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6
Membership Marketing
This chapter was written and contributed by Raymond R. Ferreira,
Associate Professor, Georgia State University
PEOPLE TYPICALLY join a private club so that they can meet, socialize, and develop
friendships and associations with individuals of similar backgrounds, interests,
and pursuits. There is often a selection process involved in becoming a member
of a private club, especially in those clubs that have a waiting list for membership.
However, many private clubs today find themselves in a new predicament: they
must actively seek additional members. This has caused many private clubs to
implement a membership marketing plan, something practically unheard of in the
prestigious halls of private clubs prior to 1980.
In this chapter, we will take a look at factors in declining club membership
and other important issues that influence club membership marketing, including
a club’s location and reasons frequently cited why marketing is not necessary for
private clubs. We will identify the four P’s of marketing and go through the steps
in developing a membership marketing plan. We’ll conclude the chapter by looking at how clubs go about attracting new members, including some relatively new
strategies: employing membership directors, and using the Internet and databases
to help find and attract new members.
Club Membership Marketing: An Introduction
There are many factors that aﬀect club membership marketing, from declining
club membership to the attitudes of current club members.
Factors in Declining Club Membership
The number of members a private club has is related somewhat to its type. Golf
clubs usually have the least number of members, because members typically want
easy access to the golf course and an adult-only emphasis for the club. City/athletic
clubs typically have the largest number of members. The number of members at
country clubs is usually somewhere in between golf clubs and city/athletic clubs
(see Exhibit 1).
Without a full membership, a club may face some of the following problems:
•
Lower revenue which forces the club to decrease operating expenses (i.e.,
fewer services and amenities oﬀered to members)
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Exhibit 1
Average Number of Members per Type of Club
Type of Club
Number of Members
2002
Number of Members
2004
Golf
509
513
Country
690
697
1,330
1,637
757
847
City & City-Athletic
Average
•
Fewer initiation fees paid, which results in fewer renovations and capital projects for the club
•
Poor employee morale, because of cutbacks in staﬀ and lower wages
•
Deferred maintenance on club facilities
•
Renovation projects cost more per member, because there are fewer members
to share the cost
•
Member dissatisfaction, because of the decline in the services, amenities, quality of service, and appearance of the club's facilities
•
Higher member attrition rate, due to member dissatisfaction
As you can see, a decline in membership starts a vicious cycle of other problems
(fewer services, fewer amenities, deferred maintenance, etc.) that will lead to
member dissatisfaction and the loss of more members, which further aggravates
the problem.
No single factor accounts for the decline in membership that some private
clubs have experienced since the late 1980s (see Exhibit 2); it appears that a combination of factors caused the decline:1
•
Economic downturns
•
Overbuilding
•
More competitors
•
Aging membership
•
Diﬀerent preferences of Baby Boomers and Generation X-ers
Economic Downturns. The recessions and economic problems of the mid-1980s
through the early 1990s in North America caused many businesses to cut expenses.
When revenues are down, businesses typically first cut entertainment expenses,
which include club memberships and client dining/entertainment expenses. Moreover, many businesses implement downsizing strategies during diﬃcult economic
periods. These strategies typically include decreasing the number of management
positions, which results in fewer individuals seeking club memberships. Moreover, some companies close their doors during these periods, resulting in further
decreases in the number of managers and other professionals who are normally
Membership Marketing
Exhibit 2
191
Competitive Factors Affecting Membership Levels
Reasons for Membership Decline
1970's–1980's
1990's–2000's
Economy
Overbuilding
More Competitors
Aging
Different Preferences
club members. Clubs experienced their largest drop in membership because of
the severe economic downturn from 1990 to 1994. From 1995 to 2000, clubs experienced a modest increase in their membership size but failed to match their high
membership levels of the late 1980s. Many clubs experienced another membership
decline from 2000 to 2005, primarily because of the economic decline following the
9/11 terrorist attacks.2
While economic downturns aﬀect all clubs, the downtown city club segment
of the private club industry typically suﬀers the greatest decline in membership
during economic downturns. More competitors oﬀering upscale dining and meeting facilities in downtown areas, and business migration from downtown areas to
city suburbs also put pressure on city clubs.3
Overbuilding. While membership levels at some individual clubs have decreased
over the last decade, the overall industry demand for private club memberships
(total number of members at all clubs) has actually increased slightly. In contrast to
this slight increase in demand for club memberships, the supply, or number of total
private clubs, has increased significantly since the late 1970s. Real estate developers
built numerous clubs in the 1970s, ’80s, and ’90s in order to make their real estate
developments more attractive, and residential developers built country/golf clubs
to increase the price and appeal of the residential properties they sold. In addition,
oﬃce building developers built city or athletic clubs in their buildings to make leasing more enticing to their business tenants. The dramatic increase in the number of
private clubs outpaced the modest increase in the number of new members, resulting in some individual clubs having fewer members (see Exhibit 3).
More Competitors. Clubs today face many competitors besides other private clubs.
For years, clubs were the only place individuals could enjoy fine dining, quality
service, outstanding facilities, and well-manicured golf courses. Today, clubs face
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Exhibit 3
Supply and Demand for Membership
The Larger Pie Is Being Divided Into Smaller Pieces
The total number of members (demand) has increased slightly,
but the number of clubs (supply) has increased at a higher rate,
resulting in fewer members at each club.
1980's
450
Club A
Club B
550
525
Club C
Club D
475
2000's
425
Club A
525
325
Club B
Club C
Club D
275
Club E
Club F
450
500
many competitors who provide some of these same features and who compete for
members’ and prospective members’ time and money. For example:
•
More upscale, high-quality restaurants are conveniently located near members' residences or places of business.
•
Many hotels, convention facilities, and restaurants oﬀer banquet/meeting
facilities comparable to those oﬀered at private clubs.
•
Semi-private clubs with the financial backing of real estate developers cater to
both members and the general public with private club quality.
Membership Marketing
•
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High-end public, daily-fee golf courses provide outstanding, well-maintained
courses, and many oﬀer services once only available at private clubs (for example, club cleaning services and bag-drop cart service from the parking lot).
These businesses are able to market themselves much more aggressively than private clubs and have taken a good share of business away from clubs.
Aging Membership. The average age of a member at a country club has increased
from 55 in 1998 to 57 in 2004.4 Having a membership that is perceived as “old”
is a problem, because most people do not want to join a “gray” or “blue-haired”
club—a club whose membership is composed primarily of retired individuals
or those near retirement. Younger people want a club that meets their needs for
social, recreational, family, and business purposes.
Another concern for clubs with an aging membership is that many members
in their sixties and seventies either use the club less often or terminate their memberships due to retirement, limited income, or poor health.
Diﬀerent Preferences of Baby Boomers and Generation X-ers. Candidates for
membership and new members, those in their late twenties to early fifties, desire
diﬀerent services from those preferred by older, long-term club members. These
newer members and prospective candidates for membership prefer more casual
dining and faster service. Time shortages and the resurgence of a focus on family
life make family club activities critical for many clubs; members want to spend
their limited free time with family members. Because many membership candidates come from households with two adult wage earners, gender equity in the
club is an important issue; clubs must accommodate and appeal to both adults in
the family, not just the household’s adult male. Newer, younger members typically
are also more health-conscious and seek clubs that provide healthy menu alternatives as well as fitness/health activities.
A Club’s Location and Its Effect on Membership Size
An old adage in marketing says that the three most important factors for success in
business are location, location, and location. This adage applies to private clubs as
well. Obviously, the club’s prestige, membership composition, services, amenities,
and facilities also are important in attracting new members and are usually critical
factors for premier clubs. But for most clubs, their location and easy accessibility
for members and potential members are critical as well. We live in a time-starved
culture, and most club members today do not want to travel far to use their club
regularly. Therefore, clubs located close to the homes or businesses of their target
markets will typically be able to convert membership candidates into members
more easily than other clubs.
The club’s location and the area’s demographics have a big impact on the
number of members a club realistically can attract. The critical demographic
make-up for the area surrounding the club is diﬀerent for a downtown city or
athletic club versus a country club in the suburbs. The market size for a downtown
club is aﬀected by the following demographics: number of businesses, number of
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Exhibit 4
Demographic Factors Affecting a Club’s Memberhsip Size
Downtown Location
Number of Businesses
Suburban Location
Number of Households with $250K Income Level
Number of Executives
Number of Residential Properties Valued Over $500K
Number of Employees
Number of Owner-Occupied Properties
Number of Competitors
Number of Competitors
executives, total number of employees, and number of competitors (see Exhibit
4). The primary demographic area that aﬀects city clubs in major metropolitan
areas is within just a two-mile radius of the club. In smaller metropolitan areas,
that radius expands to five miles. For clubs in the suburbs of large metropolitan
areas, the demographics aﬀecting the membership size the most are the number
of households with income levels over $250,000, the number of residential properties valued at more than $500,000, the number of owner-occupied properties, and
the number of competitors within a ten-mile radius of the club. These household
income level and property value numbers would be smaller for smaller metropolitan areas.
