Crushing Club Marketing Podcast
Crushing Club Marketing is a podcast for progressive private club leaders interested in increasing revenue. Our focus is on leadership, innovative digital marketing strategies and business trends that will shape the direction of clubs and drive growth in an evolving market.
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Why Your Club Website is the MVP of Your Membership Team
02/05/2024
Why Your Club Website is the MVP of Your Membership Team
Websites are constantly evolving. No longer is your website an online brochure. It should be a critical part of your membership and marketing team. Remember the early days of websites? Some businesses didn’t think they even needed one. They were really basic and let’s face it, were more of a digital brochure. Lots of copy, a few pictures and of course, no video. In the early years, the idea of having a website that could drive new members, increase revenue and answer questions for members and prospective members was unheard of. It just didn’t exist. Today, people who come to your website want to know more about your amenities, your staff and mostly, they want to know about your members to see if they’ll fit in. They are looking for answers and they want them now - are you able to help them, even if it’s after hours? In this episode, Lisa Schmidtke, a seasoned website developer and designer, and I get into websites to talk about what you can do to make your website the top performing of your membership team. Episode Highlights: 2:53: Ed and Lisa discuss the missed opportunity in having website images of amenities without people. 5:03: What is organic search as it relates to a website and why that matters when it comes to getting found online. 7:39: Ed explains how most club websites are missing key pieces of information that help them get found online. 9:14: The impact of a blog on your website. 12:06: Ed and Lisa talk about how blog content can attract the next generation members who are looking for kids activities online and may not realize they can find them at your club. 14:58: Ed and Lisa talk about automating your new member inquiries. 17:22: Optimizing the time your Membership Director spends with prospective members. 23:33: Lisa talks about what progressive club leaders should think about when building a new public facing website. 27:31: Lisa and Ed talk about hidden costs and the fact that when some website developers in the club space offer "free" public facing websites, they're not really free. Podcast Transcript Ed Heil [00:00:00] Hey there, Lisa. How are you doing today? Lisa Schmidtke [00:00:03] I'm great. How are you, Ed? Ed Heil [00:00:04] I'm doing just fine, thanks. Thanks for for joining in on the fun here with Crushing Club Marketing. Lisa Schmidtke [00:00:10] Happy to be here. Ed Heil [00:00:11] All right. So in full disclosure, Lisa and I do work together. So the conversations that we're having have been had before to some degree, but to frame it up for you to just, you know, to be able to hear some some different thoughts around web design and development, you know, we thought that it might be helpful for Lisa to share her insights because Lisa, as we mentioned, has her career has been in building and designing websites and and so much more expert in this area than I am, for sure. So looking forward to the conversation today, Lisa. Lisa Schmidtke [00:00:51] Yeah, I am as well. Ed Heil [00:00:52] All right. So let's just talk a little bit about we'll just dive right into this because club websites are, you know, depends first of all, it depends on the type of club you're at. We recognize the fact that there are some clubs and there's very few, but there are, you know, the elite clubs in this country that really don't need to worry about this. I mean, in my opinion, I think in I think you would agree that all clubs really should think about how they're presenting themselves online these days, because it's an opportunity to show your club off and your space, your membership to some degree. But recognizing this might not be a priority for some clubs or for the vast majority of other clubs. How they look and come across online is pretty important. Lisa Schmidtke [00:01:37] Yeah. Yeah. I would agree. In just like you said, even if they're not using it as a marketing tool or a lead generation tool, you know, inevitably somebody, one of their members may be a guest of a member is going to go to access the website. And, you know, it's got to reflect the vision and the professionalism of the course. Ed Heil [00:02:00] Yeah. And so when we talk about websites and the conversations that we have with club leaders, so often they go to the functionality of the back end and there are some very strong developers of the back end experience for for members and they're getting better and better. And that member experience in the back end is getting better and better. Well, we're going to talk about today is really that front end that what we always refer to internally is the public face and that part of your website where when I'm searching your club and I find you that side of the website, that is where we're going to spend most of our time today. And so let's just start with there. Like why does that matter? Why? Why are we spending time today talking about the importance of that side of the website? Lisa Schmidtke [00:02:53] Yeah, you know, I say it's because, you know, as far as the private the member side, as we call it, you know, that the software that most people are using do do a fine job of of allowing people to make a tee time and sign up for dinner reservations and, you know, things like that. But and most of that functionality people are getting from their their app anyway. But really with the front with, the front facing side since the members are really just looking to come to the website, do what they need to do, log in and move on. If they go to the website at all, the the majority of the websites should be focused on on the front facing and and by that I mean the copy, the graphics, the design should, should be designed so that prospects can actually see themselves at the, at the club and envision what it would be like to be a member there. Ed Heil [00:03:46] Yeah. And as I was saying, you know, in the in the intro to our conversation, today's, you know, in talking to so many club leaders through the years in fact there's there's one at one of my CMAA workshops we use one of the clubs as the organizer of the, the host of the event I should say, we use his club as an example in a lot of beautiful spaces, a lot of beautiful amenities, but no people at all. And which is really, I think, you know, is that that's one of the biggest mistakes that we probably see out there, isn't it? Lisa Schmidtke [00:04:24] Yeah, absolutely. I mean, you know, because what happens in is the photos often look like stock photography. People can't even tell if it's really a photo of the club or not. And then back to what I said, it's really hard for a person to envision and see what it would be like using that pool, playing that course, if there are no people on the course and in the pool. Ed Heil [00:04:45] Right. Everyone wants to be able to look at that and go, Can I see myself there? Can I see my family there? Right. And if it's stock imagery, let's face it, stock images look like stock images. I mean, they look kind of hokey, right? I mean, there's some. They're better than others, but for the most part, kind of hokey. Lisa Schmidtke [00:05:02] Yeah, for sure. Ed Heil [00:05:03] All right. From the back. From a development perspective, let's just talk about that. You know, as far as, you know, and you've been you've seen the back end some, you know, some club websites today, they're missing certain elements that would enhance organic search. Can you just talk about what is organic search? Why does it matter and what, what's missing? Lisa Schmidtke [00:05:29] Yep. Yeah. So organic search, you know, that that is, you know, not to be too elementary here, but that is, you know, somebody puts a keyword into the search engine. There are paid ad results below that and on on pages beyond the first page there are organic. So the goal really should be to try to rank as high as you can organically so that you don't have to well, number one, so that you start showing up at all. And number two, that you don't have to then do paid ad strategies. You know, there are a number of of coding practices that a platform should adhere to that backend code, that metadata all important. But, you know, I would say that the web building tools should just automatically be optimized for that. You know, you shouldn't have to work around or spend a lot of time trying to get your code to be up to par for search engines. So that should be a given. And we find that a lot of clubs, software that, you know, that are used for these private club side of of the of their websites, even those are not really built to be optimized for that's a lot of messy code lots going on they're hard to update. So just getting a website on a platform that's just there code and back in is optimized is step one. Really is everything you do beyond that, the and the key to then being ranking high in search engines is to providing valuable educational content on a consistent basis. And that doesn't mean adding a bunch of web pages or spamming it with keywords know a very effective tool for that. And in our world is blogging and with the, you know, blogging, that is how clubs can really help to seed new members in a more detailed way. So not just photos, not just a web page, but information, detailed information highlighting members and staff is a is a really effective tool for that as well. Ed Heil [00:07:39] All right. I want to go I want to dive a little bit deeper into blogging in a minute, because in the workshops that I've done that always comes up is like because storytelling always ends up with like, well, how should we do it or should it go? And blogging is is one of those vehicles. And we could probably spend a whole other podcast talking about that as well, as well as organic versus paid search and all of us. But anyway, I don't want to complicate it. I do want to just if you're listening to Lisa and you're going, well, code, what is that? And metadata and stuff like that. Just, I do want to try to provide some explanation of that that's not going to go too in-depth. And let me just take a quick crack at at least until or I'm screwed up. Websites are usually built with their, you know, code. Right. And we think about that. And sometimes there's words that go into the back end of the website that tells like, Google. When we talk about search engines, Google is a search engine. Yahoo is a search engine, Right? So there are certain words that go into a website or that should go into the back end of a website that automatically tells search engines certain things about your website, right, like content or what you do or things like that. So we talk about coding, we talk about organic search. We want your website to perform in a way or all web sites to perform in a way so that when people are looking for certain things, whether it's golf courses, tennis facilities, things like that, that your site organically comes up. How do I do? Lisa Schmidtke [00:09:12] That's perfect. Great job. Ed Heil [00:09:14] Oh, thank you. Thank you for that. So so just with that as a backdrop, so let's just let's dive into the blogging and organic search thing for a minute here so we can just, you know, hopefully provide some ,some clarity around that because people will say sometimes, like one of the questions I always get Lisa's like, well, when people come to our website, who's how will they find our blog? Yeah, right. Like, that's a common the common thing. So what do you say to that? Lisa Schmidtke [00:09:44] Yeah, I mean, certainly it should be, you know, promoted all over the website. You know, sometimes we use "pop ups" to say, subscribe to