Random musings on membership development.

That Was Then. This Is Now.

The growing acceptance and necessity for proactive member communications comes at an opportune time when the industry is facing perhaps the most challenging market climate in its history. Adverse economic conditions, intensified competition, and shifts in the demographic profile of new and "would-be" members has all combined to create a triple threat that has and will continue to place many clubs and manager sunder considerable pressure. The impact of these market factors, individually and collectively, has far reaching implications on virtually all aspects of operating performance, but the greatest direct effect on membership development; most notably in the areas of member satisfaction and retention (See Chart 1).

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A New Paradigm. A Renewed Focus.

No matter what segment of the club industry an organization may compete in (golf and country clubs, health and fitness clubs, yacht clubs, city clubs, etc.), owners, operators, and managers alike are casting new views on membership development. Current market conditions require them to.

Once seen as a reactive measure to declining revenue, clubs are beginning to take a proactive and systematic approach to membership development. It is a view that looks at membership development as an ongoing process consisting of a series of sequential stages, each one designed to deepen and strengthen the bond or connection between members and the club they choose to be associated with. They are putting greater emphasis on building and maintaining vibrant communities of common-interest members. This process is heavily reliant on two-way communication as a mechanism for developing and fostering strong member relationships.

Increasingly, clubs are turning to intelligent, closed-loop member communication solutions that leverage Internet technology in a way that facilitates and supports the full spectrum of membership development activities, including member recruitment, engagement, and retention initiatives--in a word, MRM, or Member Relationship Management (See Chart 2).

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Member Relationship Management is the practice of using timely and accurate member-provided information and feedback to improve the quality and delivery of services and experiences. It's grounded in a principal belief that the privilege of membership is one shared by both those who earn it (members) as well as those who serve it (clubs). It recognizes that membership is the lifeblood of the club industry, and member satisfaction is the measure of its health.

The Experience Matters.

Experts agree customer satisfaction is the key measure of success for practically any business organization or industry (See Chart 3). In the business of club management, member satisfaction is the only measure that matters. In fact, to many in the business, membership retention and satisfaction have become the highest priorities. So how is it, then, that some clubs achieve member satisfaction and maintain high retention rates, while others do not? The short answer is that they provide a club experience that meets member expectations.

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Membership to a club, particularly a private club, is arguably the single largest "lifestyle investment" most individuals will make in their lifetime. Like all investments, personal or family membership to a club is expected to deliver an anticipated yield or return. For many members, the return is expressed as a set of personal expectations for the "experience" they'll receive at and from their club.

Some seek top quality amenities, first-rate service, and personalized attention. Others may desire exclusivity, social connections, or an exhaustive schedule of recreational activities. Regardless of how it's defined by the member, satisfaction is achieved only when the experiences a member derives from the club meet the expectations they had when they first joined.

The clubs that succeed are those that distinguish themselves from competing alternatives by offering high-quality, high-valued membership experiences that are unique, distinctly compelling, and directly relevant to the lifestyle requirements of their members.

Not All Members Are Equal.

Despite the widely accepted view on the importance of member satisfaction, many industry studies have suggested that satisfaction is rarely the reason given for member resignations (See Chart 4). The main reason cited in most cases is "lack of use," meaning members have a difficult time justifying the amount they pay to a club, given the time they actually have to enjoy it.

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This is partly the result of poor communication practices, either lacking or misdirected, as well as club management's ignorance (in the unaware sense) to what members want and desire from their club experience. Either way, the result or outcome is usually the same--apathetic and uninvolved members who feel little to no connection to the club, and by extension, become susceptible to resignation.

By engaging your members in dialogue through multiple media channels (face-to-face, newsletters, and online), clubs will better understand, appreciate, and be in a position to serve the unique requirements and expectations of each and every member, thus improving overall member retention. The more active a member is in club activities, programs, and facility use (those specific to their needs and interests), and the more satisfied they are with those experiences, the more value they have to a club as both a constituent of the club community and as an advocate of it in both exuberant and challenging economic times.