Jonas Club Software helps clubs thrive by focusing on the creation of exceptional experiences. These experiences are delivered through industry leading services, integrated applications, innovative technology, and long term partnerships with the clubs we serve.
Over 2,300 clubs in more than 20 countries, with memberships ranging from 20 to 20,000, utilize Jonas Club Software technology. With applications ranging from Accounting to Retail Point of Sale, Tee Time Management, Court & Class Booking, Dining Reservations, websites and Mobile Apps, Jonas Club Software is the standout choice for clubs driven to offer exceptional member experiences.

For more details visit www.jonasclub.com

Media Contact:
Trevor Coughlan
Vice President, Marketing
Jonas Club Software
Trevor.Coughlan@jonasclub.com
1-888-789-9073

Stop Thinking ‘Retention’, Start Thinking ‘Relationship’

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Retention is something of a time-selective phrase in club management.

Its definition has, arguably, become too closely rooted in taking action (usually) at the time of membership renewals to ensure as many existing members continue their membership as possible.

While that is a plausible (and at times necessary) position to take, the side effect is that it can begin to build a perception among members that you only care about them when it is in the club’s financial interest to do so.

So how can you go about changing that?

By facilitating meaningful relationships. From the moment they join, for the life of their membership.

The relationships your club cultivates for and with members are essential in developing and maintaining relevance – a key factor in positioning your club to achieve high levels of member satisfaction, retention, and recruitment.

Create the Social Links

Your priority in the early stages should be to integrate the new member into the social fabric of the club.

It’s easy to slip into thinking a member’s perception of the club’s value to them will revolve around the golf course or particular amenities and services you provide. But these tend not to be key factors in deciding whether to stay or leave, especially if they can experience them elsewhere.

What really sets your club apart is the existing membership base: the internal club networks and friendship groups that have established over time. This is the one thing that no other club can imitate. The more you can nurture and facilitate these inclusive and accessible networks, the stronger the emotional connection you can begin to create between new members and the club.

With that in mind, here are some useful ways to help facilitate the kinds of relationships that will instill loyalty and exceed the expectations of new members:

  • Invite them along to new member events (where they can get to know other new members).
  • Identify other like-minded members or members of a similar age to engage or play a round of golf with the new member.
  • Encourage or create opportunities for their family members to engage with the club at an early stage, through new member events, social events or simply by inviting them along to experience the club.

Develop the Connection to Expectations

Fast-forward the clock. These new members are no longer new members and have settled into life at the club. Hopefully, by this stage, they will have established meaningful relationships with fellow members and will be enjoying all aspects of membership.

Now is not the time to become complacent.

As Michael Gregory, GGA Director of Private Club Services, points out, “If you’re not exceeding the expectations of a member, then they are an ‘at risk’ member.”

But how do you keep exceeding expectations? Here’s some thoughts to consider:

  • Assess their satisfaction through a general member survey, or even through a dedicated survey for those of a similar member profile.
  • Identify areas of improvement through the survey and act on them. There is nothing worse than providing a forum by way of a survey but not following through on what your members are telling you.
  • Monitor individual engagement with the club, and look out for any profound changes of usage and utilization. Where there are changes, take the time to understand these and go the extra mile where it’s appropriate to do so.

Deepen the Sense of Belonging

Once members notch up 10 years or more, it’s safe to assume the club has become an integral part of their social life and, hopefully, their family’s too. They have likely forged a number of friendships, become attached to internal networks, and continue to enjoy the services offered by the club.

In this case it would likely take a significant event or set of circumstances to cause their departure.

However, as with any member, this should not reduce how attentive you are towards to this group. This is a group that will likely engage most with the club and have a greater sense of belonging, but also carry a greater influence – and this can be positive and negative.

So how do you manage this group effectively?

  • Have them play an active role in welcoming new members to the club. This will continue to enrich their relationship with the club, bestow a sense of trust in them, and retain a feeling of freshness.
  • Make them feel special. Organize specific events or social opportunities such as father / son or mother / daughter competitions, themed nights or games nights geared towards enhancing the emotional connection they have with the club.
  • Give them a voice – at this point in their member lifecycle they have a wealth of experience to draw from. Ignoring their suggestions can result in the emergence of vocal minorities, so give them every opportunity to serve on committees/boards and take an active role in the programming at the Club.

Retention is something managers focus on when renewals come around; relationships are something they develop year-round. If you can switch your focus to building and developing the relationships your members have with and at your club, you can continually exceed their expectations and create a sense of belonging that they will find difficult to live without.

 

This article was authored by GGA Manager Ben Hopkinson. 

Is Your Club Relevant?

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If your club is relevant, it is closely connected to members’ lifestyles and appropriate to their wants and needs. But how do you determine if your club really is relevant? GGA’s Ben Hopkinson offers three points of guidance to help you self-evaluate and a handful of tactics to deploy in response.

Longevity requires relevance.

Survival in the modern club economy hinges on your club’s ability to remain relevant, both to existing members and prospective ones.

While building relevance is often the easy part, sustaining it is trickier. If left unmonitored, relevance diminishes as the years pass and the club’s value proposition suffers alongside member retention and satisfaction.

