Tag: report

Winter is Coming…

Date:

Amidst the euphoria of clubs reopening, EMEA Partner Rob Hill encourages club leaders to look beyond 2020 and plan now to do all they can to maintain those gains, because starting this winter, 2021 is going to bring a whole new challenge.

Numerous UK golfing bodies, clubs and media are understandably enjoying the moment – citing a considerable spike in membership interest and lauding the industry’s resurrection as reason for celebration.

Amidst the euphoria, club leaders would do well to look beyond 2020 and plan now to do all they can to maintain those gains, because starting this winter, 2021 is going to bring a whole new challenge.

The Bank of England has warned that the UK faces its deepest recession since 1709 and the OECD forecasts that the UK will suffer the worst recession in the developed world.

Thus far, the true state of the UK labour market has been disguised by wage subsidies covering 9.1m jobs – a scheme coming to an end in October this year.

GGA Partners Research (A Member’s Perspective, 2020) signals that 43% of private club members expect their disposable income will decline over the next 12 months, while 58% believe their overall consumer spending will also decline.

This new economic environment will first focus its wrath on the 8% of clubs in the UK and Ireland that classify their current cash position as ‘Critical’. It will swiftly sweep through the further 29% that classify theirs as ‘Concerning’.

As far as the COVID effect on member attitudes to returning to use their club, 11% of members signal that they are hesitant, would not return until the Club had been operational ‘without issues’ for a trial period, until rigorous virus testing capabilities or even a vaccine is available. This is particularly applicable to the 70’s+ age group (A Member’s Perspective, 2020), leading to a likely detrimental impact on this demographic’s perceived value for money and relevance.

A study carried out by the English Golf Union as it then was in 2008, identified in the first year of that recession, almost 1/2 of all clubs experienced a decline in membership numbers with “the most significant decrease in the 22-44 age group” – a reflection of the age group that gets hit hardest in an employment downtown. It’s reasonable to assume this trend will be repeated.

By all means enjoy re-opening, celebrate the new demand and interest in the game and membership, and the first profitable quarter for f&b departments in recent memory! But remember what you’re experiencing now isn’t the new normal. That’s coming this winter and it is the responsibility of club leaders to prepare their organisations for the next cycle NOW.

This means addressing any governance weaknesses that may hinder nimble and difficult decision-making. Following proven guiding principles to protect the club’s overall financial health. Protecting the condition of club assets and exploring opportunities for investing in enhancements which will broaden relevance and appeal. Investing in people and their education to deliver efficient and outstanding member and visitor experiences. Investing in a membership retention plan with an emphasis on value, NPS, socialisation, and safety, and investing in an appropriate brand management strategy so that values are communicated effectively to both internal and external audiences.

If you have an interest in reading insights from my colleagues and research from our extraordinary team at GGA Partners, I encourage you to go to ggapartners.com/insights where you can also sign up to receive releases of interest.

Speaking the New Language of Brands

Date:

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

A Member’s Perspective: The Shifting Private Club Landscape

Date:

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Click here to download the report and see the findings

 

About GGA Partners

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

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

For more information, please visit ggapartners.com.

 

Contact

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

The New Urgency of Strategic Planning

Date:

GGA Partners Continues Thought Leadership Series with Four New Whitepapers

‘The New Urgency of Strategic Planning’ Now Available for Download

TORONTO (June 10, 2020) – GGA Partners – international consulting firm and trusted advisor to many of the world’s most successful golf courses, private clubs, resorts, and residential communities – will continue its thought leadership series with the publication of four new whitepapers to help leaders of golf, club, and leisure businesses make better-informed decisions regarding key planning and marketing challenges.  The whitepapers focus on strategic planning, branding, governance, and innovation.

Let’s Face It, Times Are Changing

That may be the understatement of the year.

Between rapidly advancing technology, economic uncertainty, transforming demographic and lifestyle stressors, and a digitally-connected global community, the environment for club and leisure-related businesses is more competitive than ever.

The business landscape is shifting and management stances are evolving, yet the principles of competition endure: one’s gain is another’s loss and the strongest will come out on top.

Knowledge is a tremendous source of strength and GGA Partners is developing authoritative reports on the industry’s most pressing issues and constructing advanced problem-solving guides for the road ahead.

The New Urgency of Strategic Planning

The strategic planning whitepaper, which can now be downloaded from the GGA Partners website, focuses on a misconception regarding the strategic planning process, according to Henry DeLozier, who along with GGA partners Steve Johnston, Rob Hill, Derek Johnston, and Michael Gregory authored the paper.