our blog. It should be featured on the homepage. But, you know, a lot of times depending on the topic, search engines like Google, will, will even show the blog before they show your homepage or another page on your website. So if it provides enough information that that user is looking for, it's likely to show up. Ed Heil [00:10:14] Yeah. And so that's why it's such a great differentiation, differentiation to make, because what people forget sometimes is that a lot of website visitors find a website not through the homepage or if you think about it as your house, not through the front door, but through a side door, which is a blog. So there's a term that I love in and some of the analytics we see, which is entrances, right? Like visits and entrances. And sometimes an entrance is like, how did they enter into that website? And a lot of times like you're saying, they're their biggest their most entrances are coming through a blog post that someone has written. Lisa Schmidtke [00:10:54] Yeah, exactly. Especially if that blog is then also promoted through social media. So if there is a Facebook post or an Instagram post or something like that that says, hey, you know, here's some information about our club, we just wrote this blog, go read it. Sometimes the social media post will show up on Google before the blog itself, before a Web page, you know, so it's also important to, you know, not just write the blog, not just post the blog, but really promote it. Ed Heil [00:11:24] Right. So hopefully you're you know, if you're listening, this is this is starting to make some sense to you. And if you just think about it from how you might search for information and what you find, like a lot of times people will say, they say it less now, but they said all the times, like I don't read blogs, you know, like, actually you probably do, but you just don't realize you're reading a blog, right? I mean, it's like, oh, I was just searching for this and I found this great article, right? Yeah. And it's really a blog. And a blog is really just Yeah. I mean, again, correct me if I'm wrong. It's really just another page on your website, is that right? Lisa Schmidtke [00:11:59] Yes. Yep. That's a way. It's just it's just indexed and promoted in just a different way. Ed Heil [00:12:06] Okay. So I do want to just go one step deeper on this now that we have this idea of blogging, because what a lot of people says, like, well, what are we going to write that people will find? Or this is maybe that next level question, right? And so what I want you to think about, if you're listening, is today's member or that 42 year old member that you hear a lot of people talking about. And by the way, there is, you know, the greatest transfer of wealth in history will happen in the next, you know, next ten years or I think by 2045, they're saying will be the greatest transition of wealth in history. So there will be young people with discretionary income to spend and they are going to go online to look for a lot of information that may or may not have anything to do with your club. So what I think of is sometimes, Lisa, I'll go, well, you know what? They're going to be looking for things like activities for their kids. At what age should I get my child involved in sports? When should they start taking swimming lessons? How to become a competitive swimmer. Right. What age should I start my child playing golf? And imagine if those people who are searching for those four answers to those questions, if they find blogs that your club has written, then all of a sudden you're coming up on their radar. They might be thinking of a totally different experience for their family, but they come across your website. Lisa Schmidtke [00:13:35] Yeah. And by the way, they don't want to pick up the phone and call you and they don't want to, you know, wait for information. They want this information, especially the younger generation, right away at their fingertips. If they have to pick up the phone, that's a barrier to entry. They won't do it. Ed Heil [00:13:49] Right. And, you know, it's funny. I'm glad you said that, because what's, if you think about that a little bit more, you know, we'll talk about that target member prospect who knows like, well they don't do this and they won't do that. But what you really need to do is think about yourself. Right? It's like I don't, I don't shop or look for things, especially like things like a private club membership between eight and five. You know, it's at night and it's on the weekends, and it's when I have the time to do it. And you're into your point is like, I want the information when I want it, not when you're available for it. And you can you can argue the fact that, it's like, well, that's not the type of club we are. And and that's fine. And some people will, well, you know, be okay with that, but some people may not and they'll move on to the next club in your in your market. Lisa Schmidtke [00:14:42] Yeah that's right. You know, or it'll just take them longer to become a member or become your prospect. So you know, it's getting them in the door as soon as you can and providing the information as quick as they can. Ed Heil [00:14:58] Right. Okay. So just. Really quickly recapping because we're going to move on to that. Next thing that we're talking about is that people don't want to wait until you're in the office on Monday or Tuesday because you're closed on Monday or whatever. So the idea that the front end of your website or the public facing part is really important, and that with that, that part of your website, you can leverage that so that more people find you through organic search. Or when they go to your website, they can find more information that is sometimes in the form of a blog, and blogs are helpful for helping you get found for certain things. They answer questions and it's helpful information, and it also tells search engines that you are known for or an expert in some of these areas or these topic areas. So I just want to make sure everyone's everyone's staying with us here because, you know, ultimately, if we can provide people more information so they can determine whether or not the club is right for them because you've given them so much information that should make your the life of your membership director a little bit easier. Right, Because people will self-select out. But what they're going to do and we know this and this is the next part that, you know, is is part of this whole evaluation of your website is really, you know, having the information that your prospective members need. And I'm sorry that your prospective members want when they come to your website. A lot of times today, you, you know, websites, club websites, you guys have contact forms and people will fill that out, which is great. And what I usually hear is that, yes, someone fills out a contact form we receive at the membership office and then I send a letter to that person or an email with membership information, and I'll usually ask and I'll say, Do you call them first? Do you try to qualify them before you send that membership information? People nine out of ten times say, No, I just get it and I just send them because that's what they want. They want the membership information. So it takes some time. The person has to wait to get what they want. You know, your membership person has to take the time to send that email. Even if it's a copy and paste, they still have to take the time to do that. What's a better way to to make that happen? Lisa Schmidtke [00:17:22] Yeah. So I think you need to have, you know, sections of your website that, number one, they're gathering information along the way. And so these might be people who are not ready to reach out and become a member. They might not even be ready to receive pricing and all the information that they need. But there are certain pieces of content that websites and clubs can offer for those just kicking the tires. And maybe these are people who are not qualified quite yet to be a member of your club. Maybe they're looking for more or less or something different. So like you said, you want to allow those people to kind of opt out, know that themselves if they're not ready, and then the membership structure doesn't have too to waste time for that. But for some items like pricing and...
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Managing Shifting Demographics in Private Clubs - John Schultz, CEO of Club Leadership Alliance
02/02/2024
Managing Shifting Demographics in Private Clubs - John Schultz, CEO of Club Leadership Alliance
John Schultz, CEO of Club Leadership Alliance, has been around the block - a bunch of times! Prior to his current role, he was the GM for over 20 years at Carmel Country Club in Charlotte, North Carolina. Taking over a club with financial challenges, he put his flywheel in motion and turned the club around with more than 60 million dollars in capital improvements in 2 decades. Balancing the shifting demographics of new, younger members with longstanding members, facilitating town hall discussions, managing the conflict and debate that goes with member assessments and day to day communication challenges that are hand-in-hand with running a club, Schultz has done it all. John Schultz built his career at Carmel Country Club with more than 20 years of service AFTER doing 9 years of military service as a United States Marine. There were probably some days as a Staff Sergeant in the Marines that were easier than his days as a General Manager, but that’s another story! Needless to say, when you stay in one place for over 20 years, you did a lot of things right and you also dealt with a lot of change. Today, John Schultz is the CEO of the Club Leadership Alliance which is a collaborative effort between The McMahon Group, Club Benchmarking and Kopplin, Kuelber and Wallace. Their mission is to aggregate the best practices they’ve seen from the hundreds of clubs that they work with and then help clubs take advantage of the knowledge they have gleaned. What better guest could we have for an episode on change management and managing shifting club demographics and dynamics? Episode Notes 4:29 - John talks about taking over a club that was experiencing financial distress early in his career. 9:03 - John talks about how he approached relationships with the board. 11:18 - John talks about how the "Flywheel Approach" started to help grow the club with the right members. 13:00 - John shares his most challenging initiative and how he handled it. 15:47 - Building trust again is difficulty. John talks about how he approached it while at Carmel CC. 22:02 - Member unrest led to some tense times in his leadership and John talks about how he handled a group of members who opposed the club's direction. 26:29 - In 2016 the member demographics began to change at Carmel and he talks about how he handled the influx of younger members with the established legacy members. 