Tag: brand

Managing Your Club Identity

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A private club’s brand is not the same as a chain of hotels or other hospitality business. It’s more personal, more emotional. And when it comes to the set of services, programs and events it offers, they should reflect this emotionally charged identity. GGA Partner, Henry DeLozier, explains how to manage a private club brand and realize what a powerful an asset it can be.

Your brand is in everything you do…and fail to do.

In the Old West days of the open range, where livestock roamed freely across the land, brands were burned into the hides of cattle to identify the ownership. For them, “branding” was a formalized approach of asset demarcation.

Unfortunately, even today, many private club leaders still think that a brand is simply an iconic mark, like that on the rump of a cow, indicating ownership. In the book Principles of Marketing, authors Philip Kotler and Gary Armstrong show that a brand is defined as a “name, term, sign symbol (or a combination of these) that identifies the maker or seller of the product.” However, the concept of brand has advanced significantly from the notion that a trademark could serve as a brand.

Today, brands are stories. They are an intentional assortment of identifying characteristics of goods and services. And leading brands are carefully developed and aimed at pre-identified market segments whose wants, needs, and expectations align with the intended benefits of the product.

Many private club leaders mistakenly believe that their club is a brand similar to Four Seasons, Ritz-Carlton, Marriott, or other businesses that promise superior hospitality services and amenities. A club’s brand – like a private club itself – is highly emotional, and the way the brand is managed must align with that.

In a private club, the brand establishes a promise of services, programs, and events which – together – constitute a promise of emotional reward. The manager will know and use your name, servers will know your preferences, other members will know you to be a person of accomplishment and social standing – thus, the club’s brand is in every interaction and memorable moment.

Following are three disciplines that every club leader should exercise in recognizing and managing their club’s brand:

1. Become knowledgeable about the power of brand.

This requires that club managers and leaders understand the market segments being served by their clubs. Careful market analysis identifies the psychographic motivations that make one club more attractive to members than another. The emotional context of private clubs requires that club leaders understand the human side of what motivated their members to join the club. Status, aspiration and recognition is far more important to club members than price. Club membership is not a transactional relationship.

2. Remain alert to proper brand management methods.

Use the club’s brand to establish and maintain a position of authority for the lifestyle promise made by the club.

Brand management is a full-time job. Seth Godin, the brand and marketing guru who has written some 18 books on related topics, says, “In a crowded marketplace, fitting in is a failure. In a busy marketplace, not standing out is the same as being invisible.”

Given that most private club markets in North America and Europe are significantly over-supplied, the successful clubs are those able to stand out from the crowd and achieve genuine market differentiation. “The easiest thing is to react. The second easiest is to respond. But the hardest thing is to initiate,” Godin adds.

Three keys to managing your club’s brand are (1) leveraging your unique selling position to promote your strengths, (2) use marketing and communications to increase brand awareness, and (3) develop your brand internally so your members can attract their friends.

3. Use your brand to develop relationships.

Empower members to promote the club’s brand through the stories you tell about your club.

When it comes to private clubs, people are attracted by two key elements: brand factors (the key distinguishable traits of your brand), and buyer relationships and stories (how members came to be members, what influenced their decision and how the club now plays a significant role in their day to day lives).

Understand that your club brand is not a trademarked transaction – it is the stuff of imagination and achievement. Godin summarizes this truth observing, “Marketing is no longer about the stuff that you make but about the stories you tell.”

This article was authored by GGA Partner Henry DeLozier.

Making the Connection

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Do you know what makes your club special and different? GGA’s Linda Dillenbeck explains the power of understanding what makes your club unique, and how to communicate that with messages that resonate with your target consumer.

If you want to make your marketing efforts more effective, your first step is to take a step back and look at your Club’s marketing message through the eyes of your prospective customer.

If your message isn’t telling potential members how your Club is unique in the marketplace, and distinct in fulfilling their desire for a club membership, then you are missing an opportunity to make a connection.

And that connection that can be the difference between choosing your club or your competitor’s.

Define Your Brand with A Unique Selling Proposition

That’s simple, right?

You probably have a championship golf course, offering a variety of tees for players of all skill levels, along with a courteous professional staff, in a beautifully manicured setting, with first-class amenities for an active lifestyle…

If these are the phrases you use when describing your Club, then you have fallen into the “sea of sameness” trap. A quick review of your competitor’s brand messages and websites will probably reveal they are using the same descriptions to promote their Clubs.

Defining your brand goes deeper than a recitation of what you have. It’s about who you are. Prospects want to know how you are unique, why you are different and what your Club offers that no one else can.

This is defined as your Unique Selling Proposition, the purpose of which is to inform your prospects why your Club is the best choice, and to justify why your target customers should choose your Club over the competition.