“Because of its traditional long-range horizons, many club leaders don’t prioritize strategic planning,” DeLozier said. “With conditions inside and outside the club environment changing as quickly as they are, there’s a new urgency to strategic planning.”

In addition, the whitepaper argues for a shorter planning cycle, ranging anywhere from 12 to 24 months, and a closer connection between strategy and execution.

“Businesses that are directly affected by shifts in the economy and consumer preferences should consider shorter planning cycles,” Johnston said.  “Think about it: Would a five-year strategic plan created in 2015 successfully guide your business today?”

Today’s most successful clubs look at their strategic plan as a blueprint for action, Hill added. “They don’t put their plans on a shelf to gather dust. They’re implementing their plans, adjusting as needed and executing their vision for the club.”

For club managers not familiar with the strategic planning process, the whitepaper explains five key steps in developing a plan and draws on examples from inside and outside the private club business.

In addition to strategic planning, other whitepapers in the series focused on branding, governance, and innovation will be published through the third quarter of 2020.  Discover more about the cross-section of high-impact topics GGA Partners is studying at ggapartners.com.

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, visit ggapartners.com.

Media Contact:

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

Millennials and the Value Proposition at Your Facility

Date:

A First-Look at 2020 Millennial Golf Industry Research Findings

In ongoing research collaboration with Millennial golfer organization Nextgengolf, GGA recently updated its study of the habits, attitudes, and preferences of Millennial golfers.  The 2020 study brings forward survey findings from over 1,600 Millennial golfers and builds upon research conducted in 2017, 2018, and 2019.

A preview of this year’s research findings was unveiled in a presentation delivered at the 2020 PGA Merchandise Show by GGA Partner Henry DeLozier and Director, Nextgengolf Operations, Matt Weinberger.

Titled “Millennials and the Value Proposition at Your Facility”, the session introduced key insights and observations from the latest research and supplemented these findings using personal anecdotes shared by participating Millennial golfers.  The session explored what these findings mean for golf facilities and highlighted several tactics some facilities have implemented to enhance their value proposition to Millennial golfers.

Over the next few weeks, be on the lookout for a full, in-depth report of findings.

Loader Loading...
EAD Logo Taking too long?
Reload Reload document
| Open Open in new tab

Research Overview

In many clubs today, the long-held expectations and perceptions of existing, ageing members are at odds with the entirely different needs and expectations of a new wave of younger, more casual members.  The challenge for clubs?  To create an environment which not only appeals to the new wave, but where members of all types can coexist.

Research findings highlight how golf clubs can adapt and develop their offerings to meet the needs of the next generation of members and customers.  The goal is to provide valuable insights about Millennial golfers, the challenges they face, and the opportunities for clubs to help support the long-term sustainability of the game and the industry as a whole.

Background

As the leading entity for team-based golf in the United States, Nextgengolf connects Millennials to golf and supports the success of their game while GGA specializes in solution engineering and problem solving for golf-related businesses.  A fusion of GGA’s 28-year history of private club research and Nextgengolf’s connection to young golfers afforded the unique opportunity to study a highly valuable Millennial audience.

The survey sample focused exclusively on a sample audience of active, avid Millennial golfers with prior golf interest and experience in tournaments or golf events.  To date, more than 5,200 survey responses have been analyzed during the four-year research study.

Thank you to the Club Management Association of America (CMAA) for the support that makes this research possible.

Winning Financial Practices

Date:

While directors carry ultimate responsibility for the financial resources of a club, it’s the relationship between the board of directors and club manager that can often determine just how well managed the finances actually are.

Bobby Crifasi, General Manager of New Orleans Country Club, reveals the formula which keeps his club on a sound, sustainable financial footing.

A mismanaged and uninformed approach to financial management can seriously damage a club’s ability to make sound business decisions.

And as the buck stops with the board of directors, it is they who must carefully measure the future financial needs of their club, plan for the sources and uses of funds, and ensure the economic sustainability of the club. Doing so is no small challenge and requires:

  • A comprehensive capital asset replacement roster
  • Maintaining a constant understanding of capital sources and use
  • Command of the club’s balance sheet
  • Sustaining engaged financial review and audit

As one of several duties, that can be a lot to ask of volunteer board members. This is where top-performing club managers step in. The more they can equip their board of directors with the information they need to fulfill their duties, the greater the guarantee of them making the soundest possible business decisions.

Bobby Crifasi manages New Orleans Country Club (NOCC) with style and grace that belies a savvy financial manager. First educated and trained as a certified public accountant, during his time Bobby has seen the Club through a natural disaster in Hurricane Katrina which led to $5 million in unplanned renovations. On a day-to-day basis, Bobby ensures that the Club remains on solid financial ground by keeping his board fully informed on the Club’s financial facts.