Reasons Cited Why Marketing Is Not Necessary in Private Clubs
While some private clubs may experience all of the competitive factors discussed
in the previous sections, many may experience only a few of them. These factors
do not typically have an immediate, dramatic impact on club membership levels;
rather, there is a slow but steady decline as membership levels fall over a number
of years. Because of this slow deterioration, many club boards are reluctant to
react to declining club membership. Many feel that the club will “snap out of its
slump” next year. Before these clubs know it, that slump has extended over many
years, and the membership number is down a significant amount. At that point,
some boards finally perceive declining membership as a major problem, panic
somewhat, and start many ill-conceived membership marketing drives. This is a
familiar scenario at many clubs and one of the most common reasons why clubs
don’t develop membership marketing plans as soon as they should. Clubs should
not wait until the membership level reaches a critically low point to take action. In
fact, if prospective members are not standing in line to join the club, that’s a sign
that the club needs to start marketing itself better.
Although many private clubs realize that they need a membership marketing
plan in order to increase their membership, planning eﬀorts are sometimes met
with a number of objections from the club’s board and other club members (see
Exhibit 5). Some of the typical objections or barriers involved in implementing a
membership marketing plan include the following:
•
The club should be exclusive, and not everyone should have access to membership;
it’s a private club. This is very true, and a club can and should maintain its
standards for membership (member sponsorship, applicant review by a
Membership Marketing
Exhibit 5
195
Barriers to Membership Marketing in Clubs
1. The club has an exclusive image to maintain
2. Marketing sends a “club is in trouble” message
3. The club’s reputation will diminish
4. The club’s members will worry about overcrowding
5. Members fear that they won’t get individual attention or good
service with more members
6. A membership marketing plan will upset long-term members,
because the club’s tradition has been to never market
7. Marketing is a new area for private clubs, so even experienced club managers are unfamiliar with marketing
membership committee, credit checks, etc.), no matter what type of membership marketing plan it implements. Implementing certain types of membership marketing plans will not jeopardize a club’s selection process, however.
•
If the club implements a membership marketing plan, it will send a message to its
members that the club is in trouble. Most members talk among themselves and
know the club’s situation. They typically are aware that membership is down
and that there are membership openings available. Moreover, many members understand that not having a full membership causes an increase in their
dues structure, which tends to make them more open to eﬀorts to increase
the membership. Trying to hide the problem from members doesn’t work
and only creates a temporary, false sense of security for the club’s board and
management.
•
A membership marketing plan will damage the club's image and status. While some
inappropriate membership drives have hurt some clubs’ reputations, there
are many membership marketing plans that have been successfully implemented in private clubs. These plans have increased membership levels and
allowed some clubs to attain and maintain a full waiting list. The increased
number of members allows clubs to oﬀer all of their members the services and
amenities synonymous with exclusive and prestigious clubs.
•
Members don't want the club's membership to increase because of overcrowding;
members would prefer to play a round of golf without making a tee-time, or have
dinner at the club without having to make a reservation. While almost every club
member would love to have the luxury of never having to wait to enjoy any
club service, clubs must have x amount of revenue to sustain the level of services that members demand and maintain the club’s facilities at an acceptable
level. This revenue must either come from existing members or new members.
Although most members say they don’t want the number of club members
to increase, when given the choice between accepting new members or
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accepting an increase in their dues or a new club assessment, many members
decide that bringing in new members is not such a bad option after all.
•
If the number of members in the club increases, members won't get the individual
attention and service to which they are accustomed. Actually, the opposite is usually true. As the number of members decline, club revenues decrease, and the
club starts to cut expenses in response. Service falls, because the club lays oﬀ
some staﬀ members; other employees—usually the top performers—leave,
looking for more stable employment. The more members, the more revenue;
the more revenue, the more staﬀ and better service for members.
•
Boards are reluctant to market clubs because they don't want to upset long-term
members who cling to tradition and consider marketing inappropriate for a club.
Club membership marketing has only evolved in the last decade or so; clubs
have not had to think about this issue until recently. While marketing may
have been unnecessary and inappropriate for clubs years ago, it has become
a necessity for many clubs today. It is the board’s responsibility to look at the
club’s future and its best interests, rather than the past.
•
Club managers are unfamiliar with marketing strategies and what works for private
clubs. This is a barrier for many clubs, because club managers typically have
concentrated on the operational aspects of managing a club: producing the
finest food, training employees for excellent service, controlling expenses, and
so forth. There was no need to increase membership levels through marketing, because most clubs had a waiting list. Even experienced club managers
are not likely to have as much experience in membership marketing as they
do in other operational areas of a club.5 But this is a barrier that club managers
must overcome.
The 4 P’s of Marketing
Marketing for clubs is the process of determining the needs and desires of your
current and future members. This includes designing a specific product (services,
programs, and amenities) to meet the needs and desires of members and potential members. Also, it is important that current members stay informed about the
products of the club and how they can easily access them. “Product” is just the
first of what are commonly referred to as the “4 P’s” of marketing: product, price,
place, and promotion.
Product
Determining your club’s product level constitutes the first step in membership
marketing and all other marketing eﬀorts at the club. Should the club be marketed
as the premier club in the area, an average-level club, or a lower-tier club that
oﬀers a tremendous price/value relationship? The club’s location, the competition,
the economy, and so on can aﬀect the club’s position. Not all clubs can be premier
clubs, even if the members want that for their club. If the club is marketed as a premier club, does it oﬀer the variety and level of services that would position it as a
Membership Marketing
197
premier club? An average-level club needs to oﬀer the variety and level of services
that its current and potential members want and are willing to pay for.
Price
The next “P” to consider is price. The price that a club charges for its initiation fees,
dues, dining, etc. should be set in accordance with the position that the club has or
desires. Coming up with the correct prices also involves determining what current
and future members are willing to pay. Other factors to consider include what the
competition is charging and the club’s financial goals. Premier clubs should charge
accordingly for their services; their perception as a premier club is based not only
on the products and services they oﬀer, but also on what members must pay for
those products and services. Average-quality clubs, on the other hand, must keep
their prices in the mid-range.
Some clubs incorporate diﬀerent pricing strategies to achieve diﬀerent objectives. For example, a club may have a pricing structure with high initiation fees
and moderate dues, making the club diﬃcult to join but easy to aﬀord once you
are a member. Some clubs employ the opposite strategy: they charge a moderate
or low initiation fee to attract a large number of members, then charge high dues
to make possible their high level of service.
A club’s pricing strategy should be consistent with its quality level and perceived image. If prices are not in line with the image the club is trying to foster, the
club sends a mixed message to prospective candidates for membership and will
create dissatisfaction among current members.
Place
The third “P” is “place.” The place or location of the club can act as an asset or a
liability for the club. If the club is located in an aﬄuent area, or one surrounded
by a large number of businesses, then the location is conducive to attracting individuals who regularly live or work in close proximity to the club. Clubs blessed
with a good location can charge higher prices, have a higher level of steady member usage, and usually can look forward to a stable future. A club whose location
is not ideal will have to come up with strategies to overcome, or minimize, this
weakness. Developing a specialization (for example, a premier tennis program) is
one strategy that might influence people to join and frequent the club despite its
inconvenient location.
The demographic makeup of the population living and working within a oneto ten-mile radius of a non-premier club will influence not only the volume of
business at the club, but also the amount the club can charge and how many members the club can have at a given price level.
Promotion
After analyzing a club’s product, price, and place, it is important to then consider
the type and amount of promotion the club should use. Promotion, like the other
“P’s,” is directly related to how the club positions itself and is also influenced by
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the level of activity in diﬀerent parts of the club itself. For instance, if a club already
has a great deal of activity in the dining room area, then the club will be less likely
to promote the dining room to its members and will instead promote club areas
that are underutilized.
Common methods of promoting to a club’s current membership include the
club’s newsletter, the monthly billing statement (either inserts with the statement
or promotional messages printed on the statements themselves), direct mailings,
activity boards in the club, table tent cards in the club’s dining areas, the club’s
Web site, e-mails, and direct communication from the staﬀ and/or club committee
members.
In addition to promotion among current members, clubs should also consider
promotion as a way to attract new members.
