Tag: dining

Mid-Year Predictions for the Second Half of 2021

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At the start of the new year and in the spirit of planning, the thought leaders at GGA Partners sat down to predict what we believed to be coming throughout the year and shared our 2021 Predictions on the Shape of the Next Normal. Now, halfway through 2021 with the spring season in the books and summer underway, we reconvened GGA leaders for a mid-year check-in on predictions for the latter half of the year.

1. Ensuring fair and equitable access to amenities remains top of mind, especially on the golf course

A trending topic throughout the industry is golf’s demand surge and how long it will sustain, much has been written on this point and those who are closely watching rounds played metrics anticipate a clearer reading by the end of the summer.

Stephen Johnston, GGA’s founding partner, expects that private clubs will see the surge continue to elevate rounds played by members which will likely increase issues relating to compaction of tee traffic and accessibility.  He predicts the benchmark regarding average number of rounds per member to be higher by approximately 10% following the pandemic and also increased golf course utilization by members’ spouses and family members.  Both factors will create a greater demand for tee times at private clubs.

Johnston believes some clubs may need to consider permitting round play by fivesomes instead of foursomes, potentially catalyzing logistical challenges such as a greater need for single-rider power carts in order to maintain speed of play at the same rate as foursomes with all players using power carts. For club managers and course operators, this entails an increased need for current and detailed evaluation of the benefits of membership and the relationship between playing privileges and the practical ability to book a tee time and get on-course.

2. Effective demand management is key and will shift from agile, flexible approaches to new operating standards as demand stabilizes

During the pandemic and throughout 2020, many golf, club, and leisure businesses recognized the increased need to more accurately and routinely measure the utilization of amenities, adapting operations management to react quickly to change.

Craig Johnston, head of GGA’s transaction advisory practice, anticipates an evolution in this one-day-at-a-time, agile monitoring approach into a new and more formalized standard of operating procedures.  “At the start of 2021, we said we would see clubs provide flexibility and experiment with various operational changes,” he explained.  “With the pandemic feeling like it’s steadily moving toward the rear-view mirror, members will be expecting clubs to begin instituting the ‘new normal’ operations and the data compiled by clubs in the first half of the year will be critical to deciding on the new normal.”

Johnston believes that membership demand will continue to be strong through the second half of the year and that it is likely utilization will reduce marginally as members begin travelling again for work and social obligations.  Even with a marginal reduction in utilization, demand for private club services will remain strong and will continue to put pressure on capacity and access in most clubs.

Senior Partner Henry DeLozier encourages club and facility operators to embrace short-term continuations of high demand while keeping an eye on the future and the non-zero probability of a demand shift in the coming years.  “Clubs must create pathways to sustain demand while navigating utilization volume.  It is unwise to place hard or irreversible limitations on capacity while clubs are at historic maximums for demand and usage,” cautioned DeLozier. “Clubs will do well to establish a clear understanding of demand and utilization to enable innovative programs which serve to fill periods of low demand in the future.”

3. Ongoing uncertainty about the pandemic’s long-term impact on club finances will increase the review and reevaluation of club financial projections to ensure sustained budget flexibility

While data regarding utilization, participation, and engagement throughout the summer months continues to be captured and consolidated, business leaders should not delay their financial planning and instead get to work on reevaluating finances and updating their future forecasts.

“Now is the time to review, evaluate, and reset club debt levels,” emphasized Henry DeLozier. “Clubs need to recast financial projections based upon elevated joining/initiation fees arising from high demand.”

In support of alacrity in financial planning, DeLozier notes that labor shortages spurred by the pandemic will increase payroll-related costs at a material level. He also predicts that comprehensive risk review is needed at most clubs to evaluate possible impacts arising from cyber-crime and/or declining club revenues during 2022.

Beyond internal shake-ups in utilization or operations, club leaders should be anticipating external impacts that could impact their financial plans.  A hypothetical example raised by DeLozier is if the U.S. economy were to become more inflationary.  In such a circumstance he believes clubs would see an increase in the costs of labor and supplies which would necessitate increases in member dues and fees, a deceleration of new-member enrollments as consumer confidence dips, and a slight slow-down in housing demand.

Right now, uncertainty remains with respect to the virus as well as the resulting economic impact from the pandemic. From a financial standpoint, clubs will do well to advance their forward planning while retaining budget elasticity.  “It will be imperative for clubs and boards to build flexibility into their budgets and agility into their operations,” added Craig Johnston.