“All of our financial information is sent to the board in advance of the board meeting,” explains Crifasi.  “I receive our financial reports by the 10th of each month and that allows a week or so to investigate any variances before the financial information is sent with the board package. If there was anything of significance that I thought the board should know sooner rather than later, I would report on it at the House Committee meeting or email the board directly.”

Keeping the board informed of financial performance metrics is a key for Crifasi and his team, “What we do is provide a lot of financial data comparing this-month to this-month-last-year and year-to-date-this-year to year-to-date-last-year comparatives on a monthly basis.  We do good, old-fashioned spreadsheets with all this information monthly.”

Among the keys that are faithfully tracked at NOCC, Crifasi emphasizes the mission-critical factors in the balance sheet and income statements, “On a monthly basis we focus on key balance sheet items like cash, notes payable, and any other balance sheet items that may have changed significantly during the month.  In addition, we look at our Statement of Income and Expenses and talk about any variances during the month and the factors that may have caused that.  We track initiation fees and dues to ensure we are on budget with those as they represent such a large part of the financial picture.”

On a practical level, NOCC uses a rolling budget process to enable adjustments as conditions require, “We have a rolling budget for the food and beverage operation which is adjusted each month to reflect additions or deletions to the banquet business as well as current forecasts for our restaurant business.”

Given the significant impact of rising labor costs in private clubs, Crifasi adds, “We also look at labor in each department to ensure it is tracking as projected.”  GGA observes that labor expenses are typically the largest category of expenses for facility operators, with benchmarks generally ranging from 52-58% of total expenses for public, semi-private, and resort facilities and slightly higher at 55-62% for private member clubs.

Astute financial management starts with the key information boards require to make sound decisions. Crifasi’s meticulous approach and proactive relationship with his board has helped to simplify an area that other managers can often find complex, providing a financial foundation for the long-term success and stability of NOCC.

If you want to follow in the footsteps of this top-performing manager, four-point approach to financial interaction with board members will provide an invaluable process to work from:

  • Collect and analyze the key financial information
  • Organize the financial details in ready-to-use formats that facilitate comparative analysis
  • Back up the data with detailed department analysis
  • Be ahead of the information curve

Substance Over Style

Date:

In the old west, big talkers who didn’t deliver on what they promised were described as “All hat and no cattle.” Simply put: more image than substance.

None of us wants to be thought of in those terms. We all want to deliver the goods as promised. Doing so, while often challenging, is more achievable when you take these important steps:

1. Develop your strategic plan carefully because that’s where you lay out your promises in the form of goals and objectives. Stephen Johnston, the founder of Global Golf Advisors, often explains the importance of strategic planning by saying, “The lack of a strategic plan is not as dangerous as not having fire insurance, but it’s certainly playing with fire.”

The key components of a sound strategic plan are: (a) market analysis; (b) operational review and comparison against performance benchmarks; (c) financial measurement — especially of the sources and uses of funds; and (d) clear-eyed evaluation of governance practices. These four components assure that you have a plan that states clearly your goals and objectives and establishes a broad understanding of expectations.

Remember that an effective strategic plan answers the question: What? The business plan provides the details behind How? When? Who? and Where? The tactical plan outlines the steps that will implement the strategy.

2. Put your strategy to work. Strategy is only as good as the execution that backs it up. Putting strategic goals and objectives into action also requires a plan — one that describes in detail how you and your team will achieve the goals and objectives of the strategic plan.

3. Make sure club leaders and managers understand the plan and how their functional areas are expected to contribute to its success. In 1962, President Kennedy declared, “We will put a man on the Moon in this decade and return him safely to Earth.” Shortly thereafter, while on a tour of the NASA Space Center, the president came upon a janitor mopping the floor. When asked by the President about his job, the janitor responded, “Mr. Kennedy, I am part of the team that is going to put a man on the Moon.” That is plan buy-in and real-life awareness. The lesson: Make believers of your staff.

4. Review your plan’s success. No matter how well-intended a plan might be, careful evaluation and follow-up ensure that the plan remains relevant and purposeful. Another benefit of ongoing evaluation is evolutionary improvement and maximized understanding. Here are three steps to ensure that your plan is working at full capacity:

  • Provide quarterly strategic plan updates. Report your accomplishments and missteps with equal openness. Quarterly updates keep strategy alive in the boardroom and assure members that their board and club management are keeping their promises. Members support trustworthy leadership and trust is built on accountability in your actions.
  • Post a strategic scorecard. After the quarterly update, post the results truthfully and without acclaim. No different that posting your golf score, this is a matter of open accountability for performance. Embrace accountability for your strategic plan’s effectiveness.
  • Produce an annual report. Tell your members what has been accomplished. Align the annual report, as any major corporation would, with the strategic goals and objectives for your business and report on progress toward those goals. Provide members and stakeholders with a succinct summary of the strategic effectiveness of your plan, your board and yourself.