The Membership Marketing Plan
In the last decade, many articles on marketing plans for attracting new members
have been published in private club magazines and journals such as Club Director,
Club Management, Club Manager Quarterly, Private Club Advisor, The Club Marketing
Report, and so on. Although all clubs have some common features and similarities,
each club is unique. Most clubs have a specific niche in the marketplace that can
vary a great deal from club to club. What attracts members to join and retain their
membership will be diﬀerent at each club. It is crucial that clubs do not implement
a membership marketing plan just because it worked at another club. A successful
marketing plan for one club may fail miserably at another. (See Appendix A at the
end of the chapter for some sample marketing strategies for private clubs.)
Steps in Developing a Membership Marketing Plan
Before implementing a membership marketing plan, it is imperative to cover most,
if not all, of the following planning steps, to ensure that the club implements the
best and most appropriate plan:
•
Conduct an internal analysis. A club needs to acquire the right information and
data before the club’s board and managers can develop the best plan. How
does the club perform, judged by the number of members, amount of sales,
the club’s services and facilities, and the member benefits? What kind of internal strengths and weaknesses does the club have? What do members want,
and what new services would they like? The club should develop a mission
statement for the club if one is not already in place.
•
Conduct an external analysis. What kinds of external threats and opportunities
exist? Include in the club’s competitors not only other private clubs but also
other businesses that oﬀer services similar to what the club oﬀers (nearby
upscale restaurants, for example). How does the club diﬀerentiate itself from
its competitors? How is the demographic profile of the area around the club
changing? What impact will those changes have on the club? What other environmental factors do you see aﬀecting the club?
Membership Marketing
199
•
Position the club. What vision do the club’s leaders have for the club? Define the
club’s unique position and how it diﬀerentiates itself from the competition.
•
Develop an action plan. Define the club’s appropriate level of marketing aggressiveness. Does the board and the membership support the plan? Will this plan
maintain the club’s image and its exclusive nature? Is the plan realistic and
achievable?
•
Evaluate the plan. Are the members happy and pleased with the action plan
and its outcomes? Did the club experience an increase in membership, and
is this increase a result of the plan and not other factors? Reevaluate the plan
and make changes for the next period.
Appropriate Membership Marketing Plans
As mentioned previously, for some club members the very words “membership
marketing” imply that the club will lose its exclusive image and that sponsorship
requirements will be dropped. This is usually not true with most successful membership marketing plans implemented at private clubs.
Most membership marketing plans are created to deal with one basic issue:
current members are not proposing membership candidates in suﬃcient numbers.
The question is, Why? The harried lifestyle of many of today’s club members is
a major reason. Many members are so busy that often they forget to nominate
qualified individuals, or feel they don’t have the time to complete all of the steps
involved in nominating an individual for membership. Therefore, many of the
membership marketing strategies implemented by clubs center on actions that
remind members that the club needs referrals for membership. All of the other
requirements for membership—sponsorship, seconder, letters of recommendation,
application, credit report, posting candidates’ names for membership, approval by
the membership committee or club board, etc.—are still intact at most clubs that
have implemented membership marketing plans.
Clubs starting membership marketing plans usually start small. The goal of
many of these initial plans is to simply collect more membership candidate referrals from existing members. If, after six to 12 months of following this strategy, the
hoped for number of new members is not generated, many clubs then implement
strategies that are a little more aggressive. A slightly more aggressive approach
may involve the club management team identifying good prospects for membership, rather than waiting for member referrals. Such a plan must address how to
match identified prospects with members who would be willing to sponsor the
individuals. The level of aggressiveness in membership marketing plans usually
increases only when the subtler marketing strategies do not bring in the desired
number of members a club wants or needs.
The most aggressive membership marketing plans, and usually the last course
of action for many private clubs, include strategies that involve mailing brochures
to individuals identified as potential candidates by marketing research companies or association lists. Often, candidate lists are created using demographic
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characteristics (for example, income level, profession, etc.) that are associated with
the club’s current membership, or come from organizations that the club thinks
have a number of individuals similar to its members. The less screening of a candidate that a club does before sending him or her information about membership,
the greater the chance a club has of damaging its exclusive image.
Member-owned and tax-exempt clubs should not advertise via any of the common mass media outlets (television, radio, newspapers, etc.). If clubs do advertise
through these channels and inform the general public about membership opportunities, they may jeopardize their tax-exempt status, because the Internal Revenue
Service may no longer consider them a private club. Clubs that have a lot of contact with the general public (golf tournaments open to non-club members, large
private functions attended mostly by guests, advertising to the public, etc.) risk
being defined as “public accommodations facilities” by the IRS or a court of law. A
membership in a 501(c)(7) club must also be in the name of or owned by an individual and not a corporation. Therefore, corporate memberships are not allowed
in 501(c)(7) clubs, but are allowed in “for-profit” clubs.
Attracting New Club Members
Some clubs have policies or procedures that are intended to safeguard the membership admission process, but they really act more as barriers to getting nominations. The following are some new policies, practices, or procedures that are being
implemented at many private clubs to encourage members to nominate more candidates for membership and otherwise attract new members.
Examples of New Initiatives
Examples of policy changes and other strategies undertaken at some clubs to
attract new members include the following:
•
New sponsorship policies
•
Installment payments for initiation fees
•
Decreased initiation fees and/or dues
•
Equity or refundable initiation fees
•
Non-discriminatory policies
•
More membership categories
•
Significant-other policies
•
Family-friendly services
•
New member marketing materials
New Sponsorship Policies. In the past, many private clubs had a policy that did
not allow new members to sponsor a candidate during their first or second year
of membership. Clubs created this policy because it was felt that new members
would not be aware of the club’s culture and would not be sensitive to who would
Membership Marketing
201
be an acceptable candidate for membership. But more and more clubs are changing this policy and are allowing new members to sponsor candidates right away.
These clubs usually find that their candidate referrals go up significantly, because
new members are excited about the club, are eager to invite non-member friends
to the club to show it oﬀ, and typically know a number of good potential candidates for membership.
Some clubs only allow members in the “full-privilege” membership category
to sponsor or propose candidates for membership. This policy makes it impossible for those in other membership categories to recommend candidates. Many
clubs without membership waiting lists have changed this policy and are allowing members in all membership categories to sponsor or propose candidates for
membership.
Installment Payments for Initiation Fees. In the last decade, many clubs have
given new members a choice on how to pay their initiation fees. Traditionally, new
members paid the initiation fee in one lump sum at the time of acceptance; now,
some clubs are giving new members the option of paying the fee over a period of
time (usually three years) with a finance fee added. Many of today’s Baby Boomers
prefer the latter option, because they don’t have to liquidate investments that produce a higher rate of return than the finance charge imposed by the club. In some
instances, clubs have arranged financing through a third-party financial institution (usually a bank). If this is the case, the club receives the full payment of the
initiation fee at the time of closing when the loan is approved; the new member
pays the bank, rather than the club.
Decreased Initiation Fees and/or Dues. Many clubs are too quick to lower initiation fees when membership levels plummet. Having said that, as with any product,
when the fee decreases, there will be additional buyers who were price-sensitive at
the higher price level, and clubs that have used this strategy have been successful
in attracting new members. However, clubs should only decrease their prices if (1)
they are not in line with their primary competitors, and (2) there has been consistent feedback from membership candidates that the initiation fee and/or the club
dues are too high. When clubs reduce their fees or dues, they increase the risk that
the individuals who join the club because of these lower prices may not have the
disposable income necessary to support the club on a regular basis.
If a price reduction to attract new members is justified, usually the reduction
should appear in the club’s initiation fee and not in the dues structure. Today’s Baby
Boomers usually have high salaries and good cash flow but little liquid cash assets
and reserves. Therefore, the obstacle for many nominees is not in the monthly or
quarterly dues, but in the large initiation fee.
Temporary price reductions. With temporary price reduction programs, initiation fees are reduced for a set period of time only. Typically, a club will reduce
the fees during a special three- or six-month membership campaign. This limitedtime lower price period is designed to create a sense of urgency in potential buyers. In this case, there are two buyers: the first “buyer” is the current member who
will act as the sponsor and/or proposer; the price reduction program creates a
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sense of urgency for the member to get the nomination form, get the candidate to
complete the form, and follow up on the candidate. The second buyer is the actual
candidate; hopefully, the program will get the candidate to move the purchase
decision along faster in order to take advantage of the temporary price reduction.
