Board strategy

discussion- Membership

Purpose of Review

Identify and ensure alignment of the primary elements of a “successful” membership model in the future

• A model we would be proud to promote

• Reflects the ideals of Golf Canada and the PAs

• That furthers the overall objectives of Golf Canada

Identify the next steps

Membership Presentation

AGENDA • Membership Model Overview

•  Analysis of current membership

•  Analysis of membership value

• Review of 2013

• 2014 Plan

• Board Discussion:

•  What Success Looks Like

•  Alignment of Golf Canada’s objectives from Membership Program

Overview

Membership currently serves a number of purposes: •  Revenue •  Reinforces a fundamental value of the game through the handicap

and course rating •  Connection to significant number of players for the purposes of:

•  Sponsorship •  Fundraising •  Brand Development

The definition of “Membership” has changed: •  Facebook •  Twitter •  Casual social networks

Current Situation

Private Club Membership: •  198 clubs/112,000 members % of Market 95%

Semi-Private Clubs

•  1063 clubs/199,000 members % of Market 80% Leagues/Public Players:

•  29,700 members (14,000 Public Players) % of Market .005 Public Courses:

•  176 facilities $ of Market 30%

The % of private/semi-private clubs has remained fairly stable over past 10 years. The membership at clubs has declined. Challenges: 1) Public player: growth has been slow

2) Public Golf Courses: revenue $100 so hard to justify investment in recruitment

Breakdown on segments

Membership Over Last 10 Years

2004: 391,000 members 2012: 331,000 members Projecting a continued decline a current rate: 2020: 281,000 members Revenue loss has been offset by dues increase: 2009: $3.00 2013: $2.00 2014: $1.00 Provincial and national combined dues vary by province (see following chart) between $25 - $33. Continued rate increases under current model will be challenging to implement.

Dues by Province (incl. Provincial and National amounts)

CATEGORY I CATEGORY II CATEGORY III Golf Club with Members and Real Estate (may be private or semi-private)

Club with members but no real estate Golf Course without members CLUB RATE PUBLIC PLAYER

PROV ADULT JUNIOR FACILITY

FEE MINIMUM

MEMBERS Score

Centre Fees ADULT JUNIOR ADULT JUNIOR 9 H 18 H 27 H 36 H

BC $32.00 $31.00 $125.00 15 $32.00 $31.00 $45.00 $45.00 $300.00 $600.00 $900.00 $1200.00

ON $27.50 $18.00 60 $3.50 $27.50 $18.00 $31.00 $31.00 $925.00 $1,445.0

0 $1,445.00 $1,445.00

QC $29.00 $15.00 60 $29.00 $15.00 $39.99 $19.99 $500.00 $1,000.0

0 $1,500.00 $2,000.00

AB $25.00 $19.00 120 $25.00 $19.00 $45.00 $45.00 $1,250.00 $3,000.0

0 $3,500.00 $4,000.00

SK $26.00 $20.00 25 $26.00 $20.00 $40.00 $30.00 $400.00 $600.00 $600.00 $600.00

PE N/A N/A N/A N/A N/A N/A $1,980.00 $3,960.0

0 $5,940.00 $7,920.00

MB $25.00 $18.50 10 $25.00 $18.50 $29.95 $29.95 $700.00 $900.00 $1,400.00

NL $25.35 $19.16 $39.95 $39.95 $300.00

NB $27.00 $19.00 $27.00 $19.00 $44.95 $44.95 $250.00 $250.00 $250.00 $250.00

NS $24.00 $18.00 $24.00 $18.00 $34.74 $34.74 $500.00 $500.00 $500.00 $500.00

AVG $26.76 $19.74 $26.94 $19.81 $38.95 $35.62 $695.50 $1,311.67 $1,698.33 $2,108.13

Dues by Province – Details

ON GAO adds a $3.50 charge for access to the Golf Canada Score Centre

SK As of 2012 GS charges $200 sand green, $400 for 9 hole grass, $600 for 18 hole (or more) grass green

NS Minimum amount for any club is $500 annually for membership

PE Flat fee of $220 per hole for every club – no public player memberships available

QC Cat III fee is for public courses only. Private and semi-private pay by the member - min. 60 members

NL Only one $300 Facility Fee in province

AB All Categories have a minimum fee of $3,000 regardless of the number of members (equivalent of minimum 120 members)

MB Re-Instatement fee of $500

BC Initiation fee of $100 / Facility Fee on top of membership fees

Current Implementation

PROVINCIAL ASSOCIATIONS: •  Invoice and collect membership dues, remitting GC portion. •  Contact for member clubs

•  Organize and implement course ratings

•  Run seminars (rules, handicapping, course rating) •  Some individual customer service* •  Some discounts/offers and cross promotions* •  Provincial/regional championships *varies by province

Current Implementation

GOLF CANADA:

•  Membership cards

•  Golf Canada Score Centre

•  Customer Service *

•  Golf Canada magazine

•  Group benefits/discounts

•  National Championships

•  GC reconciles dues in concert with PA reporting

•  Assists in member club management & recruitment

•  Handicapping & course rating agreements, courses and

manuals

Concerns in the Market

•  Private clubs: Indicate they are carrying the development of the game and everyone should contribute.

