April 2009 -- Now that the country is in a recession, we can't help wondering how this will impact our industry and, more directly, our jobs. Typically, one of the last expenses consumers will give up is the cost of their recreational needs. If they are putting in less time at work, they have more opportunities to enjoy their favorite sport, such as tennis. Hitting balls on the tennis court also provides a temporary safe haven from the stress of these economically challenging times.
At the same time, this new financial crunch will motivate consumers to seek out more cost-efficient forms of recreation. They will also look for venues that have greater value, which is how tennis pros are most impacted. During a recession, demand for memberships is likely to drop. Most pros will find it difficult to change this trend, but what they can influence is membership retention. A stressed economy may reduce the number of new lessons, so it becomes more important to retain current students. The smart club pro will put together a program that will accomplish both goals - student retention and member retention.
Surprisingly, few pros really know how to measure their impact on member retention. They're aware of their lesson income and the demand they create for their instruction, but are unable to accurately calculate membership retention. Any pros who can show their value in this area can create a positive impact on business, and with that comes job security. So the question is, how does a pro measure that impact?
Some facilities have introduced financial systems that keep track of this quotient by providing a commission that spins out of monthly membership dues. Although rare, this proves to be very accurate. Most of the software clubs use will track the salesperson when a new member joins. If the teaching pro is programmed into that software to show credit for any sale of a membership, these numbers can also be accurately tracked.
Short of having these programs, new members or members who retain their memberships by virtue of the tennis pro, are seldom tracked or kept on record. There are several methods tennis pros can use to measure their membership retention quotient. Not all of these methods will be applicable. For instance, some clubs have a strong demand for their membership, or a cap, that eliminates the importance of tracking membership retention. Other pros may work at resorts or recreational facilities that use different measurements when evaluating the impact of their teaching pros. They may measure the number of customers who return to a facility due to the popularity of their tennis pros. Resort pros, therefore, are more inclined to keep track of customer or client retention, as compared to member retention. But for the majority of tennis pros who work with members, here is a simple scoring system with several methods to calculate your impact.
- 1. The first method is the most obvious: Keep track of those who join the club as a result of your lessons or programs. If you have been working at a facility for 10 years, you may have brought in 35 members every year. What will be most impressive to the decision-makers at the club is when you are able to show them that of those 175 members, 160 or more are still active at your club. A less than 10 percent loss in members is a strong number in this industry, especially in an area where there is little transition. To find an accurate number to work with, use your local real estate market as a barometer to measure the transition in your area. Some areas naturally have more turnover than others, i.e. military areas, resort areas and metropolitan areas, while others are more stable, i.e. retirement communities, and high-income suburban areas.
Scoring: Give yourself a 10 for 90 percent retention and 1 point less for every 10 percent less.
- The second method is to evaluate the percentage of members attending events. As an example, you may know how many 3.5 male players you have who can play on weekends, so when you have an event, what percentage of members attend? Is it 90 percent, 50 percent or only 10 percent? Every club will have a different standard to determine successful attendance; you should know that standard and keep track. Most teaching pros' programs can be measured by this method. Tennis pros need to remember that many members join exclusively for the programs. This may be their only way to meet others and find tennis partners. In many ways, the tennis programs work like a tennis dating service, getting players together in ways that they could not do on their own. This is one of the most influential areas in maintaining membership retention.
Scoring: Give yourself a 10 for optimum attendance and 1 less point for every 10 percent under that number.
- Another method of measuring a pro's impact is the demand for lessons, not just for the head pro or tennis director, but for the entire staff. If the entire tennis staff is fully booked, you are obviously having a positive influence on membership retention. Be careful; having a waiting list can sound good, but if the needs of the members are not being met, they may go elsewhere to take lessons and end up changing their choice of clubs. On the flip side, pros who have time on their hands, when they could be on the court teaching, are probably not keeping the membership busy, and more important, interested in the sport.
Scoring: Give yourself a 10 for a completely booked staff and 1 less point for every 10 percent less than optimum.
- Also, when the teaching pro becomes the go-to person for many of the issues in the tennis department, and maybe even beyond the tennis department, his or her value increases daily. A member who relies on the tennis pro for answers and solutions to issues is much more inclined to perceive the pro as a club asset who is affecting that person's membership. The pro may have eliminated a potentially negative experience and kept that member from looking for other club options.
Scoring: Give yourself a 10 if members come to you to handle issues at least 10 times per week. Subtract 1 point for every time less than 10.
- Lastly, one way to positively impact member retention is to stay current with programs and activities. Don't be afraid to reinvent yourself. Look into new programs that will provide quality instruction at a discounted rate. Experiment with social and competitive events that reach out to all levels of play and help bond more members with their club. The USPTA is a valuable resource for this, providing Cardio Tennis, Little Tennis®, Tennis Across America™ and Lessons for Life™. If news of these programs reaches your members through sources other than you, those sources will likely develop a stronger bond to that member. Your ability to be the first to inform will be directly connected to being the pro who is able to retain members.
Scoring: Give yourself a 10 for adding a new idea or program every three months. Subtract 3 for every time less than that in a single year.
If you had a final score of more than 45, you are in great shape and will probably keep your job as long as you desire. In fact, you will probably be sought after by other facilities. If you scored between 35 and 45, you're going in the right direction but could improve your impact on the membership. If you scored between 20 and 35, you better get on the ball and reposition yourself. If you scored under 20, you are really on the hot seat and need to get with the program. The good news is, that it is under your control, so go out and make some changes. Good luck.
Rod Heckelman started his career in 1966 at John Gardiner's Tennis Ranch in Carmel Valley, Calif. He has been general manager and tennis director at the Mt. Tam Racquet Club in Marin County, Calif., for the last 33 years. He has written for several magazines, including RSI
and recently released "The Facilities Managers Manual" that will be available through TIA. He teaches a specialty course for the USPTA in "Tennis Club Management" at many of the USPTA divisional conventions.