30:31 - Words of wisdom from John on how to handle bridging the generation gap between members. Episode Transcript Ed Heil [00:00:01] You are listening to Crush and Club Marketing, a podcast for progressive club leaders ready to increase their club's revenue. Time for change begins right now. John Schultz, CEO of the Club Leadership Alliance, has been around the block. Prior to his current role, he was the GM for over 20 years at Carmel Country Club in Charlotte, North Carolina, taking over a club with financial challenges. He put his flywheel emotion and turned the club around with more than $60 million in capital improvements in two decades. In this episode, John Schultz shares his stories of change management, navigating, shifting club demographics, member assessments and of course, member conflict. Balancing the evolving needs and goals of private clubs, including the shifting demographics of new, younger members with long standing members, town halls, conflict and debate that goes with assessments and day to day communication challenges that frankly, just go hand in hand with running or leading any business, including clubs, are endless, all you club leaders know. Our guest in this episode, John Schultz, has been there and done that. He built his career at Carmel Country Club with more than 20 years of service, after doing nine years of military service, which I'm sure there were some days in the Marines that might have been easier than his days as a GM, but that's probably another story for another podcast. Needless to say, when you stay in one place for over two decades, you do a lot of things right, and you also had to deal with a lot of change. Today, Schultz is the CEO of the Club Leadership Alliance, and it is a collaborative effort between The McMahon Group, Club Benchmarking and Kaplan, Keebler, and Wallace. Their mission is to aggregate the best practices they've seen from the hundreds of clubs that they work with, and then help clubs take advantage of the knowledge they have gleaned. What better guest could we have for an episode on change management and managing shifting club demographics and dynamics? Thanks so much for joining me today. John Schultz [00:02:13] Glad to be here. Appreciate being invited. Ed Heil [00:02:15] Well, this is a I know this is an important topic for a lot of people. Leadership positions at clubs, and and man, with your your history at Carmel Country Club for almost 20 years. I guess the first question I have for you is, what is the key to making a long run like that at one place? John Schultz [00:02:37] Yeah, 20 years is quite a while. And. And it's not like I had one plan going in and trying to move through and only executed to this one set of objectives and priorities. It's constantly moving. It's constantly changing. It's listening and seeing what's going on. It's feeling where the industry's going, what what people and members are looking for and the experience that they that they want from their club. And and that changed in many times through the dynamic. When I, when I first got to Carmel, they were in financial distress and the membership was, sliding. There was some debt and we really had to analyze where the club needed to go and and take advantage of those things. But also it changes, and about every five years we would take a new look out to to the future and see what was what were the opportunities and how could we, take advantage of where we were in the Charlotte market and, and what would make people, the most satisfied and, and engage at their club. Ed Heil [00:03:48] This kind of reminds me of a conversation I had with John McFadden, last year from the Union League, Philadelphia, where he came into a club that was, you know, a little financially distressed, and, and hearing what you're saying, there's a the two words that came into my mind are brave leadership. And, you know, can you just talk about what that was like to walk into a situation where you're relatively new, unproven, and you're going to lead out of this, you know, kind of challenging times? Can you maybe just speak to what the mindset is and what it was within you that that gave you that ability to do that? John Schultz [00:04:29] Sure. And Jeff is an inspiration to all of us and a, you know, visionary that jumps out there. And, and I hope to just be a portion of that. So, you know, when you look at the opportunities and the areas and what you can get done in a reasonably, financial responsible way and, and see where the club's going, I tend to look not necessarily, at the clubs next door and what, what they're doing, in our backyard because you get too homogenous when, you're only staying within that, constraint. And what are what are the resorts doing? What are the hotels doing? What are people doing? And the better restaurants and, and that kind of thing. So looking for those opportunities outside just "clubdom". And I have to admit I stole many, many ideas from many clubs around and repurpose them. And, and put my name on it and took credit for it and and and enjoyed the success from some of those. But it was outside the industry that really brings more opportunity. And, you know, the hotels resorts tend to be further ahead of us, and many in the Florida market, of clubs have to be more progressive in, in what they're providing. The competition is, much more, tighter down that way. So, so if you look at those areas and seek out what, what is going to be the next, the next big thing and, and try to take advantage of those and be on the front end. Carmel, was more open to, being progressive in the space because we weren't as traditional and we weren't as classic as some of the other clubs around. So we had the opportunity to take advantage of that, be a little risky and not a lot of risk, but some that would allow us to build, the, the, resort style pool and have social, engagement that was not typical. And so that social thing is really the first initial, area that I started at Carmel was to take advantage of the events and club functions and expand those things so that the, the members that lived around the, the club felt like that was their outlet. And to build that up was really our first, issue. We couldn't build anything because we had debt. So, I was able to really get the momentum going and it became their home away from home, as everyone likes to say. And the membership growth started, when we announced the pool, the year we announced the pool, put out the pretty drawings with the, you know, the tiki bars and all the rest of it, we brought in 131 new members, and paid for the pool in. Just the one year, of initiation. Ed Heil [00:07:39] What year was that? John Schultz [00:07:40] That was 2008. Okay. And so, right. Ed Heil [00:07:43] Before the the downturn. Yeah. John Schultz [00:07:45] Well, this was seven eight. Yeah. And then that roll that that success then rolled into the next big thing. So we proved that we could pay for it. We got out of debt. We, paid off the pool. And then we started the next big thing, which was in 2009, which at Carmel, a 36 hole facility allowed us to renovate the South course. Rees Jones came in and we did a 10 million, a $10 million renovation right in the middle of that disaster recession that we went through, and in 2009 and ten and came right out of that, paid that off, the growth, came after it, and it allowed us to roll right into the next big thing. Ed Heil [00:08:33] So that really I want to come back to the next big thing, though. But just to frame this up a little bit, what I always think for, for GM's is how they relate with the board. Right? And having that sort of like a relationship that provides a GM to be visionary sometimes to execute on on big ideas, the next big thing. How would you describe your relationship over the 20 years with the board at Carmel? John Schultz [00:09:03] Well, it's got to be a partnership because, there's not many. There's a few GM's that are making these decisions on their own. I'm not sure they're any. And we have to legislate up to, board members and the membership as a total in in are these good ideas and are they going to be successful and what is what's the outcome going to be? There's a there's a, Jim Collins, chapter. In "Good to Great" that's that he's written recently on social, sectors and in this, chapter, he talks about ledgers that that nonprofit, GM CEOs, have to legislate these decisions. We can't just make the decision. We have to provide that information and persuade the decision makers. And it's really a great, book or chapter to about 60 pages. I'd recommend it highly. And the other one, I'm not to be a Jim Collins, just, fan here, but. Ed Heil [00:10:08] I'm a fan. John Schultz [00:10:08] It's called The Flywheel Approach, and in there it talks about how I'm saying this next big thing, you, as you go around in a circle and you have a vision and you, and you act on it, it allows that, flywheel to spin. And the faster you can get the flywheel to spin, you get more and more done. And in turn, the confidence, grows, the momentum grows, and the membership has trust and faith in where you're going. I can tell you there was not a lot of people were not necessarily, at Carmel or saying, oh, the thing we need next is a swimming pool, right. But a golf club, with 36 holes. And the board, unanimously jumped in on this idea because it it was the next big thing that really allowed us to be successful. Ed Heil [00:11:03] And that sounds like what you were describing earlier. I mean, before I interrupted you was just really that flywheel, like you got that thing going and people started. I'm assuming the membership trusted you more. They believed in you. They got it, you know, got behind what was happening. Is that kind of what happened? John Schultz [00:11:18] That's right. And and then they invite their friends out to the pool. They invite them to social events. And the the more the community started engaging and seeing the animation and the fun and the, lifestyle that was happening, that was that was part of, the community. It allowed them it would create that demand, and they would then, of course, join the club. And and now there's a waiting list of almost 200, people on the waiting list, which is partially, you know, yes, it's Carmel, but it's also just the life, style that's, that's out there right now from the, pandemic. Ed Heil [00:11:57] And you had mentioned in a previous conversation that in your time there, and correct me if I'm wrong, you did 60 million in capital projects. Is that right? John Schultz [00:12:05] We did. Yep. And no assessments. All of that was initiation fee growth. Combined with, you know, operations were always, in the, in the black. And so we would fund capital improvements, and maintenance capital and all of those things. And I would be, remiss in not mentioning, you know, our net worth over time increased at one of the highest levels across the country and recognized as one of the better growth patterns. It was consistently going up and adding net worth. Over that time. Wow. And just a little bit there. We never missed a budget. Inside of that, 20 years. Wow. Good. Ed Heil [00:12:50] That's awesome. What was your most challenging initiative that you that you put out there that, that required the most, maybe, arm wrestling? John Schultz [00:13:00] Yeah, it was probably that, it was it probably came into the the 2009, golf course renovation just because of the timing and the uncertainty with the recession and, that kind of thing. And, and it and it created some dissension that didn't really come out in, in holding up the project or delaying it or changing it at all. It just created, it was at the time when, corporate atmosphere out in the, in the world was question everything, and communication and transparency was not really one of our best, skills at that time. And we learned from that. And, and found that being more, transparent and, and the entire industry moved in that direction and corporate world had moved in that way to just being, more open about what things are going on behind the scenes. And, and I, we really focused on that following that, situation, we kind of had a, uprising within the membership, and a couple of board members got voted on by petition, and, and it and it created just, you know, there was a blip there and just, satisfaction level, but it was, mostly tied to a lack of communication and transparency at the time. Ed Heil [00:14:28] Interesting. I mean, that alone. So in the spirit of just, of, managing conflict, I mean, that is one of those moments. How did you handled that? Like with the membership, too? Because, I mean, you you know, that that can you know, what we says in the absence of information, people always go to the worst place. They make up their own mind and they go to the worst place. But and to recover from that can be hard. Like we we used to talk to our kids about the trust board, you know, say you put a little in, you earn this trust. And what just takes one second to lose it all. So how do you