6 minute read
Golf Business
Golf Boom Fading? Fear Not With Help From The Experts
At this point, it is well documented that the golf industry was one of the only things to that might have actually benefited from the COVID-19 pandemic. Rounds were way up, equipment sales saw record highs across virtually all categories and private clubs experienced one of the biggest booms in membership growth this century. While the latter has probably received the least press and attention, the health and well-being of private clubs is a vital part of the golf industry in the United States. With that in mind, we wanted to talk with the experts to better understand the current state-ofaffairs and provide some best practices that private clubs can use to navigate their own membership growth. Time to meet the experts. Capstone Hospitality was founded in 2009 by former professional golfer Brian Friederichs. The firm’s talented team works with private clubs across North America to drive membership sales by delivering a customized sales plan, renewed energy and competitive spirit. Capstone Hospitality has gained valuable industry knowledge in a diverse range of markets while working with clubs in golf, boating and beyond. The company’s goal is simple – drive membership growth and set clubs up for long-term success. On average, client clubs enjoy a 407% increase in initiations sold after one year of partnering with Capstone. In short, they have an impeccable track record and offer multiple services to develop and drive sales for clubs of all sizes. We asked Friederichs about what he felt were the top things private clubs need to be thinking about when it comes to attracting members. Here’s what he told us:
Biltmore
1. COVID’s Impact: Clubs around the
country have benefited from renewed interest in golf, however, thinking the COVID generated uptick in membership is the new norm is a recipe for disaster. We’ve partnered with more than 70 clubs and can say for certain the number of organic incoming leads for 2022 is already dipping substantially year-over-year, in all regions. This is a natural reaction to the market, rising inflation and the fact that for the first time in two years people are traveling, attending sporting events and exploring hobbies other than golf. Don’t panic though, there are ways to keep the membership pipeline very healthy, you just have to work hard and take a proactive approach.
2. Devoted Sales Staff: When our team
is brought in to analyze a club’s current membership practices the No.1 issue we see is that they don’t have a sales staff dedicated solely to growing members. Membership Directors and General Managers are at times overwhelmed by wearing too many hats. Although important tasks, they get bogged down in other areas such as member relations, communications/newsletters, billing questions, operations, events/ catering, etc. With all of this on their plate, it’s easy to see why there is a lack of strategic outreach to potential new members and thus, no long term and sustainable pipeline. At Capstone, we provide our clients with a highly trained sales professional who implements our proven lead generation systems and stays hyper focused on selling memberships all day. 3. Not Enough Lead Generation:
This goes hand-in-hand with No.2, but without qualified leads a club simply can’t reach its full potential when it comes to growing membership. Finding the right individuals and families to join your club is the only way to Golf Central • Volume 23, Issue 9
Pensacola Country Club
create long-term health. To do this properly, you need to get out into the community and understand the needs of potential members. What value does your club provide them? What are the most common hurdles they see in becoming a member, and how do you overcome them? Are you even talking to the right people? In short, if generating qualified sales leads isn’t a priority, it needs to be. Our approach at Capstone not only includes the dedicated staff member utilizing our lead generation system, but also having a team behind the scenes focused on driving leads to the club through creative and digital marketing. Leveraging technology and understanding the best ways to reach potential members will pay massive dividends. 4. Capital Investment: Golf Digest
recently wrote a piece about private clubs spending huge sums of money to upgrade their facilities and add new amenities. There isn’t anything wrong with investing in your club, but doing so recklessly and not properly saving and stacking capital resources could definitely backfire. As we’ve already discussed, the boom from COVID was very real, but it’s waning. Clubs who burned through their profits on fancy amenities might have been a little shortsighted about the future. Don’t get me wrong, you may need to spend on the areas that will attract the types of members you’re seeking – young families, retiring boomers, etc. – just be safe about it and consult an expert on when you should spend and when you should save. 5. The Waitlist: With increased demand and pressure on operations, at times, a waitlist or forced attrition may be necessary. As with everything, there is a right way and wrong way to go about this. • Audit: The first thing a club should undertake is a full membership audit to ensure all members are paying appropriate dues for their level of access. Many clubs offer different categories of membership – seasonal, preview memberships, group memberships, etc. In many cases, members who fall into these categories have the same access as full dues paying members, so there might be an opportunity to raise dues on select categories and collect an initiation or upgrade fee. This will either force attrition and make way for more full dues paying members, or the members from these subcategories will decide they want to stay, which will result in a nice capital injection. • Waitlist Strategy: Once the audit is complete, establishing a waitlist strategy will continue to allow the club to capture new members.
These will vary from club-to-club but should include at minimum: pricing and marketing strategies once on a waiting list; level of access to the club (if any) while on a waiting list; and the refundability or nonrefundability of a waitlist deposit. • Selling / Lead Generation: Selling and marketing a waitlist to prospective members requires a different style – one that is much more advanced. We strongly recommend a seasoned pro who understands the dynamics be at the helm to truly maximize potential. • Waitlist Management: To keep people on the waitlist engaged with the club, the list must be worked regularly. Check in with them periodically, occasionally invite them out to the club and keep them interested. Capstone has built out and sold waitlists successfully at multiple client clubs. We have clubs with two+ year waitlists and are still actively selling. If done appropriately, with a laser focused approach, a club can set itself up for true, long-term financial stability.
Capstone Hospitality has partnered with over 70 private clubs throughout North America, helping them experience tremendous growth and financial stability through their proven methods and cutting-edge technologies. The process starts with a full and complimentary analysis of a club’s facilities and membership strategies, followed by the creation of an in-depth plan that addresses unique goals and needs. Next, a member of Capstone’s sales team seamlessly integrates into the club’s cultural fabric, executing on the customized strategic plan. This hands-on approach ensures that staff knows a client’s business inside-and-out and can adjust tactics as needed.
