NGCOA SOLUTIONS SUMMIT Profiling your Future Customer Kathy
ONealSusanne 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
www.clubcorp.comwww.natlclub.org Slide 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 Slide 3
Demographic Trends: Population U.S. birth rate flat 11% of
population foreign-born Rising immigrant population: Minorities
becoming majorities Most immigrants in their 20s Slide 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) Slide 5 Population Trends: Cities & Regions Urban
resurgence of 90s 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) Slide 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 Slide 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) the
size of Boomers Until Gen Y matures (16-25 yrs), will have smaller
population for customers & workers Slide 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 Slide 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 MBRs -- Stylish new grab bars for bathrooms -- Redesigned
utensils & appliances for those with arthritis Yet dont want to
be viewed as seniors -- appeal to their interests, lifestyles &
values, but not age (Some still ride motorcycles!!) Slide 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 Slide 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 Slide 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 Slide 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
Slide 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 dont say
it was due to time constraints Slide 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 Slide 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 Slide 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
Slide 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) Slide 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 ones own narrowly defined landscape. Source: Let Them
Eat Cake, Pamela Danzinger - Copyright 2005 The Luxury Market Slide
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 Slide 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 Slide 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 Slide 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 Slide 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 Slide 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 Slide 26 Keys for Success Universal Factors that Appeal
to all Customer Demographics Slide 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 doesnt necessarily mean
discounting. Slide 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! Slide 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! Slide 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? Slide 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 Slide 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 Slide 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 - wont be the lone ranger-ette Have a
social component for after-golf socializing Be unthreatening and
non-intimating in atmosphere Slide 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 Slide 35 Marketing to Women
Where do you reach them: Womens organizations - EWGA Advertise in
lifestyle sections of newspapers Place ads in local womens
magazines Partner with spas and health clubs where you leave flyers
on upcoming womens events you may be planning Slide 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 Slide 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 Slide 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!
Slide 39 How do you attract the Junior golfer? Target schools,
YMCAs, YWCAs, Boys and Girls Club Offer summer (and possibly
year-round Junior activities) Make the events fun, competitive and
memorable! Slide 40 Best Practices Tell us how you market to women
and juniors What has worked? What do you do on an ongoing
basis?
