The Challenge:
Amarillo’s bill for deferred maintenance came due in 2012. A steep assessment led to the exit of about 150 families—substantially more than they had anticipated.
The Great Recession delayed much-needed maintenance and improvement projects for clubs. When Amarillo Country Club finally counted the cost of necessary course improvements and clubhouse renovations in 2010, the multi-million dollar program translated into a $10,000 per member assessment. The club anticipated losing some members as a result of this assessment; but, nearly 20 percent of its members left and membership dropped from about 750 to 600.
The Response:
The Club revised its membership categories, providing non-golfers the option of acquiring either a dining membership or a sporting membership (which included everything but golf). Junior memberships, with initiation fees reduced by half and dues by two-thirds, were also emphasized as the club embarked on a two-year membership building process.
Amarillo’s effective membership building program actually began with the proverbial “inside sell.” Founded in 1919, the club had a long and venerable history, but most club members recognized the need to change their club in some significant ways. Financial considerations resulted in a nearby private club transitioning from private to semi-private status, and Amarillo members did not want to travel down a similar path.
Though much of the improvement program called for necessary but out-of-sight infrastructure upgrades (like a new golf course irrigation system), club members also were enthusiastic about the prospects of better facilities, services and more family-oriented activities. A number of member briefings and a town hall meeting communicated both the need for change and the anticipated benefits.
The Result:
Over a two-year period, Amarillo Country Club recouped its membership losses and came out ahead in equivalent memberships.
Amarillo’s membership has rebounded, but at the same time it has been revitalized. As GM Dennis Crowell explains, “Everyone is thrilled. The newly established membership categories have found great traction. The new dining category proved especially popular with about 100 new memberships acquired during the promotional period.”
Collectively, the changes in facilities and growth in membership have strengthened the family orientation of Amarillo Country Club. Activity levels have also picked up with greater utilization of a superb dining program, growing participation in a long-standing tennis tradition and increasing numbers of moms, dads and kids just hanging out at the pool. The recent addition of a fitness facility also imparts a jolt of energy and the aura of health and wellness.
Lessons Learned:
Keep long-term objectives and short-term needs in balance. Harness promotional membership programs to the strategic aims that support growth.
The pace of change can vary. Amarillo learned that the need for facility and course improvements emerged gradually, perhaps somewhat obscured by the inevitable depreciation of its capital stock. On the other hand, the erosion of membership can sometimes be rapid and potentially send managers and members alike scrambling for a suitable response.
In Amarillo’s case the remedy required long-term investment and a short-term emphasis on membership attraction. Neither would have been possible without strong leadership. Crowell’s long tenure at the club coupled with the board’s active engagement elicited support from members. Even so, the recovery of membership was a process that required careful planning and follow through over a period of nearly two years. The campaign to build awareness and interest in potential members took sustained effort and was subject to cyclical ups and downs. This was no “silver-bullet” solution, but rather a mix of club improvements, increased membership engagement and the application of modest but quite effective financial incentives that paved the way to a stronger and more sustainable membership base.
Club Trends Summer 2015