Tag: sale

Running Toward Change

Date:

This article continues a series of communications from GGA Partners to help private club leaders address challenges confronting their businesses and their employees because of the global health crisis. Today, Henry DeLozier suggests that change on a massive scale is no longer something that should surprise us.

Technology’s tools give clubs a way to prepare for the new normal.

We’re hearing a lot these days about the “new normal” and how the coronavirus has forever changed the ways we work, shop, travel and interact.

But wasn’t it not long ago that we were talking about another new normal? Remember the new normal that followed the financial crisis of 2007-2008, which led to a global recession? That pivot from the previously abnormal to a new normal ushered in more stringent guidelines for financial institutions and in a much larger sense ushered out the sense of trust we had in many other institutions and the people who ran them.

And although the term was not yet in vogue, didn’t the seismic shift from analog to digital – the tipping point came in 2002, when the world began storing more information in digital than in analog format – qualify as a new normal?

All of which led some creative soul to design a bumper sticker that said it all: Change Happens. (You may remember it with a synonym for change.) The most adaptable among us learn to deal with change; the most successful turn it into a competitive advantage. How do they do it?

Don’t be surprised – be prepared.

When he first heard Bob Dylan’s 1965 anthem “Like a Rolling Stone,” Bruce Springsteen said, “[It] sounded like somebody’d kicked open the door to your mind.” With that song, Dylan changed how artists thought about making music. Major change often seems to arrive suddenly – with the speed of a stone rolling down a steep hill – and without warning. Its capriciousness makes us anxious. But if we know it’s coming, we shouldn’t be surprised. We should be prepared.

An embrace of the tools that technology now affords us is an important key to our preparation.

Derek Johnston, a partner in our firm, says although club leaders could not have anticipated the pandemic, they could have been better prepared.

“Many clubs were ill-prepared to quickly analyze the potential impacts of the coronavirus pandemic, to run initial scenarios, to easily gather more information, to test their hypotheses with their membership and, ultimately, set a course of action,” he says.

That is not to say that clubs have responded poorly. On the contrary, club leaders have performed in truly admirable fashion. Many clubs just had to work much harder than those that had already implemented data analytics processes and plug-and-play dashboarding tools, like MetricsFirst or continuous member feedback tools like MemberInsight.

“Some club leaders still question the need to bother with data analytics tools and programs. This misunderstanding is simply misguided,” Johnston says, adding that the term “analytics” seems to intimidate some and conjure visions of data overload and complexity. Another fallacy, Johnston says. “Data analytics, when executed properly, is intended to actually simplify information and present insights in very crisp, clean, and easy to understand ways.”

Ginni Rometty, executive chair of IBM, told Fortune magazine editor Alan Murray, “There is no doubt this [coronavirus] will speed up everyone’s transition to be a digital business.” She identified four areas of impending change: 1) the movement to the cloud; 2) the move toward automation; 3) the overhaul of supply chains, and 4) the movement toward new ways of doing work. Each force will happen in accelerated fashion, she predicts.

Rometty is not alone in her assessment. Almost two out of three respondents to a recent Fortune survey of Fortune 500 CEOs expect technological transformation to accelerate. Doug Merritt, CEO at Splunk, a big-data platform, pointed out two important observations: 1) a rapid digital transformation and 2) the elevated importance of gathering and interrogating data.

Top-performing clubs will similarly leverage the pandemic to implement advanced methods for executing work and providing services. Retooling such routine practices as monthly billings, guest policy tracking, and point-of-sale transactions will happen quickly. Likewise, separating work from jobs will trend even more in the wake of the pandemic.

“Clubs that are actively maintaining both real-time operating dashboards and strategic dashboards, combined with a proper financial model, are taking preemptive steps toward dealing with change,” Johnston says. “When it happens – and we know it will – they will experience far less conflict amongst their management team and their board. Ultimately, their preparation will enable better decisions, faster.”

Walking in the Customer’s Shoes

Date:

This article is written and produced by Sue Shapcott, PhD. Sue is the founder of Change Golf Instruction, a golf coaching business that partners with public golf courses, and Sports Query, a consulting business that assists sports organizations incorporate social science into their policies and practices. Sue is based in Madison, WI.

Club staff, including managers and coaching professionals can, over time, become immunized to the customer experience and the various touch points that form it. Guest writer, Sue Shapcott, reveals how clubs should take the time to understand this experience – and why it’s crucial when it comes to attracting women, minorities and families.