•  (i.e. Toronto Golf Club: 1054 members = $31,952 vs Lakeview GC public facility 1/2 km away - $1445.00)

•  Public/Semi-Private facilities indicate there is no value in membership at the course

level: Either they don’t have members or not all members are interested in maintaining a handicap or participating in events.

•  Clubs feel they are paying from their bottom line regardless of whether they are

billing through to members or not •  It seems apparent that most clubs/courses at the management level make little

effort to explain membership and many do not take advantage of the services available to them.

•  Significant amount of resources are committed to trouble shooting rather than proactive activities.

•  Continue to face challenges regarding our our mandate and carry a

stigma both from the money in the bank and “old approach”

Current Membership Offer - Clubs

•  Course and Slope Rating •  Presence on the score centre allowing 200,000+ players can

post scores •  Golfcanada.ca – Canada’s most visited golf web property:

Course Search 25,000 visits YTD/average time 2 minutes •  Bulk discounts (credit cards, app providers, Aeroplan/loyalty

programs) •  Membership cards and tools for cross promotion (i.e. between

golf clubs/other services in town)

•  Data (Rounds posted, data on players) •  Grow the Game initiatives / programs

Current membership offer - Individuals

•  Official Handicap: •  Score posting, statistics tracking •  Golf Canada magazine home delivery •  Global Golf News •  Other discounts/benefits •  PA offers (discounted golf, golf travel etc.) •  Grow the game/philanthropic story •  Personalized membership card with QR code and other

benefits •  Access to events

Recap 2013 Membership Strategy

•  Built on work to date connecting to individual members

•  Reinforced value of membership at both individual and club level

•  Ensured members are aware of where and how their information is used

•  Provided opportunity for individual members to make their own choices regarding communications

•  Added security to member’s account settings and information

•  Connected all handicap systems

2013 Results – Nationally (as of Sept. 24, 2013)

2013 Results Provincially (% of total membership)

2013 Results by Province

Comparison – Permissions Granted

Handicap Vendors

•  There are now 2 licensed vendors of the Official Handicap in addition to our official supplier

•  $17,000 was spent building the required APIs to connect GGGolf to the Score Centre (approx. 100 clubs and 25000 members)

•  Three (3) clubs use the third provider – Krismer

•  Over 100 clubs are being converted from Tee-On* * Clubs in Ontario are rebelling against the $3.50 fee charged by GAO for

access to the Score Centre

Significant Changes/Impacts

•  Mobile Score Posting App (35,000 downloads) •  Elimination of manual entry

•  Improves accuracy of handicap calculations •  Reinforces the value of membership •  10+ clubs rejoined based on the elimination of manual entry

•  10,800 customer service enquiries from individuals were responded to YTD (January and July: topics included card inquiries, score centre questions, credential requests, renewals, transfer/merger requests, scandicap, app, manual entry handicap, rules, tournament registrations)

•  580 clubs were assisted in the same time period

Member Benefits

Score Posting: 6,150,000 (to date) Home Delivery Golf Canada magazine (80,000) Global Golf Post: delivered weekly to 98,833 Member Pricing on Merchandise ($53,741/663 members) Ticket Offers RBC Insurance ($14,200 in policy commissions, 500 quotes) IHG Hotel Rooms (401) International Golf Network: Introduced this year, excellent response from members and member club (connecting members accounts at non-Canadian clubs)

Member Club Benefits

•  Promotion on www.golfcanada.ca •  Enhanced search tool

•  Preferred rate for Golf Canada member clubs with Gallus Golf App (golf course specific app including scoring, GPS, push notifications, and connects Golf Canada Score Centre)

•  Access to Aeroplan program at minimal up front commitment

•  Data gathering (Scores posted to course, member posting & other score centre data)

•  433 Clubs ordered membership cards for their entire roster •  17 used membership cards as their own card •  135 took advantage of offer to manage their roster

Visitation Program

•  Every member club in the country has received direct contact from the Regional Directors

•  Regional Directors worked with provincial associations to save

membership at over 30 clubs through communications and data on services at clubs

•  Key contact for membership issues that arose around Terms and

Conditions issues •  Biggest challenges:

•  Demand to revise membership structure •  Current membership dues structure

Member Club Communications

43 Member Club Communications issued by email. •  Open rate 26% •  Individual Letters were issued to every club by mail as well

2014 Dues increase communication in process:

•  Joint with Provincial Associations in Alberta, Saskatchewan,

Manitoba, Quebec, New Brunswick, Nova Scotia •  Golf Canada independent letter in BC, Ontario •  PEI and NFLD are pending further discussion Communication includes details of member accessing services of membership Communication via email and hard copy mailing

