2021 Predictions on the Shape of the Next Normal

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

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

The Power of Women

Women are widely regarded as connectors, more likely to invite family members and friends to join them in activities and pursuits than their male counterparts. With that in mind, GGA’s Linda Dillenbeck explores ways in which clubs can increase their appeal to women and unlock new customers in the process.

You have probably read articles encouraging clubs to increase their efforts to attract women and families as a strategy to improve long-term private club sustainability.  Most articles focus on amenities clubs may choose to add or expand, such as adding swimming pools, more casual dining options, or even introducing other sports, such as tennis.

Although the amenity package offered will certainly be a part of a prospect’s decision-making process, equally important, if not more so, is the atmosphere and ambiance a prospect will experience while visiting the club.

Make perception reflect reality

Let’s start with a simple sobering fact; your perception of your club is probably not most people’s reality. To gain a clear picture of how your club is perceived by women and families, you first need to understand what’s important to them and the type of experience they expect.

Conducting a walk-through with different profiles of female and family customers can provide invaluable insights. It’s something all club leaders should be encouraged to do.

To supplement individual club efforts, and help operational teams understand and improve methods of providing a welcoming experience to women and families, I interviewed a number of private club members and club professionals across North America, with some interesting feedback.

“Women are more social then men,” commented Teresa S. “They want to find a connection beyond business or golf, and really get to know someone. If those opportunities are provided through club events, women will bring their family and friends to share in the experience,” she added.

The vast majority of women play golf to have fun and socialize, rather than to post a score. As Kathy G. outlined: “Staff should encourage women and families to play the game as they wish, as long as it doesn’t impede others.”

Comments from several women players related to tee sheet access and were summarized by what Tiffany N. shared.  “The times ladies are allowed to play, typically on Tuesday or Wednesday morning, are not conducive to those of us who have careers. Until private clubs open up their tee sheets, it will be difficult to attract more play for business and pleasure,” she said.

“I always find it interesting when I approach the first tee and meet the starter,” stated Paula F. “They think they are being helpful by telling me where the forward tees are located. They make that statement based on gender, not skill. My advice to any course operator is to instruct their starters to remember this thought: ‘If you wouldn’t say it to a male golfer, don’t say it to a female golfer’.”

Create fun and relaxing events

Keeping two thoughts in mind – women value social experiences and enjoy connecting with family and friends while having fun – will help staff understand the elements your club should focus upon when planning events. To help you get started, here are some examples of events designed to gather women, their families and friends at the club.

  • Schedule ‘Play as you Wish’ days, inviting members to bring family and friends to play golf using formats such as alternate shot, best ball, or middle of the fairway tees that won’t impede play, but will be less intimidating for those who are not avid players.
  • Create ‘Share the Game with a Friend’ days which are crafted to be informative and fun. Instructors can provide basic tips, along with their Top 5 Ways to Feel Comfortable on the Course (positioning this as ‘Course Etiquette’ is not a good idea). Follow the range time with the opportunity to play three holes after which everyone can gather for fun, food, and have the opportunity to ‘ask the pros’ questions that arise from their experience.
  • Hosted events, conducive to family and friends that don’t involve golf, but focus on entertainment and enjoying time spent with each other. For example, a pumpkin-decorating contest with the club providing the pumpkins and tools, an annual gingerbread house-decorating event for the holidays, or a charitable giving day where members bring items (to which the club adds more) and come together with other members, families, friends and staff to assemble care packages for the local shelter.

Know your audience

Women I know do not believe they deserve special treatment because of their gender. Rather, they simply want to have the opportunity to share experiences with friends and family in a relaxed and friendly atmosphere, where the goal is having fun and creating some lasting memories of time spent together.

When you provide a relaxed and friendly club atmosphere as a stage, where women can accomplish this goal, they will be your most loyal recruiters, spreading positive word-of-mouth advertising and peer-to-peer reviews across their social networks, encouraging family and friends to connect through your club.