get back on track? John Schultz [00:15:00] Yeah. So, so this was one of those moments in time where you had to take that introspective look we had done right about the time we, we did a membership survey, and, and this is one of those member satisfaction surveys that gets down into the most granular level. And one of the questions, or five questions in there was what do you think of the game? And so coming out of that survey, I out of a ten point scale, my number was 6.9. Okay. For those of you out there that, apply that to a, you know, a, a grade scale, that would be a D plus. For somebody who's this. Ed Heil [00:15:46] Close to a C, though. Yeah. John Schultz [00:15:47] Well, you know, that was my average in most of my schooling, but. And what? It was just a negative group out there just, wanting to pillage and burn and that kind of thing at the time. But it did make us have to say. All right. I was on the cover of magazines at the time, and there were a lot of things going on, and I had to say introspectively. What's that about? But it's what the members thought. So I had it was that point of inflection to say, you know, I need to respond to this. And we did, and it really allowed the club and it's kind of what has made me what I'm doing today in the governance area is to find the, and set out the roles and responsibilities, set objectives, and create clear lines of responsibility within the leadership of the club management committees, board. And it allowed us to grow that process to where we're setting objectives. Were establishing, long range plans. So everybody knew what we were doing. And we were then communicating that and using that as the means to which to share with the membership why we're doing what we're doing. And and it allowed us to really build on, those, things that, advanced the club and the leadership to where the trust became even greater. And so that, that that lesson allowed the communication, transparency and advancing, governance to the point where, Carmel was recognized as having one of the best governance, board policy manuals and processes and systems that is around. Ed Heil [00:17:42] You're right. Got it. It's interesting. The, you can take that experience and sort of parlay that into turning it really into a positive, which is what you guys did. But, you know, I hate to I don't want to get overly granular here, but for some people who might sit there and go, well, but how did you do like when you would you tried to say, hey, we we made a mistake. We should have been more transparent about this. They how did you do that? Did you do it like in an email blast that went out to everyone? Because that's the first step. The rest is how you do everything after that. But what's that first step look like? John Schultz [00:18:16] Yeah, it and this tends to be, how most of us operate with doing the newsletter. You know, the newsletter is due on the 10th. And by the and that's the day everybody starts doing the newsletter and then, you know, all the different communication pieces, whether it's the website, social media or wherever it is, we're always in our reach. I say we, are always but it tends to be reactive. We need to respond to this instead. Let's get proactive and. Yeah, and at the time, my communications director, came up with the idea that let's get ahead of it, and, let's put together a calendar of 12 months and let's go ahead and figure out what the topics are that we're going to share with the membership. Every year we get the same comment from, the members that there's no grass on the fairways. You just cut it down and burned it to the ground every spring. Well, it's because the leaf blade drops all of it, the grass drops all of its leaves, and there's nothing but a stock left. It happens every year. It's the same grass. That's how Bermuda grass acts. And so we would get these complaints. Let's go ahead and answer the question in advance. So we took the opportunity. And it's 12 months based on each department. And every department has a different set of things that they're going to then talk about, and share with the membership....
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Private Club Success in a Post-Pandemic World: Frank Vain CEO of the McMahon Group
12/08/2023
Private Club Success in a Post-Pandemic World: Frank Vain CEO of the McMahon Group
The private club industry enjoys a steady resurgence, with waitlists becoming the norm in markets across the U.S. Furthermore, experts predict the greatest generational wealth transfer in history, from Boomers to Gen X and Millennials, by 2045. So, how will this new generation spend its time and money? Frank Vain, CEO of the McMahon Group, joins us this episode to share his perspective on the future of private clubs, and what he believes will be critical for their continued success. Vain's perspective is unique. As the leader of the McMahon Group, he works with club leaders nationwide, surveys members, creates long-range strategic plans, and provides counsel. Therefore, he has a pulse on the industry and insightful thoughts on what clubs are, and should be, considering as they plan for the future. Generational experts will tell you that Gen X, Y, and Z value very different things than Boomers, and they measure their status and identity in distinct ways. How clubs adjust to these various demographics could be the difference between continued success and failure. The make-up of future club members is changing, and club leaders are struggling to keep longtime members happy while attracting new, younger ones. This balancing act involves many factors, and Frank Vain and his team at The McMahon Group help each club discover the right approach -- because, as we know, all clubs are unique! Key Moments The "Golden Years" of private clubs - 2:57 The pandemic is the best thing that happened for private clubs - 6:25 The target demographic in the "Golden Age" - 15:43 What clubs need to do differently to attract younger members - 20:36 In what areas are clubs investing? - 25:03 What successful clubs can do to stay healthy - 37:00 Podcast Transcript Ed Heil [00:00:00] You're listening to Crushing Club Marketing, a podcast for progressive club leaders looking to increase their club's revenue. Time for Change begins right now. Ed Heil [00:00:12] The private club industry continues to enjoy a resurgence, with waitlists becoming the norm in markets around the U.S.. On top of that, experts predict the greatest generational wealth transfer in history from boomers to Gen X and millennials by 2045. So how will this new generation choose to spend their money and time? Frank Vain, CEO of the McMahon Group, joins me today and shares his perspective on the future of private clubs and what he believes will be critical to the continued success of private clubs in the future. Ed Heil [00:00:44] Thanks for listening. So, Frank Vain has a unique perspective as the leader of the McMahon Group. He works with club leaders across the country. Surveying members, creates long range strategic plans for clubs and provides his counsel, his advice is experience to club leaders so that clubs can make the best decisions for their clubs. He has a pulse on the industry and a perspective on what clubs are doing and what they probably should be doing as they plan into the future. And generational experts will tell you that the values of Gen Xers, Gen Y, Gen Z was totally different than the values of Boomers. And they'll also explain to you how they measure their success or their status or credibility in a totally different way. So for Boomers, where a country club is totally, you know, status type thing, it is not really the case necessarily for Gen X, Y and Z peers. In fact, they're more concerned and more interested in experiential type of engagements than they are things like club memberships. So the landscape of future club members is changing. And yet club leaders today who are typically a little bit older are trying to figure out how to balance keeping longtime members happy while attracting young, newer numbers or new younger members, if you will. There are so many factors in this balancing act to consider, and Frank and his team at the McMann Group are helping to figure out what is right for each club. Because, as we all know, all clubs are different. So here's my conversation with Frank Vain. Well, Frank, thanks so much for joining me today. Frank McMahon [00:02:36] Well, great to be here. Thanks for having me. Ed Heil [00:02:38] Yeah. So, boy, a lot to cover today. And in what you have called the golden age of clubs or some variation. Sorry, I don't have that, but the golden age of clubs, I guess. Let's start there. What? When you talk about that, what does that mean? Frank McMahon [00:02:57] Well, I think, you know, it's a combination of things. I mean, in one way, it signifies that we're a little bit out of the wilderness. And in a way, you know, certainly, you know, the financial the Great Recession, 2009, 10, 11 were, you know, pretty tough period, a very tough period for clubs. And and they came back in sort of fits and starts after that. So you had really a good, gosh, 10 or 15 years there of some pretty challenging environment for for most clubs. And then, you know, and so the golden age and saying, you know what I'm trying to signify and that is that while it is an industry that that is subject to to ups and downs over time, we've seen that in the past. I think there is more here. There's a combination of things happening that that are more enduring. And so the golden age signifying that there was a convergence of sort of lifestyle, really a lot of that triggered by the pandemic was certainly a big part of it. There's innovation, whether spurred by the pandemic or other factors. Clubs have really changed quite a bit over the last several years. And then there's demographics. The demographics have turned in their favor where, you know, particularly the millennials now are at the age where club membership makes social and financial sense for them. So that whole golden age is meant to say, yeah, you know, things go up and down. And obviously if there's another major economic break like we saw in 2008, you know, sort of all bets are off, you know, But but really, that doesn't see any sign of that happening in that with with all these things converging at one time. It really ought to be something that lasts for quite a while. And I would say it's, you know, six, seven, eight, nine years you can look out there and all these factors seem to be playing into their favor. Ed Heil [00:05:05] So maybe if we can put some of that in context within you know, as you started, you go back several years and the industry is in a pretty constant decline up until the pandemic. Is that right? Frank McMahon [00:05:22] Yes. Yeah. Really over over the course. And I say 2008 or 9 there, but really over the course of a good, you know, 20 year period of time. Number of clubs declined, number of golfers, if you're a club with golf, you know a number of golfers in the US declining for a long period of time, particularly among younger people. You know, you certainly saw the number of clubs went out of business about 20 to 25% of. And we're tend to follow what I would call the, you know, the member owned club. You know, there are other quasi commercial entities and semi-private kind of things that are in there. But when you think about the sort of the traditional member owned club, they all their numbers were down. So yeah, I think by every metric you could say it was a I would say they were out in the wilderness for, for quite a while. Yeah. Ed Heil [00:06:15] And then I've heard you say that the pandemic is the single best thing that has happened to private clubs. Is that, in what way? Well said. Frank McMahon [00:06:25] Well, it really again, it's a it's a bit of a combination of things, but I think at its core, it just it it made evident their their value. Why do I why do I want to belong to a club? And so whether it was