Real estate is all about location, location, location. Private club success hinges on membership, membership, membership. Having a top-rated golf course, a luxurious spa, or one of the finest chefs on staff means little without the membership to enjoy those amenities. Especially in today’s economy, clubs are realizing the need to market internally to current members, as well as to new membership prospects. Current members, along with the membership director, the board of directors and management are all responsible for membership development. Now, more than ever, clubs are focusing heavily on retention. It’s a well-known fact that it is less costly to retain a member than to recruit a new one.
This article, excerpted in part from the National Club Association’s newly released Membership Marketing: Best Practices for Private Clubs, examines the membership development roles of everyone at the club, including current members. A happy, engaged member is the best endorsement any club can hope for when recruiting prospective members.
It Starts with the Members
People join private clubs not only to have access to recreational facilities and social activities, but also to become part of a community of like-minded individuals. As such, membership is not a commodity to be bought and sold as much as it is a shared experience among friends. Who better to recruit new members than existing ones?
The involvement of members—sometimes called “ambassadors”—in the recruitment process is crucial. When members are proud of the club, its facilities and traditions, it stands to reason they will promote membership to their friends and propose them as candidates. This is the fundamental principle behind member-get-a-member recruitment campaigns.
To keep members engaged and satisfied, clubs need to ensure they are offering the amenities and top-notch service members have come to expect. Reinforcing the social bonding of the club environment through activities that involve the membership plays a crucial role in keeping members happy.
Everyone Has a Position on the Membership Team
Membership is everyone’s responsibility—both staff and volunteers—according to Candice Clemenz, Ph.D., associate dean for undergraduate programs, Pamplin College of Business at Virginia Tech. “It takes a whole team, including the leadership, to work on membership,” she said.
Often private club leaders don’t recognize that they themselves comprise the major element in the membership development equation. As in nearly all endeavors, the tone and success of any group, organization, business or professional practice—large or small—relies on the character of its leadership. Leadership is no less a crucial element in the marketing of a private club.
Assuming at this point that the club has a marketing plan in place, the next question is how to go about getting the desired results from it. Some club leaders fail to grasp the extent to which marketing is a group effort, requiring the involvement and dedication of the club’s own board, its president, the various committees, the general membership, and increasingly, the club’s own staff. How well the various players execute their roles can make or break your club’s membership development program.
The Membership Marketing Director
Effective marketing of club services begins with a dedicated full-time membership marketing staff member or department, depending on the individual club’s needs. Thirty-three percent of country/golf clubs and 44 percent of city clubs have a full-time membership marketing director on staff, according to a 2003 McMahon Group report. In that same report, it was also noted that some 75 percent of country clubs and 90 percent of city clubs do not have waiting lists.
Membership dues account for a good portion of revenue at country clubs and city/athletic clubs. To combat the decline in membership and retention rates, more and more clubs are taking aggressive steps to develop and strengthen their membership marketing departments. But, in order to be successful in establishing a focused strategy for combating the membership challenge, clubs must have an effective marketing membership staff in place.
While financial pressures are real and it is more difficult to retain and attract members than ever before, most clubs have not adjusted their thinking toward membership development. The reactive marketing strategy of the past is no longer appropriate for most clubs, and it is vital that they engage members in new member recruitment.
A membership director is increasingly important in the world of private clubs. While the current members remain the number one source of new members, a club must have a professional continually stimulating this network if it is going to attract a sufficient number of new members.
The membership director must understand the concept of a fine, private club and its benefits to the community and the individuals and families invited to become members. Club membership marketing is lifestyle marketing, so a hard sell is not going to work. The director must be very good with people and work to establish a rapport with as many members as possible to gain their confidence and referrals.
Some of the characteristics of a good membership director include being able to champion the vision and mission that has already been developed by the club’s leaders. He or she must also be familiar with the demographics of current members in order to be able to show prospects how the club’s services would be of value and fulfill their needs. Lastly, the membership director must be a professional example of the friendly and community-oriented atmosphere of the club.
Make sure your membership director is familiar with the rules and regulations regarding marketing at private clubs. Because of the nature of private clubs (private, nonprofit, tax-exempt status), many of the marketing strategies and tactics that are employed by other businesses may jeopardize your private or tax-exempt status. It is important to review these fundamentals with your new membership director, especially if that individual does not have prior experience marketing for private clubs.
The Club Board of Directors
Club directors need to create the format for innovation within the club. As policy makers, it is up to the board to decide on the scope, purpose and direction of the club’s services and activities, as well as to ensure they meet member needs and keep the club positioned competitively. In this way, the board literally becomes an enabling instrument for the members and staff.
For starters, the board needs to participate with management and the membership in developing a vision for the club. To do this, the membership structure, facilities and competition need to be evaluated against a well-researched, long-range market plan that looks at least three to five years into the future. Vision refers to the club’s position at that point and is supported by a strategic plan to get it there.
The board of a club exists to establish policies and procedures, set fees and charges, admit and expel members, and see to the long-term interests of the organization. Often, one of its chief duties is to select candidates who have been proposed for membership. Another is to delegate duties to committees, as appropriate.
The board itself should be willing and able to respond to the general manager’s recommendations via the membership committee. In turn, the committee members should be familiar with the club’s overall plan or vision, and with research results and existing programs.
Membership Committee
Properly organized, a club membership committee reinforces the club’s mission to the extent its purpose is to assist the board and management with particular projects, programs or issues that serve the members’ interests. In addition to enthusiasm, committee members also provide a cost-effective source of volunteer help and support, freeing the board and management to pursue other specific duties.
