Tag: branding

Know Your NPS to Build Brand Loyalty & Member Referrals

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In our work with clients across the globe, our research reveals that member referrals are the most important means of generating a steady stream of new prospects, which is probably not surprising.  After all, the cost is nominal and you can be assured that members are going to invite prospects with a shared passion for the lifestyle provided by your club.

The most effective method to gain member referrals is to ask for them. But before you do, it is critical to understand your NPS – or Net Promoter Score – to determine the response you will receive.

NPS is an extremely valuable market research metric that is widely used across industries and can be leveraged to measure customer perceptions of a brand and estimate future growth, as evidenced by the potential for repurchase or referral to other consumers.

NPS Is Not the Same as Member Satisfaction

Member NPS is not the same as your members’ overall satisfaction with their club experience.  NPS asks about the likelihood of recommending or referring the club to others while overall satisfaction asks about contentment with their experience.

In short, NPS is future-looking and overall satisfaction is backward-facing.

NPS Is Simple to Implement

NPS, originally a proprietary instrument used by Bain & Company, is now used by two-thirds of the Fortune 1000 companies as a basic measurement of customer sentiment.

The popularity and broad use of NPS is often attributed to its simplicity and transparency of use.  It is a survey question which asks, “How likely are you to recommend [brand, product, service, company, or organization] to a friend or associate?” The question is designed to provide responses which are easy to interpret and track over time in trend analysis.

NPS generates valuable customer insights and is typically used and interpreted as an indicator of customer loyalty.  This information is invaluable for business and community leaders who are responsible for measuring and managing revenue retention, customer retention, new business growth, or overall consumer satisfaction.

Despite the ubiquity of NPS among leading companies in major industries, the adoption and consistent application of this metric within the club industry remains limited.

A recent GGA Partners research survey of more than 500 club leaders (A Club Leader’s Perspective: Emerging Trends & Challenges) found that just 14% of clubs track member NPS in their surveys.  Among clubs that employ this metric, the average NPS is +64.  Additional feedback from the survey found that one-third of clubs reported an increase in their NPS during the pandemic, a positive statistic for future member growth.

Calculating Your NPS

The NPS question is asked on a scale ranging from 0 to 10, with 0 representing “Not at all likely” and 10 representing “Extremely likely”.  Based on the number selected, respondents are subdivided into one of three categories: those with ratings of 9 or 10 are classified as “Promoters”, those with ratings of 7 or 8 are marked as “Passives”, and those with ratings of 6 or less are categorized as “Detractors”.

The actual “score” is calculated by subtracting the portion of detractors from the portion of promoters without factoring in the portion of passives.  True NPS is always shown as an integer and not a percentage and, with the net score falling within a scale ranging from -100 to +100, it is possible to have a negative NPS.

Keys To Developing & Tracking Your NPS

1. Keep the NPS question consistent – Avoid altering the question (“How likely are you to recommend [your club] to a friend or associate?”) or the answer range (from 0 = “Not at all likely” to 10 = “Extremely likely”) as it will impact the validity and reliability of the data.

2. Ask for NPS alongside a handful of supporting questions – NPS is most valuable when supported by other overarching questions which generate datapoints on overall satisfaction, perceived value-for-money, and demographic questions (to stratify responses and dive deep into feedback by membership subsets).

3. Keep it brief – A survey with these three questions (NPS, overall satisfaction, value-for-money) and four or five demographic questions should take about 3-4 minutes for respondents to complete. Shorter is better for these types of surveys.

4. Measure NPS routinely – At a minimum, your NPS metrics should be tracked and updated annually to identify changes in the sentiments of your members. Whether they are rising or falling, understanding the factors impacting changes in your trend line will provide valuable insight into areas where the club is excelling as well as areas that need improvement.

If your club aims to be truly attentive to overall satisfaction, member loyalty, member and customer retention, or using member referrals to support membership growth, leaders of the club should be monitoring NPS as a matter of routine.  If this acronym isn’t surfacing in boardroom discussions, it should be.

While no one can predict the future, a clear understanding of your NPS will provide a data-driven indication of members’ loyalty to your club’s brand and the success you will have when asking your members for referrals.

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.

Speaking the New Language of Brands

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GGA Partners Releases New Whitepaper on Private Club Branding as Part of Thought Leadership Series

‘Speaking the New Language of Brands’ Now Available for Download

TORONTO, Ontario – International consulting firm GGA Partners has released Speaking the New Language of Brands, the second in its new series of thought leadership whitepapers.  This authoritative guide redefines a traditional brand value equation and illustrates how adding emotion and experience to a private club’s brand story will increase its value with members.

