CLUB TRENDS 2022 OUTLOOK - BUILDING THE MULTIGENERATIONAL CLUB NATIONAL CLUB ASSOCIATION, MCMAHON GROUP, KOPPLIN KUEBLER & WALLACE, CLUB BENCHMARKING
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Club Trends 2022 Outlook Building the Multigenerational Club National Club Association, McMahon Group, KOPPLIN KUEBLER & WALLACE, Club Benchmarking
Club Trends Produced jointly by the National Club Association McMahon Group, Club Trends provides strategies for successful clubs with best practices, case studies and trends information. Three quarterly issues focus on single topic trends and one presents an outlook for the coming year. 2
Today’s Agenda • Generational Changes • Beyond Golf and Club Amenities • City Club Outlook • How Generational Diversity Shapes Long-Term Planning • Time to Evolve • Q and A 3
Today’s Presenters Henry Phillip Kevin Chris Chris Tom Wallmeyer Mike Carroll Coulter Barron Wallace 4
Generational Changes: How New Lifestyles and Preferences are Challenging Today’s Standards Phil Mike – National Club Association 5
Workforce Accommodations Employers adjust to employees • ~33 million Americans have quit their jobs since spring 2021 • Prioritizing employee availability • Increased pay and benefits (parking, meals) • Reduced services • Leaders work hospitality frontlines 6
Workplace Values • Listen – Understand perspectives of young people • Create solutions – Generate new and creative ideas • Encourage feedback – All staff should feel they can positively impact workplace • Prioritize – Represent perspectives of younger workers All generations want to grow, be treated fairly, have flexibility and feel they can make a difference. 7
Shoppers’ Desires Shoppers want more than what they are buying Added Enjoyment • Scented areas • Gamification • Scavenger hunt Building Connections – Appealing on a personal level • Data/privacy controls • Positive/uplifting messaging • Ethical/diverse branding 8
Luxury Likes Tech Luxury shoppers are more likely to use tech • 70% are open to a virtual test drive compared to average shopper (52%) • 80% are open to trying on virtual glasses compared to 65% • 73% to try on clothes virtually compared to 54% • 29% of luxury shoppers say they very or extremely familiar with NFTs 10
More Competition with Technology Staying at Home • 47% of adults would rather watch a new movie at home • 48% of parents have 3-5 streaming services Metaverse is an “$8 trillion opportunity” • Physical and virtual goods • Live events and meetings • Virtual tours • Virtual amenities? 11
Wellness 12
Emotional Check-in Fatigued but optimistic • 70% of adults are confident in their situation, but 53% are struggling through pandemic • 48% millennials say pandemic has hampered ability to make basic lifestyle decisions • 37% Gen Z; 32% Gen X; 14% Boomers • Young parents and people of color hit hardest 13
Club Amenities and Growth Opportunities 2022 and Beyond Kevin Carroll, CCM, ECM, CCE, CAM – McMahon Group 14
Never Let a Good Crisis to to Waste • Rediscovery of clubs • Safe Havens • Socialization • Social Hubs • Diversity • New ways of thinking 15
Indoor/Outdoor Dining and Bar Spaces 16
Wellness/Fitness/Spa 17
From Fitness to Wellness • Stretching • Bands and balls • Diet counseling • Group classes • Virtual classes • Spa, massage, treatments, sauna, steam, salt room • Barbers and stylists • Clinics on property 18
Family Programming Beyond traditional tennis, swim and golf 19
Scioto Country Club Teen Golf Center 20
Game Room 21
Game Room 22
Racquets/Pickleball/ Sports Courts and Bocce 23
From Tennis to Racquets • Adjust to new trends • Pickleball • Paddle • Pop tennis • Tennis pros adapt or move on 24
Golf Practice Facilities 25
Golf Capacity • Most clubs are near or at capacity, or so they think • Practice facilities – as important as the golf course, or more so • Golfers must be attracted to non-golf activities 26
