1 Membership Marketing ARE YOU TARGETING THE RIGHT MEMBER? 2 “In 2015, Uber – the world’s largest taxi company – owns no vehicles; Facebook – the world’s most popular media owner – creates no content; Alibaba – the most valuable retailer – has no inventory; and AirBnb – the world’s largest accommodation provider – owns no real estate.” MARKETS ARE CHANGING RAPIDLY AND DYNAMICALLY… WHAT DO YOU REALLY KNOW ABOUT YOUR MARKET? 3 4 Putting Market Analysis to Work “Business only has two functions – marketing and innovation.” Peter Drucker 5 6.5% = Clubs with a Wait List… Source: Global Golf Advisors, 2015 …or, 93.5% of clubs in North America need to be recruiting new members. 6 How are you executing market analysis now? What are best practices in private club market analysis? What are the tools you can use to analyze your market? 3 QUESTIONS THAT SHOULD DRIVE YOUR 2016 PLANNING How Do You Conduct Market Analysis at Your Club Now? Club Leader as Source? Throwing Darts? 7 OR…. Hiding Behind the Tax Code? 8 Executing Real Market Analysis? 9 Three Current Factors Impacting Private Club Memberships HOUSING | WOMEN | MARKET CORRECTIONS Current Housing Trends in Arizona Source: John H. Burns Real Estate Consulting 10 Current Housing Trends in Arizona Source: John H. Burns Real Estate Consulting 11 Women…and Their Growing Influence in Private Club Markets “91% of home purchase decisions are made by women.” Martha Barletta 12 Post-Recessionary Market Corrections 1. Evacuation of Refundable Membership Programs 2. Conversion of Equity Membership Marketing to Recallable, Non-Equity Alternatives Priced at 1/4th to 1/3rd of Equity Joining Fees 3. Migration of Developers to Mandatory Membership Structures 13 14 What are best practices in private club market analysis? WORK INSIDE OUT | STUDY COMPARABLE CLUBS | MEASURE TO MARKET Bona Fide Market Analysis Includes Internal and External Markets Demographics Private Club Experience Household Income (“HHI”) Household Net Worth Educational Attainment Proximity to the Club Personal Network Utilization Habits/Practices Psychographics “Push” / “Pull” Influences Aspirational Influence Personal Network Club Brand Authority Location Attractiveness 15 Internal Market Analysis Member Distribution by Category www.espatial.com 16 Internal Market Analysis Member Distribution by Zip Code www.espatial.com 17 Internal Market Analysis Member Distribution by Category www.tableau.com 18 Internal Market Analysis Associates Only www.tableau.com 19 Then Analyze Your External Market (Future Members) Local Market Source-of-Origin Markets Residential Orientation (73%) Midwest (US and Canada) 25-Minute Drive Time Northwest US Business Orientation Social Network and Profile Northeast Corridor (Increasing) 20 External Market Analysis (in seven parts) 1. Local Market Map 2. Demographic Profile Analysis 3. Golf Demand Profile 4. Supply Profile of Similar Clubs 5. Psychographic Profile Analysis 6. Comprehensive Club Analysis 7. Source-of-Origin Analysis 21 Local Market Map Mile Radial: 5 | 10 | 20 Drive Time Radial: 15 | 30 22 Demographic Profile Analysis 23 Golf Demand Profile How many golfers can you access? www.ngf.org 24 Golf Demand Profile Relationship Between Income and Golfing Households 25 Golf Profile of Similar Clubs What is the overall number of facilities? Does demand support supply? What is the mix of facility types? What are the comparative amenity profiles? Who / what are your key competitors? 26 Psychographic Analysis What factors bring members to your club? What are the common attitudinal characteristics of your members? What do they want, need and fear? What other destinations do they seek? 27 Psychographic Analysis www.MOSAICrm.com 28 Psychographic Analysis Primary Target Segment – Power Elite Households Comprehensive Club Analysis Location Amenity Profiles Pricing Analysis (all categories) Membership Options Number of Members Origin of Members Local Market Perception 30 Source-of-Origin Analysis Where did your existing members originate? How and why did they choose your club? Identify and measure primary source markets? What are the transportation vectors involved? 31 32 “Over 90% of the data in the world today was created in the past two years” - Harvard Business Review HOW CURRENT IS YOUR MARKET INFORMATION? Where can you search tomorrow for current market information? Mapping – www.batchgeo.com | www.espatial.com Demographic – www.census.gov | www.wealthx.com Psychographic – www.Nielsen.com | www.Experian.com Travel (source-of-origin) – www.str.com | www.skift.com 33 34 Discussion & Questions ARE YOU TARGETING THE RIGHT MEMBER? 35 Henry DeLozier, Partner | Principal Global Golf Advisors HDELOZIER@GLOBALGOLFADVISORS.COM 602.739.0488 @HENRYDELOZIER