Speaking the New Language of Brands highlights ways iconic “mega-brands” mold, define, and advance their organizational identity toward the goal of influencing consumer purchasing decisions.  The paper evaluates a traditional outlook on the brand value equation and asserts a redefinition which paves the way to enhanced value perceptions among private club members.

“Traditionally, the key to building value in the eyes of the consumer has been demonstrated in a simple equation, where perceived value is equal to performance divided by price,” explained Henry DeLozier, one of several authors of the piece. “We believe there is a far more effective – and cost efficient – way to increase the value members place in your club and in your brand. It’s by introducing emotion and experience into the equation.”

In addition, the whitepaper argues that a successful branding program is based on the idea of “singularity” and should be designed with differentiation as the primary goal.  “Harkening to the days of the Old West, a branding program should differentiate your cow from all of the other cattle on the range,” said DeLozier.  In other words, creating in the mind of a member or prospective member the belief that there is no other club on the market quite like your club.

Building a brand is easier said than done.  For club managers not familiar with the brand development process, the whitepaper explains six essential steps for clubs to follow when constructing their brand and draws on examples from inside and outside the private club business.

In addition to branding, GGA Partners recently published a new strategic planning whitepaper and has confirmed that others in the series focused on governance and innovation will be published through the third quarter of 2020.

Click here to download the whitepaper

 

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.

Media Contact:

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

Dangers of Depersonalizing the Member Experience

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As new innovations continue to help streamline club operations, GGA Partner Henry DeLozier cautions against replacing staff with technology and removing what can be priceless interactions for members and guests alike.

Most clubs today are facing the dual challenges of rising labor costs along with ever-greater member expectations.

In our modern digital age, the obvious solution for many has been to systematize and automate services wherever possible across their operation.

But while this may be cost efficient, clubs must beware…the result is often the depersonalization of member services.

Remember, clubs share an emotional – not transactional – relationship with members. And both research and experience have shown us that the best member services are strictly personal.

For a club, to depersonalize is to chip away at the very foundation of your business.

Here are five tactics for personalizing services at your club:

1) Reserved or Reserved for…?

Recognize reserved tables with a reserved placard that displays the name of the member for whom the table is reserved. It’s a small touch which underscores that “we have been anticipating your arrival”. These little efforts add more to the member experience than you might think.

2) Monitor Club Communications for Engagement

Most clubs blindly issue email communications to members with little-or-no tracking to understand if the message was even received – let alone opened, read, or acted upon.

Follow up your club’s emails with calls to individual members who are not opening or engaging with club communications. Ask if the messages are being received (although your analytics will have revealed this already). This is a chance to learn what topics interest your members…and which topics don’t.

3) Personalize Your Club’s Communications

As suggested above, develop a personal communications profile for each member.
As with Facebook or LinkedIn, you can enable members to populate their own profiles (though some members who are not computer natives will need help with this).

This allows you to learn what topics interest each member, in what media they prefer to received messages, what days and times they want the messages to be delivered, and from whom at the club they wish to receive important information.

In essence, stop issuing “Dear Member” communications.

4) Meet with Members

Whether one-to-one or in small (fewer than four people at a time) member groups, meet to discuss the club and its various priorities. Ask members for their feedback, learn their priorities, and ensure that they know and understand the board’s strategic priorities too. This will make them feel included, valued and empowered.

5) Facilitate Member-to-Member Introductions

Most members are truly acquainted with very few of their fellow members, but clubs are more fun when people know more people.

There are several ways you can help this along, such as hosting multiple welcoming events for new members, enlisting your board, committees, and staff to become the “connectors” between members, and creating a digital (online) member directory to help members learn more about one another.

Using the member profiles described above, you can personalize the effort by connecting people with similar backgrounds – such as universities attended, hometowns, or places of employment.

Keep in mind that private clubs are a platform for socialization. An undeniable characteristic of successful clubs is the sense that “everyone knows one another”. Help your members get to know one another and, in so doing, make your club ever more relevant to the members.

Ultimately, the key is to treat your members as the valuable resource that they are. Keeping your services personalized will help them know that they are recognized, respected, and valued, and provide the strongest possible foundation for your club going forward.

Does Your Club Have An Identity Crisis?

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“Today, brands are stories. (…) carefully developed and aimed at preidentified market segments whose wants, needs and expectations align with the intended benefits of the product.” – Henry DeLozier

But change can often bring about a mismatch between the story and the segments you want to attract. GGA’s Bennett DeLozier outlines how to determine whether your club’s visual identity is true to what it represents.

A lot of things have changed in the last decade. In politics, in society, in the environment we all share. This impacts how we feel, how we interact with each other, and what products and services we want to be a part of our everyday lives.

These changes are evident at the club level, too. Aspects of your club may be unrecognizable from what they were ten years ago, from membership categories, to club amenities, to the profile of your members, and even the culture of the club. Sometimes this change has come as a result of proactive planning, sometimes reactive necessity.