Programming • Facilities are not enough • Acquisition and retention of quality staff • Leadership and creativity • Year-round activities • Full service – for all family members 27
Dining • 70% of clubs surveyed by McMahon underachieve in their dining efforts • Members want the club to be one of their favorite, top 4-5 dining destinations • Food is only part of the equation • Ambiance • Attentive and friendly service • Camaraderie • Variety • Speed of service 28
Most Important Club Amenities as Surveyed by McMahon • Dining • Golf • Wellness/Fitness • Swimming • Racquets 29
Re-Think Re-Brand 30
City Club Outlook Christian W. Coulter, CCM,ECM – McMahon Group 31
Insights from City Club Managers Mitchell John Jada Matthew Steve Platt Dorman Emery Allnatt Cummings GM, MCM ,CCE GM, CCM GM GM GM, CCM,CCE Cosmos Club The University The Union Jonathan Club The Harvard Washington DC League Los Angeles Club Club New York New York Boston 32
The Demise of City Clubs Looking Back to Spring 2020-Spring 2022 Covid-19 33
The Demise of City Clubs Looking Back to Spring 2020-Spring 2022 Covid-19 34
City Club Leadership • Adaptable • Flexible • Innovative • Don’t let them see them sweat • Sense of Humor 35
Pandemic Accelerating Trends Pandemic A Macro Watchwords Heightened trends remain for 2021 remain intact • Demand for a • Community • Sanctuary member-centric • Family • Safety experience • Casual • Simplicity • Fun 36
“We are building back, not only better, but responsibly, carefully and ratably.” - Mitchell Platt, GM, MCM, CCE 37
Reinvention of Who We Are • Guest Rooms • Non-member space • À la carte/Events 38
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Downtown Revitalization • Belong & spend time • Work & Leisure • Connection • Remote work centers • Fitness Zones • Relaxation Zones 40
Reinvention of Who We Are • Mixing Business With Pleasure • Networking 41
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Looking Ahead Spring, Summer and Fall of 2022 43
The New Normal 44
How Generational Diversity Shapes Long-Term Planning Data-Driven Perspective on the Makeup of Your Membership Chris Barron, CCM – Club Benchmarking 45
What is the Net Promoter Score? On a scale of 0 to 10 (with 0 being the lowest and 10 being the highest), how likely are you to recommend the Club to family and friends? XYZ Club Net Promoter Score 14% Detractor 12% Detractor © 2022 Club Benchmarking, All Rights Reserved. 46
** Average NPS by industry according to NICE SATMetrix © 2022 Club Benchmarking, All Rights Reserved. 47
• Club Benchmarking has calculated NPS scores from nearly 56,000 members representing 71 individual clubs. NPS is Widely Used • For context, NPS scores vary by industry. The graphic below shows the average NPS for various industries according to NICE SATMetrix. • Their research cites the average NPS across 200,000 companies at 32. Within that context, clubs tend to perform on the higher end of the spectrum. • Club Benchmarking data shows the median NPS in the club industry is 48; just below the Forbes hospitality average. ** Average NPS by industry according to NICE SATMetrix © 2022 Club Benchmarking, All Rights Reserved. 48
As a private club leader, apply this concept to your members. Do we want our members to buy more, stay longer, refer friends and provide helpful feedback and ideas? YES! © 2022 Club Benchmarking, All Rights Reserved. 49
• Median age of survey responses was 65, with the average age being 63. • Due to the high amount of residential community clubs within the 71 clubs surveyed, the ages of 65 and 63 respectively, are higher than the industry average age of a club member, which is 58. • Overall, in the industry, residential community clubs make up 18% whereas in this survey, residential community clubs make up 32% of the clubs surveyed. Overall NPS derived from 40,895 respondents in this survey set was 46 (59.7% Promoters – 13.7% Detractors = 46 NPS) Just below CB’s median of 48 from all respondents (In certain of CB’s surveys, the age and membership tenure were not gathered. As such, for this analysis that data was not included). © 2022 Club Benchmarking, All Rights Reserved. 50