4. Existing governance practices, policies, and procedures will be revisited, refurbished, and reinvigorated

A litany of new ways of operating and governing the club arose as a result of the pandemic, some of which suggest an efficacy that can be sustained in a post-pandemic environment.  Essential to assimilating these adaptions into new standards of procedure is a review of existing governance practices and the documentation which supports them.

“At a time when boards can measure the full range of financial performance metrics, updating club governing documents is a primary board responsibility,” noted Henry DeLozier.  “Board room succession planning must be formalized to prepare clubs for the inevitable downturn from record high utilization.”

In considering the nearly overnight adoption of technology tools to enable remote meetings and board-level deliberations, partner Michael Gregory noted a substantial increase in the use of technology tools that go beyond virtual Zoom meetings.  “The pandemic has allowed clubs to test online voting,” he explained.  “For many clubs, once things return to normal, their bylaws won’t allow for the continued execution of online voting unless they make changes.”

“We have seen the adoption and implementation of online voting to be a huge success for the clubs who have tried it for the first time,” said Gregory. “Members love it, it’s easy, it’s convenient, it leads to higher participation from the membership, and many clubs are in the process of changing their governing documents to allow for online voting as a result.”  The challenges and opportunities of employing online voting are detailed in our piece on taking club elections digital, which features a downloadable resource that can be shared among club boards.

5. In human resources, expect to see deeper reevaluations of compensation structures and employee value propositions

Weighing in from across the pond, Rob Hill, partner and managing director of GGA’s EMEA office in Dublin, predicts that club leaders will face bigger challenges in human resources throughout the remainder of 2021.

The first of three particular items he called out is a reevaluation of compensation.  “Making decisions about employee pay is among the biggest challenges facing club leaders in the wake of the coronavirus shutdown,” stated Hill. “As they begin compensation planning for the rest of the year and into 2022, these leaders not only have to consider pay levels, but also the suitability of their mission and operating model to thrive in a post-pandemic world.”

Citing his recent experiences in the European market, Hill shared that club leaders are challenged with finding new ways to operate smarter and more efficiently, while also looking for innovative ways to implement sturdy, low-cost solutions that their employees will love.  Which leads to his second point, that there will be a renewed emphasis on what employees love and how clubs, as employers, can provide an enhanced value proposition for their employees.

“As employees get back to work onsite, employers are finding that what their people value from the employment relationship has changed,” Hill explained.  “Where pay has been viewed as largely transactional in the past, clubs may need to provide new types of benefits, especially programs that provide more flexibility, financial security, and empowerment to retain and motivate their people.”

Lastly, there is likely to be considerable movement of talent over the coming year brought on by employees’ new work-life ambitions and financial imperatives, said Hill, “As demand for their skills and experience grows, the very best talent will seek out employers that demonstrate they view employees not as costs but as assets and reflect this in their approach to compensation.”

Recalling our start-of-year prediction that the movement of people and relocation of companies will reshape markets, partner Craig Johnston added, “The relocation of people continues to be a prominent trend and one that is likely to continue in the second half of the year.”  For club employers, it’s not just the changing physical locations which impact the cost and supply of labor, but also the expectations of employees as they seek out competitive new roles and work experiences.

6. The repurposing and reimagining of club facilities, amenities, and member-use areas will continue

The pandemic pushed to the fore the need for clubs to adapt their facilities to match changes in the ways members use and enjoy their clubs.  A combination of practical evolutions for health and safety and circumstantial evolutions drawn from widespread ability for members to work remotely created increased desire for clubs to offer more casual outdoor dining options and spaces to enable members to conduct work while at the club.

Partner Stephen Johnston believes these sentiments will continue to near-term facility improvements at clubs.  “With more flexibility in the workplace and members working from home periodically, there will be a need at the club for members to do work or take calls before their tee time or their lunch date,” he said.  “It has been evident for some time that members generally prefer to enjoy outdoor dining and since, throughout the pandemic, it has become apparent that guests draw greater comfort in outdoor experiences, I see a greater demand for outside patio and food and beverage service.”

As society begins to reopen and communities begin to stabilize, time can only tell precisely how clubs will continue to evolve their operations, whether that be scaling back pandemic-relevant operations or doubling-down on new services and efficiencies.  Evident in our work with clients are significant efforts to reorganize club leaders, reevaluate operations, and retool plans for a successful future in the new normal.  Here are a few highlights of efforts clubs are making for the next normal:

 

  • Reinvigoration of governance processes and engagement of leaders to ensure alignment between boards and club strategic plans.
  • Renewed surveying of members to keep a pulse on how sentiments have changed from pre-pandemic, during pandemic, and currently as communities stabilize.
  • Enhanced adoption and application of electronic voting as clubs reevaluate membership structures, governing documents, and operating policies amidst “displaced” members.
  • Reconfiguring of budgets, capital plans, and long-range financial models.
  • Refinement and advancement of membership marketing strategies, tactics, and materials.
  • Tightening relationships between facility planning, capital improvements, and member communications campaigns.

