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Membership Challenges Private & Semi-Private Clubs. William P. McMahon, Sr., AIA, OAA. The Trends Are Not Good!. Total Number of Member-Owned Golf and Country Clubs by Year . Down 6%. Down 10%. Down ??%. Is This The Death of the Private Club?. No, they are just evolving
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Membership Challenges Private & Semi-Private Clubs William P. McMahon, Sr., AIA, OAA
The Trends Are Not Good! Total Number of Member-Owned Golf and Country Clubs by Year Down 6% Down 10% Down ??%
Is This The Death of the Private Club? • No, they are just evolving • People still highly value associational club benefits if affordable, valuable and convenient • Clubs are social institutions that must reflect society they serve • There is a difference between respect for traditions and being tradition-bound • Clubs which stay in past will become part of it
Private Club Environment • Challenges for Private Clubs well documented prior to Great Recession • Forces at Work include: • Aging of Baby Boomers • Changing Lifestyles • Lack of Corporate Support for Memberships • Competition • Changing Standard of Living • Less Disposable Income
Change is Happening in Clubs • New Core Elements: • Gender neutral bylaws and access • Casual dining (indoors & outdoors) primary emphasis • Excellent food, varied menus, wines, etc. • Health/fitness facilities and programs • Junior programs / camps / babysitting • Family holiday programs • Relaxed dress codes & technology restrictions • Significant other access • As society changes, so must clubs
Where Are We Headed? • Cyclical and secular trends continue to forecast challenges for private clubs • Keys to Success: • Know your members • Know your marketplace • Understand your mission and purpose
Where Are We Headed? • We are going into higher taxation years • Disposable income being reduced • Yet improved economy will help • Improved stock market will help • Better government will help • 2013 should be better for clubs
Lifestyle Trends Time-Constrained Society Health & Wellness Changing Role of Women Community Green Movement Communications
Addressing Time Constraints • Club Golf: • Practice areas most used • Better Pro outreach • Interesting programs • More junior emphasis • More women emphasis • Making golf enjoyable so its worth the time
Frequency of Golf Play Down 10%+ Down 30% Age Groups
Great Practice Areas Bellerive Country Club St. Louis, MO
Addressing Time Constraints • Club/Social: • Drop-in spaces • Quick, casual dining • Short duration events • “Can’t Miss” events • Involve the family • Clubs-within-the-club • Places to hang out
You Can’t Beat A Good Bar! Wellesley Country Club Wellesley, MA
The More Casual, The More Use The Briar Club Houston, TX
Health and Wellness • Club Emphasis • Full-service fitness center, facilities, programs and staff • Focus on wellness • Health screenings • Physical therapy • Nutrition • Expansion of sport-specific training • Certified golf trainers
The Fitness Center • The Farmington Experience • “Fitness has transformed our club” • The most member usage of any club facility • Fitness will continue to grow due to demographics and lifestyle factors • Simply the best return on investment for any club
Offering Great Fitness The Briar Club Houston, TX
Don’t Forget About Children! The Point Lake & Golf Club Charlotte, NC
New Role of Women • Joining Clubs Is a Joint Decision: • Joint generation of family income • Dining importance • Food and beverage program • Social events • More women in club leadership • Make golf female and children friendly
What Members Want In a Club • HE wants golf • SHE wants everything else
Parents Will Do Anything for Kids North Hills Club Raleigh, NC
Creating a Sense of Community • Clubs must provide great places for people gatherings • We must understand what members want (survey) • Provide facilities and programs promoting socialization for all ages
Communications & Technology • Good member communications is an essential missing link at many clubs • Technology is changing our world • Clubs must adapt to these changes • Don’t ban it, embrace it
Have a Plan • Know where your club is going • Clubs must have: • Vision • Competitive advantages • Purpose and direction • Positive outlook • A Plan that generates results • A responsible management team
Continually Rebuilding Membership • New members come from “very satisfied” existing members
“Very Satisfied” Members • Members are generally satisfied with their club, but today this is not enough • Maximizing “very satisfied” members is goal one • Average club has only 27% of members “very satisfied” • Truly successful clubs have 40+% • Do you know your club’s “very satisfied” rating?
The Facility Challenge • Clubs often start their examination of facility needs with the wrong question – “Can we afford this project?” • More relevant question is – “What investments must we make to secure relevance and future success?”
The Facility Challenge • Value proposition is achieving premium club experience that reflects what members want • Facility improvements must be strategically developed • Tailored to the evolving desires of present and future members • Facility improvements must primarily focus on “more usage and more members”
Capital Generation • Establish financial reserves; i.e., capital that allows clubs to ride out “ups and downs” in the economy • Establish facility funding models that collect funds in advance to avoid membership assessments • Make sure every capital project has ROI
Summing Up • Time utilization must be considered for members using club • Well-Promoted Good Programs must be driving force for maximum member participation • Facilities must encourage socializing • Active Promotion must replace laissez-faire attitude toward membership development • Enhanced Technology must be embraced • Communicationsmust keep members informed
Issues Most Affecting Gated Community Clubs • Good management is most important for club success • Adequate capital reserves to weather economic storms • Marketing of club and community together is essential for home sales and community success
Issues Most Affecting Gated Community Clubs • Establishing non-resident membership with rental units for trial use of club and to drive home sales • Examples: Mountain Lake, Ford Plantation, Dataw Island, Tryall • Mandatory membership saved many a club, but it is not sellable today • Get developers out of a community (especially out of club ownership as soon as possible) to build real member loyalty
Future for Gated Community Clubs • Prosperity of region, nation and surroundings continue as primary driver of club prosperity • Mandatory membership watered down or eliminated • Golf offering a challenge as golf course use still declining • Future golf course offerings questioned for future communities • Only small portion of population actually play golf
Future for Gated Community Clubs • Gated community clubs impacted by desire for good security in communities • Management more important than ever to control costs and deliver value • Dining offering important as club must be favorite place to dine • Fitness importance still growing
Golf Course Satisfaction On a scale of “5” very satisfied to “1” very dissatisfied
Fitness Satisfaction • Worst fitness satisfaction ratings for small facility size and lack of spaces for classes • 44% of club members belong to another fitness club
Tennis Satisfaction • Lowest tennis satisfaction ratings: • Restroom facilities • Tennis Pro Shop • Junior tennis program • Competitive events
Swimming Satisfaction • Worst swimming satisfaction is for: • Lack of shade • Pool Restrooms • Snack Bar
Club Success Stories • Boca West Country Club (FL) • Wellesley Country Club (MA) • University Club of Chicago (IL) • Country Club at DC Ranch (AZ) “There is a primary reason to each club’s success”