But while many clubs have changed dramatically, we often find the brand pillars and visual identity (logo, colors, mission, values, purpose, positioning, voice, tone, look-and-feel of the club) get left behind. In other words, the club is missing the opportunity to illustrate and communicate what makes it different, compelling, and worth someone’s interest.

Given the state of over-supply for clubs in most metropolitan markets, brand management which enables effective market differentiation is essential. But before embarking on a rebranding effort without professional guidance, clubs can and should seek to periodically assess the state of their brand identity and how compelling a proposition it is to target member or customer segments

Stick or twist

How do you go about assessing the current brand and the potential need for change?

First, club managers and leaders must understand the power of brand. This means knowing the market segments the club serves and those it aspires to serve in the future. It requires a grasp of buyer motivations and the reasons people are motivated to join the club.

Second, and in order to evaluate whether there is a need for change, you should engage your board in a strategic brand audit and follow a clear process, similar to the indicative one below:

1. Ask your members, past members, stakeholders, and staff for their thoughts via a bespoke survey.

It’s also valuable to solicit input on brand perceptions from those outside of your intraclub community, particularly from competitors and people with whom current and prospective members are likely to interact (such as realtors, local community groups, fitness centers, apartment complexes, senior living homes, or neighboring schools). This will (quickly) help you to gain a sense of how those most important to the club view it, and allow you to identify any potential mismatch between what the club is, and how it communicates that with the wider world.

2. Assess the costs and benefits of a brand change or an identity evolution.

For instance, how will repositioning the club’s brand help to open up new target customer segments? How might it affect your typical core customer base? What is the cost of any proposed change, both financial and perceptual?

This exercise need not be overly complicated, a good old-fashioned SWOT analysis (Strengths, Weaknesses, Opportunities, Threats) will cover off most of the key points to consider. Outline the opportunities and threats in a rational, pragmatic way to determine the most suitable outcome.

3. Marry your findings with your strategic plan.

How strong is the desire for change and how does this synchronize with your club’s future plans? It’s crucially important not to get drawn into making a decision for the now and foregoing any sense of futureproofing.

For instance, if you are set to launch a multi-sport facility and fitness center next year, are planning to unveil some luxury lodges the year after, and have been considering enhanced family programming for months, all this needs to be factored into the new identity you create.

Charting the future

Change is never easy. It feels uncomfortable. And risky. But sometimes standing still will only serve to do your club an injustice, poorly reflecting its attributes, story and emotional value to those that engage with it.

In that case, the benefits are there to be seized: appealing to new customer segments, futureproofing the club (socially and fiscally), and uniting those closest to the club around a clear sense of what it is and what it represents.

Creating A Better Environment for Workers … and Potential Hires

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This is the second of two Golf Course Industry Game Plan columns focusing on becoming an employer of choice.  For more, check out the previous article “Become an Employer of Choice”.

“… And what do you do, Mike?” the guy grilling the burgers at the neighborhood barbecue asked casually.

“I’m the golf course superintendent at Laurel Lake Country Club.  It’s an amazing place to work.  I have a great team and my manager really appreciates the job we do.  If you’re thinking about joining a club, why don’t you come out as my guest one day?”

Is that the kind of answer one of your staff members would give in a similar situation?  If it is, you’re in an enviable position in this tight labor market — you’re what’s known as an “employer of choice.”  Employers of choice enjoy higher retention rates, better productivity from their teams and a healthier workplace culture.  What’s more, they don’t have to search as hard for top talent because the best people come to them, hoping to join their team.

So how do you create that kind of reputation for your club?  It doesn’t happen overnight, but it can start with the ways in which you promote job openings.  Here are five keys to positioning your club as a place where top talent wants to work:

1. Show your colors up front. Describe who you are and what your course or club represents. This description of your values and the high standards to which you hold team members is attractive to top performers.  Stating your values and the significance of the position helps prospective employees know if your club is one where they would be proud to work.

2. Describe the job benefits clearly. Benefits are an important differentiator in today’s workplace, but don’t think of them in limited terms. Beyond health insurance, sick leave and vacation days, benefits include respect, being part of a winning team, and the opportunity for continued professional learning and development.  Make sure you help prospective employees understand the full range of benefits that you offer.

3. Tell what the job entails. Pay attention to the language you choose to describe the job and its responsibilities. And don’t be hesitant to describe the job in demanding terms. Top performers want jobs that challenge them and ones that matter.  Describe the team that the prospective employee would join, its work ethic and its team spirit.  Being a part of a great team is a strong incentive to employees who enjoy collaboration and sharing.