Dues letter: Content

As the golf season begins to wind down we would like to thank you for your continued support and commitment to the future of golf in Nova Scotia and Canada. In an effort to keep you up to date on the many programs and services provided to both clubs and members, we are pleased to share the following statistics that highlight just a few of the member benefits to your club and its members: • 571 members posted 7138 scores to the Golf Canada Score Centre • 6942 rounds were posted to your course by other Golf Canada members • 197 members requested further communication from GC and NSGA • 152 members preferred home delivery of Golf Canada magazine • 120 members ordered personalized membership cards in 2013 Golf Canada and the NSGA continue to work to grow our core services such as: • National Golf in Schools: 65 Schools in Nova Scotia

(60 Elementary and 5 High School) • CN Future Links: 15 participating clubs in Nova Scotia • Golf Fore the Cure: 4 sites in Nova Scotia • Regional, provincial and national competitions • Course and Slope Rating, Rules and Handicap seminars; coach training and certification Our associations are committed to investing in the growth and overall health of the game. We are confident that the initiatives put forth are helping to create a new generation of golfers to contribute to the vitality of the game.

PEI Pilot

Base Fee for Golf Facilities: •  Included equivalent number of individual memberships to recover fee •  19 courses signed up and paid

Objective: •  Equitable regardless of business model •  Reduce barriers to engage with individual members

Golf Canada support levels •  T&Cs •  Cards ordered •  Permissions •  Contact Lists •  Assistance with promotional materials YTD: 2450 people on the Score Centre

1056 Cards produced and delivered GC Revenue: $20,790 (2012 $24,300)

GolfFun Pilot

Purpose: Engage the green fee player Work with Golf Courses to reach green fee players Reinforce membership values at club level

Outcome: 10 courses initially “signed up”

Materials were developed in consultation with facilities Various levels of implementation 1256 individuals were registered 1500 scores posted 11% posted multiple scores (more than 1) Upgrades to membership:

Learning: Conflicting objectives of golf courses Minimal feedback on materials or implementation Six courses implemented Materials need to be targeted better

Feedback: 91% enjoyed posting scores

53% consider upgrading to full membership

2014 Membership Plan

Build on 2013 successes: •  Maintain current program to minimize confusion •  Present T&Cs only to new members •  Present permissions and contact information to existing

members for confirmation (not mandatory)

•  Will have additional 100 clubs on Score Centre or connected to Score Centre to maximize our contact to players

•  GGGolf improvements are in planning/development

2014 Plan continued

Expanded service to clubs

•  Roster management

•  Ease of membership sales and set up

•  Improved access to reports

•  Mag Stripe functionality

•  Connection to Score Centre through on course apps

Individuals:

•  Educational Opportunities (free access to Level One Rules)

•  Investigating other benefits:

•  Improved hotel benefit

•  Hole in one tracking program

Membership Model Strategy Overview:

Established a sub-committee to review current model

•  Possible models reviewed by:

•  Provincial Associations

•  Board

•  Membership Committee

No resolution or direction finalized Other Steps:

Public Player Segmentation Level 5 Focus Groups: Membership

Considerations

•  Provincial Association’s are moving forward with plans for new membership models

•  Total Membership revenue coast to coast

•  Based on 2012 membership numbers & 2013 Dues

•  $8.6 million

Key Questions to Identify Success:

•  Purpose of Membership?

•  Tax or voluntary?

•  Direct to market or through golf facilities or both?

•  Continued joint PA/GC model?

•  Expanded NAGA model?

•  Independent GC model?

Membership Definition Taskforce Output

GC might benefit from sponsorship, funding and revenue.

Contact via card activation.

Contact via handicap system for some.

Increased direct linkage to a broader membership.

Program and marketing opportunities.

Individuals All individuals who pay dues are voting members. X ? X X All individuals who pay dues and activate their cards are voting members. X X X X

All individuals who pay dues are non-voting members. X ? ? ? ? All individuals who pay dues and activate their cards are non-voting members. X X X X

Individuals are only members of PSO/TSO’s, not Golf Canada. ? ? ? ? ? Only Directors, Governors and Provincial Council Representatives are voting members. ? ? ? ? ?

Only Directors, Governors and Provincial Council Representatives are members. ? ? ? ? ?

Facilities Any golf facility (course, range, mini golf, par 3, etc.) that pays a fee is a voting member. X X X

Golf facilities become members of PSO/TSO’s. ? ? ? Status quo with clubs of individuals who pay dues as members. ? ? ?

Organizations Any organization that pays a fee is a voting member. X X X Any organization that pays a fee is a non-voting member. X X X Any national organization that pays a fee is a voting member. X X X Any national organization that pays a fee is a non-voting member. X X

Membership Modeling – Where do we want to be?

Forced membership High Engagement

Base Value Proposition

Optimal Value Proposition

Traditional club membership

Public Player Program

Where do other stakeholders and player segments fit into our model?

Who should be members: Discussion

•  Associations

•  Clubs/Courses •  Every course •  Only select courses that meet particular standards •  Tiered memberships

•  Facilities •  Every facility •  Only select facilities •  No facilities •  Tiered membership

•  Individuals •  As many as possible •  Only a select group •  Tiered membership •  One membership

Next Steps:

•  Industry Consultation •  Analysis of Financial Impact •  Recommendations on Future Model

•  Evaluation •  Consultation •  Approvals

•  Schedule for roll out of new model if applicable