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.

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.

Time to Deliver an Unforgettable Experience

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Today, many club members are less inclined to splurge on a new set of clubs and more likely to allocate their time and money to sharing an experience with their friends and family. Not only are experiences ‘trending’, the experience economy is booming.

The economics are simple: people are spending more on doing stuff and less on buying stuff.

Consumers have recognized that sharing experiences with others generates a stronger and longer-lasting sense of happiness than buying a product does; for businesses this requires an approach to services which is more relational than transactional, more qualitative than quantitative.

This shift in demand creates a tremendous opportunity for clubs, because membership clubs are perfectly situated to capitalize on servicing the experiences of their members.

Here are nine tips to help clubs deliver experiences that are unforgettable for members:

1. Be mindful of when the ‘experience’ starts.

In many cases the experience may begin long before members are at the Club, or even before they have become members.

How your members become aware of the experience, the way they register or sign-up for it, the message they receive confirming their registration, a reminder or additional information they may receive about it, the availability of parking on the day, and the ambiance of their arrival at the Club are all contributors to the experience as a whole and the customer’s memory of it.

2. Use technology to create the feeling of a meaningful relationship.

The aim is to establish the sense of a one-to-one relationship between the club and the member, both offline and online, making the member feel known, welcome, and expected.

Understanding of their preferred methods of communication, their drink preferences or dietary restrictions, and, of course, knowledge of their name plays into the experience. Unless you have a superhuman ability to track this information mentally, let technology do the work for you.

3. Great experiences can be simple.

Remember that, in the experience economy, the commodity is happiness.

Experiences need not be expensive, elaborate, comprehensive, or enduring to generate fulfillment for members. Rather they need to be genuine and encourage socialization and relationship-building with others. In fact, research suggests that many consumers see experiences as affordable indulgences rather than major expenditures.

4. Food and Beverage is an easy place to start enhancing experiential offerings.

Members are increasingly interested in food and beverage experiences such as niche-based events for a small, targeted group of members. Examples might include wine tastings, whiskey samplings, trialing cigars, nine-and-dine type of events, or ‘dinner with the chef’ or ‘dinner in the kitchen’.

The key to ensuring these drinking and dining experiences deliver experiential value to members is to focus on facilitating interaction and engagement rather than the food product. In the case of wine and whiskey tasting, the value is not in the consumption of alcohol but rather in the shared experience of trying new things with companions. For ‘dinner with the chef’ the value is tied to the sense of exclusivity, intimate dining, and the feeling of having gotten something ‘extra’.

5. Lifestyle experiences are increasingly important in the experience economy.

Member interests are trending toward a desire for clubs to provide lifestyle experiences as opposed to continually new and upgraded amenities and facilities.

Members are seeking to define themselves by how they live versus what they own and they want customized, unique experiences. In particular, experiences relating to ‘off-site’ outings and excursions, travel and adventure, whole-family experiences, and the Club becoming a ‘home-away-from-home’ are becoming more and more common.

6. Stand out from the pack of local experiences.

Turn to your club’s most recent market research, as well as anecdotal data from fellow managers, to inventory which experiences other clubs around you are offering.

Assess which events are commonly hosted among a variety of competitors, then be bold and take a creative approach by doing something different. If your market is focused on experiences for adults, there may be an opportunity to pioneer an unmatched children’s experience.

7. Know when to cast a wide net.

It’s important to know when to focus on a niche group (for optimal satisfaction) versus a broad group (for maximal attendance). When trialing something new or adventurous for the operations team, cultivate experiences that: (a) draw from multiple sources of revenue such as admission or registration fees, food and beverage sales, transportation costs, or ancillary dues/fees (if it’s related to a club-within-the-club), and (b) appeal to multiple demographic segments such as adults, families, teens, and young-professionals.

8. Track, monitor, and evaluate experience metrics.

Key metrics which clubs should be tracking to make informed assessments regarding the experiences they offer include:

  • Satisfaction with the experience
  • Willingness to recommend the experience to others (Net Promoter Score)
  • Utilization or attendance
  • Value-for-money perceptions

Most of these can be tracked through member surveys, rolling Net Promoter Score surveys, spot polls, automated follow-up surveys, or through web analytics regarding which marketing emails or event promotions were most clicked, most shared, or generated the most conversion to attendance.