for access to services otherwise difficult to come from come by or, you know, sort of their personalized service or dealing with an a, a, a group of known parties, if you will. Right. That all of a sudden smaller was better, more intimate and privacy was better. People were nervous about sort of being out in the public. We were cautioned about you know, cautioned about that. So, you know, a lot of that, you know, just really expose that, well, hey, a club is more than access to a golf course or a swimming pool or whatever. It's it's a community. It's a collective group of of of people. There's an approval process. There's a, you know, a communications process and a whole sense of community around that where we were all searching for that, right. Or going Covid as that was suddenly yanked away from us in many ways and, you know, cautioned about going outside or traveling on an airplane or going to a meeting or going to a restaurant club, stood out as a bit of a beacon during that period. So while I could still enjoy a lot of those things, but also do it in a way where I felt a little a little more comfortable because even though those members could have been susceptible to the same disease as everybody else was, there was just sort of a sense that you're a member and a kind of of that extension of family almost, as opposed to something worse, you know, completely out there in the public. Ed Heil [00:08:16] In some ways. Did. Do you think the pandemic reintroduced people to private clubs may be in a different way? I mean, some of the stereotypes of private clubs and private club members for so long was, you know, I mean, especially if you're a golf club with limited activity. But it seemed like through the pandemic, it brought families together and community together, like you're saying, in a way that was. In some ways more fulfilling, enriching than it was before. Frank McMahon [00:08:53] Well, I think that's right. Yeah, I think it kind of turned it on its head. Right. You you had you know, you had kind of a political and social environment of getting over that same take, that same 20 year period, 2000 to 2020, where, you know, exclusive, exclusivity was sort of judged a little more negatively. And all those things sort of, you know, you were seen as not as our exclusive exclusive access, but exclusionary, discriminatory, you know, those sorts of negative connotations assigned to it. All of a sudden it turned that on its head because it said sort of, well, hey, I get it. You know, I, I get why I would want to be part of a smaller group and then share value, share activities and experiences within that group. And so as opposed to exclusive exclusivity being seen as this this pejorative and you don't want me sort of thing, it was seen as, Oh, that's a way to build a little network there and and a group and thrive and grow even within a rather challenging environment that was going on around them. So yeah, I think it flipped that on its head and said, Well, actually there are some there are some value there to all that. And and I get it. And you know, and you saw that call because prior to that it was often interesting anyway. And once you had that negative perception about being in a club and clubs as they were struggling often had this goal, well, it's maybe it's too expensive, maybe we should do this or that. And all of a sudden it was more value. The price went away, initiation fees went up, the dues went up and all those kinds of things. And so the value perception increased dramatically and, you know, dollars and cents followed it up with that. But it was really the sense of, okay, this is this is what I want from, from a from a group. Ed Heil [00:10:59] Yeah. And as someone who consults with with private clubs and I've heard you talk about this, but it's the the innovation that occurred at the start of the pandemic. And I remember conversations that I was having with different people, and I was floored by how quickly clubs were putting things into motion, you know, you know, whether it was a little igloos that were going up, especially in some of the north courses up north or whatever they were. And, you know, their bureaucracy was gone. Things in there were innovating around family. And it was it was it was pretty remarkable. So now here we are at this point where it seems like people have been, I don't know if this is true or not, but it's almost like there's this renewed sense of value for your club and in how much you can do and what you want to get out of it. Matched with this golden age, this run now and I reading some other things about the amount of generational wealth that's going to occur in the next several years, right? So there are going to be a lot of younger people with more, you know, potentially more discretionary income that they can spend towards that. Are those all sort of the things that like, as you were saying in the beginning, are those also factors as it relates to the next 8 to 10 years? Frank McMahon [00:12:21] Well, I think so. As long as that and that sort of as you turn to the future and say, you know, and I think most of our clubs are saying right now, how do we keep it going? Right. That's a that's a good question at all club leaders should be asking. And I point out and you're you're wise to mention this whole notion of of innovation, you know, the the notion that people wanted community and privacy during Covid and, oh, yeah, I get that, right. That's a pretty easy connection. They wanted outdoor recreation. So yeah, golf boomed out, outdoor tennis boomed, all that. I think you could get there on those pretty quickly. I think the innovation piece of it often goes underreported. And and yet it was the way that clubs responded and it and it just shows and it should be a good lesson for club leaders that a lot of those things you say happened overnight, whether it was let's all of a sudden start, you know, Tuesday night tacos on the terrace or whatever or. Now building the igloos outside the great little City Club in Wilkes-Barre, Pennsylvania. The Westmoreland Club had a courtyard next to it, primarily a dining club. And all of a sudden they popped these igloos out there and people are out there in the courtyard having fun, you know? I suspect if management had gone to the board a couple of months in advance of that and say this winter we're going to try igloos outside and people are gonna dine in them, that's an idea that that dies at the boardroom table. You know, I think so. So they were there. So they were ready to respond. And, you know, I don't know, I guess somewhat some of those ideas are work and some of them won't work. But it was the fact that they were so willing to try because in many ways they were scared to death. I think many of us being included at the beginning of Covid, that was my my first reaction was, "oh my gosh, here we go again". You know, it's going to be another 2009 or 2010 and people aren't going to want to join clubs and we're going to have another raft of closures and all that. And of course, after about a 3 to 4 month period of time where all that was incubating, the future turned out to be far different. But yeah, whether, you know, clubs just took snack bars and made them in the outdoor restaurants or, you know, the igloos as we're mentioning, or put simulators or there were clubs that took they're all ballrooms, right? Because no, no more activities, no more group events. And they put, you know, simulators in the ballroom and all of a sudden people are in there hitting golf balls and having fun, you know? So, yeah, that that carried through and that that is a big takeaway is that I think that's just a lesson that there ought to be, you know, you can't reinvent the club every year, but having a healthy dose of innovation in your, you know, in your business plan and your strategic plan is extremely important. Ed Heil [00:15:17] Yeah. Let's talk about who the clubs are targeting or maybe should be targeting in this golden age. What what are you seeing and what's your. Because I think for a long time they target guys that are I'm in my late 50s you know my age maybe a little bit older. It's you know, that that's the target member. But it looks a little bit different today, doesn't it? Frank McMahon [00:15:43] Well, it does. And, you know, it's certainly a bit younger. I mean, again, you'll have the joining age versus, you know, I think the average club member nationwide still mid-fifties is you're talking, you know, 54, 55 is generally recognized as a, you know, pretty much the the profile of the average member. But the joiner, as you know, tends to be about a 42 year old couple. And a lot of joining happens age 35 to 45. And now that's again that's that's why we're very optimistic about the about this being able to continue into a golden age, that we continue to innovate and we continue to have demand for things like golf and tennis and some of these recreational activities, health and wellness. But the addressable market, so to speak, is expanding the you know, the millennials just now, the oldest, you know, where where clock the clock ever starts ticking on these demographic things. But if you just say, you know, 1980, right, then the the oldest millennial right now is 42, 43 years old. So they're getting right there and there's a whole cohort of 80 million people behind them that that suggest over the next decade, the number of people in their early 40s is on the increase. And so, you know, you just look at lifestyle in general, right? Look look at what's happening out there and, you know, housing. Right. All the demand for housing today and and schools that go along with that. You look at equity markets and the resilience and the amount of investment and capital flow that's happening there. Those all happen around a period of time where the middle age group is expanding. You can almost transport a lot of what's happening in the club world today. Back to the mid 90s, which was another good boom period for clubs. Guess what? The baby boomers were in the same position there, you know, at that point as millennials are now. And so you know so clubs should be thinking about that group and thinking about that they're ready to you know, they were very urban a decade ago. Our cities were booming and people want to live downtown. And we saw that renaissance in the American city. We're having a similar uptake now. And the American suburbs where those millennials who were 40, 42 years old had some kids. Now they got married a little later. I got married in the early 30s or so. Now they've got some six year olds and eight year olds and ten year olds, and they're ready to move to the suburbs, get to where the schools are. The. Houses with space and all those things that they need. And guess what? They need a club that helps socialize and get ingrained in the community, meet other people, meet other young families, or have outlets for those clubs where the kids are on the swim team or they're playing junior golf or, you know, just the family can go there for holiday brunches and, you know, those sorts of things. It's just right in their sweet spot. And so, yeah, I, you know, clubs ought to be targeting on and we all we think of it in a couple of ways Yeah you know you get the 6065 and over a group you're pretty set in your way at the club get that mid age group and they tend to they've got money and time. They're using the club quite actively more golf players played and things like that. And then you have the young family that's sort of 45 and under. So but that's the future, right? The older group is natural attrition. You know, they they move to Florida. Obviously the biggest thing is people get sick, they pass away or whatever they need to be replaced. And so that young group and that early 40s is is ready to come in and replace them. I think you've got a lot of people that are if we're offering the right things that they're looking for. Ed Heil [00:19:37] Right. And I think that I...
