The private club industry has traditionally relied heavily on the willingness of current members to invite their friends into the club. There is an enormous difference between a satisfied member, and a loyal member. Satisfied members may not be quitting anytime soon, but loyal members will invite their friends.
One of the simplest methods to actually understand your members’ satisfaction and loyalty is through the Net Promoter Score (NPS). The Net Promoter Score is a metric used by industries and organizations to measure and calculate based on customers’ willingness to recommend a brand, product or services to others.
In the case of private clubs, the NPS can be a key factor in the ultimate success of your club’s membership recruitment and retention each year. Calculating your club’s NPS will show who and how many of your members are either promoting your club favorably or detracting, and reducing the worth or value of your club.
The NPS is calculated from the answer to one very simply question:
“How likely are you to recommend the club to your friends?”
The choices presented are set up on a rating scale of zero through ten; with zero representing “Not at all likely to recommend,” and a score of ten representing “Extremely likely to recommend.” The answers provided by consumers places them into one of three groups:
- Promoters – Those who answered with a score of 9 or 10.
- Passives – Those who answered with a score of 7 or 8.
- Detractors – Those who answered with a score of 0 to 6.
The Net Promoter Score is calculated by subtracting the percentage of Detractors from the percentage of Promoters. Generally speaking, a NPS that is below 30 would be an indication that your club has a lot of issues to address. A score between 30 and 50 is a good range to be in, however there is still room for progress. If your NPS is higher than 50, that would indicate you have far more happy members than unhappy ones and your club’s satisfaction and loyalty is going great. As can be expected, the higher your NPS is the more likely it is that your member’s will refer more prospects and those prospects will convert into new members and generate more income for your club.
Below, you will find an actual NPS pulled from a private country club located on the west coast that offers golf, tennis, swimming and fitness/health center. In this example, this particular club has a very strong and positive Net Promoter Score.
The NPS can be a great tool for private clubs to engage in a deeper conversation based on the member’s responses and gather data pertaining to why the members may have responded the way they did, either positively or negatively.
There are a few variables that a club should take into consideration when it comes to a member’s response and calculation of the Net Promoter Score.
- Length of Membership – Newer members could rate higher than members who have been at the club for a number of years. Members who have been at the club for only a few years or less could exhibit a higher level of satisfaction and loyalty which would contribute to a higher overall NPS. Instinct would then tell you that a member who is resigning or on their way out could represent a lower NPS score based on the reason of their resignation.
- Region or Location of Club – The geography, region or seasonality of a club can have an effect on the NPS. Clubs and membership bases with year-round access to amenities could rate higher than a club that experiences all four seasons. Depending on the time of year, there could be differing levels of satisfaction.
- Quantitative versus Qualitative Reactions – While clubs could become obsessed with increasing their overall score, they should recognize that the score represents a quantitative versus qualitative metric. The main purpose of the NPS lies in helping you track and maintain the relationship the club has created with the membership. Focusing on what drives the score and how to improve it day in day out and month to month is what truly will help produce the long-term membership experience all clubs seek.
The NPS is a simple calculation that can provide invaluable information regarding the club’s ability to successfully engage and motivate current members to carry the flag, so to speak and spread the good word about their club experience.
If you would like additional information regarding average NPS scores from our 2018 private club clients, or if you would like more information on how to determine your club’s Net Promoter Score, please Click here or call (800) 526-8794 and we can start today.