The goal here is to track metrics consistently over time and across experiences in order to compare performance and effectiveness.

9. Embrace that what qualifies as ‘unforgettable’ varies from member to member, but recognize that what constitutes ‘unforgettable’ remains the same.

We all want our experiences to be unique. However, behavioral scientists are suggesting that consumers are less likely to compare experiential purchases than they are material products. If the commodity is happiness, the happiness one member receives from a certain experience does not diminish because another member was happy with their separate experience.

This means that a golf trip to St. Andrews may be as rewarding an experience for one member as attending a 70’s themed father-daughter dance might be for another. In each case the object of happiness is different, however the happiness they experienced and shared with others – and are now sharing with one another – is the same.

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

What Makes Members Happy

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“Establish an atmosphere which fosters a sense of community and belonging – that is fundamental to member satisfaction.” – GGA Senior Associate Martin Tzankov

In a recent interview, GGA Senior Associate Martin Tzankov revealed the results of member survey findings from a sample of private clubs that are subscribed to GGA’s Strategic Intelligence platform, all based in and around the Greater Ontario region in Canada.

The Key Findings of the sample study were these:

  • Social Atmosphere and Food & Beverage ratings were most directly related to overall club satisfaction
  • Golf Course and Practice Facility ratings did not strongly relate to overall member satisfaction
  • The Clubhouse Experience bears a moderate correlation to overall satisfaction

Martin went on to discuss the findings and why some aspects of club life are more closely linked to satisfaction than others in today’s market:

Did it surprise you that the golf course and practice facilities were not more directly linked to member satisfaction?

In some ways, yes. It’s something I imagine most club managers would think is number one when it comes to satisfaction. But in the context of members and membership, the course is something they know and that they (most likely) got to know before they joined. It may change or evolve over time, but this study suggests there are other aspects of their membership that are more directly related to their satisfaction at any one time.

Social atmosphere was found to be most directly related to club satisfaction. Is this an emerging trend that you have witnessed from other club data in recent years?

It’s definitely something we’ve seen over the years on a case-by-case basis through our engagements and this data reinforces our first-hand observations. A sense of community and belonging is so important to club members. This has actually not really changed over time, however the definition of what a sense of community and belonging is has certainly evolved. Increasingly, members are looking to be part of a club that is friendly and welcoming to families, and one that creates social opportunities for its members to interact and spend time with one another.

The notion of shared experiences, added to the distinct feeling of being part of something, does feel like the sweet spot all clubs should be striving to create for their members. This is backed up by the data and, I suspect, would be backed up by more far reaching extensive research too.

Why do you think Food & Beverage ranked so highly in relation to member satisfaction?

It’s almost the opposite to the golf course, in the sense that the food and beverage offering is something they are unlikely to have experienced many times, if at all, before they became members. So, by the time they become a member, if it does not meet their expectations, a survey tends to be where this is reflected.

Despite the questions relating to food quality, menu selection and the like, there’s a broader social context too. The club is somewhere a member wants to be proud of, perhaps even invite others along to experience – so when certain aspects are not up to the standard they expect, this can be a source of discontent.

With the findings of the study in mind, what one or two takeaways can you recommend to club managers with a view to improving the experience and satisfaction for their members?

I’d focus on bringing your members together – create opportunities for members to spend time and socialize together at the club on and off the golf course. A sense of community and belonging plays a pivotal role in member satisfaction.

The club should be viewed as the vessel which enables members to live out social experiences with other members, their families, friends and guests, so by opening up these opportunities, members can expand their network within the club and become more rooted in the social fabric.

When you observe your members using the club and its amenities through this lens, it can help empathize with what they care most about, or what voids may exist in the member experience.

Any final conclusions to draw from the findings?

The findings have reinforced our observations into which areas specifically impact member satisfaction most. But for the moment, this is really only an indication. We’ll soon be embarking on more extensive analysis, taking account of clubs further afield, looking more closely at individual responses and mapping these to member satisfaction. This will provide an even more robust basis to examine where clubs really need to focus their attention in order to enhance the experience for members.

Connect with Martin Tzankov

Selling Experiences

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Does your club tap into the value of members’ experiences?  Engaging with the experience economy is the fastest-growing method of marketing services, and it will shape the futures of many clubs.

American Express now promotes hard-to-get tickets for special shows and performances. Red Bull promotes a super-terrestrial “Stratos Jump” to call attention to a life lived “on the edge”. Lean Cuisine promotes its “#WeighThis” campaign by asking potential customers to describe what they really wanted to weigh – as in, what really matters to you?