To develop your Unique Selling Proposition, ask your Members and staff to tell you:

  • The one thing that makes your Club different
  • The three words that best describe your Club
  • The short description they use when their friends ask about your Club.

These responses will reveal the current perception of your brand, and provide the starting point for determining what truly makes your Club unique.

Speak to Your Specific Audience

Communication serves several purposes: to inform, to influence, to engage the imagination, and to satisfy expectations.

To ensure your brand message is relevant, you must first define specific audience to whom it is to be delivered. Whether your Club’s target audience is families, low-handicap players, couples or business executives, the information presented should use terms and phrases conveying that your Club understands the audience being addressed, and values what that audience holds in high regard.

All too frequently, marketing messages focus on the Club, whereas prospects want to learn how the Club will improve their lives. By focusing your message on satisfying a need and fulfilling a desire you will capture the attention of your prospect much more often.

And most important, your Club’s marketing messages must create trust and connection with its audience. Today’s consumers appreciate simple and honest messages, unencumbered by hollow boasts. By speaking truthfully, consistently and authentically with your audience, your messages will be much more effective.

Tell Your Audience Your Story

Too often, we observe Club marketing focused on providing a laundry list of adjective-laden amenities in their effort to distinguish their facility from the competition. Unfortunately, most Clubs have a lot of the same amenities.

A more successful way to engage consumers and break out of the “sea of sameness” is to tell the story of who you are, why you exist, the shared values of the Club and its members, and the unique experiences available.

Stories engage people and their imagination, particularly stories about people and experiences. The storytelling method of presenting your Club will engage your prospects, allowing them to cast a role for themselves in the narrative and visualize becoming part of the Club’s story.

Below is a good example of successful storytelling we recently came across. The text appears as the opening paragraph on the Club’s website.

“Imagine a private retreat, nestled among citrus groves, rolling foothills and lush fairways.
Picture a place of connections, camaraderie, competition and ease from the pace of life –
an idyllic environment for a gracious way of living.”

This introduction to the Club highlights both its uniqueness – a private retreat among citrus groves, rolling foothills and lush fairways – and a distinct impression of what the Club values – camaraderie, competition, a gracious way of living – thereby inviting the like-minded prospect into the story.

Understanding what differentiates your Club from the competition, communicating those appealing attributes to the matching audience, and doing it in a fashion properly tailored for their consumption will elevate your Club’s message above the competition and entice your prospects to want to learn more.

This article was authored by GGA Senior Associate and Marketing expert Linda Dillenbeck.

Change Shows No Sign of Slowing

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If your time to you is worth saving
Then you better start swimmin’ or you’ll sink like a stone
For the times they are a-changin’
– The Times They Are A Changin’, Bob Dylan

The songwriter, poet and social observer Bob Dylan warned us about change.  Back in 1964, he said it was a-coming.  Forty-five years later, we are reminded of his prescience.

In private clubs, change has arrived in full force and shows no signs of slowing.  As a new year reveals itself, private club leaders should be alert to change in five key areas affecting their operations.

1.  Economy – A surging economy has helped a number of clubs in North America add members in the last two years. But many experts are forecasting a softer economy in 2019.  According to the Conference Board’s November 2018 report, “Higher interest rates, and the intention of the Federal Reserve to keep raising them into 2019, will create a more challenging environment for business next year.”  That means membership recruitment and retention are still top priorities at most clubs.

Global Golf Advisors estimates that less than seven percent of the 4,400 private clubs in North America are full and working from a waiting list for admission.  Anticipating that the economy may soften, private club leaders must intensify their efforts to recruit new members while giving focused attention to retaining existing ones.

Often the solution is not a price change, but something more creative, such as ones that make the club more personal and relevant to today’s lifestyles.

What are the right moves for your club?  The answers start with knowing your members as well as your prospects and knowing what they value most in a club relationship.  If you don’t know how they define value, ask them.

2.  Delay no longer a strategy – In the heat of the recession, many businesses, including many private clubs, decided to forego capital improvements until times got better. Times got better, but many continued to delay investment.

Now many clubs are playing catch-up on deferred capital improvements. In the process, they’re discovering that new members are attracted to standards of quality that match their personal lifestyles.

That means that improvements to club facilities, programs and staff must reflect a long-term commitment to sustained quality.  Most members want their clubs to be better five years from now and club leaders are obliged to fulfill that expectation.

Club leaders do well to establish a broad standard of excellence for the club.  This is where clubs can truly be “unique,” as everyone like to profess.  The standard of excellence dictates the qualities of fit and finish for the facilities, the style and level of services and the types of recreational programs offered members.