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A Private City Club Your Granddaughter Can Love [Ep. 34]
11/06/2023
A Private City Club Your Granddaughter Can Love [Ep. 34]
In the world of City Clubs, Jeff McFadden is well known and well-respected. As the CEO of the Union League of Philadelphia he has developed a national reputation as a club leader. Ask GM's who know him and they use adjectives to describe him like "Brilliant", "Visionary" and "remarkable." In this episode, Jeff shares his involvement in transforming the Union League from a club in financial trouble generating about $7 million in annual revenue to a club that does about 100 million annually. He also shares his perspective on breaking away from old financial models and how to engage new, younger members with long-time club personalities. Is now the time to double down and invest in your club? Listen to Jeff's thoughts on that topic as well. Noteworthy Moments: Jeff talks about making the leap to the Union League - 3:45 Park it! The Union League buys a parking garage - 9:07 Building your granddaughter's club - 13:21 Thinking differently about the financial future and the "right way to run a railroad" - 15:25 Change management and getting the right people on the bus - 19:03 The city club and more. Building an investment portfolio - 25:52 How Jeff views appealing to different member demographics - 35:06 Is this the time to invest in your club? - 39:28 Episode Summary: For club leaders who feel stuck in the "same old, same old" Jeff provides a fresh take on some long time issues. He also offers some insightful thoughts around managing the issue of engaging younger new members while keeping long time members excited about the club. As the General Manager, now CEO of the Union League of Philadelphia, Jeff is gone from managing day to day operations of a city club to running a $100 million business. If you're someone hoping to create this kind of growth at your club and this type of career track for yourself, you'll appreciate Jeff McFadden's Perspective Let's Connect If you find Crushing Club Marketing helpful please share it with a friend and be sure to subscribe and rate this podcast. Also, find more information on private club marketing services from StoryTeller, If you'd like to connect with , feel free to send a request! Transcript Ed Heil: [00:00:00] You're listening to Crush and Club Marketing, a podcast for progressive club leaders looking to increase their club's revenue. Time for Change begins right now. In the world of city clubs. Jeff McFadden is well-known and well-respected as the CEO of the Union League of Philadelphia. He's developed a national reputation as a club leader, as GM's who know him and these adjectives to describe him like brilliant, visionary and remarkable. In this episode of Crushing Club Marketing, I catch up with Jeff to learn more about his involvement in building the Union League from a club in financial trouble to a club that does about 100 million in revenue annually. He calls it accidental brilliance, but there's more to it than that. [00:00:44][44.7] Ed Heil: [00:00:46] Your name has come up in so many conversations regarding just what a strong leader and visionary you are and in the work you've done at the Union League. And I know that it's difficult to talk about yourself in that way. But there was a quote that I read from Jason Straka from the Frye Straka, a global golf course design firm and Jason Straka, said Union League CEO Jeff McFadden is one of the most respected general managers associated with the golf business. He's credited with vastly expanding the Union League's social and business opportunities, knowing that many of their members on a vacation home down on the Jersey Shore and or vacation there quite a bit. Jeff saw an opportunity for a second golf facility, and obviously this is referring to one of the the golf clubs that the union now owns. But when you hear those kind of accolades, and that, what goes through your mind. [00:01:46][60.0] Jeff McFadden: [00:01:47] Well, first of all, what goes through my mind is I pay Jason, which is a good thing. And that's probably why he had those nice accolades about us. But when he and Dana Frye did at Union League, National is just over the top. It's the Disney World of golf. It's spectacular. Over the last year, 27 holes. And now we're proud. I'm very proud of what I did. I think a lot of what we've done over the last 25 years was accidental brilliance through really just perseverance, hard work, you know, trying to get the right strategy and then keeping your head down and, you know, working through what you could do and keeping a smile on your face to, you know, that's. [00:02:27][40.1] Ed Heil: [00:02:27] Yeah, well, you make it sound simple and, you know, I guess when it comes second, nature probably feels simpler. Although I know it's not always been super easy, as is. Most jobs are when you're there that long. But 25 years, you know, that's a long run. And your first two jobs in you know as I think GM and both both jobs five years and three years which is pretty typical, right. I mean, is that do I have that right? Help me out with that. [00:02:56][28.7] Jeff McFadden: [00:02:56] Yeah. No, When I graduated the hotel school at Cornell, I went to the Cosmos Club as food and beverage manager, got promoted to assistant GM clubhouse manager. And then my first GM job is in Denver, Colorado, at the University Club, which I never thought I'd move back to the East Coast from Colorado. But I did. Yeah, right. When I got headhunted to go to the Union League at at age 30. So good times. [00:03:20][24.1] Ed Heil: [00:03:21] Guess, you know, at age 30. What did the Union League see in you at that age, especially looking back now? I mean, what's it like looking back now and, you know, knowing what you were like then? I mean, what do you think they saw in you that time? [00:03:34][12.4] Jeff McFadden: [00:03:34] Well, I think in in reality, I think I was the fifth person they offered the job, too. So, you know. [00:03:40][5.2] Ed Heil: [00:03:40] You sort of you I wish I got I got a vet that won out. But yeah. [00:03:44][3.5] Jeff McFadden: [00:03:45] You know, right place, right time, situation. It just worked out well. The league was struggling in the late eighties, 1990s, as Philadelphia was struggling quite a bit before Ed Rendell, who was a gregarious mayor, wind up becoming governor of Pennsylvania. Just a terrific leader, inspirational type of person. So, you know, when I was young enough, probably dumb enough and not experienced enough to know what I was getting into. And the the more senior statement statements in the club industry probably looked at the league and said, I don't want to touch it. Right. It's it had sort of had terminal cancer. At the time it wasn't bankrupt, but it was very close to bankrupt. But I saw that it had great bones as well. It had a great foundation. You know, at 30, you think you can change the world? I think I've done well in changing the league. And it was just being again at the right place at the right time for the right situation. And we made a bad decision or a mistake. We were young enough to outhustle the mistake or the bad decision. Right. [00:04:57][71.7] Ed Heil: [00:04:57] That's interesting. So what has made you successful for so many years? I mean, if you just take the years alone, that's an incredible achievement in in the private club space to be at one place for 25 years. What do you think has made you successful in that role? [00:05:13][15.8] Jeff McFadden: [00:05:13] Well, I think the way we acquired and operate the club as sort of, you know, being an innovative type organization. Now, when I did my independent study at Cornell, I studied close to 5000 city clubs throughout the world. It was from the 15 person City Club to the to the club that had 5000. And you needed three things. You needed to have parking, you needed to know, because I gave members assurance coming in from the suburbs that they had a place to park. As you get older, you have more net worth to spend. You get a little worried about where you're going to park. The data showed that that was a huge part of being a successful city club. Yeah. So we bought a parking garage right when I got there, and then we just doubled our revenues in in less than one year. While the number two thing at the greatest city clubs in the world shared was they never sold their land and built the site skyscraper and put their club at the top of the building because eventually the I guess after the data shows after three days that you went away and then the elevator became a barrier to entry, there were a few clubs in New York, Manhattan and Tokyo that buck that trend. Windows on the World, that was a public restaurant. There was a small private club component of Windows on the World. But truly, if you were successful, members had to walk into your club, right? So the league had that as well. And then you need overnight rooms. You have all the expenses running a club, marketing, administration, engineering, you name it. If you add some overnight rooms to the equation, the profitability or the surplus that they could throw off departmentally, you know, $0.60, $0.70 on the dollar really were work well. So I was able to. Run those three things when I first got there and then reinvest into the club with incredible dining business centers, cigar bar, you know, fitness centers, that sort of thing. And so for if I look at my 25 years, the first ten or 15 was taking that incredible foundation that the league was all about. Investing in that. Growing, growing the institution. And then after ten or 15 years, we use the profitability or the surplus that was gained to really have a longer strategic plan that we entitled "Building Your Granddaughter's Club". Yeah. And and that was you know, that was sort of a light bulb moment, like, okay, are we just going to be the greatest 1965 club in 2005? Right. Or, you know, in in 2025, were we going to be what your granddaughter and great granddaughter are going to want in a private club? You know how to how do they socialize? How do they use it? You know, we started asking ourselves all those questions. [00:08:13][179.3] Ed Heil: [00:08:13] I love that. I want to come back to that next, but if we just step back to you being 30 years old, when you took that job and, you know, you come in and, you know, buying the parking structure and then you started, it sounds like, you know, in the first ten years, there's a lot of innovation and things moving forward. And I know that some of the games that will pay attention to our conversation, they're younger. There's definitely a trend towards a lot of younger jobs or it seems that there is. How did you get their trust, at that you know, I mean, and what was the mindset of the board? Were they just like, hey, we've done our homework, We know Jeff's the right guy, let him go do it. But, you know, there are a lot of clubs out there who are like, Yeah, we'll get him in there, but we'll just tell him what to do. I mean, how do you know what I mean? How do you get in there and earn their trust and really go like that? [00:09:06][52.7] Jeff McFadden: [00:09:07] So and is fortunate enough to be in the right place at the right time, as I said, because of their how they were struggling financially. But with that said, you can't go in and change the world overnight. You need to start small, you need to show a small victory and then capitalize on each of those victories. You know, as they say, having, you know, having, you know, one bite at a time, you know, you just that's way you have to do it. I think