In the modern world, experiences are proving to be more engaging and inspiring than the long-standing product-features-and-benefits approach to marketing.

In their 1999 book, The Experience Economy, B. Joseph Pine II and James Gilmore offered an early glimpse of a then-current trend emerging… the swelling value of “experiences” over commoditized goods and services. Pine and Gilmore argued that people will place higher value on an experience than a simple transactional relationship.

Now, two decades hence, the experience economy is in full bloom, pushing top-performing clubs to create memorable “experiences” for their members. The memory itself becomes the product, and in private clubs today, members relish an unforgettable experience far more than a bargain.

What is the difference between an “experience” and a normal day at the club?

The term “Experience Economy” was first used in a 1998 article by Pine and Gilmore, describing it as the next economy following the agrarian economy, the industrial economy, and most recently, the service economy. The Experience Economy, as Pine and Gilmore described it, builds on concept that the whole is greater than the sum of its parts.

For affluent and accomplished people able to join a private club of almost any description, it is memorable experiences that deliver value to their lives and the lives of their loved ones.

“Experiences” in this context are pre-planned activities and events that are packed full of emotional, memorable, shareable impressions that are difficult for the uninitiated to duplicate. In their earliest uses in private clubs, these events were typically staged around dining and drinking entertainment events. Now, the sky is literally the limit in some clubs.

Experiential value is greater than fair-market value.

Pine gave the example of a birthday cake made faithfully each year by his mother who took her hard-earned cash to the grocery store for the eggs, sugar, flour and other cake ingredients. “Happy Birthday Joey” the cake declared, at an all-in cost of less than $2. However, when Joe’s mother eventually began to work outside of the home, she purchased cakes each year from the bakery for as much as $10.

Pine then fast-forwarded to another example from his own generation of parenting, during which he took his daughter and several of her friends to the American Girl store to buy dolls for each of the girls with all of the American Girl accoutrements – books, extra outfits, and a pre-packaged birthday party – all for roughly $300 per child. This experience prompted Pine’s question, “Do you want to be in the grocery business or the American Girl business?”

Club leaders face the same choice of selling either the parts of a happy event or the sum of the parts at a substantially higher amount.

What are examples of successful “experiences” in private clubs?

Clubs within clubs are often the basis for experiential opportunities in private clubs. The golfers schedule golf trips to Scotland, Ireland, and beyond. The wine club organizes travel to Napa, Sonoma, or the Finger Lakes region. Artistic members enjoy road-trips to Broadway, Hollywood and the touring shows across the country. Spirits and cigars are another point of interest for many club members.

Most clubs and club managers have introduced such programs already and wonder “what is next?” The next generation of interesting club experiences will come at the edges – both generationally and by interest segment. Following are three experiences to add new enthusiasm for your club:

Out of the mouths of babes – Most clubs offer decorating parties for children of the club by providing the necessary ingredients, like the gingerbread house and candies to adorn it. Using a simple handheld iPhone, clubs can record each child describing his or her gingerbread house and explaining why grandmothers and grandfathers will like certain parts of their festive creation.

Think bigger! Most clubs host parties and activities punctuated by music and a live band. Few clubs book cover bands “featuring” the Beatles, Rolling Stones, or the Beach Boys. Normally the bands are more expensive and – in most cases – worth it. Make the events at the club memorable.

The key is to book music that originated in the college-age years of the club’s members. So, if the average age of the club members is 60 deduct 20 years (to account for their average college age) and book music from 40 years ago. That means late ‘70s and early ‘80s is the music that will bring smiles to your members. Music makes most people happy and their happy music even more so.

Lifelong Learning – The value of new and interesting experiences is substantial among affluent and accomplished people who, generally speaking, make up most club members. Such people have the time and opportunity to learn throughout their lives, and private clubs can become a source of such learning experiences.

As aging Baby Boomers across the globe confront the trials of mental health, there is growing emphasis placed upon keeping one’s mind active, fit, and fresh. Private clubs are ideal settings to provide new opportunities for learning new lessons – whether a new language, a musical instrument, or the cultural history of a foreign land.

Pine and Gilmore were correct that the total value of an experience is far greater than its parts. The value of the experience economy is immense in private clubs, and so is the opportunity for those who have not yet engaged with it. There are plenty of options and alternatives that have already been proven in other clubs. The greatest success, however, will be found in innovative new ideas and unforgettable experiences.

This article was penned by GGA Principal and Partner Henry DeLozier. 

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