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NGCOA SOLUTIONS SUMMIT Profiling your Future Customer Kathy O’NealSusanne R. Wegrzyn Senior Vice President of MembershipPresident & CEO Club Corp National.

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Presentation on theme: "NGCOA SOLUTIONS SUMMIT Profiling your Future Customer Kathy O’NealSusanne R. Wegrzyn Senior Vice President of MembershipPresident & CEO Club Corp National."— Presentation transcript:

1 NGCOA SOLUTIONS SUMMIT Profiling your Future Customer Kathy O’NealSusanne R. Wegrzyn Senior Vice President of MembershipPresident & CEO Club Corp National Club Association 3030 LBJ Freeway, Suite 6001201 15th St., NW, Suite 450 Dallas, TX 75234Washington, DC 20005 972-888-73591 (800) 625-6221

2 Where do we begin?  Who is your customer today?  How are the demographics of the customer changing?  How do golf courses change their offering/marketing styles to keep/attract more of these customers?  Key factors to consider in attracting the customers of the future

3 Demographic Trends: Population  U.S. birth rate flat  11% of population foreign-born  Rising immigrant population:  Minorities becoming majorities  Most immigrants in their 20’s

4 Impact of Immigration  Half of U.S. population growth since year 2000 was Hispanic  50% of Hispanics under < 27 yrs  Hispanic & Asian populations growing by 3-4 % annually  Major focus for Congress & White House  Politicians often divided into camps: (1)Hard-liners (“law & order”) (2)Pro-business (welcome cheap labor)

5 Population Trends: Cities & Regions  Urban resurgence of 90’s fading: many large cities declined in population 2-5% in last 5 yrs  Factors:  High housing costs  (little land for development)  Post 9/11 safety concerns  Local economies  Fastest growing cities – obscure suburbs (exurbs)  Most growth in South & West (CA, FL, AZ, NV)

6 Population Trends: Micropolitan Areas  Areas with population of 10,000-50,000  Blurring between metro & rural areas  Towns/counties that are nor urban or suburban - - but too developed to be rural (“rurban”)  10% of U.S. population now, but one of fastest growing segments  Attracting city dwellers: -- Conveniences of metro areas, lower real estate costs, slower lifestyles, country charm  Appealing to retirees: --Conveniences, good medical care, golf

7 Demographics: Age Aging of America  Median age of U.S. in 2005: 37 yrs  Average club age: 56 yrs Youth Bubble  Nearly 25% of population under age 18  Gen X (25-40 yrs) ½ the size of Boomers  Until Gen Y matures (16-25 yrs), will have smaller population for customers & workers

8 Demographics: Baby Boomers  3 million Boomers turning 60 this year (8,000/day)  Will be over 70 million retired Boomers in next 40 years: many 82-100 yrs old (healthier lifestyles, medical advances)  80% of Baby Boomers likely to phase in retirement & work part-time (consultants or entrepreneurs)  Retirement concerns: economic issues, staying mentally active, meaningful/flexible work  20% of retirees likely to relocate – with sizable discretionary income

9 Impact of Baby Boomers  Half of consumer spending in U.S. -- “As boomer tastes go, so goes the marketplace.”  Prompting retailers to develop new product lines: -- New Gap stores for women > 35 yrs -- Houses designed with two MBR’s -- Stylish new grab bars for bathrooms -- Redesigned utensils & appliances for those with arthritis  Yet don’t want to be viewed as “seniors” -- appeal to their interests, lifestyles & values, but not age (Some still ride motorcycles!!)

10 Baby Boomers: NAHB Study  49% of homeowners > 55 yrs likely to consider an “active adult” community  Major interests: communities with active lifestyles, fitness centers, social interactions, & easy access to fine dining  Change from the past: boomers may be less likely to seek coastal areas & golf communities -- greater interest in parklands & fresh lakes (trees, grass & water minus the golf balls) Source: 2005 research study conducted for the National Association of Home Builders

11 Demographics: Gen X and Gen Y  Generation X: -- Moving into middle management jobs -- Looking for different ways to network (especially with technology)  Generation Y -- Will be fastest growing segment of workforce -- High expectations of themselves & their employers (will change jobs more often) --Seeking creative challenges & immediate responsibility --Even stronger emphasis on technology

12 Demographics: The Family  Married couples with children: now 23% of households & declining  Fewer children per family (2.3 in 1960; 1.9 today)  Divorce on the decline (from 23% in 1980 to 18% today)  Marriage rate down (50% decline since 1970) -- co-habitation up (“Will you be my POSSLQ?”)  Higher ages for 1 st marriages

13 Singles: Growing Market Force  Nearly 50% of U.S. households now headed by unmarried people  89% of single households: partners of opposite sex  Six states grant legal rights to significant others (CA, MA, NJ, HI, VT, CT). MA recognizes same- sex marriages.  Nationwide split among states likely to cause continued challenges

14 Lifestyle Trends: Time Starved  Time-Starved, Casual Lifestyles --Increased demand for short-cuts on time (takeout food) --Lifestyle integration to deal with overcrowded schedules (blurring lines between work & personal time) --24/7 access to world around us (has become “24/10”) --Affects golf play: 62% of golfers who quit & 20% of those who want to play but don’t say it was due to time constraints

15  An increased focus on the wants, needs, and desires of children  Social status attached to “child-first” attitude  Parental guilt attached to “me-first” attitude -- Particularly among Generation X parents  Represents significant shift from prior generation Lifestyle Trends: Child Centeredness % Strongly Agree “Once You Have a Child, Your Own Needs Come Second” Source: DYG SCAN October 2003