3.  Brand takes on added significance – Private clubs are brands, and just as a particular soft drink, computer or automobile stands for something in consumers’ eyes, so does your club stand for something in the eyes of your members and prospects. Club leaders must develop an intentional branding strategy that sustains the promises on which the club has built its reputation, including course conditions, levels of service and culture.

 For brand planning in a private club, several keys apply:

  • Confirm the club’s potential tax-exempt status to ensure conformity with the U.S. Tax Code;
  • Develop and implement a proactive communications plan that reinforces primary brand pillars, and
  • Remember that the club’s brand is reflected in everything it does . . . and fails to do. Everything communicates.

When making any key decisions about the future of the club, make sure you’re staying true to your brand promise.

4.  Security and privacy concerns are increasing.  In a world rife with cyber threats, private clubs are highly vulnerable targets.  People of means gathered in one easy-to-access vault of names, addresses and possibly financial information constitute an attractive target for those ill-intentioned among us.

Members place their trust in their club to safeguard their privacy.  Break that bond and the consequences could be irreparable.  Club leaders must contract with companies expert in securing their club’s sizeable data storehouse and secure this information.  This threat will expand in 2019 at clubs that are unprepared

5.  Access and affordability of labor is changing clubs. Most clubs surveyed by GGA report increasing direct and indirect labor costs.  Many clubs are outsourcing work through contract-labor arrangements.  Some clubs are securing overseas workers for seasonal needs.  All clubs are evaluating steps to reduce the reliance on accessible labor for routine club services.

In some clubs, self-service is taking hold.  In progressive clubs, new solutions including F&B orders entered on tablets, are reducing head-count.  Some clubs are exploring making the golf halfway house and the tennis and pool snack shacks honor-system facilities, where losses are likely to be less than the labor costs to secure them.

On the flip side of Dylan’s ballad that promised change was a song titled “Honey, Just Allow Me One More Chance.”  A new year gives us revived opportunities – one more chance – to get ahead of change.  We better start swimmin’.

This piece was authored by GGA Partner Henry DeLozier for BoardRoom Magazine.

Becoming a Destination

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For 80%* of members and visitors, the golf course is the aspect of a club they hold most dear. It is pivotal to the club’s reputation.

However, when we imagine a ‘golf destination’, don’t we think of something more than just a club with a great golf course?

The word destination intimates something that goes beyond the golf course. It could be a desirable location, a known identity, a famed history, a longstanding tradition, exceptional service or just an overarching experience of quality.

If a club wishes to elevate its status, to be recognized as a destination, then there are three key areas that club leaders need to develop:

1. Developing the Customer Experience

The customer experience itself is typically comprised of three parts: the complete customer journey, a customer’s interaction with brand touchpoints, and the environments a customer experiences – including digital.

By developing an intimate understanding of each of these areas, and thoughtfully mapping them to the satisfaction of members and guests, you can make significant strides in the customer experience at your club.

A ‘complete customer journey’ is different for each and every individual, but starts before you think it might. Earlier this year I spoke of the advent and importance of online reviews – which are just one way customers research your club. Add in social media, web presence and press coverage and you’ll quickly realize that, actually, the customer journey and experience can often start well before they enter the front gates.

To learn about this in greater detail, member and customer surveys provide an excellent opportunity to seek intelligence and data. Reviewing these insights in the context of your club’s mission statement will then reveal improvements you can make.

Next, how do customers experience, navigate and interact with your club once they are through the gates? What is the first thing they see when entering? Who is the first person they will meet? What improvements can you make to improve or enhance that welcome or first interaction?

Remember: Customer’s expectations are often informed by their experiences elsewhere and can be unfair, misaligned, or even unreasonable in the context of your club. Expectations relating to food and beverage provision can be informed by the Michelin Star restaurant in a major metropolitan area, or expectations of service may be informed by their recent stay at a five-star hotel.

For this reason, any changes that you make should be in the context of fulfilling – or reviewing – your club’s mission statement: this brings an authenticity, integrity and brand-oriented focus to the experience improvements you make.

2. Developing Surrounding Facilities

Destination clubs typically focus new development or capital enhancement efforts in one of two areas: facilities that complement their core service offering OR facilities which offer them a competitive advantage over their local market and immediate competitors.

The trend in recent years has been to focus capital improvements on facilities appealing to families, children and, more generally, health and wellbeing. Clubs putting in place such additional amenities look to do so with the support of a long-term strategic plan, underpinned by strategic intelligence. In other words, they are taking the necessary steps to secure the long-term sustainability of their club.

Clubs looking to capitalize on trends and gain a competitive advantage have often done so with smaller, yet impactful additions. Take casual dining for example, where we have come across café/lounge-style areas conducive to working and individual club utilization, or straightforward, family-friendly dining experiences like fire pits, pizza ovens, ice cream bars and food trucks.