Without knowing it, club staff can be reinforcing an experience that is off-putting and unwelcoming to prospective members and (current) minority groups.

In a male-dominated sport such as golf, gender stereotypes play a significant role in shaping and affirming people’s views of a club – particularly women.

Think about it: walking in to see a large group of men congregated at the bar, being greeted with a wall of products for men in the golf shop, clubhouse walls adorned with pictures of men in quintessential golfing attire. All of these cues serve to induce stereotype threat. Stereotype threat, by definition, is the demotivation someone may feel when they identify with a negatively stereotyped social group. The traditional golf environment, unfortunately, is likely to induce stereotype threat in women, children and minorities because it underscores who is, and who isn’t a typical golfer.

As well as inducing stereotype threat, the golf club environment will also impact the sense of belonging women and minority groups experience in traditional golf clubs. Conforming to a club’s traditions means accepting this ecosystem which may feel unfair, unbalanced, and ‘just the way it is (and has always been)’.

But importantly for clubs seeking new members, these groups are making a choice based on their experience at that club. Is this somewhere they visualize spending time (with their family)? Do they want to spend time here? Does it have the potential to become a core part of their life or lifestyle?

If they feel forced to conform, and conforming means signing up to an experience that will not enhance their lifestyle, then, simply put, they will not.

Why does it matter?

Removing stereotype threat experienced by women and minority golfers can be a difficult challenge for many clubs out there. It can mean unpicking a culture which, understandably, takes time.

But allowing the cycle to continue will restrict growth and diversity in your current membership base, as well as your prospective target markets – especially at a time when we know younger generations value family time together. So much so they will base purchasing decisions on how these will enhance their collective lifestyle.

Where to start

Shifting the culture starts by seeing the world through the eyes of women and minority groups.

Accompany existing and prospective members on a customer walkthrough and all of a sudden, things will become more apparent. You’ll quickly see what and why things need to change. For example, does your leadership team look like the face of golf’s past, or future? Does the club have photos that celebrate both men and women players?

Unite all the club staff around this process. Educate them on the prevalence of stereotypes, and their effect. You can then arm staff with the knowledge they need to neutralize the environment. Tackling the issue in unison will ensure that staff are conscious and aware, and there are no gaps in the club’s approach.

What areas can you expect to confront and overcome stereotype threat typically experienced by women and minority golfers? Here are some areas which are common, yet often overlooked:

Marketing – if you market to the spouses of existing members what images and/or videos are you choosing to include? What is that telling them about the club? Chances are, you could be confirming stereotypes without realizing it. It’s not about provisioning certain types of images and videos ‘because it’s the right thing to do’. It’s about doing it because clubs need to understand their influence and not inadvertently confirm certain stereotypes – especially when it will harm their goals in the long run.

Coaching – coaches should make it clear to women that they have a high expectation of their ability and performance (dispelling the stereotype that women are somehow not as strong in their ability).

Clubhouse – a contemporary environment which suits the needs of all members is what clubs should strive for. Remove unnecessary imagery which serves to reaffirm certain stereotypes and make it a place where all profiles of member can enjoy, relax and spend time.

Golf Shop – being greeted by rows of hardware, mainly for men, can be a daunting experience – especially so for women new to the game. Make service your priority, and dispel any fears minority groups may have by handing them the knowledge they need to make informed purchasing decisions.

On the course – tees labelled by gender are extremely commonplace, yet are a constant reminder that women don’t hit the ball as far and that this somehow makes their ability inferior. By changing your tees to difficulty-based rather than gender-based creates more of a level playing field and removes the gender factor and associated stereotype threat.

A rallying call

Change at clubs is always difficult when there’s a threat of alienating a certain group – in this case the core membership. But this is where it’s important to take a step back and assess the fork in the road in which we find ourselves:

Road A: We do the same thing. Members age, member numbers recede, and the cycle of stereotype threat experienced by women and minorities continue.

Road B: We open up, we see our club differently, we remove stereotype threats and create an environment a more diverse range of prospects want to be a part of.

As a stakeholder in this industry, I know which future I would rather be a part of.

 

Connect with Sue Shapcott

The Power of Women

Date:

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.

Celebrating Client Success in Transaction Advisory

Date:

Handling complex club transactions can be challenging and, in many ways, celebrating the success of your clients can feel equally challenging and at times unnatural.

For all the right reasons, seldom do such celebrations recognize and truly appreciate each of the obstacles and challenges clients encounter along their path to success.