we we had, you know, coming in in 1998 on the heels with Ed Rendell being the mayor of the Republican National Convention, was held in Philadelphia in 2000. We had a tradition as a Republican club. So that was really, you know, helped us springboard into reinvesting in our facilities. But I convinced them to do little things, that the garage was a big thing. But we had already started putting new carpeting, new wallpaper, you know, one dining room at a time, hiring younger, more robust, enthusiastic, vibrant servers and studying what people wanted on food menus and that and so forth. And we just basically started with one dining room and then did another dining room and then did a bar and then bought the parking garage. And the parking garage was, was a struggle. We it was a first assessment we had at the league in 50 years. We did not have a lot of support for it. Yeah. So we, we did wind up getting about 67%, 68% in favor of it. Yeah. And, and I figure just a quick story. I was very transparent because I was I was very young at that time. So I shared everything. I still and I still am as transparent as they come. I just don't lead with my chin. Right. What's actually going on in things? [00:11:01][113.7] Ed Heil: [00:11:01] I gotta remember that. [00:11:01][0.6] Jeff McFadden: [00:11:02] Yeah. You know, it makes talking so much or sharing so much as being transparent. I know that's not necessarily people want to be let right. Need to be led and you want to be transparent in everything you do. You just don't need to tell everybody everything every minute of the day. Right? [00:11:19][17.4] Ed Heil: [00:11:20] Right. Yeah. No doubt. [00:11:21][1.1] Jeff McFadden: [00:11:21] With social media and, you know, it just seems that's what the next generation is doing. Right. So we were we were we were trying to figure out we needed to do an assessment. It was very was it very much about $2,000 a member. And we you know, they were hemming and hawing about paying that. And and one member said, could I get my money back at a town hall meeting? And I said, Mr. Grossman, you are absolutely brilliant. That's a great idea. We're going to make your assessment refundable. All you have to do is propose a new member. And it was like a light bulb went off and we ran with that. You had actually proposed two members you got $1,000 back for your first member, 1000 for your second. I love it. This is back in 1999. And basically all the naysayers and we still had it still 30 to 33% of the people voted against it. I would say to them, I said, you don't have any friends or colleagues or business people that you could propose to become a member of the league to help us out, to make sure, you know. And that was on top of all the importance of parking, obviously. Right. And then we were about a $7 million operation. We bought the parking garage. And I think the next year after it opened, we were 21, $22 million operations. Wow. Doubled, tripled what we were doing. And all it is is take the you know, the folks from the mainline or from South Jersey who are uncomfortable coming into an urban environment. Yeah, we just assured that they had parking. Right. We just said we have valet parking. It's right next to the club. [00:12:59][97.8] Ed Heil: [00:12:59] Yeah. Safety and convenience. [00:13:00][1.1] Jeff McFadden: [00:13:01] Yeah. [00:13:01][0.0] Ed Heil: [00:13:02] Exact easiest things. [00:13:02][0.8] Jeff McFadden: [00:13:03] Wow. So and so. I rode that pony for a long time,Ed, the parking garage. You know, work magic for me for the next ten years. [00:13:11][8.5] Ed Heil: [00:13:11] Yeah, no doubt. I love that. Let's talk about building your granddaughter's club. When did you come up? When did you, like, come up with that phrase that I love that I read that one of the articles. [00:13:20][8.6] Jeff McFadden: [00:13:21] Yeah. It just, you know, obviously being a men's club for so long, over 125 years of the men's club, we allowed women in 1986. The idea is there's there's so much connotation in that phrase granddaughter building your granddaughters time, meaning that we're becoming progressive more, you know, more forward thinking, more inclusive. And I also got everyone thinking not about themselves, but about the next generation and the generation after them. So I think that's almost more important than than the gender identification of saying building your granddaughters club the to show and to get the culture of our members to think that yes, we've been here 162 years, we're going to be here another hundred and 62 years. Let me not get tied up in minutia of today, but think about tomorrow and you see this and golf clubs and country clubs where they fight over a new irrigation system, you know, an 80 year old to say, hey, I don't want to pay for the new irrigation system. I'm not going to be here. Right, right, right. And you say to that person, well, you're not paying for the new irrigation system, you're paying for the irrigation system you consumed over the last 30 years. Right. And and and that's the sort of the mindset that we started to and now people are like they're proud when we build we have built into their views a capital do structure but they're proud with the the advancements that we have made, the investments that we've made and they don't they don't think of it as for them. They think, Wow, my granddaughter and my grandson are going to love this place. And it's just a little nuance, a little change. [00:15:05][104.6] Ed Heil: [00:15:06] But I've not heard people position it like that. What has been your overall philosophy, you know, and how do you share that as far as like keeping people thinking forward? Like, is there an overarching sort of, I don't know, almost like value or belief that you have that you sort of, you know, live by that way? [00:15:24][18.3] Jeff McFadden: [00:15:25] That's a it's a great question. Yeah. I think it's it's always thinking about the future. And I and I and I tell members and a lot of clubs do not do this. We have $54 million in debt, which people are like, Oh, oh, that's a lot of money. And then I don't know. And we also have $20 million in the bank, right? And if we had saved a dollar per member per month since our inception in 1862, yeah, we'd have $1,000,000,000 in the bank. And when you tell stories like that to members and you know it resonates and it gets to them that, you know, you're you're not just here to enjoy the club, but you are a steward of the club. You are a steward of the institution. You know, you need to think of it in that capacity. And for 100 years, clubs never did. Right? Right. They matter of fact, to this day, your investment income of a 501c7 is taxable. So I'm trying to tell people that they need to start a foundation to do a charitable set aside for their foundation. Do you know, do well by doing good in your community and people? Some of the greatest clubs. And I'll say, Jeff, we don't have any investments, we don't have any investment yet. I said, What do you mean? You're Aronomik, you're Marion Golf, you're Pine Valley, you don't have investment income. Like now we don't have any debt, We don't have any savings. We live hand to mouth, right? And then we assess for when we want to build something. I said, I just don't think that's the right way to run the railroad. I think, you know, you you boil the frog slowly, you add capital dues monthly into your regular dues, and you always plan for the future. You don't you don't pay off your mortgage without saying without saving for your kids college education. Right. It's right. It's not rocket science. [00:17:26][121.7] Ed Heil: [00:17:27] Yeah, well, but why don't more ask why is it so commonsense? You But I mean, so many clubs operate exactly how you just explain it. [00:17:35][7.3] Jeff McFadden: [00:17:35] Because they let emotion get in the way. You know, they bail They they you know, we're all self-serving, though, don't get me wrong. I'm self-serving as well. But, you know, if you don't have the mentality that you're part of a greater good. You know, you can easily get into. You know? You know, what are we spending today and how can I have the best results and the best experience at the least cost and. And group think happens, very quickly, you know, great leaders, you know, can change culture quickly and then you can get into the abyss quickly as well. In that...
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Conversational Marketing for Private Clubs [Ep. 33]
10/05/2022
Conversational Marketing for Private Clubs [Ep. 33]
You’ve seen them on websites and whether you choose to use them or not "Chatbots" and text communication is here to stay for the foreseeable future. On the good side, text and chat can simplify your life as a website visitor, improve your efficiency and filter out your best prospects for membership. On the other hand, it can feel cold and impersonal. And yet, we’re learning how to use them to get what we want without having to wait. So what’s the secret? Originally recorded coming out of the throughs of winter, Evan Dean from HubSpot helps us understand conversational marketing and how chatbots work best in business. You may bristle at the topic, but remember the next generation members would rather text than talk!
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How Great Leaders Create Great Followers [Ep. 32]
08/15/2022
How Great Leaders Create Great Followers [Ep. 32]
Hiring outstanding people is really hard and keeping them can be equally difficult - especially if there are management or leadership issues. If you’re a leader trying to figure out how to inspire your team, elevate those who surround you or maybe you’re trying to get more out of your team you may need to take a look at yourself in the mirror and ask yourself am I my own worst enemy? Do you have the kind of people who will tell you when you get off the rails? Do they help you, help yourself? If they do these things, you may have great followers and they are the people who can help you become a great leader. Dr. Sue Tinnish says great leaders need great followers. But what does that mean? And how can a leader develop great followers? Dr. Tinnish is an executive coach with a PhD in Organization Development. In this episode, we dive into the idea of great leadership and "followership".
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Managing Private Club Waitlists with Jason Becker [ep. 31]
07/12/2022
Managing Private Club Waitlists with Jason Becker [ep. 31]
For the first time in years, many private clubs have a waitlist for new members. For the clubs who have always had waitlists, this is nothing new. On the other hand, hundreds of clubs are learning to manage a waitlist for the first time. This is both exciting and terrifying with members lined up to join clubs and with membership directors wanting to make sure these "hot" prospective members can be converted into full, dues paying members. Jason Becker, the CEO of Golf Life Navigators, to learn what people will and will not tolerate as it relates to Private Club Waitlists. In this episode, Jason shares with us the insights gained and some practical tips for those managing a waitlist for the first time.
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Strategic Club Marketing Straight from School [Ep. 30]
03/11/2021
Strategic Club Marketing Straight from School [Ep. 30]
By developing and implementing a strategic digital communications approach to the club’s marketing and communication, Cathy Zehms has created a content ecosystem at the Green Bay Country Club not seen in most private clubs. In her first 4-years membership increased more than 160%.
