Board strategy discussion- Membership
Purpose of Review Identify and ensure alignment of the primary elements of a “successful” membership model in the future • A model we would be proud to promote • Reflects the ideals of Golf Canada and the PAs • That furthers the overall objectives of Golf Canada Identify the next steps
Membership Presentation AGENDA • Membership Model Overview • Analysis of current membership • Analysis of membership value • Review of 2013 • 2014 Plan • Board Discussion: • What Success Looks Like • Alignment of Golf Canada’s objectives from Membership Program
Overview Membership currently serves a number of purposes: • Revenue • Reinforces a fundamental value of the game through the handicap and course rating • Connection to significant number of players for the purposes of: • Sponsorship • Fundraising • Brand Development The definition of “Membership” has changed: • Facebook • Twitter • Casual social networks
Current Situation Private Club Membership: • 198 clubs/112,000 members % of Market 95% Semi-Private Clubs • 1063 clubs/199,000 members % of Market 80% Leagues/Public Players: • 29,700 members (14,000 Public Players) % of Market .005 Public Courses: • 176 facilities $ of Market 30% The % of private/semi-private clubs has remained fairly stable over past 10 years. The membership at clubs has declined. Challenges: 1) Public player: growth has been slow 2) Public Golf Courses: revenue $100 so hard to justify investment in recruitment
Breakdown on segments
Membership Over Last 10 Years 2004: 391,000 members 2012: 331,000 members Projecting a continued decline a current rate: 2020: 281,000 members Revenue loss has been offset by dues increase: 2009: $3.00 2013: $2.00 2014: $1.00 Provincial and national combined dues vary by province (see following chart) between $25 - $33. Continued rate increases under current model will be challenging to implement.
Dues by Province (incl. Provincial and National amounts) CATEGORY I CATEGORY II CATEGORY III Golf Club with Members and Real Estate (may be Golf Course without members Club with members but no real estate private or semi-private) CLUB RATE PUBLIC PLAYER FACILITY MINIMUM Score PROV ADULT JUNIOR Centre Fees ADULT JUNIOR ADULT JUNIOR 9 H 18 H 27 H 36 H FEE MEMBERS BC $32.00 $31.00 $125.00 15 $32.00 $31.00 $45.00 $45.00 $300.00 $600.00 $900.00 $1200.00 $1,445.0 0 $1,445.00 $1,445.00 ON $27.50 $18.00 60 $3.50 $27.50 $18.00 $31.00 $31.00 $925.00 $1,000.0 0 $1,500.00 $2,000.00 QC $29.00 $15.00 60 $29.00 $15.00 $39.99 $19.99 $500.00 $3,000.0 0 $3,500.00 $4,000.00 AB $25.00 $19.00 120 $25.00 $19.00 $45.00 $45.00 $1,250.00 SK $26.00 $20.00 25 $26.00 $20.00 $40.00 $30.00 $400.00 $600.00 $600.00 $600.00 $3,960.0 0 $5,940.00 $7,920.00 PE N/A N/A N/A N/A N/A N/A $1,980.00 MB $25.00 $18.50 10 $25.00 $18.50 $29.95 $29.95 $700.00 $900.00 $1,400.00 NL $25.35 $19.16 $39.95 $39.95 $300.00 NB $27.00 $19.00 $27.00 $19.00 $44.95 $44.95 $250.00 $250.00 $250.00 $250.00 NS $24.00 $18.00 $24.00 $18.00 $34.74 $34.74 $500.00 $500.00 $500.00 $500.00 AVG $26.76 $19.74 $26.94 $19.81 $38.95 $35.62 $695.50 $1,311.67 $1,698.33 $2,108.13
Dues by Province – Details GAO adds a $3.50 charge for access to the Golf Canada Score Centre ON As of 2012 GS charges $200 sand green, $400 for 9 hole grass, $600 for 18 hole (or more) grass green SK Minimum amount for any club is $500 annually for membership NS Flat fee of $220 per hole for every club – no public player memberships available PE Cat III fee is for public courses only. Private and semi-private pay by the member - min. 60 members QC Only one $300 Facility Fee in province NL All Categories have a minimum fee of $3,000 regardless of the number of members (equivalent of minimum 120 members) AB Re-Instatement fee of $500 MB Initiation fee of $100 / Facility Fee on top of membership fees BC
Current Implementation PROVINCIAL ASSOCIATIONS: • Invoice and collect membership dues, remitting GC portion. • Contact for member clubs • Organize and implement course ratings • Run seminars (rules, handicapping, course rating) • Some individual customer service* • Some discounts/offers and cross promotions* • Provincial/regional championships *varies by province
Current Implementation GOLF CANADA: • Membership cards • Golf Canada Score Centre • Customer Service * • Golf Canada magazine • Group benefits/discounts • National Championships • GC reconciles dues in concert with PA reporting • Assists in member club management & recruitment • Handicapping & course rating agreements, courses and manuals