Background For this study, we used existing generational age ranges to look for differences Age Distribution # of Generation Birth Years Respondents Greatest Generation 1925 or earlier 35 Silent Generation 1926 - 1945 6,982 Baby Boomers 1946 - 1965 22,829 Gen X 1966 - 1980 7,901 Millennials 1981 - 1997 3,102 Gen Z 1998 or after 46 Total 40,895 ** Gated Community Representation © 2022 Club Benchmarking, All Rights Reserved. 51
NPS by Tenure Years of Tenure % of Responses Average Rank (0-10 Scale) Detractors Passives Promoters NPS Findings 0 to 5 30% 8.6 11.1% 27.1% 61.8% 50.7 6 to 10 19% 8.4 14.7% 27.0% 58.3% 43.6 Little to no variation outside of 11 to 20 25% 8.4 14.8% 26.1% 59.1% 44.3 the newest members. 21 to 30 15% 8.3 14.9% 26.8% 58.3% 43.4 “Honeymoon stage” 31 to 40 6% 8.4 14.5% 25.7% 59.8% 45.3 Over 40 5% 8.4 14.8% 24.6% 60.6% 45.8 Generation % of Average Rank Detractors Passives Promoters NPS • Gen X – the generation joining Responses (0-10 Scale) Club’s currently are only 53% Greatest 0.1% 9.2 8.6% 0.0% 91.4% 82.8 likely to recommend their friends to join the Club. Silent 17.1% 8.6 11.8% 22.7% 65.4% 53.6 Boomers 55.8% 8.5 13.2% 25.4% 61.4% 48.2 • % of Detractors is consistent, the variance in Passive and Gen X 19.3% 8.2 15.7% 31.3% 53.0% 37.3 Promoters is the alarming Millennials 7.6% 8.2 15.7% 32.2% 52.0% 36.3 discovery Gen Z 0.1% 8.2 15.2% 32.6% 52.2% 37.0 © 2022 Club Benchmarking, All Rights Reserved. 52
• Nearly every club struggles with the balance of “generational perspectives” when it comes to the member experience and cost of belonging. • Elder members tend to be more content with “status quo”, as opposed to younger members who want more and are willing to pay more and have higher expectations. • Our survey indicates a club with an NPS Score of -18, all the way up to a club who scored an NPS of 88. • Overall clubs still have work to do to match other hospitality organizations whose NPS averages 53 (per Forbes). • Gen X data showing only 53% of that generation (Ages 42-56) would recommend their club to a family or friend, an alarming trend as this is the prime age range for those choosing to join a private club. • Every club must, by definition, cater to a broad array of generations and must therefore understand intimately how satisfaction and loyalty vary across the membership in relation to member’s age and tenure. © 2022 Club Benchmarking, All Rights Reserved. 53
Time To Evolve Tom Wallace CCM, CCE, ECM – Kopplin Kuebler & Wallace 54
AS THE INDUSTRY EVOLVES, SO MUST CLUB GOVERNANCE 55
NOMINATNG COMMITTEE 56
LEADERSHIP DEVELOPMENT COMMITTEE 57
• Engaged in club programming NEXT-GEN • Effective communicators BOARD MEMBER • • Prioritize stewardship Fair and objective thinkers ATTRIBUTES • Frequent & diverse use of club facilities 58
NEXT-GEN BOARD PRIORITIES 59
CULTIVATING A DIVERSE BOARD 60
ORIENTATION CHECKLIST They have excellent orientation processes for every constituency. 61
DEFINE ROLES & RESPONSIBILITIES 62
EMERGING TRENDS… 63
VOLUNTEER LEADERSHIP SHOULD BE A LIGHT LIFT 64
AS A BOARD OR COMMITTEE MEMBER….. YOU DON’T OWN EVERY PROBLEM! 65
FREQUENT & CLEAR COMMUNICATION 66
SUCCESSION PLANNING 67
CONTINUOUS EDUCATION OF STAKEHOLDERS CONTINUIOUS EDUCATION EDUCATION IS THE KEY TO SUCCESS OF STAKEHOLDERS 68
STEWARDSHIP 69
BOARD & COMMITTEE BEST PRACTICES "CHECKLIST" 70
Q and A 71
Thanks For Attending! See you at our next Webinar 72
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