While these types of programs have worked well and many clubs have used
them, there are downsides. Often the club receives a large number of nominations
during the temporary price reduction program, but after the program ends, they
receive very few. This creates a perception in some clubs that to get nominations,
you have to periodically reduce the initiation fees. When clubs implement temporary price reductions once or twice a year, they can create “cherry pickers” among
the club’s membership—that is, create members who will only sponsor an individual for membership during the temporary price reduction specials.
Theoretically, when a club announces that in the near future there will be a
price increase in the initiation fee, a one-time temporary discount program exists.
This future increase should help create a sense of urgency in both members and
membership candidates to act quickly.
Most successful club initiation fee discount programs have had a specific
theme or eligibility requirement for the candidate to receive the discount. Some
examples include the following:
•
Discount the initiation fee for a limited time (for example, "fees lowered by 50
percent for the next 50 days only").
•
Oﬀer a discount to candidates that are employed at the same business of a
current member.
•
Oﬀer initiation fee discounts for selected categories of people, such as attorneys, physicians, female executives, government employees, etc.
Equity or Refundable Initiation Fees. To make the club attractive to candidates,
some older private clubs have adopted a policy that many of the newer private clubs
and developer clubs implemented in the 1990s: refunding a portion of the initiation
fee should the member resign from the club. This refundable attribute or equity is
very attractive to many membership candidates, and often may be the factor that
convinces them to risk investing the large initiation fee in a club. While it definitely
attracts candidates for membership, it burdens the club with long-term debt and the
inability to use all of the initiation fees collected for capital projects.
Non-Discriminatory Policies. The largest growing market segments for club
membership are female professionals and members of minority groups. Therefore, many clubs now try to make themselves as attractive as possible to these
groups by abolishing discriminatory policies in membership guidelines and in
club usage policies. Female club members having equal access to the golf course
is an especially sensitive issue. Because of men-only grill areas and dissatisfaction among some female members over their inability to access the golf course on
weekend mornings, lawsuits have been filed in the public court system against
clubs. These lawsuits have resulted in adopted or proposed legislation in many
states that would mandate clubs to provide equal gender access to all facilities.
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The picture for the future is clear—if clubs don’t provide equal access, especially
on the golf course, the state courts will intervene and provide it.
More Membership Categories. Many clubs oﬀer a variety of membership categories in order to make their club attractive to numerous prospective candidates (as
well as lower attrition rates among current members). Some of the club membership categories that are helpful in attracting or retaining members include nongolfing, legacy or junior, senior, and temporary or trial memberships.
Non-golfing memberships. More non-golfing membership categories are
being oﬀered at country clubs today. Country clubs have found that there are market segments that want all of the privileges of a country club except for golf. One
of those market segments, for example, consists of people in their twenties and
thirties who are starting careers and families and don’t have the time to play golf
on a regular basis, but will dine, play tennis, and use the pool and fitness facilities at the club with their families. Another segment interested in a non-golfing
membership category is made up of price-conscious individuals who can aﬀord
the lower-priced non-golfing membership but not the expensive initiation fees and
higher dues structure of a golf membership.
Legacy and junior memberships. Many clubs oﬀer a legacy membership category for the adult children of current club members. This category encourages
multi-generational families at the club and is only available to adult children of
members. Typically, the dues are significantly reduced and the payment of initiation fees made attractive (reduced fees, various payment options, payment delayed
until the individual becomes a full-privilege member, etc.) for this price-sensitive group. Many clubs have increased the eligibility age for the adult children of
members in this category. Prior to the 1990s, it was not uncommon for the age eligibility for this category to be under the age of 30. In the mid-nineties, many clubs
increased the age eligibility to 35, and in the mid-2000s, that age has increased to
40 at some clubs. The reason for this age increase is that many of today’s 30-yearolds do not have the disposable income necessary to aﬀord a private club.
Some clubs have a junior membership category, which is like the legacy membership category in that it oﬀers similar discounting options, but it is open to young
candidates for membership who are not children of existing members.
Senior memberships. Many clubs oﬀer a senior membership category for
long-term older members. In the past, this membership category, which typically
has lower fees, was a method of trying to retain long-term members who were
using the club less often because of age- and health-related problems; without
this membership option, these members were resigning because they weren’t
using the club as much and couldn’t justify continuing to pay the high regular
fees. For many clubs, it made sense to retain these members at a lower dues structure because they did not use the club as much as younger members and did not
cause a compaction problem on the golf course or in the club. Moreover, moving
these individuals to the senior membership category opened up spaces for new
members in the regular category; therefore, clubs received full dues from the new
members and partial dues from the senior members.
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Today, though, members over the age of 65 are much more active and healthier than their predecessors, and many use the golf course well into their 80s. This
change has caused a compaction problem for many country clubs and golf clubs,
especially on weekend mornings and other peak golf course times. Therefore,
many clubs have instituted changes to their senior membership category. Some
clubs have put a cap on the number of senior members at the club; certain clubs
have reduced the senior member discount; others have increased the age and/or
number of years as a regular member required for a member to switch to the senior
member category; and some clubs have restricted privileges (for example, restricting usage of the golf course by senior members to nonpeak periods).
More and more country and golf clubs will have to take another look at the
senior membership issue, because many full-paying members view critically
members who pay less than they do. Moreover, as more Baby Boomers enter their
retirement years, demographic projections for many clubs indicate a large portion
of their membership will be eligible for the discounted senior category in the next
decade.
Temporary or trial memberships. In the 1990s, clubs developed new membership categories in order to meet the needs of an increasingly mobile society.
Because so many managers and other professionals transfer frequently as they
move up the career ladder, many are leery of paying a large initiation fee to join
a club, because they are afraid they might be transferred soon after and would
not only lose their club membership but forfeit a substantial sum of money in the
process. This problem has led many clubs to implement a temporary or trial membership category. With this special membership, the member pays a low initiation
fee and regular dues for a set period of time (typically one to three years). At the
end of this time period, temporary or trial members must either resign their temporary/trial membership or switch to one of the permanent membership categories they are eligible for and pay the full initiation fee (that is, pay the diﬀerence
between that amount and the lower initiation fee that they already paid).
Some clubs have instituted an initiation fee refund policy that allows members to receive back a prorated amount of their initiation fee if they relocate out
of the area. The prorated refund periods typically range from three to five years.
For a three-year prorated refund policy, members would receive almost all of the
initiation fee back if they relocated and resigned within the first year of their membership anniversary, a two-thirds refund if they resigned between the first and
second year anniversary, a one-third refund between the second and third year
anniversary, and nothing after the third year anniversary.
Significant-Other Policies. Typically, 90 percent of the membership at most private clubs consists of traditional, married households. Because of this overwhelming majority and the traditions aﬃliated with private clubs, most clubs extend
member privileges only to members, the spouses of members, and the members’
dependent children. However, with the rising divorce rate, the increasing number of single-parent households, and the growing number of non-married households in our society, more and more clubs are implementing “significant-other”
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policies. These policies are very diverse among the clubs that have implemented
them. Some common “significant-other” policies include the following:
•
The "significant other" receives the same club privileges as a spouse; the member must designate his or her "significant other" in writing each year
•
The "significant other" receives member privileges with no equity interest,
and only one person is allowed the privilege in a calendar year
•
The "significant other" receives guest privileges, but there is no limit on visits
and a lower fee is charged
Based on recent legislation, clubs considering a significant-other policy should
be willing to extend privileges to both opposite gender households and same gender households.
Family-Friendly Services. The resurgence in Generation X-ers wanting to have
children has had a large impact on private clubs. If clubs want to make themselves
attractive to Generation X-ers and their children, they must become more family-oriented. This means having facilities, programs, and activities geared toward
children (for example, baby-sitting services, an activities director for children,
a children/teen room in the club, camps for children, and so on). Many country
clubs are expanding or improving their programs in tennis and swimming, as well
as other services that appeal to the entire family. Moreover, many clubs, especially
country clubs, are adding fitness centers based on the lifestyles and preferences of
Baby Boomers and Generation X-ers. In 1996, 28 percent of country clubs had a
fitness center; by 2004, that number had increased to 42 percent, an increase of 50
percent in just eight years.6
New Member Marketing Materials. Many clubs have developed a marketing
brochure for candidates for membership. Such a brochure should feature many
pictures of members using the diﬀerent club areas; this allows candidates to “be
in the picture”—that is, visualize how they and their family would use the club.
The club’s newsletter should list new members and their sponsors on a regular
basis. This helps remind club members that they have a responsibility to sponsor
candidates for club membership.
Other Recruiting Strategies
In the following sections we will review other membership recruitment strategies
used at clubs: member referrals, new-member orientations, member-guest events,
membership committees, and prospect lists.