Concerns in the Market • Private clubs: Indicate they are carrying the development of the game and everyone should contribute. • (i.e. Toronto Golf Club: 1054 members = $31,952 vs Lakeview GC public facility 1/2 km away - $1445.00) • Public/Semi-Private facilities indicate there is no value in membership at the course level: Either they don’t have members or not all members are interested in maintaining a handicap or participating in events. • Clubs feel they are paying from their bottom line regardless of whether they are billing through to members or not • It seems apparent that most clubs/courses at the management level make little effort to explain membership and many do not take advantage of the services available to them. • Significant amount of resources are committed to trouble shooting rather than proactive activities. • Continue to face challenges regarding our our mandate and carry a stigma both from the money in the bank and “old approach”
Current Membership Offer - Clubs • Course and Slope Rating • Presence on the score centre allowing 200,000+ players can post scores • Golfcanada.ca – Canada’s most visited golf web property: Course Search 25,000 visits YTD/average time 2 minutes • Bulk discounts (credit cards, app providers, Aeroplan/loyalty programs) • Membership cards and tools for cross promotion (i.e. between golf clubs/other services in town) • Data (Rounds posted, data on players) • Grow the Game initiatives / programs
Current membership offer - Individuals • Official Handicap: • Score posting, statistics tracking • Golf Canada magazine home delivery • Global Golf News • Other discounts/benefits • PA offers (discounted golf, golf travel etc.) • Grow the game/philanthropic story • Personalized membership card with QR code and other benefits • Access to events
Recap 2013 Membership Strategy • Built on work to date connecting to individual members • Reinforced value of membership at both individual and club level • Ensured members are aware of where and how their information is used • Provided opportunity for individual members to make their own choices regarding communications • Added security to member’s account settings and information • Connected all handicap systems
2013 Results – Nationally (as of Sept. 24, 2013)
2013 Results Provincially (% of total membership)
2013 Results by Province
Comparison – Permissions Granted
Handicap Vendors • There are now 2 licensed vendors of the Official Handicap in addition to our official supplier • $17,000 was spent building the required APIs to connect GGGolf to the Score Centre (approx. 100 clubs and 25000 members) • Three (3) clubs use the third provider – Krismer • Over 100 clubs are being converted from Tee-On* * Clubs in Ontario are rebelling against the $3.50 fee charged by GAO for access to the Score Centre
Significant Changes/Impacts • Mobile Score Posting App (35,000 downloads) • Elimination of manual entry • Improves accuracy of handicap calculations • Reinforces the value of membership • 10+ clubs rejoined based on the elimination of manual entry • 10,800 customer service enquiries from individuals were responded to YTD (January and July: topics included card inquiries, score centre questions, credential requests, renewals, transfer/merger requests, scandicap, app, manual entry handicap, rules, tournament registrations) • 580 clubs were assisted in the same time period
Member Benefits Score Posting: 6,150,000 (to date) Home Delivery Golf Canada magazine (80,000) Global Golf Post: delivered weekly to 98,833 Member Pricing on Merchandise ($53,741/663 members) Ticket Offers RBC Insurance ($14,200 in policy commissions, 500 quotes) IHG Hotel Rooms (401) International Golf Network: Introduced this year, excellent response from members and member club (connecting members accounts at non-Canadian clubs)
Member Club Benefits • Promotion on www.golfcanada.ca • Enhanced search tool • Preferred rate for Golf Canada member clubs with Gallus Golf App (golf course specific app including scoring, GPS, push notifications, and connects Golf Canada Score Centre) • Access to Aeroplan program at minimal up front commitment • Data gathering (Scores posted to course, member posting & other score centre data) • 433 Clubs ordered membership cards for their entire roster • 17 used membership cards as their own card • 135 took advantage of offer to manage their roster
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