Developing facilities and expanding the amenity package can help to position the club as ‘the only place with _______’, and support the need and ambition to offer a genuine competitive point of difference in a challenging marketplace.

3. Appealing to a Wider Audience

Aside from offering an exceptional customer experience, true destination clubs cast a wide net by appealing to a broad spectrum of audiences. Membership privileges often include such things as extended family access; customized, unique, and well-attended social events; reciprocal and travel programs with other destinations; as well as tournaments, competitions, and special events that support the continued expansion of the club’s brand footprint and reach.

The key to enhancing the club’s appeal to a wider audience is not simply an exercise in volume or offering a litany of activities, but it is rather to position the club as a network extender. The club should be perceived as a way to enjoy shared, common experiences – known to be highly connected to achieving a sense of happiness and fulfillment. The club isn’t just for the ‘primary member’ anymore, it should be for everyone relevant to that members’ life.

This is not to say full privileges for all. The suggestion is that drawing connections between the club and customers’ social lives increases relevance, which is essential in support of member and customer retention and overall club satisfaction.

In the eyes of members and customers, for a club to be truly recognized as a destination, it must become a conduit for their lifestyle. The club is a platform to more effectively enable them to live the life they want to lead.

To facilitate that, embrace an unerring commitment to cultivating a superior customer experience, developing surrounding facilities, and appealing to a wider audience. By delivering on these key criteria a club can embark on the journey to changing customer’s perceptions and be known for being much more than just a place to play golf.

*Syngenta, Growing Golf in the UK, 2014

This article was authored by GGA Manager and Member Satisfaction expert Bennett DeLozier.

Board Priorities: Add Brand Management to Your Fiduciary Responsibilities

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There are typically three priorities that command the attention of private club boards: (1) developing and using sound strategy; (2) ensuring the financial security of the club; and (3) governing the club responsibly.  However, in these days of over-supplied markets and the ongoing regeneration of many clubs, brand management has become massively important to clubs.

Some board members claim that a private club is “private” and, therefore, not a commercial brand. These outdated beliefs are a sure-fire plan for damaging the long-term brand health of the club.

Private club board members share several fiduciary duties, which include the duties of care and loyalty, such as good faith, confidentiality and disclosure.  Directors’ duties also expand to the responsibility to protect the identity—which may include its trademarks, intellectual property and public-facing images.

Brand Planning and Security

What is your club’s brand? And how is it being protected?

A brand is a small piece of real estate “owned” in the mind of the consumer, according to Al and Laura Reis, authors of “The 22 Immutable Laws of Branding,” a marketing classic on branding commercial companies.  Some board members claim that a private club is “private” and, therefore, not a commercial brand.  These outdated beliefs are a sure-fire plan for damaging the long-term brand health of the club.

Brand health, which means admiration, trust and desirability, is an important duty for private club leaders.  Social media proliferation and unending public awareness and scrutiny of private clubs require the club board to pay attention to the club’s brand.  Club leaders should routinely execute a brand audit to validate the club’s market impact.

Strategic Planning

The club’s strategic plan is its long-term direction and scope of operations.  The plan helps the club stay focused on its priorities, and to fulfill stakeholder expectations.

Board members are responsible to fellow members to ensure that the club has a sound strategy and that the strategy is being faithfully enacted.  Directors are duty-bound to know the club’s strategy and ensure that it is preserved and routinely used.

A sound strategic plan extends for a period of three-to-five years and should be fully reviewed annually.

Financial Security

Directors are responsible to protect the financial resources of the club.  This means that directors must carefully measure the future financial needs of their clubs; plan for the sources and uses of funds; and ensure the economic sustainability of the club.

Economic sustainability requires that the club generates revenues adequate to pay the costs of the operation and to fund future capital needs of the club.

Board members must fully understand the club’s financial capabilities and limitations.  A key tool used to report the financial profile of a private nonprofit, tax-exempt club is a Department of Treasury Form 990, which each director should also understand.

Club Governance

Every club director should strive to provide sound governance to their club.  Effective club governance is built on the regular usage of the strategic plan and a board policies manual (BPM).

A BPM documents the methods that will be used in governing the club.  It also includes a description of the organization, the authority of the board and the manager, and the relationship of the board with the manager/COO.

The BPM is as fundamental to effective club governance as the strategic, financial and brand plans.  It must be developed and used on a regular basis.

Today, governing a private club is a bigger and broader job than at any previous time.  Brand knowledge and management have become just as important to the overall health of the club as other fiduciary duties, such as strategic planning and financial security.

GGA’s Henry DeLozier penned this article for the National Club Association’s Club Director Magazine.

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