Are you overlooking your members?

Posted by Golf Management Blog at 3/26/2009 2:00 PM
Categories: Private Club Members, Private Clubs, Golf Management, Golf Marketing

 

From Bob Devitz, President and CEO,
Legendary Golf Management

Are you overlooking your members? 
     New Members and a growing dues line (the number of members in each category of membership multiplied by the dues for each category and then summed over all categories) is the MOST CRITICAL need for Private Clubs. Even at Clubs with the most satisfied Members, attrition is going to occur due to relocation, health related problems, changes in family situations, or financial problems. If these members are not replaced, dues revenue as well as other spending in the Club begins to erode. This can result in the postponement of important capital replacement projects, reduction of Member services, the loss of good employees, or a capital/operating assessment. Continuing over time, this can put the Club in a death spiral and in many cases take property values in a community with it. This normal attrition coupled with the current economic situation, the volatile stock market, and loss of wealth (some on paper and some for real) makes enrolling new members an even greater priority than ever before.

What is happening with Private Club
Members Nationally?

     An article in PGA magazine in the latter part of 2008 noted that there are 3.8 million Private Club members in the United States, down from the nearly 5.5 million members in the mid 1990s. This bad news became even worse in the first quarter of 2009. Every Club I speak with has told me of member losses like never before in the history of their Clubs. Scary? Extremely so!

Is your Club planning to succeed?
Planning at all?

     Having a solid quarterly marketing plan in place to continually generate new prospects for Club Membership is critically important. A plan should be developed each quarter with specific actions described, accountabilities assigned, deadlines established, goals established, and the results measured to determine what worked and what did not. Everyone seems to agree with this, but I am astounded at the number of Clubs, even other management companies, who do not act on it and make it happen.

Wow, I forgot about that!

     Your best source for new Members is your current members! This is so basic and yet so consistently overlooked that it reminds me of the Wizard of Oz. Dorothy was so busy looking afar that she failed to recognize what was right before her eyes. After many adventures, she finally realizes “there's no place like home”.  And this is true for potential members. They are right before your eyes through the current members.

What should I do?

     The most inexpensive and effective means of generating a prospect for membership is through a referral from an existing member. Yet, in talking to many Private Clubs each week, in most cases it is not happening. Why is it not happening? I hear a lot of excuses; oh wait, I'm sorry, REASONS (yeah right) why it won't work. Yes, there are members that don't want more members since they believe it makes getting tee times more difficult or say that all of their friends are already club members. But, the silent majority has friends and business associates who they would enjoy having as fellow members. However, a Club must have a system or process in place to ASK for a referral. And it must be adhered to and
followed up on.

     Do you have a referral campaign annually through an e-mail or direct mail campaign to your members with a letter from the Board Chairman explaining the process for referring a member, the reasons the Club needs more members, the responsibility of each member to help ensure the Club is successful, and include a couple of guest passes for members to give to prospects? (Divide the membership roster by four, and petition each group quarterly assuring an ongoing source of prospects throughout the year.)  Is the membership director calling every member on behalf of the Board or Membership Committee Chairman to ask for their referral?

Here's an idea!

     And don't forget about some type of NEW member referral campaign. Truthfully, they are the most excited members about their new club and want to have their decision to join validated by having their friends join as well. They usually will be more “fruitful” than your long time members. The referral conversation should be an easy one since a relationship was formed during the enrollment process. 

And another!

     What about offering a special incentive to current members in fitness, tennis, or social categories? They are already members and coupled with a player development program provide an easy source for upgrades to golf and additional dues. Instead of the usual reduction of fees for the additional initiation, look to do something that is value added. 

     For instance, upgrade to a golf category and receive a new set of golf clubs and some lessons. The perfect segue into this is to offer no or low cost player development clinics to start the spark. Or offer off peak time, reduced rate playing passes to lower categories of membership to get their interest piqued.

And yet another!

     If you have an Ambassador or Membership Committee get these helpful allays involved. Brainstorm with them on some ideas on a referral or upgrade program. The members of this committee should be your movers and shakers at the club and know a lot of people in the community. They should be empowered to provide people they meet an invitation for a Discovery Day at the Club. In all cases, this invitation should have to be validated by the Club's membership director and thus provide a lead for a new member.

And Understand This!

     There is no “magic bullet”! There is no one singular idea that will solve all of your membership needs. Success in membership is a lot of hard work. It's a series of base hits that happen as a result of the proper training and practice that has preceded it.

     Your current members are you lowest cost, easiest source for new members! Your club should also be working with realtors, developers, affinity groups, outing participants, sending direct mail, and creating prospects online. But, if you're not doing anything, start with your members. Call me for some easy to implement ideas “in house”. And the other things you need to be doing outside your walls. I will provide a complimentary phone consultatiofn ($500 value) to the first to Clubs who contact me at 727-424-2434.

For Legendary Golf Management,

Bob Devitz
President and CEO
www.legendarygolfmanagement.com


PS: Click here for a complimentary copy of our latest CD, The 12 Indisputable Laws of Private Club Marketing to learn more about what you should be doing if you want to be successful in membership!

PPS:  Andrew Wood and I have recently created Legendary Leadership, a Management and Marketing Mentorship System. It is a unique concept that provides you with the operations and marketing expertise you need to succeed in the golf business. Clubs enrolling in our mentoring system will work directly with Andrew and me. Because of our time commitments, we are limiting enrollment in Legendary Leadership to only ten clubs. For more information, click here.

About Us

     Bob Devitz is the President and CEO of Legendary Golf Management and is an expert in the operations and marketing of Private Clubs. Bob has over 25 years of experience in the industry, primarily in senior management roles with ClubCorp, an industry leading “for profit” company. Bob has an MBA from The Florida State University, a BSBA with a specialization in marketing from The University of Florida, and is a member of the PGA of America. Having worked with hundreds of Private Clubs during his career, Bob brings a results driven, bottom line approach to the Private Club Industry.



3729 S. Lecanto Hwy Lecanto, FL 34461 800 827-1663

 

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