Private Members Clubs: Is it Younger Members they need or a New Value Proposition?

A recent article in The Observer ‘Young blood at the Groucho? Duh….’ by Marie Le Conte was an interesting read.

‘The Soho hangout is aiming to attract more youthful members. It’s a shame millennials like me just can’t afford the privilege’

is how she starts the piece and really, they won’t be the only private members club that is chasing the ever-elusive younger member market.

Soho House has already been offering cheaper memberships for those under the age of 27 and the Inter-Club Younger Members Group was set up in 2005 for those younger members who were already enrolled in one of the various private member’s clubs that take part. It provides wider benefits and the opportunity to attend events at the participating venues. This added brilliant value to an already existing membership package without having to deliver too much extra work in terms of benefits and was run by the young members themselves. It’s a win-win.

As she points out, the main barrier to joining is the cost of membership; with most charging at least £40 a month just to get through the door. Then you will be paying the usual rate of £8 for a glass of wine or £18 for a main course. A lot of London high street restaurants already charge these prices and whereas before, food and drink sold in private member’s clubs were heavily subsidised and offered incredible value for money, those days are over with the increased costs of running the club in terms of food, drink and staff, not to mention the energy bills.

The real question is the Member Value Proposition (MVP) – what is a private member’s club FOR in this day and age and especially post COVID? Is it a place to work now that your London HQ office has shut its doors, and everyone is working from home? Is it a place to socialise and make new friends now that we are all dying to meet others face to face in real life instead of on a screen? Is it a place to attend unique events that only that club can provide access to? Is it a place to feel like a home away from home, where the staff remember you and provide you with personalised customer service? Is it a place to network and meet new people and business contacts? A club that tries to be too many things to too many people will fail miserably, not least because they can at times compete with each other for the physical space, which of course, is limited and finite.

Add in the fact that younger members may need a different value proposition to that of your core older membership, you may find you are diffusing the value in an attempt to please everyone. And where do you draw the line? Some would say under 30, some say under 25. With people living longer with their parents after university; at what age can we say they are really becoming an adult with a disposable income?

Sometimes you don’t need to worry about younger members; the University of the Third Age knows who it is, and who they are designed for, they aren’t worried about the under 30 market. It helps to know who your core market is and whether they are in decline. If you have a steady pipeline of new members replacing the old, regardless of age, then that’s the main thing.

Need help with your Member Value Proposition (MVP) and positioning your membership body in the 21^st Century. MemberWise are the experts in creating, developing and facilitating membership strategy across sectors and have the unique experience of working in Private Members’ Clubs (and a wide range of other membership settings) at a senior level. Contact Us to find out more…