Member Referrals. Some clubs, instead of passively waiting for members to refer
friends and acquaintances, have proactively encouraged members to refer individuals for membership. Typically, the first strategy implemented is to simply ask
current members to propose individuals for membership and to make members
aware that there are openings for new members. Often, the club president prints
an announcement in the club’s newsletter or mentions in his or her regular column
206 Chapter 6
that there are openings for new members. These first announcements should not
imply that the club is in desperate need of more members, but simply explain that
there are openings and outline the club’s membership nomination procedures.
If these initial eﬀorts do not generate the number of referrals that the club
hoped for, the club might want to increase its aggressiveness somewhat. Some
clubs have followed their initial statements with ones that explained the importance of keeping the club’s membership full, in terms of the financial implications
and the prestige factor of having a full membership. Members might be reminded
that it is their responsibility to help keep the membership full by referring individuals that they have screened and would recommend as good members.
Clubs often use important dates or significant events to remind members to
recommend individuals for membership. One country club used its 50th anniversary as a membership marketing tool; it asked members for referrals so the club
could increase its number of regular members by 50 in its 50th anniversary year. A
city club in 1999 promoted a membership program whose goal was to have 2,000
club members by the year 2000.
Some clubs have also successfully implemented an annual nomination card
program. A thank-you letter is sent to members each year on their member anniversary date. Enclosed with the letter is a membership nomination card, which
reminds members that they can and should nominate a person for membership
each year.
In order to entice more new-member nominations from current members,
some clubs use incentives. Common incentives include free dues for a specified
period of time, free food and beverage service at selected events (for example, free
dinner for eight at the club’s Easter or Mother’s Day buﬀet), or a credit of some
type (for instance, a food and beverage credit of $500 for each membership sponsored). The actual cost to the club for food and beverage incentives is less than
the dollar amount awarded, since the club’s food and labor costs are less than the
awarded retail amount.
New-Member Orientations. Many clubs conduct new-member orientation sessions to review the policies and procedures of the club with new members and
their families. In addition to allowing the club to welcome the new members and
answer any questions they may have, the new-member orientation also provides
an excellent opportunity to discuss the membership nomination process with
members who are excited about the club and who may be great sources of prospects for membership. The club can also distribute membership nomination forms
during orientation.
Member-Guest Events. Member-guest events have been common in private clubs
for many years. These events—wine dinners, speaker events, golf outings, and so
on—allow non-members to experience the club. If they have a great experience,
some of them may decide to pursue membership in the club.
In the past, member-guest events were designed simply to provide members
with quality events that they would be proud to share with guests. Today, the
thrust of some member-guest events has changed; they are specifically designed
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New-Member Orientation for Private Clubs
MCM Monograph by Laurice T. “Bud” Hall, MCM
The value of orientation for new employees as a method of establishing a sense of
community and mutual responsibility is well-known and accepted as common practice. New member orientation, providing the same sense of hospitality and accountability, is common to many private clubs. Providing an opportunity for new members
to experience the culture of the club and to dialogue with club staff regarding facilities
and regulations has positive results for both the member (in increased knowledge of
and use of the club and a sense of affiliation) and for the club (in increased stability of
membership).
New-member orientation can provide the keys to membership stability through
the following advantages:
•
Establishing rapport and open communication early on in the member/club
relationship.
•
Assuring club members of the economic and social value of their private club
membership.
•
Providing clear communication of club policies and procedures.
A CORE MODEL FOR NEW MEMBER ORIENTATION
Certain elements of new-member orientation are foundational. For the club manager about to establish such a program, attention to the basic elements of orientation is critical. For the club manager who has mastered the foundational elements,
attention to innovative and creative ways to elaborate on current practice will provide
a challenge to the manager and potentially be of greater enjoyment to the new member.
Personnel
The first thing to establish is which staff members in the club would be best
suited to present orientation to new members. The number of people involved will
depend on the scope and the content of the orientation. The people involved may
include members of the board of directors, membership committee members, sponsoring member, and/or staff members such as the general manager or membership
director. Regardless of whether the new member is familiar with the club through
family members or friends, these first direct personal contacts he/she makes in the
new club are vitally important in continuing use and satisfaction with the club.
Scheduling
The next thing to establish is the scheduling of the orientation. The entire program and reception may be presented whenever you are accepting even one new
member or couple into membership, or a set schedule of orientation once or twice a
month can be arranged when all new members who have made applications within
that time period are invited. The important thing to remember is that the new member must be made to feel appreciated and welcomed. Staff or committee members
must be attentive to the members’ schedules and needs. Orientation scheduling may
(continued)
208 Chapter 6
vary depending on whether the orientation is required or voluntary, and whether it is
conducted before or after final approval of membership.
Invitation
The invitation to attend orientation should be very congenial and positive. It
must entice the new member to “come and sample” whether you are offering breakfast, lunch, dinner, hors d’oeuvres or a just a “taste” of your club’s amenities and
traditions. Some type of food and beverage should be included in the orientation as a
gesture of hospitality.
Greeting
As new members arrive at orientation, each board, committee, or staff member
should be introduced. One half-hour following should provide enough time to discover
areas of common interest or touch on specific interests in the club. This is a good
time to introduce new members to each other and encourage conversation.
Tour
The next step in orientation should be a tour of the facilities which can involve
only the clubhouse or take in all the club facilities and could include the kitchen in
some clubs. There is no set procedure for this, but it is a very important part of the
orientation, helping the new member to become more comfortable with the club, and
it should not be hurried.
History
A quiet, comfortable area should be chosen for the next part of orientation
where members can concentrate and absorb all the information they are about to
receive. Most new members will appreciate the opportunity to learn about the history
of their new club, but they may be focusing a bit ahead of the presenter, wanting to
learn more about the club for their own personal use. A written piece of information
about the history of the club should be included for reading when the member is at
home and time allows.
Club Use
The next part of the orientation should provide the member with all information
necessary to start using the club immediately. This can range from the club newsletter with information on current events at the club to the proper procedure for obtaining an introductory card for reciprocal privileges at other clubs. This is the time to run
through all club rules and regulations, billing procedures, tipping policies, and hours
of operation, though care should be given not to “suffocate” listeners with too much
information. A new member will generally seek out financial information or reciprocal
privileges as those things become of interest to him/her, but the orientation is the best
vehicle for providing day-to-day pertinent information for the actual use of the club.
Members should also be supplied with telephone numbers that are helpful as they
begin to use the club.
Brochures, rules and regulations, bylaws’ and phone numbers need to be
included as a “take-home” packet for new members. The orientation provides an
overview of all areas, so that each new member will be able to find the written material on his/her specific interests and learn more about it at their leisure. Also included
in the packet may be several gift envelopes containing certificates for one free golf
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or tennis lesson, a complimentary cocktail, or two free Sunday brunches. This is also
a good time to present a video of the club history or perhaps one on golf etiquette, a
copy of which may be given to members as gifts.
Members’ questions should be anticipated and incorporated into the information
presented to conserve time, while creating an atmosphere that encourages questions
and comments as different sections of the club are discussed. This may be the only
time you will have an opportunity to address an issue or explain a policy, averting a
potentially uncomfortable situation for new members later.
Follow-Up
Orientation does not end when a new member walks out the door. Equally
important as the initial contact with the new member is the follow-up or tracking of
club use and satisfaction in the weeks and months to follow. An initial follow-up can
be a welcoming gift (flowers, candy, or private label wine) sent to the new members’
home along with their new membership cards and a name and telephone number to
call if they have any additional thoughts or questions. The next follow-up may be a
personal reminder or invitation to join other members at a club social event. At scheduled intervals (30 days, 90 days, and 180 days for example), each new member’s
usage may be tracked so that contact can be made by phone or in person to determine use and satisfaction with the club and as an opportunity to suggest and assist
with more involvement.
Even the most basic new member orientation program can create an atmosphere of hospitality and affiliation and build the foundation for a satisfied, involved
club membership.
to introduce the club to prospective new members, and members are encouraged
to invite only those individuals who would be good candidates for membership.
These events are usually free for both the member and the guest. Members are told
the purpose of the event and that the cost of the event is borne by the club in order
to bring in more nominees. This point is emphasized so that members do not take
advantage of the free event by inviting individuals who are not serious candidates
for membership.
Membership Committees. The role and purpose of the membership committee
at many clubs is to merely review membership nominations as they come in and
determine whether the candidates are acceptable. But in clubs that do not have a
membership waiting list, or have a waiting list but it is not full, the membership
committee is sometimes charged by the club’s board to increase the number of
qualified nominations, rather than passively wait for nominations to come in.