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Private Club Marketing Driven by Innovation in a Pandemic [Ep. 29]
03/10/2021
Private Club Marketing Driven by Innovation in a Pandemic [Ep. 29]
What does it take to keep your private club membership thriving during a crisis? Engagement and innovation. That's what Dave Porter and his team at Greystone Golf and Country Club in Birmingham, AL did when the pandemic swept the country in 2020. Listen to how he helped lead his staff and membership through this incredible time.
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The Crisis This GM Faced Helped His Club Through the Pandemic [Ep. 28]
02/11/2021
The Crisis This GM Faced Helped His Club Through the Pandemic [Ep. 28]
When Minnesota golf courses were forced to close at the start of the coronavirus pandemic, Joel Livingood was already preparing for the next step. It's what he's done since taking over as GM at Interlachen Country Club in Edina, MN in 2017. With solid financial footing and a steady hand, Livingood led his team and membership through one of the most extraordinary years in U.S. history.
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The Impact of the Coronavirus on the role of the Membership Director [Ep. 27]
01/30/2021
The Impact of the Coronavirus on the role of the Membership Director [Ep. 27]
At the start of the Coronavirus pandemic in 2020, private clubs, like most businesses were cast into a future of uncertainty. One role that proved to be critical at Bethesda Country Club is that of the membership director. Kris Butterfield, Director of Membership Marketing and Communications expanded her responsibilities in ways she never would have expected and it paid off for her club and for her professionally.
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What Club Marketers Should Know About Neuromarketing and New Members [Ep. 26]
11/26/2019
What Club Marketers Should Know About Neuromarketing and New Members [Ep. 26]
If the goal of private club marketing is to influence thinking and behavior, then a basic understanding of the brain can increase the chances of success. In this episode, we speak with Laura Leszczynski, Vice President of Marketing and Brand Strategy at Strategic Club Solutions.
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Adding "Traction" and Structure for Private Club Management [Ep. 25]
05/15/2019
Adding "Traction" and Structure for Private Club Management [Ep. 25]
Industry experts will tell you that clubs that have strategic plans in place are more inclined to have wait lists for prospective members. Coincidence? Not according to Ryan Doerr, CEO of Strategic Club Solutions.
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Turning Your Club Communications into a Member Engagement Asset
04/11/2019
Turning Your Club Communications into a Member Engagement Asset
Chris DeConna is a marketing coordinator and graphic designer at The Ranch Country Club in Westminster, CO – and he’s changing the game for club communications. Even though he’s spent about 4 years working in private clubs, Chris’s background is outside the industry. His most formative communications training coming while working in college athletics as a media relations specialist.
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Talking Twitter with Hazeltine Superintendent [Ep. 23]
02/19/2019
Talking Twitter with Hazeltine Superintendent [Ep. 23]
Getting your club to buy into social media and participate with meaningful content is difficult. Chris Tritabaugh, Superintendent at Hazeltine National is elevating his club's prominence, engaging members and building his personal brand through his Twitter.
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How Overcommunication Helped This Club Grow Membership During Renovations
12/10/2018
How Overcommunication Helped This Club Grow Membership During Renovations
Proactive communication using social media and video kept the team at Pelican Isle Yacht Club ahead of the conversation when it came to a multi-million dollar remodeling project. It was also a key part in a record-setting membership drive that occurred once the renovation was complete.
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Club Marketing for Multiple Generations
11/06/2018
Club Marketing for Multiple Generations
You want a younger membership yet you need to retain your existing legacy members. Each demographic values things like luxury, status, and relaxation differently. While some of your older members may go to the club to get away from work, your younger members may want a place to hunker down and treat the club as a second home or office. In this episode of Crushing Club Marketing, Amy Lynch, CEO of Generational Edge breaks down all you need to know about marketing to different generations.
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How Strong Leadership Can Propel Your Club Marketing Efforts
11/01/2018
How Strong Leadership Can Propel Your Club Marketing Efforts
In this week's episode, we take a look at The Country Club's communications overhaul from a club leadership perspective. Assistant General Manager Kristen LaCount shares how clear vision and strong leadership have propelled the Country Club on a steady path of embracing and implementing change.
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The Right Match: Online Process Connects Clubs and Prospective Members
10/23/2018
The Right Match: Online Process Connects Clubs and Prospective Members
In this episode of Crushing Club Marketing, we talk with Golf Life Navigators Co-Founder and CEO Jason Becker, who shares valuable insight from the service's matching process and how it can help club marketers position themselves to potential members.
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Choosing a CRM that Works for Your Private Club
10/17/2018
Choosing a CRM that Works for Your Private Club
In today’s Crushing Club Marketing episode, we chat with John-Erik Pszenny, a customer relationship management (CRM) expert at HubSpot. He explains how marketers can use CRM tools to save and store both important relationship information and transcripts from conversations you’re having with everyone, from prospect to member.
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Making Video Accessible for Your Club
10/09/2018
Making Video Accessible for Your Club
The ways we consume video have changed tremendously over the past decade with the rise of hosting sites like YouTube, social media and other digital platforms, which means the power of video as a marketing tool has grown exponentially. This is a trend this week's Crushing Club Marketing guest Jason Hsaio predicted when he started the web-based video creation service Animoto roughly 10 years ago.
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From Boomers to Millennials: Club Marketing Across Generations
10/01/2018
From Boomers to Millennials: Club Marketing Across Generations
Connecting with your target audience is essentially the purpose of marketing. The challenge is, relating to an audience that continues to evolve. From baby boomers, millennials and rising Gen Z-ers, your marketing tactics need to continually embrace generation change to be successful in relating your message to the right crowd.
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Financial Sustainability for Clubs Starts with Solid Club Operations
09/14/2018
Financial Sustainability for Clubs Starts with Solid Club Operations
In this episode, Rick Coyne, of the Professional Club Marketing Association, and I break down his model to better understand how clubs can create an organization that’s built to endure and solve complicated challenges.
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Creating a Sales Culture: Experiencing Exponential Growth at Columbine
08/06/2018
Creating a Sales Culture: Experiencing Exponential Growth at Columbine
Columbine Country Club has experienced exponential growth over the last 3 years due to what Director of Sales and Marketing Leader, Robert Cuillard says is a "sales culture" at the club. After a 7-year decline, Columbine has a new clubhouse and a full membership. What's more, Cuillard also has an annual marketing budget in excess of $400,000 - a number not often associated with private clubs. He's accomplished this by taking 11 percent of all new member initiation fees and earmarking that for marketing.
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What Facebook's Changes Mean for Your Private Club (Shanna Bright)
07/16/2018
What Facebook's Changes Mean for Your Private Club (Shanna Bright)
Earlier this year, Facebook changed its algorithm to eliminate spammy content and reward content that is actually interesting to people. In this episode, Shanna Bright of Private Clubs Online shares the reasoning behind the changes and how club marketers can create posts that will still be seen.
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Creating a Video Strategy to Grow Revenue and Reduce Expenses
07/10/2018
Creating a Video Strategy to Grow Revenue and Reduce Expenses
Video is a strategic digital marketing tool and it's critical you have a strategic vision for your video assets. Not only does it help to know what you want to produce, but also how you're going to produce your video so you can turn your project into a cost-effective tool that can be used in multiple places on various digital platforms. In this podcast, Ed Heil shares his insight on the types of video to produce to bolster your online marketing efforts and tips for maximizing your video budget.
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Building the Perfect Club Website (Joe Jerome)
06/22/2018
Building the Perfect Club Website (Joe Jerome)
When did you last update your club website? If it's been more than three years, you're likely not realizing the full potential of your online presence. Your website is more than a digital brochure. It should be your greatest sales asset.
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Search Marketing Isn’t Just “Golf Club Near Me” (Mike McAnally)
06/13/2018
Search Marketing Isn’t Just “Golf Club Near Me” (Mike McAnally)
Do you still expect people to find your club by typing “golf club near me” into their favorite search engine? That might have worked in the past, but now people expect geotargeting to handle the “near me” portion, and voice search is replacing all of it. So, what does your club need to know about search marketing to keep getting found?
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Bold Leadership: How Robert Sereci Drives Innovation at Medinah
06/10/2018
Bold Leadership: How Robert Sereci Drives Innovation at Medinah
Robert Sereci has a unique background and a unique approach to leadership as the general manager at Medinah Country Club, just outside of Chicago. Medinah has hosted three U.S. Opens, two PGA championships, and the 2012 Ryder Cup matches, yet some of the outside-the-box things he's done to build the brand have caught the attention of people inside and outside of the club industry. Robert is a results-driven service provider who believes the success of Medinah has to go deeper than its golf pedigree.
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Effective Communication: Skills to Help Your Club Thrive
06/02/2018
Effective Communication: Skills to Help Your Club Thrive
Within a private club, effective communication is critical for achieving shared goals and developing a productive and respectful culture amongst members and leadership. By taking simple steps, leaders can enhance their communication skills and improve operations for the entire club.
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