16 Internet Influence  Over 150 million Internet users in U.S. today -- could soon reach 1 billion worldwide  88% of Americans say it plays key role in daily lives  79% use it to communicate with friends/family  87% of golfers use the Internet  42% of core golfers visit golf-related websites; 20% book tee times online  23% of golfers go online to select a golf destination

17 The Luxury Market Generally, the Luxury Market is defined as the top 2 to 5% income earners with net assets greater than $1M US Households by Income Source: US Bureau of the Census 2002 ‘000s $75 -$100k$100 -$150k$150 -$200k$200 -$250k>$250k 11%9%3%1% Annual Income % of Total Market 5.6M

18 The Luxury Market  Baby Boomers: The Luxury Generation --Have 10% of the money in the world --Prime target for luxury marketers due to size & affluence --Have means & desire to keep spending (children moving out) – more disposable income.  Gen X and Gen Y --Will become target markets --Strong interest in entertainment, technology & personal indulgence (at least while single)

19 “Cocooning” trend of past: inward focus on home, baby boomers raising children, home decorating & entertainment. Now driven by desire to reconnect with external world, thru media, travel, electronic networks. Goal: to become part of something bigger than one’s own narrowly defined landscape. Source: Let Them Eat Cake, Pamela Danzinger - Copyright 2005 The Luxury Market

20 Cautious & Risk Adverse Protective of personal financial resources Seeking relevant & quality experiences, & alignment with their values 31% belong to country clubs; 21% to golf clubs Affluent Consumer Profile The Luxury Market Source: Let Them Eat Cake, Pamela Danzinger - Copyright 2005

21 Attracting the Luxury Market Looking for - Personalized service Quality Entertainment Health and Wellness Programs Relevant Offerings (Casual dining, Jr. & Women programs) Opportunities to connect (social/recreational) Convenient Communication (Internet & e-mail) Value for Price

22 Women Buying for Business  Corporate 49% of corporate decision makers  Small Business Owners Women own 40% of small businesses 70% of all new business start-ups for past decade Marketing to Women, Martha Barletta Copyright, 2003 The Emerging Club Market

23 Women in Higher Paying Occupations Professionally speaking…  50% of Law School degrees  46% of Medical degrees  38% of Business degrees Source: New York Times, 3/26/01 Marketing to Women, Martha Barletta Copyright, 2003 The Emerging Club Market

24 Women Earning MORE  Working wives now out-earn their husbands in nearly 1/3 of U.S. Households  198718%  199722%  199925%  200130% Source: US BLS, Washington Post, 2/27/00 Marketing to Women, Martha Barletta Copyright, 2003 The Emerging Club Market

25 Women Will Inherit Twice  Baby Boomers – will inherit from their parents  Largest intergenerational transfer of wealth in history  In turn, widows will inherit from their husbands Marketing to Women, Martha Barletta Copyright, 2003 The Emerging Club Market

26 Keys for Success Universal Factors that Appeal to all Customer Demographics

27 Value  While our audience may have discretionary dollars, they still choose to spend them wisely  Offerings that provide family interest or satisfy a variety of needs or desires are optimum  “Value” doesn’t necessarily mean discounting.

28 Personalizing the experience  Calling your customer by name  Creating “magic moments” by remembering personal facts  Making them feel as though they are more than just a part of the masses  Welcoming them back!

29 Creating the “experience”  Clean, quality, competitive facilities  Cheerful, helpful staff  Doing the little things that set you apart from the “rank and file”  Making the experience “memorable”  Little things, not costly things make the difference!

30 The Female Customer  Consider the multiple profiles of women - mothers, spouses, single women, business women  What are the commonalities that bridge all of these profiles?

31 Key Considerations  Women prefer to multi-task. Their golf experience could potentially:  Help them learn a new sport  Help them “fine tune” their game  Meet new friends  Meet new business prospects  Provide a healthy outlet  Provide a shared experience w/family or friends

32  Recognize as professionals  Recognize as “Family Gatekeeper” (Chief Purchasing Officer & Social Director)  Make club part of family lifestyle -- Club events for whole family  Build on relationships Club Marketing to Women Marketing to Women, Martha Barletta Copyright, 2003

33 What are Women Looking for in a Golf Experience  Minimum requirements - convenient, clean, competitively priced  Show the club has attracted other women in the past - won’t be the “lone ranger-ette”  Have a social component for after-golf socializing  Be unthreatening and non-intimating in atmosphere

34 What else?  Has to go beyond just being a facility  Provide activities, events, opportunities for social interaction and skill improvement  Again - appeal to all profiles - single events, family (mother/daughter, husband/wife), etc.  Club fittings for women audience

35 Marketing to Women  Where do you reach them:  Women’s organizations - EWGA  Advertise in “lifestyle” sections of newspapers  Place ads in local women’s magazines  Partner with spa’s and health clubs where you leave flyers on upcoming women’s events you may be planning

36 Women-friendly advertising  Make it colorful  Use language that describes social and skill improvement opportunity  Make it fun  Use pictures with women having fun @ the Club  Populate web site with lots of details

37 Why go after the Junior golfer?  GOLF 20/20 confirmed that early instruction in golf leads to greater long-term involvement in the game.  Adults exposed to golf through a structured junior program play 58% more rounds and spend 71% more money on golf than those informally introduced to the game in childhood

38 Additional reasons:  They are the future of the game!  Attracting the junior golfers means fathers, mothers and other siblings will follow  Creates a great image for the facility within the community  Offers a well-rounded package to the family!

39 How do you attract the Junior golfer?  Target schools, YMCA’s, YWCA’s, Boys and Girl’s Club  Offer summer (and possibly year-round Junior activities)  Make the events fun, competitive and memorable!

40 Best Practices  Tell us how you market to women and juniors  What has worked?  What do you do on an ongoing basis?

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