This shift to a recruitment role for membership committees is a major philosophical change. Clubs that have made this shift recruit club members with special
credentials to serve on their membership committees—individuals who can assist
the club in identifying candidates for membership. Individuals recruited for this
type of committee are typically marketing professionals, Chamber of Commerce
executives, high-end realtors, exclusive-product salespersons, and so on. These
210 Chapter 6
individuals can typically provide leads on good candidates for membership as
well as understand the sales process and how it can be applied to the club. These
types of membership committees aggressively pursue more members.
Some clubs have created a recruitment or nomination committee separate
from the traditional membership committee. This separation allows for a division
of the responsibilities associated with recruiting and evaluating candidates. Having separate committees helps ensure that candidates will be evaluated in an unbiased fashion and will be admitted to the club based strictly on the club’s selection
criteria.
Prospect Lists. Prospect lists are lists of individuals who have the same profile as
a club’s current membership or who possess other characteristics that would make
them good prospects for membership. Clubs typically acquire prospect lists from
associations or purchase them from marketing research companies. Examples of
prospect lists include the following:
•
Membership lists from other private clubs (many members have multiple
memberships at local clubs)
•
Membership lists from professional associations/organizations
•
Tenant lists of businesses in oﬃce buildings close to the club
•
Realtor lists of individuals who have purchased homes over a certain monetary value in neighborhoods close to the club
•
Lists of individuals who have passed the law board exam
•
Lists of new physicians hired at local hospitals or health centers
•
Lists of individuals with a household income over a set value in certain zip
codes
•
Lists of individuals who own a home valued over a set amount in certain zip
codes
•
Lists of parents with children in select private schools
•
Lists of major contributors or donors to select charities or causes (for example,
art exhibits or museums)
The level of aggressiveness that a club feels comfortable with dictates what
it does with a list once it’s acquired. For clubs that want to stay conservative, the
list can be used by the recruitment or membership committee as an initial list of
individuals that the committee will screen to see if any committee member may
know someone on the list. The next step may be to identify other members who
know that individual and/or are willing to meet, contact, or sponsor the identified
candidate. For example, if a new hospital physician is on the list, the committee
might contact a current member who is also a physician in the same department at
that hospital and ask the member if he or she knows the individual and would be
willing to contact that person about membership.
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Clubs could very aggressively use the list for sending out direct mail pieces. In
this instance, the club might send a brochure with membership information about
the club and an application directly to the individuals on the list. This strategy
would reach the largest number of individuals, but it could hurt the club’s image
as an exclusive club. To minimize the negative aﬀect of a letter mailed to prospects,
the letter can contain the name of a member who invites the candidate to tour or
use the club. The member’s name listed in the letter would be determined by the
recruitment or membership committee, which would identify a specific association or relationship between the prospect and the member. There are numerous
strategies and levels of aggressiveness in using prospect lists to pursue candidates.
Each club has to determine what level it is comfortable with and adopt the best
strategy for the club and its members.
Membership Directors
Since the early 1990s, many clubs have hired membership directors to combat
their decrease in membership. Prior to 1990, most membership directors were
hired by large clubs simply to deal with the tremendous amount of paperwork
associated with processing a large number of membership applications each year.
However, during the nineties, the primary role of a membership director changed
for many clubs without a waiting list. For these clubs, membership directors were
expected to increase the number of members at the club, rather than just process
the nominations that came in.
A membership director assists members with the referral process and tries
to make sponsoring a new member as easy as possible. The director usually also
takes over the following administrative responsibilities:
•
Collects the member nomination paperwork: nomination forms, letters of recommendation, etc.
•
Sends brochures, letters, and other marketing materials to candidates
•
Gives tours of the club
•
Follows up on nominees and membership inquirers to increase the likelihood
of joining
Membership directors also may help in identifying prime club candidates
from among the many guests who visit the club. Another important responsibility
is to match membership candidates with members willing to sponsor them because
of a common association. Finally, membership directors may have to implement
more aggressive strategies if member referral programs do not work.
Today, about half of all clubs have a membership director. About a third of
clubs with a membership director reported having more than one membership
director or an administrative assistant to help the membership director, especially city clubs that have more than 2,000 members and an annual attrition rate of
around 200 members. Almost three-fourths of the membership director positions
were full-time, and the sale of memberships was emphasized, with no additional
212 Chapter 6
duties assigned to that person. Most membership directors were paid a base salary
along with a commission and bonus based on performance. Typically, if membership directors met their performance goals for the year, they received commissions and bonuses that equaled or surpassed their base salary. Commissions and
bonuses were paid for new members, initiation fees generated, and/or new dues
dollars generated.7 See Appendix B at the end of the chapter for a job description
and responsibility list for a membership director whose primary role is to increase
the number of membership nominations.
Using Technology for Membership Marketing
New technology is having an impact on how clubs conduct membership marketing. In this section, we will look at how the Internet and the use of databases have
helped clubs do a better job of marketing for new members.
The Internet
Many businesses have developed Web sites to promote their products and services,
while others actively sell their products on-line through their Web pages, but are
Web sites used to market memberships appropriate for private clubs? Many club
managers and members have raised concerns about using a club’s Web site for
membership recruitment. Some feel that this activity damages the club’s exclusive
image. Many clubs that are concerned about exclusivity control access to their Web
sites by issuing their members IDs or passwords to access member-only areas of
the site. Another reason for this concern about the level of outside access comes
from the fear that the club could be sued—a plaintiﬀ might try to prove in court
that the club is not truly a private club but is a public accommodations facility in
part because much or all of its Web site is open to the public.
While some clubs, especially those with a full membership waiting list, are
concerned about the public accessing their Web sites, other clubs actively seeking
members may welcome the exposure. Many Internet “surfers” are above-average
income earners and potential club members. A portion of a club’s Web site can be
used to describe the club’s amenities, provide information on catering/banquets,
explain the nomination process, list club fees and dues, and so on—all information
of interest to potential members.
Another way to use the club’s Web site to market for new members is to provide current members with all of the information and all of the forms they need to
recruit and nominate family members, friends, and acquaintances for club membership—information about the nomination process, nomination forms that can
be easily downloaded, letter of reference forms, information about membership
categories, the club’s membership fee structure, and so on.
Databases
Membership directors and others at the club can use databases to pursue new
candidates. Candidate databases are being used primarily as a sales tool to track
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membership candidates, sponsors requesting nomination forms, members who
sponsor candidates for membership, etc. As clubs actively seek more members,
it is essential to track and organize candidates and those proposing them. Many
membership directors use sales tracking software packages such as ACT and Salesforce to track leads (prospects) for membership, build the database, and develop a
plan on when and how often to contact the candidates and/or sponsors.8
Clubs can also acquire lists of individuals who have some of the demographic
characteristics of its current membership. One type of list or database typically
sought by private clubs consists of homeowners of property valued over a certain
amount (for example, $500,000) in neighborhoods in which members currently
reside. Clubs may also want to know which households have income levels over a
certain amount (for example, $250,000). These databases or lists of individuals are
often good sources of prospects. How to go about contacting the people in these
lists/databases is a key decision that the club must make. The strategies used must
be appropriate for the club and fit the club’s comfort level in terms of how aggressive it wants to be in marketing for new members.
Conclusion
Because actively pursuing candidates for membership in private clubs is relatively
new, clubs need to use new strategies. Many of the non-traditional membership
marketing activities covered in this chapter will become normal for private clubs
in the 21st century, especially during periods of economic downturns, when disposable income is low and companies cut entertainment budgets. Private clubs
have only recently started to market themselves in order to increase member numbers. Many clubs now implement a variety of marketing activities, such as hiring
sales-oriented membership directors and changing membership policies, in order
to stay competitive. By understanding the concepts of supply and demand and
recognizing that much of a club’s market is determined by the demographics of the
population surrounding its location, a club can set realistic goals for its membership size and develop the best membership marketing plan possible.
Endnotes
1. Raymond R. Ferreira, “Marketing in Private Clubs,” Proceedings of the Sixth Annual
Assistant Club Managers Association of America’s Conference, Atlanta, Georgia, October
1996, pp. 119–128.
2. Raymond R. Ferreira, “Financial Performance of Private Clubs,” Proceedings of the
Southeast CHRIE Hospitality and Tourism Research Conference, Atlanta, Georgia, 2005,
pp. 20–25.
3. Michael B. Embody, “City Clubs: How They Responded to the Pressures of Change,”
Club Director, December 1995, pp. 22–26.
4. Club Managers Association of America, 2004 Operations and Financial Data Report
(Alexandria, Virginia: CMAA, 2004), p. 6.
