Flexible memberships will live side by side with the full membership. Diversification in memberships will bind more people in the game. Explore why personalisation & flexibility is key in engaging people to the golf facility.
The flexibility facts....
The willingness to buy Memberships will decline and will focus on those activities that are so unique that they add value in many aspects.
For all other activities, the premium will be on flexibility. This development puts a bomb under existing business models for golf and will require a new approach.
Time to change....
'‘The golf industry is under pressure to increase golf participation. As owners and operators we need to be looking at all available tools to increase this and flexible membership should be a strategy for all clubs to utilise.’'
The one and only solution for all?
No solution is a one size fits all. There will always be a market place for the good old collective model where all members have the one option of unlimited playing rights, depending on the location of the course.
"Golf in Asia is relatively new compared to the US and UK so we have a different attitude to the game and we can adapt more quickly. Simply, we see it as inclusive rather than exclusive and we strive to make it a sport for all. By adding facilities other than golf to create integrated resorts, we are far removed from the traditional country club image, but we never compromise on service standards"
The Trend
This trend resulted as one of the top trends out of EGCOA questionnaire and development sessions.
Instantisation and Loyalty
Previous generations lived in a world of lifetime choices. The combination of rapid change and the growing life expectancy is changing the definition of loyalty. New generations have a completely different definition of loyalty and do not view it as a lifelong commitment.
Underpinning
Here are the hard facts that times are changing…
VISION 2020 Survey
Golf course owners expect the number of full memberships to decline and instead more green fees and modern memberships will be sold:
Research
So whats all the fuss with flex. Below we list some of the cold hard facts from the 2013 report from Sports Marketing Survey Inc.
Sports marketing surveys
What are the opportunities of flexible, non-collective membership structures?
They also recognise that the member who is keen to play, but cannot make the financial commitment they might have made in the past and may make again in the future, is still worth holding on to even if this needs to be achieved by asking for a more modest financial contribution from them than would previously have been the case
The good old collective model of a 1.000 members paying a 1.000 euro’s per year does not seem to attract most of the new golfers. Waiting lists to become member are now replaced by waiting lists to get out of the club. Participation and entry fees are gone. How are we going to find solutions that attracts the new player and minimizes the damage in the revenue of our current members?
The graph below shows a possible outcome of more flexible products vs the collective model. The model shows an income of € 1 million existing of a 1.000 members paying a fee of € 1.000,- per year.
The flexible model shows some members paying more than € 1.000,- per year and other paying less, depending on the product, privileges connected to the membership.
The trick is to connect with more players than in the past. More people can have a form of membership that fits their needs, lifestyle. The total revenue should increase if the products make a good fit with the needs of the members.
Challenge & Opportunity
Is to make sure that the total income does not decrease by going flexible. At the start it will eat into part of the existing membership. The trick is to minimize this loss. This can be done by looking at the playing patterns of the members and set the playing priviledges accordingly.
The opportunity
Is in connecting new members: for instance after 4 pm memberships for working generation X and Y. A whole range of examples can be found in the WHAT section below.
Possible modern memberships
Below we have listed a range of modern membership models to cater to a wide range of consumers.
Point system
If in this system the golfer gets the same social benefits as the full members, it is a good match between a full membership and pay & play. It engages the golfer to the facility with the possibility to become part of the social structure and gives the flexibility feel of a green fee player.
Negative is that it is very much rounds driven. Potentially a big revenue loss of existing members scaling down can appear when implemented.
Family Membership
Trial Membership
A nice one is a trial membership for instance for € 200,- for 10 rounds during a year plus free participation in as many club events the player likes.
Social membership (no golf included)
A membership that gives them all the rights as the others only without the golf or limited golf can be the answer. In this way these people will be part of the tribe and be engaged to the facility.
This can engage a new group of ‘social’ members. It will also keep a group of members than became too old to play regular golf connected to the social of the club.
The city-membership of The International is a good example. At this new, upmarket members-only club near Amsterdam, one can become a city-member and use all the facilities but not the golf course. 70% of the yearly membership fee is spendable at the bar for F&B.
Challenge is to create the social live with this group. There need to be enough city members. Lot’s of events for networking can help.
Pay & play: include 9 and multiple round cards
The pure pay and play model has a strength and weakness: strength is that the p&p course has a very welcoming atmosphere, also due to the fact there is no formal club. The weakness can be that the absence of a club minimises the social binding of the players. A structure must be in place to compensate this.
Student Membership
Interesting to offer a discounted membership. Especially for groups of students: members f student associations. Also good to gain new golfers.
Multi Course Membership
- Membership gives right on discount on greenfee other courses part of the cooperation
- Optional: by paying an extra fee members can play for free at other local courses in the scheme
- Collective included: a small raise in the yearly fee for all members giving them playing rights on all the courses in the cooperation.
Twilight membership
Challenge is to have these members fully engage in the community of the club. Solution could be: first year of limited number of rounds in club competitions.
Below are examples of golf facilities who do something different than just selling green fees and full memberships.
Flexible membership initiatives
Share your best practices and initiatives with us, click here to submit.
Technology Tools
A range of softwares now allow golf courses the ability to create and manage a range of flexible members packages and models. The introduction of club management softwares have made customer and member management a automated and painless task allowing operators time to focus on other key focus areas.
Share your fun tech tools with us, click here to submit.
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