4. Know your competition. Being an employer of choice requires that you do your homework to know how your compensation, benefits and culture compare with the competition. In a tight job market, it’s also important to realize that your competitors include more than golf clubs and other golf operations courses.  You’re also likely competing with landscape companies and hospitality positions for top talent.  Knowing what competitive organizations offer helps you structure benefits and comp attractively while being mindful of the budget.

5. Tell stories of valued performers. Stories of performance, customer service, overcoming adversity and teamwork give new employees insight to the organization and the culture they are part of. Think of it as a window into your team room, which allows you to describe the human components of the job that are not a part of the formal job description.

In his book, “Attracting and Retaining Talent: Becoming an Employer of Choice,” Dr. Tim Baker emphasizes the importance of standing on trustworthy values.  “In plain terms, being an employer of choice means establishing a business that is a great place to work.  If companies don’t genuinely act to become an employer of choice, then good employees will simply vote with their feet and move to a forward-thinking employer who offers them what they want.”

Remember the story of the janitor at the Johnson Space Center in Houston who, when asked by President John. F. Kennedy about his role, said, “Mr. President, I’m part of the team that is putting a man on the moon.”

Don’t you wish that janitor worked for you?

This article was authored by GGA Partner Henry DeLozier for Golf Course Industry Magazine. 

Boosting Your Club’s Brand Through Events

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Sustaining a lively events calendar can be challenging – on a practical level, operational level and commercial level. However, even though they may not always pay their way, they are fundamentally important to conveying what your club is, and what it represents. GGA’s Linda Dillenbeck explains why.

Beyond access to an enjoyable round of golf, people join golf and country clubs to socialize with each other and participate in unique experiences. To many, the social aspect of country club life is even more important than the golf, particularly when only one member of the household is an avid player. Whether it is a member/guest golf event, wine tasting dinner, holiday celebration or speaker series, events will build relationships and friendships within the membership that will increase the sense of community throughout the club.

Equally important is the fact that well-planned and thoughtful events will provide the Club the opportunity to enhance its reputation and standing among members. One of the best things that can happen after an event is to have participants telling their friends about the incredible experience, which creates a desire to be part of that experience.

Anyone who has planned an event understands that success doesn’t happen by accident. Rather it requires a combination of creativity, organizational skills, cooperation and, most importantly, a keen attention to detail.

Present Your Brand in a Creative and Consistent Manner

The type of events to include on your club’s social calendar should reflect “who you are” as a Club, but that doesn’t mean they can’t be fun and have a creative theme that sets your event apart from the myriad of options available to private club members.

Creativity does not have to mean expensive. As a private club member I recently spoke with told me, “My favorite event is the Show Up and Shut Up Halloween tournament.

“Everyone comes dressed in costume and on two holes you hit your drive wearing a pumpkin on your head. It’s so different from so many other events in which I play and provides an entire day of fun and entertainment for my guests.”

While a Show Up and Shut Up event might not be in keeping with your brand image, that should not discourage your creativity in developing themes and memorable touches more in keeping with your brand. This might be a badge of honor tee gift (think beyond shirts, hats and golf equipment), a surprise egg with a special present in the annual Easter celebration or a wine not available to the general public presented by the winemaker during a special dinner. Your goal should be to think different, because when you do, your brand and club will become known for its must-attend events.

The Devil is in the Detail

Small details can have a big impact. They can be the difference between a good event and a great event, between memorable and forgettable, or the difference between clearly communicating who you are and being vague and predictable.

Are all names spelled properly on place cards? Are the pins set in spots that will allow for a quick pace of play? Is there an adequate quantity of the proper wine glasses for the tasting? Can your team identify all members by name? Is there adequate signage to direct guests to the proper place within the club? All of these questions and more should be asked and answered before event day.

Events Create Content

Another benefit of a robust event schedule is that is provides fresh content for your club newsletter, social channels and website. To capture the content, a staff member should be assigned the task of taking photos, not only of the members and guests, but of the special details. For example, the place setting for a wine dinner, the line-up of carts or the baskets of treats to be given out during a Halloween event. Pictures are a very effective way to tell your event story so create a wish list of the images you want and need, and take plenty.

To encourage participants active on social media to post about their experience create a hashtag of your event name and include it on invitations, golf carts and tables. This will help to expand your story across all social platforms.

When appropriate, it is beneficial to consider inviting a prominent member of the media to participate in your event. For example, the food writer might be invited to a wine tasting dinner or the business editor could be invited to a speaker series session featuring a noteworthy presenter.

Successful events don’t happen by accident. They require a lot of hard work. But when done properly, events will provide members and their guests with experiences they can’t get anywhere else. When that happens, your brand becomes the talk of the town – and that will deliver prospects to your door.

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.

Change Shows No Sign of Slowing

Date:

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.

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