Boosting Your Club’s Brand Through Events

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.

What Works on Social?

The most popular channel may change over time, but the social media momentum continues to grow. For some clubs it can be difficult to know what to post, when and how often. We asked GGA’s Linda Dillenbeck to spell out all things social.

There is not a day that passes that doesn’t have a news report about something posted on a social media channel. Nor does a day pass when you don’t see consumers glued to their devices and feverishly typing the latest content they simply must share.

Whether we like it or not, social media has changed the way consumers communicate and gather information. Today, brands must have a social media presence or they miss the opportunity to reach 78% of the U.S. population who rely on these platforms to connect, gather information and socialize.

Consider these facts from Statistica and the Pew Research Center:

  • 68% of U.S. adults report they are Facebook users. Roughly three-quarters of those users access Facebook daily.
  • Facebook use is relatively common across a range of age groups, with 68% of those in the 50 to 64 age range and nearly half of those 65 and older report they use the site.
  • Over 70% of Instagram users are between the ages of 25-65. The share of users 35-54, a key target for future club prospects, is 30.2%.
  • Twitter has 67,000,000 users in the U.S. Of that number, 46% access the site daily.
  • LinkedIn has approximately 154,000,000 users in the United States, around half of whom are college graduates living in high-income households.
  • Women are nearly three times as likely as men to use Pinterest (42% vs. 15%).

Despite the reach of social media, we often hear the reason clubs are not active on most of these platforms is because they don’t have enough time. Our first recommendation is always this: Find the time.

Your members and prospects are engaging with these platforms on a daily basis, and what they read, see and hear there plays a part in their decision-making. Without any Club presence, you forego this opportunity to engage with their lives and influence them.

Furthermore, a lack of presence can leave you at a competitive disadvantage. In the cases of Instagram and Facebook, these social media platforms will create “unofficial pages” displaying user photos and comments about their experiences. This hands consumers control of your brand message, allowing them to dictate the tone of conversation and could lead to a misrepresentation of your Club in this space.

Channel choice

To select the social sites most appropriate for your Club it helps to understand each platform’s purpose as well as consumer expectations for the type of content they seek.

Facebook users want to be entertained, educated, informed and obtain answers to questions in real time. On Facebook, your posts can be longer and include website links. You can also create events (open or closed) to promote to your members, prospects and wider stakeholders.

Instagram is a platform to share your story through photos and video. When users log onto Instagram, they want to be inspired and surprised by what they see at your Club.

The primary purpose of Twitter is to allow people to share thoughts, opinions, news and events with a large audience. Tweets that generate the most engagement are “how-to” lists, questions and quotes.

Remember, both the nature of the platform and demographic of the users there will dictate that not all are appropriate or impactful for your Club. So be selective, and double up your efforts on which are most fruitful rather than spreading yourself thinly across too many of them.

Crafting your message

The thought of creating content for social sites can be intimidating at first, however, we believe there is plenty of information to share. A few examples include:

  • An individual post of each golf hole with a short description of how to play the hole (that’s 18 or 36 posts).
  • Photos or short videos of your chef preparing signature menu items.
  • Unique and interesting design features found in your clubhouse.
  • Member events and activities. A word of caution here, never post a photo of a member unless they provide permission when the photo is taken.
  • Short golf, swimming or tennis videos offering tips from the professionals on staff.
  • Announcements of staff hires, renovations, special events, etc.
  • Flora and fauna found around the grounds of your Club.

Once you begin posting your content, it is important to monitor the statistics for likes, shares and comments. This information will help you to understand the type of posts generating the most engagement. Once you are equipped with that information, you can focus on how to generate more of the same.

Social media marketing does require time and effort. But once you establish a habit of a monthly or weekly content plan and roll this out you can manage your time investment efficiently, and focus your efforts on establishing a two-way conversation and social identity for your Club. One that, crucially, is consistent with its brand and ethos.

Inspiration

Instagram

Twitter

Facebook

 

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

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