As noted in NCA’s Model Committee Guidelines, the membership committee is generally charged with evaluating and recommending persons nominated for membership. It is also charged with suggesting, and once the board approves, implementing all policies, procedures and activities that relate to the club’s membership development process. At some clubs the membership committee also cultivates prospect lists to ensure candidates for membership are always available.
Among the duties generally described to the membership committee are these key responsibilities:
- Work with the board of directors to define and revise membership objectives and the policies and procedures relating to them.
- Evaluate all candidates nominated for admission and recommend disposition to the board. Ensure candidates are qualified, their nomination is genuine and sponsorships and background information are in order.
- Help monitor the vitality of the membership; suggest steps that can help maintain the strength of a diverse membership.
- Work with the general manager or membership marketing director to develop an orientation process for new members that familiarizes them with the club’s services and activities, allowing them to take full advantage of the benefits of club membership.
While the committee’s administrative needs are coordinated with staff (including the general manager and membership director) because of private status concerns, all matters dealing with candidate information should be held confidential.
What is most effective, if it is permitted by the club and its bylaws, is a specific committee designed to actively recruit and bring in new members and lead that charge.
Management & Staff
Positive operating results occur when the board chooses a general manager who is member-sensitive. This type of manager tends to view his or her primary mission as increasing member use of the club, adding value to services and activities, and finding ways to attract new members.
An effective general manager should know how to get member input via satisfaction surveys, third-party interviews and focus groups. The ability to closely target a club’s membership, provide benefits and features that appeal to smaller and smaller groups of members, and continually update and revise these benefits to accommodate their changing needs will increasingly mean the difference between the club’s success and failure. To provide this kind of marketing leadership, the general manager must be in a position to constantly monitor and respond to the members’ needs.
In addition to the membership marketing director and the general manager, the entire club staff should be made aware of membership recruitment and their role in supporting the membership efforts.
- The pro shop staff: Make sure the staff is notified when prospective members are scheduled to be on the property, and introduce the prospective members to the head pro and other key golf or tennis personnel. Make sure the pro shop staff has a supply of membership information packets on hand or knows the procedure for handling inquiries if they receive questions about membership.
- Superintendent: Make sure to keep the superintendent in the loop if you are planning a prospective event, or if the club is hosting an outing with potential members.
- Food and beverage staff: Alert your chef and service staff if prospective members will be on the property, especially if they will be dining at the club as guests of members.
The End Game
Successful membership marketing within a club is reflected largely in the ability to recognize and respond to club members’ needs, to implement programs or services accordingly, and to distinguish potential members who would add to the club’s culture. Along with current members and club directors and committee members, the staff and management all have a role in creating the perfect game plan for membership development. It takes a team approach to create a rich, supportive and communal culture at a club that not only takes care of its current members, but also attracts similar prospective members who seek a special club experience.
Amy Rigard is NCA’s assistant editor. For more information on Membership Marketing: Best Practices for Private Clubs, visit www.nationalclub.org.
The Membership Marketing Director
The Club Cheerleader
Job descriptions provide a written record of the scope, specific tasks and requirements of a given job. The development of thorough job descriptions is an important managerial tool for club management.
Characteristics of a good membership marketing director include being able to communicate club culture and develop key community relationships to recruit prospects that are a good fit for the club. He/She should possess a polished and professional image and positive attitude. Lastly, the membership director should represent the friendly and community-oriented atmosphere of the club.
Sample Job Description
Job Title: Director, Membership and Marketing
Summary of Duties: The Director is responsible for the strategic direction and management of membership development, recruitment and retention. He/She supervises a staff of XX, and is responsible for the programs, practices and processes relating to membership.
Qualifications:
– Bachelor’s degree in marketing, English or communications; graduate degree in business or marketing helpful.
– Minimum XX years in club membership sales and marketing experience directly related to clubs.
– Proven experience and excellence in strategic marketing, writing promotional copy, direct sales, short- and long-range planning, budgeting, supervision, and public speaking.
Job Responsibilities:
– Develops and directs a comprehensive marketing program for membership recruitment and retention, including managing and motivating member volunteers to participate in various programs; developing and directing ongoing membership marketing activities and analyzing results, implementing new strategies and programs; and managing Web site content and development. These activities have a direct impact on the club’s financial and membership goals.
– Provides strategic direction and financial planning of membership department as it relates to the club’s strategic goals.
– Partners with other departments to identify and develop sponsorship and new business opportunities.
– Conducts all marketing activities, such as follow-up on leads, conducting club tours and arranging recruitment special events.
– In accordance with club bylaws and policies, administers the member nomination and acceptance process.
– Manages relationships with other departments to coordinate numerous membership activities, operational and budgetary issues, volunteers and task force activities, and to motivate and educate staff to participate in membership promotion and development.
– Serves as senior liaison to the Membership Committee, whose primary objective is to serve as content expert in the functional area of membership. Oversees the strategic direction of this volunteer group and their participation in the club’s long-range plans.
– Manages and negotiates relationships with vendors to ensure appropriate membership marketing products/services are delivered timely, successfully, and within budget.
Supervisor: General Manager/Chief Staff Executive
Department: Membership Department
Compensation/Benefits: XXX Club offers generous health insurance, vacation and sick leave, travel reimbursement, and a 401(k). Compensation is salary plus commissions based on membership sales with an annual review.