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
2022 Outlook

Building the
Multigenerational Club

National Club Association, McMahon Group,
KOPPLIN KUEBLER & WALLACE, Club Benchmarking
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.

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CLUB TRENDS 2022 OUTLOOK - BUILDING THE MULTIGENERATIONAL CLUB NATIONAL CLUB ASSOCIATION, MCMAHON GROUP, KOPPLIN KUEBLER & WALLACE, CLUB BENCHMARKING
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
CLUB TRENDS 2022 OUTLOOK - BUILDING THE MULTIGENERATIONAL CLUB NATIONAL CLUB ASSOCIATION, MCMAHON GROUP, KOPPLIN KUEBLER & WALLACE, CLUB BENCHMARKING
Today’s
                      Presenters

 Henry      Phillip   Kevin      Chris     Chris    Tom
Wallmeyer   Mike      Carroll   Coulter   Barron   Wallace

                                                             4
CLUB TRENDS 2022 OUTLOOK - BUILDING THE MULTIGENERATIONAL CLUB NATIONAL CLUB ASSOCIATION, MCMAHON GROUP, KOPPLIN KUEBLER & WALLACE, CLUB BENCHMARKING
Generational Changes:
How New Lifestyles and Preferences are
    Challenging Today’s Standards

          Phil Mike – National Club Association

                                                  5
CLUB TRENDS 2022 OUTLOOK - BUILDING THE MULTIGENERATIONAL CLUB NATIONAL CLUB ASSOCIATION, MCMAHON GROUP, KOPPLIN KUEBLER & WALLACE, CLUB BENCHMARKING
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
CLUB TRENDS 2022 OUTLOOK - BUILDING THE MULTIGENERATIONAL CLUB NATIONAL CLUB ASSOCIATION, MCMAHON GROUP, KOPPLIN KUEBLER & WALLACE, CLUB BENCHMARKING
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
CLUB TRENDS 2022 OUTLOOK - BUILDING THE MULTIGENERATIONAL CLUB NATIONAL CLUB ASSOCIATION, MCMAHON GROUP, KOPPLIN KUEBLER & WALLACE, CLUB BENCHMARKING
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
CLUB TRENDS 2022 OUTLOOK - BUILDING THE MULTIGENERATIONAL CLUB NATIONAL CLUB ASSOCIATION, MCMAHON GROUP, KOPPLIN KUEBLER & WALLACE, CLUB BENCHMARKING
Digitization of Shopping

                           9
CLUB TRENDS 2022 OUTLOOK - BUILDING THE MULTIGENERATIONAL CLUB NATIONAL CLUB ASSOCIATION, MCMAHON GROUP, KOPPLIN KUEBLER & WALLACE, CLUB BENCHMARKING
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
39
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
42
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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