Board strategy discussion- Membership

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) PROV ADULT JUNIOR FACILITY FEE Club with members but no real estate Golf Course without members CLUB RATE PUBLIC PLAYER MINIMUM Score MEMBERS 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 QC $29.00 $15.00 60 $29.00 $15.00 $39.99 $19.99 $500.00 $1,445.0 0 $1,445.00 $1,445.00 $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 SK NS PE QC GAO adds a $3.50 charge for access to the Golf Canada Score Centre As of 2012 GS charges $200 sand green, $400 for 9 hole grass, $600 for 18 hole (or more) grass green Minimum amount for any club is $500 annually for membership Flat fee of $220 per hole for every club no public player memberships available Cat III fee is for public courses only. Private and semi-private pay by the member - min. 60 members NL AB Only one $300 Facility Fee in province 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 Initiation fee of $100 / Facility Fee on top of BC 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? Optimal Value Proposition Public Player Program Forced membership High Engagement Traditional club membership Where do other stakeholders and player segments fit into our model? Base Value Proposition

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