5. Harold Berman, Esq., “Policies and Practices,” Club Director, April 1996, pp. 17–20.
214 Chapter 6
6. Club Managers Association of America, 2004 Operations and Financial Report (Alexandria, Virginia: CMAA, 2004), p. 43.
7. Raymond R. Ferreira, “Private Clubs: Membership Marketing Activities,” Proceedings
of the Southeast CHRIE Hospitality and Tourism Research Conference, Atlanta, Georgia,
2004, pp. 21–26.
8. Rick Coyne, “Knowledge Is Power,” Club Director, June 1995, pp. 17–20.
Key Terms
equity initiation fees—A fee that is partially refundable if a member resigns from
the club within a set number of years.
legacy membership—A membership category oﬀered to the adult children of current club members. It typically involves reduced fees, various payment options, or
delayed payments.
membership directors—Club managers who handle the nomination and membership process and help identify prime club candidates.
prospect lists—Lists of individuals who have the same profile as a club’s current
membership or who possess other characteristics that would make them good
prospects for membership.
temporary price reduction programs—Initiation fees are reduced for a set period
of time as part of a new membership campaign.
Review Questions
1. What are some common factors in declining club membership?
2. How does a club’s location aﬀect its membership size?
3. Why do some people believe that marketing is not necessary in private clubs?
4. What are the 4 P’s of marketing?
5. What are the steps in developing a membership marketing plan?
6. How do clubs go about attracting new club members?
7. What are some of the duties and responsibilities of membership directors?
8. How are clubs incorporating technology in their membership marketing
plans?
Internet Sites
For more information, visit the following Internet sites. Remember that Internet
addresses can change without notice. If the site is no longer there, you can use a
search engine to look for additional sites.
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Private Club Memberships
www.privateclubmemberships.com/
MemberMarket.html
Kitson & Partners
www.kitsonpartners.com/club_services/
membership_marketing.htm
Club Mark Foundation
www.clubmark.com
Professional Club Marketing
Association
www.proclubmarketing.org
Creative Golf Marketing
www.creativegolfmarketing.com
The McMahon Group
www.mcmahongroup.com
216 Chapter 6
Appendix A:
Sample Marketing Strategies
The following are sample marketing strategies that show how a club might go about
increasing (1) its membership rates, and (2) the diﬀerent markets for membership.
Increase the Number of Members at the Club
Goals:
•
Add a full time membership director's position.
•
Increase the number of new members each year.
•
Change membership categories, policies, and fees to attract more members
and to decrease resignations.
Objectives:
•
Hire a membership director by January 1, 20X1. (Refer to Job Description)
•
Structure the salary of the membership director's position to consist of a base
salary, commission, and bonus incentives. A commission will be paid for each
new member and an additional bonus at various levels above the $100K mark
for new members in a year. This incentive ensures that the membership director will exert equal eﬀort in pursuing the 37th new member as the 137th new
member. (This range was used in this example because the club has averaged
75–100 new members each year over the last few years.)
•
Add 125 new members in 20X2 for a 25 percent increase from 20X1's level. In
20X3, 150 new members will be added for a 20 percent increase from 20X2's
level, and 175 in 20X4 for a 16.6 percent increase from 20X3.
•
Purchase software for the following: tracking prospects to make sales staﬀ
more eﬃcient, sales planning/scheduler, prioritizing leads, tickler system,
letters to prospects, and producing sales reports with a minimum of eﬀort.
Helps in evaluating the sales strategies that are working best. Implement by
February 1, 20X1.
•
Minimize the administrative duties for the membership director to allow her/
him to spend most of the day selling and identifying prospects.
•
Discount initiation fees by 25 percent for multiple individuals (3 or more)
from the same company/institution/organization starting in March 20X1.
•
Implement the reinstatement program more aggressively for members who
resigned. No initiation fee will be charged for four months in 20X1. Letter
should introduce the new club services oﬀered and urge resigned members
to try the club again to see its improvements.
•
Lower the initiation fee for junior members by 50 percent because they are
very price sensitive and feel that the price at the club is high. Implement by
February 20X1.
Membership Marketing
217
Pursue Current and Different Target Markets for Membership
Goals:
•
Identify prospects within the current target markets.
•
Contact the prospects and discuss the opportunities for membership.
•
Identify women and minorities who would be good prospective members
and aggressively pursue them.
Objectives:
•
Develop the Prospect Member Roster from the following sources:
•
Personal referrals from members.
•
Members of other private city and country clubs.
•
Directors and oﬃcers of major corporations and financial institutions
within the market area.
•
Association rosters.
•
Bank's preferred customer lists.
•
Professional societies.
•
Mailing lists of new residents, physicians, attorneys, investors, pilots,
managers, educators, professionals, and engineers in the market area.
•
Develop relationships with leasing agents in every oﬃce building within
a minimum of a six-block radius of the club. Use incentives to acquire a
list of tenants and the senior staﬀ at each company. Notification of new
tenants is very critical in order to contact the tenant before they move in.
•
Develop relationships with major brokers and real estate agents who
specialize in selling expensive homes. Use incentives to get referrals of
individuals moving to the city, who work downtown, and who purchase
upper-end homes.
•
Develop relationships with each physician recruiter at the hospitals in
the downtown area to get leads on new physicians.
•
Develop relationships with the law board to get leads on new attorneys.
•
Pursue list of parents with children in private schools in the city.
•
Prospect lists should be purchased to get additional leads.
•
Any other available sources.
•
Identify professional groups (i.e., city's economic development for minorities)
that cater to businesswomen and minorities. Target qualified prospects from
that group.
•
Contact at least 50 prospects each week through phone calls, direct mail
pieces, personal visitations at the prospect's worksite, club tours, etc.
218 Chapter 6
•
Make a second or third contact with at least 50 "qualified prospects" through
phone calls, mail pieces, personal visitations at the prospects' worksite, club
tours, etc.
•
Contact at least 25 sources for new leads each week through phone calls, mail
or personal visits, etc.
•
Consider lowering the initiation fee by 10 percent for other membership categories in 20X2 if the membership director in 20X2 receives feedback from the
prospects that the initiation fees are too high.
Membership Marketing
219
Appendix B:
Membership Director: Job Description and Responsibilities
Job Description
•
To properly promote, coordinate, and administrate the membership programs
of a private club. To achieve and maintain a full membership, as prescribed by
the club's management and board.
•
To coordinate and develop activities throughout the club for member participation and goodwill.
•
To maintain accurate membership program records.
•
To prepare monthly membership analysis reports for club management.
•
To prepare promotional and informational materials for membership
programs.
•
To assist club oﬃcers and directors as required.
•
To assist management as requested.
Qualifications:
•
Experience or training in public relations, fund raising, sales, or marketing.
•
Personable and outgoing personality.
•
Organized, likes detail work.
•
Computer skills: word processor, data base, sales tracking, etc.
•
Good etiquette skills and displays social graces.
•
Pleasant appearance, neat dresser.
•
Pleasant phone voice.
•
Sales or marketing experience with products that are high-end, luxury, expensive, etc.
•
Enjoys interaction with individuals and high visibility.
Job Responsibilities
The primary responsibility of the Membership Director is to direct her/his sales
eﬀort to gain new members.
Major Responsibilities:
•
Reports to the club's management on a daily basis.
•
Develops membership plans and budgets.
•
Assists in developing and maintaining a club atmosphere that will enhance
the club's image and positively distinguish it from all similar competition.
220 Chapter 6
•
Outlines weekly membership report for membership administrator, club
manager, and/or club board members.
•
Develops the Prospect Roster from:
•
•
•
•
Personal referrals from members.
•
Members of other private city and country clubs.
•
Directors and oﬃcers of major corporations and financial institutions
within the market area.
•
Association rosters.
•
Banks’ preferred customer lists.
•
Professional societies.
•
Mailing lists of new residents, physicians, attorneys, investors, pilots,
managers, educators, professionals, and engineers in the market area.
•
Develops relationships between club and local apartment complexes,
retail establishments, schools, etc.
•
Any other available sources or as directed.
Ensures prompt and regular communication with all members regarding club
membership programs, campaigns, and activities.
•
Prepares and organizes club promotional material, membership brochures, etc.
•
Prepares membership progress reports and distributes them to the board,
committees, etc.
Coordinates the marketing plan with the club's management.
•
Verifies objectives, budget, and timetable for membership drive.
•
Ensures that administrative, physical, and financial support exist for all
planned sales activities.
Oversees the day-to-day membership operation. Establishes and oversees
maintenance of the following files:
•
Membership file
•
Follow-up file
•
Membership material file
•
Weekly membership reports
•
Membership mailing file
•
Pending application file
•
Correspondence file
•
Progress reports
•
Newsletter file
Membership Marketing
•
221
Special events file
•
Develops eﬀective prospect "tour techniques" for the club's facilities that identifies the prospect's needs so that during the tour, the club's features that are
important to the prospect are shown and discussed.