Strategic plans are based on the notion of having a focused plan of action on which all can rely. This step helps to make you and your work more trusted while bringing focus to what makes your facility successful.

One of the more common concerns in many golf courses and clubs is the question of vision or what it really wants to be. A carefully developed strategic plan clearly states who and what you are and establishes a trustworthy foundation for achievements. It shows people that you’re more than just a hat – it’s evidence that you’re bringing the beef.

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

2019 Millennial Golf Industry Survey Findings – Part 8

Date:

In ongoing research collaboration with Millennial golfer organization Nextgengolf, GGA recently updated its study of the habits, attitudes, and preferences of Millennial golfers.  The 2019 study brings forward survey findings from over 1,400 Millennial golfers and builds upon research conducted in 2017 and 2018.

This is the eighth and final installment of a multi-part series of infographics to feature the latest Millennial golfer feedback. Part 8, below, examines public course golf and the key habits, attributes, and fee tolerances of Millennials who play most of their golf at public facilities. Also included are observations about how this group decides which courses to play, how much they expect to play in the future, and key differences between this group of Millennials and those who play most of their golf at private facilities.

See previous individual installments here: Part 1, Part 2, Part 3, Part 4, Part 5, Part 6, Part 7, or view all eight parts here.

Loader Loading...
EAD Logo Taking too long?
Reload Reload document
| Open Open in new tab

Research Overview

In many clubs today, the long-held expectations and perceptions of existing, ageing members are at odds with the entirely different needs and expectations of a new wave of younger, more casual members.  The challenge for clubs?  To create an environment which not only appeals to the new wave, but where members of all types can coexist.

Research findings highlight how golf clubs can adapt and develop their offerings to meet the needs of the next generation of members and customers.  The goal is to provide valuable insights about Millennial golfers, the challenges they face, and the opportunities for clubs to help support the long-term sustainability of the game and the industry as a whole.

Background

As the leading entity for team-based golf in the United States, Nextgengolf connects Millennials to golf and supports the success of their game while GGA specializes in solution engineering and problem solving for golf-related businesses.  A fusion of GGA’s 27-year history of private club research and Nextgengolf’s connection to young golfers afforded the unique opportunity to study a highly valuable Millennial audience.

The survey sample focused exclusively on a sample audience of active, avid Millennial golfers with prior golf interest and experience in tournaments or golf events.  To date, more than 3,600 survey responses have been analyzed during the three-year research study.

Thank you to the Club Management Association of America (CMAA) for the support that makes this research possible.

The Club for Millennials

Date:

On the back of GGA’s largest piece of millennial research to date, Michael Gregory answers your questions, revealing how the findings paint a clear picture of who clubs need to target in order to build the next generation of members and customers.

For 3 years GGA and Nextgengolf have analyzed the behavior and attitudes of golfing millennials. Armed with the findings of this research, GGA have engaged with clubs and resorts on how to connect with this audience. Unfortunately, for many clubs, this generation still proves elusive. However, with the latest round of research now complete, we have the clearest ever picture of the untapped potential of millennials.

Below is a selection of questions that have been posed to me in recent months from managers and board members across North America. The answers may help you dispel millennial myths, consider your club’s actions in appealing to this generation, and, in some small way, future-proof the core of your membership.

What do you know now that you didn’t know before about millennials?

This centers around 3 areas: the trigger point for deciding to join a private club, the influence of family in decision-making, and interest in non-golf amenities.

Trigger point: 72% of millennials move to private club membership as the result of a new job or promotion, making way for more disposable income and leisure dollars.

We already know millennials are a highly cost-conscious group. However, an event relating to their work status which sees them earning more is the most powerful trigger point or motivation for them to decide to join a private club. When does this happen? Last year’s research indicated the ‘sweet spot’ for joining a private club was 33 years of age, and this remains the case.

Family: findings suggest a millennial audience is highly influenced by benefits for the whole family and gaining spousal approval when joining.

Millennials increasingly assess the value of club membership not just in individual terms, but in how their loved ones will benefit too. If club membership becomes a gateway to spending more time with those close to them, this will be key to influencing their decision to join.

Non-golf amenities: interest in non-golf amenities is on the increase, with 76% of respondents stating a desire for fitness pursuits and 71% looking for pool facilities.