Indeed, during last year’s successful sale of The Clubs at St. James Plantation, the ownership group scrutinized several options which each brought forth a great deal of complexity. The ownership group was looking for a buyer with a focus on the members and on the long-term sustainability and success of The Clubs. In February of last year they found that in Troon, the largest golf management company in the world, who had managed The Clubs for the previous 12 years.

The transaction ranked among the biggest sales of 2018 and the largest in the private club sector according to Golf Inc. Magazine in their January/February 2019 edition.

For the ownership group, the sale was a tremendous accomplishment and an exemplar of visionary strategic leadership. For GGA, we were humbled by the opportunity to support such a dedicated ownership group during the process and were thrilled with the outcome as it aligned with the quantitative and qualitative aspirations of the owners.

Notably, GGA Partner Derek Johnston was recently recognized as an Adviser of the Year in Golf Inc.’s May/June 2019 magazine for his support on this transaction, the success of which was informed by the deep expertise of Craig Johnston, Director of GGA’s Transaction Advisory practice.

About GGA Transaction Advisory

At GGA we welcome every opportunity to assist our clients in maximizing return on capital and pride ourselves on deliberate consideration of both the quantitative and qualitative aspects of every transaction.

GGA’s core Transaction Advisory services include:

  • Buy and sell-side advisory
  • Investor exit strategy development
  • Business valuation and modelling
  • Due diligence (commercial, financial and operational)
  • Developer-to-member transition planning and facilitation

Follow these links to learn more about Derek Johnston, Craig Johnston, and GGA’s Transaction Advisory practice.

A special thank you to Jack Crittenden, Jim Trageser, and Keith Carter at Golf Inc. Magazine, the leading news source for golf course developers and owners worldwide.

Managing Your Club Identity

Date:

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

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

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

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

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

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

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

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

1. Become knowledgeable about the power of brand.

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

2. Remain alert to proper brand management methods.

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

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

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

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

3. Use your brand to develop relationships.

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

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

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

This article was authored by GGA Partner Henry DeLozier.

Making the Connection

Date:

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

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

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

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

Define Your Brand with A Unique Selling Proposition

That’s simple, right?

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

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

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

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

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

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

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

Speak to Your Specific Audience

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

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

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

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

Tell Your Audience Your Story

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

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

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

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

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

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

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

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

GGA and Bigwin Realty Announce Transaction Advisory Partnership

Date:

TORONTO, ONTARIO – October 1, 2018

Global Golf Advisors Inc. (“GGA”) and Bigwin Realty Inc. (“Bigwin Realty”) are pleased to announce the formation of a new partnership focused on providing industry-leading advisory services around the purchase and sale of golf course properties in Canada.

Craig Johnston, Director – Transaction Advisory of GGA said, “We believe our partnership with Bigwin Realty will provide golf course owners and investors with a go-to resource for the purchase and sale of golf course properties in Canada. From assisting owners with their exit strategy, to understanding the fair value of their property, to sourcing buyers and brokering transactions, we will truly be a one-stop shop.”

David Smith, President of Bigwin Realty said, “With the changing business environment for golf course owners in Canada, the combined service offerings of GGA and Bigwin Realty will provide our clients with unparalleled support to maximize the value of their investment.”

The partnership’s service offerings will include the following:

  • Exit Strategy Review/Development: Help owners understand the exit opportunities which will provide the greatest after-tax value.
  • Business Valuation Services: Provide independent and objective estimate of value of the business and underlying property; and provide recommendations for value enhancement.
  • Brokerage Services: Broker the purchase and/or sale of golf course properties.
  • Transaction Structuring and Evaluation: Assist owners in evaluating solicited and unsolicited offers and provide direction on the most advantageous deal structuring.
  • Purchase and Sale Negotiations: Support owners or investors in purchase and sale negotiations.

For more details on the partnership and properties currently available, click here.

About Global Golf Advisors
Global Golf Advisors is the largest consulting firm in the world dedicated to the golf and club industry.  GGA serves a global roster of clients from its four offices in Toronto, Phoenix, Dublin and Sydney.  The firm was founded in 1992 as a specialty consulting practice within KPMG Canada, KPMG’s Golf Industry Practice.  Since inception, the firm has provided industry-leading advisory services to over 3,000 clients worldwide.

About Bigwin Realty
Bigwin Realty is a full-service real estate brokerage, whose founder has spent over 30 years working in the golf, recreation and resort industries.  Bigwin Realty firmly believes that a real estate company should offer more than typical brokerage services, providing clients with a more focused knowledge of the industry it serves.

Menu