•
Ensures timely mailing and telephone response to encourage prospects to
tour the club.
•
Plans and oversees all planned social sales activities, such as twice monthly
cocktail parties, new member parties, board parties, etc.
•
Establishes and maintains a working rapport with club management.
•
Establishes and maintains contacts with local civic organizations considered helpful to membership sales. Attends regular meetings of these
organizations.
•
Ensures that the following administrative tools are integrated into the overall
sales eﬀort:
•
Master membership log
•
Profile of information
•
Membership file card
•
Membership application
•
Invitation letter
•
Membership card
•
Prospect card
•
Weekly membership report
•
Records new and prospective members' reactions to facilities and programs
so that changes or reinforcement can be made.
•
Takes responsibility for all incoming and outgoing telephone programs
regarding membership sales.
•
Works eﬀectively to cultivate outside sales leads.
•
Develops a complete understanding of membership classifications, fee schedules, programs at the club, club policies, rules and guidelines to answer members’ and prospects' questions.
•
Networks in diﬀerent community organizations as the club’s ambassador.
•
Gives speeches to diﬀerent organizations about the club that are not sales-specific but subtly market the club (i.e., history of the club, its site, or it building;
the club’s artwork, if it’s special, charitable events hosted at the club, special
accomplishments or rewards received by employees, etc.).
•
Assists new members with becoming familiar with club procedures, staﬀ, and
privileges.
222 Chapter 6
•
Is familiar with competitive clubs, including their services, pricing structure,
membership programs oﬀered, etc.
•
Keeps abreast of current trends in club marketing/membership.
•
Maintains relationships with other membership directors in the area.
Compensation for Membership Director:
•
Base salary (depends on the location).
•
Monthly commission for each new member, dues revenue, or initiation fees
(will vary with each membership category):
•
•
Resident member
•
Non-resident member
•
Junior member
•
Proposed senior membership
Annual bonus for total new members or specific numbers reached in each
membership category, or reaching a set level of dues and/or initiation fee
revenues:
•
$ ___________
Membership Marketing
223
Appendix C:
Sample Membership Marketing Forms
The following are samples of the types of forms that clubs find useful in their
membership marketing eﬀorts
Sample Form 1: Nomination for Membership
XYZ Country Club
Please typewrite or print. Refer to instructions on last page before fill out this form.
Nominee’s Name
(last)
(first)
(middle)
Social Security #
Date of Birth
Maiden Name:
Class of Membership □ Active (34 & Over) □ Junior (Age 20–33) □ Junior Legacy
Please check preferred billing address.
□ Residence Address
□ Business Name
□ Business Address
Residence Phone
Business Phone
Residence Fax #
Business Fax #
Preferred Mailing Address
Principal Occupation:
Name of Firm
Nature of Business Profession
Present Position
Number of years with this firm
How long a local resident
If less than five years, show prior business or professional aﬃliation, what
capacity.
Education
1)
University or College
Degree/Year
2)
University or College
Degree/Year
3)
University or College
Degree/Year
Additional
224 Chapter 6
Members Known to Nominee
1.
5.
2.
6.
3.
7.
4.
8.
9.
10.
11.
12.
Board Members Known to Nominee
1.
2.
3.
Family
Spouse’s Name
Maiden Name
How long a local resident
Date of Birth
Members Known to Applicant Spouse
1.
5.
2.
6.
3.
7.
4.
8.
9.
10.
11.
12.
Education
Business aﬃliations, clubs, civic and other organizations of spouse:
Names and birth dates of sons
Names and birth dates of daughters
Sponsor’s Signature
Sponsor’s Club Number
Membership Marketing
225
Sample Form 2: Nomination for Membership Checklist
PROPOSER AND SECONDER CHECK LIST
Completion Date
1. Proposer
Complete and return Candidate Questionnaire and Confidential Questionnaire
2. Seconder
Complete and return Confidential
Questionnaire
3. Proposer
List the names of five Members writing letters of endorsement, and follow-up with the
Membership Director to see they are being
submitted in a timely fashion:
_______
_______
_______
_______
_______
_______
_______
4. Formal Candidate Profile received and sent to Candidate.
5. Interview Date
NOTE:
The candidate and spouse, if married, accompanied by the proposer and seconder must
attend.
Proposer
Please be sure the proposed candidate has
been advised of the current rates for initiation fee, dues, and long range capital plan
assessment.
REMINDER:
All completed forms and the five letters of
endorsement are to be sent to:
Chairman of Admissions
____________________ Club
Membership Oﬃce
_______
226 Chapter 6
Sample Form 3: Application for Membership
XYZ COUNTRY CLUB
MEMBERSHIP APPLICATION
Name of Transferor
Member #
For Oﬃce Use Only:
Phone: (123) 456-7890
Fax: (123) 456-7890
Check Received:
Eﬀective Date:
Member Number:
I hereby oﬀer myself for □ Resident □ Resident under age 35 □ Nonresident
membership in XYZ Country Club. If elected, I agree to conform to the Club’s
regulations as prescribed in its bylaws and house rules.
Please Print
Date
, 20
Applicant’s Name
Maiden Name (if applicable)
Home Address
Phone (
)
City
State
Zip Code
Company
Title
Business Address
Phone (
)
City
State
Zip Code
Profession
Age
Birth date
Social Security Number
Biographical Information: (Educational and Professional History)
Spouse’s Name
Maiden Name (if applicable)
Company
Title
Business Address
Phone (
)
Age
Birth date
Social Security Number
Biographical Information: (Educational and Professional History)
Membership Marketing
227
Names of Children and Birth Date
Wedding Anniversary Date
Professional trade associations in which you hold or have held membership or
oﬃce
Clubs, society, lodge and church aﬃliations
Have you ever been rejected, expelled or dropped from a membership in any
Club?
Your bank references
Signature of Applicant
Endorsements: We the undersigned members recommend the above applicant for
membership in XYZ Country Club without reservations.
We have examined the above application and believe the statements therein to be
true.
Print Name
Signature
Print Name
Member Number
Signature
Member Number
228 Chapter 6
Sample Form 4: President’s Welcome Letter to New Member
Print on club letterhead
Date
Mr. / Mrs. Member
Address
City, State, Zip code
Dear Mr. Doe:
On behalf of the Board of Directors, I have the privilege of welcoming you to the
membership of the XYZ Country Club. Enclosed, please find a copy of the Rules
and By-Laws of the Club, as well as a copy of dues and initiation information. A
membership card will be forwarded to you as soon as we receive your minimum
deposit.
We are sure that you will enjoy the use of the Club during the years to come as
much as we will enjoy your membership. If you have any questions regarding
Club rules or the use of our facilities, do not hesitate to contact our General Manager or any member of the Club’s Board of Directors.
Again, please accept our heartfelt welcome. I look forward to seeing you around
the Clubhouse.
Sincerely,
(Signature)
Typed name
President
229
Sample Form 5: General Manager’s Welcome Letter to New Member
Membership Marketing
Print on club letterhead
Date
Mr. / Mrs. Member
Address
City, State, Zip code
Dear Mr. Doe:
Allow me to oﬀer my congratulations on your membership into the XYZ Country
Club. It is our pleasure to have you as a member and I hope you will make full use
of the Club’s facilities.
Though I’m sure you feel acquainted with the Club, it is customary for us to
arrange a special visit for new members. In that spirit, we would like to invite you
to join us at the Club on Friday, November 2, at 4:30 in the Clubroom. We will then
conduct a tour to familiarize you with all of the Club’s facilities, after which the
President and the Board of Directors extend an invitation for refreshments.
Please call me to confirm whether you will be able to attend. I look forward to seeing you on November 2nd.
Sincerely,
(Signature)
Typed name
General Manager
230 Chapter 6
Sample Form 6: Letter to Sponsor
Print on club letterhead
Date
Mr. / Mrs. Member
Address
City, State, Zip code
Dear Mr. Doe:
I am pleased to inform you that Mr. Robinson, whom you recently sponsored, has
been elected to membership in the XYZ Country Club.
To thank you for your bringing a new member into our midst, it is our pleasure to
oﬀer you a free dinner for two in the exclusive Clubroom. We encourage you to
dine with the new member and introduce him to Club hospitality.
We understand that it takes some time and eﬀort to sponsor a new member, and
we appreciate your dedication to the Club in this regard. Thanks again.
Sincerely,
(Signature)
Typed name
General Manager