This increased desire for non-golfing amenities is significant. More and more, millennials are viewing the value proposition offered by private club membership as a lifestyle choice. They may well have gym or health club memberships elsewhere, but if a private club offers those facilities too along with its numerous other attributes, it is more effectively positioned to win out in the millennial mind.

Do I need to create a millennial membership or reduce the cost of membership to appeal to this group?

2019’s findings reaffirm the issue of cost for millennials. Both dues and initiation fees continue to be barriers, and it is a reality that clubs will need to compete on price to appeal to this group (how much depends on the club’s location and market position).

But there’s also a bigger picture at play. While price is (and likely always will be) important, the best performing clubs are focused on creating an experience that enhances millennials lifestyles and develops a sense of emotional connection and belonging. An experience that also enhances the lifestyles of their family strengthens this connection, elevates the value proposition and paves the way for greater price elasticity.

Are there clubs out there who are successful in attracting and retaining millennial members? What can I learn from them?

Most definitely. We’re witnessing clubs roll out a number of effective initiatives to attract and integrate millennial members.

My advice?

  • Welcome millennials into the governance structure. They want a voice and the overall membership benefits from fresh, younger ideas at the committee level.
  • Encourage them to get involved with events. Some older members may be reluctant at first, but, actually, most will love the injection of youth into events.
  • Find ways to get the family involved, even if you only offer golf. Socialization is key, as is spousal approval. Need some inspiration?
    • Offer periodic child care (for a fee) so couples can enjoy time together at the club
    • Host live music outdoors where young couples can socialize
    • Increase service levels when spouses are on property (call them by name, remember their drink, be ready for them)

Any interesting developments or emerging trends from this year’s findings?

We know that millennials are a time-strapped generation. Between work and family life they don’t have a great deal of time left to dedicate to leisure interests. It’s for that reason, in recent years, we’ve witnessed the convergence of leisure and family, with more and more clubs becoming family-friendly and a place for families to spend time together.

Now, we’re starting to see work come into the equation, which is no great surprise as 74% of respondents stated work commitments prevent them from playing more. Clubs are capitalizing on the trend by creating an environment that makes the transition from work to golf and club easier. This could involve investing in modern business facilities with shared workstations, calling booths and private meeting rooms to accommodate their needs.

As there appears to be no letup in time pressures on this generation, we’d expect to see an increasingly closer union between work, family and leisure time.

 

Is your club in need of a shift in focus to appeal to a wider and younger audience of prospective members?

Connect with Michael Gregory to see how GGA’s expertise and insights
in this area can help your club.

Useful links:

Millennial Golf Industry Survey 2019
The Truth About Millennial Golfers 2018
The Truth About Millennial Golfers 2017

2019 Millennial Golf Industry Survey Findings – Part 7

Date:

In ongoing research collaboration with Millennial golfer organization Nextgengolf, GGA recently updated its study of the habits, attitudes, and preferences of Millennial golfers.  The 2019 study brings forward survey findings from over 1,400 Millennial golfers and builds upon research conducted in 2017 and 2018.

This is the seventh installment of a multi-part series of infographics to feature the latest Millennial golfer feedback. Part 7, below, explores the importance of non-golf amenities and social components Millennials look for in club offerings. Also included are observations about how their outlook is evolving over time and several takeaways on how the golf industry is responding to Millennial interests.

See previous installments here: Part 1, Part 2, Part 3, Part 4, Part 5, Part 6 and look for the final installment of this series to be released shortly.

Loader Loading...
EAD Logo Taking too long?
Reload Reload document
| Open Open in new tab

Research Overview

In many clubs today, the long-held expectations and perceptions of existing, ageing members are at odds with the entirely different needs and expectations of a new wave of younger, more casual members.  The challenge for clubs?  To create an environment which not only appeals to the new wave, but where members of all types can coexist.

Research findings highlight how golf clubs can adapt and develop their offerings to meet the needs of the next generation of members and customers.  The goal is to provide valuable insights about Millennial golfers, the challenges they face, and the opportunities for clubs to help support the long-term sustainability of the game and the industry as a whole.

Background

As the leading entity for team-based golf in the United States, Nextgengolf connects Millennials to golf and supports the success of their game while GGA specializes in solution engineering and problem solving for golf-related businesses.  A fusion of GGA’s 27-year history of private club research and Nextgengolf’s connection to young golfers afforded the unique opportunity to study a highly valuable Millennial audience.

The survey sample focused exclusively on a sample audience of active, avid Millennial golfers with prior golf interest and experience in tournaments or golf events.  To date, more than 3,600 survey responses have been analyzed during the three-year research study.

Thank you to the Club Management Association of America (CMAA) for the support that makes this research possible.

Menu