Managing Director, Affinity Golf Management
Q: From your experience, what would you cite as currently the top reason(s) why people now drop club memberships?
A: Club members are leaving clubs primarily because they are not getting adequate value. This could be service, golf or food quality or a number of other intangibles such as not feeling welcome. It is very emotional at the core. The reality is that amenities can be purchased cheaper a la carte so the package needs to add up to more than the sum of the parts. Of course the economy or new competition play a role, but those are issues that need to be dealt with for a club wanting to survive and more frequently we find a club’s issues a re self-inflicted – what we call the “death spiral” where 20 members leave forcing price hikes and service cuts which lead to 20 more leaving. It is commonly triggered by a capital program that didn’t go smoothly though it can also be an external shock. Clubs don’t die overnight, it takes time.
Q: Is it important for a club to employ a membership director? What qualifications should this person have?
A: Some clubs need a membership director and some can succeed without one. Affinity preaches that some high functioning person and/or group needs to spend virtually all of their time focused on attracting members if that is important to the club. The key ingredient to success is being able to create a sense of urgency where there is none for something people want but don’t want to be sold. The same goes for programs and events for existing members. Retention is crucial and commonly taken for granted by clubs that want to treat all programs like yoga or Tuesday dining as profit centers. Members respond by asking why they are paying dues if every activity is a profit center. This is an argument the club will lose every time.
Q: Should a club or resort implement different retention strategies for different member demographics?
A: Different demographics require different strategies in any business. Same for clubs. Also people like to be treated differently, uniquely, especially successful people. This does not mean good service for some and bad for others, it means taking the time to understand what people want and value so they feel special when they are at the club…so they feel proud to bring guests. My sense is you were looking for something meaningful here and that the question is not telling me where you want to go.
Q: What are the most basic things a club must do to halt/prevent attrition and ensure healthy membership levels?
A: To halt membership attrition a club needs to avoid Affinity’s seven deadly sins which include advertising and paying members for referrals. Positive momentum needs to be created. Success breeds success. All or nothing programs based on wild promises are ill advised.
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