What does it mean to be relevant?

A relevant club is closely connected to members’ lifestyles and appropriate to their wants and needs; it’s the ability of a club to instill the notion that, by being or becoming a member, it will enhance their own and/or their family’s lifestyle.

It’s a simple equation. The more relevant you are, or become, the better placed your club is to achieve high levels of member satisfaction, retention, and recruitment.

But how can you understand and become more relevant? Here’s some pointers:

1. Gain a deep understanding of your market and membership

Who are your members really?

The first step to becoming more relevant is knowing your members fully and dispassionately. A thorough understanding of your membership’s demographic, psychographic, and emotional characteristics allows for a tailored Club experience.

This means knowing the answers to questions such as: Where do members live? Where do they work?  Do they belong to other local clubs or have vacation homes? Do they have children or grandchildren? What are their ages? How do they use the club?

Tracking utilization of each facility and space at your club allows you to understand the importance (and appropriateness) of each of them, helping to drive the strategy towards becoming more relevant.

Where does your club stand in the marketplace?

Get to know your potential market i.e. your members of tomorrow by sourcing demographic, psychographic, and participation data to quantify the number of candidates that match your member profile. Your market research should help you understand:

  • Relative to your competitors, how are you positioned in terms of cost to join, payment plans, and annual cost to belong?
  • What features and programming are your competitors offering that you don’t? And vice versa.
  • How do your attrition rates and sales compare with industry targets or, if available, those of competitors?

This exercise allows you to understand your club in the context of the marketplace better and helps establish your competitive advantages and points of differentiation. Leveraging that knowledge, you can enhance or develop your club’s strategy around demand and where it has room to grow.

2. Focus on enhancing individuals’ lives (and the lives of their families)

While understanding your members and marketplace should be your primary starting point on the road to relevance, this is a snapshot of the successful shifts in the approach of clubs across North America in a bid to enhance what they offer:

One-of-a-kind experiences

Members have an appetite for experiences they can cherish and share with their families and friends, so offering tailored, unique and memorable opportunities can not only help build relevance, but the emotional connection members have with your club. Examples might include: tickets to the special events such as the PGA Championship, concierge-type experiences that only your club can facilitate, or access to speakers they would not be able to get in front of otherwise.

Intentional member networks

Offering clubs-within-the-club are very important in today’s environment because building communities and networks drives engagement and connection within the club.

Think about a robust speaker series, associating your club with other clubs or professional organizations in exclusive relationships, creating a wine club or travel groups.

Some clubs have developed virtual membership clubs with their speaker series or programming where members can pay a small monthly fee to participate remotely. It promotes continued engagement and also drives a new revenue stream with no impact to your facilities.

Diverse wellness programming

Physical health, in the form of fitness and wellness, remains highly relevant. The decision to add fitness is a leading trend that clubs are considering, particularly in seasonal and winter climates to keep members connected year-round.

Beyond adding a fitness facility, newer trends in wellness programming that are highly relevant include group exercise classes, off-site activities and excursions, ‘socializing’ fitness activities into events, and increasing the variety of fitness offerings and their frequency of change.

Your club’s wellness programming should not be limited to physical training. Mental exercise is just as critical as physical exercise in keeping one’s brain fit and healthy, introducing more wellness programming around brain health is relevant to your club’s longer-tenured members and can connect them with what are often construed as ‘young people’ activities.

Amenities that support year-round use and lifestyle

The ultimate goal is to make your club the third most important or relevant place in members’ lives, next to home and work. Amenities that best support year-round use and lifestyle benefits go beyond traditional sports to focus on the clubhouse and socialization aspects of membership.

The top amenities that our clients are considering include:

  • Contemporary bar/sports lounge
  • Multiple dining experiences
  • Health and wellness facility
  • Indoor golf teaching area with a bar and HD simulators
  • Outdoor casual dining with fire pits
  • Tennis/pickleball courts
  • Outdoor pool featuring a modern children’s area and adult area with outdoor bar
  • Babysitting/children’s play areas

3. Measure, evaluate and act

Member feedback is key.

Soliciting member feedback tightens the connection between the club (as an organization) and its members (as individuals). Capturing member feedback generates actionable insights to improve all aspects of the club experience, while also helping to isolate which are most critical to their wants and needs.

Relevance can be measured in many ways and the best indicators to watch are attrition levels and the demand to join your club. Constant member feedback is needed to be proactive and instill a culture of measuring, evaluating and acting.

 

The relevant club of tomorrow

Think about relevance on a spectrum. One that changes through different actions or developments.

For instance, introducing new family amenities shifts and broadens the spectrum more towards a younger demographic of members and prospective members.

Similarly, the introduction of mental health training shifts and broadens the spectrum more towards an elder demographic.

In any case, the objective should be to find your club’s sweet spot on this spectrum. As we already know higher relevance = higher levels of member satisfaction, retention and recruitment, so find and occupy a position which is relevant to as many stakeholders as possible. This, ultimately, will be your club’s gateway to longevity.

For help and advice on making your club more relevant to existing and prospective members,
connect with Ben Hopkinson.

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