Where Tradition Meets Tomorrow: Dr. Bonnie Knutson on Creating Value in Modern Private Clubs

The essence of a private club is uniting people with shared values and passions. When a club’s no longer able to connect these straightforward “dots”, its future is at risk. The challenge clubs today is front and center: balancing new member values with cherished traditions.

Dr. Bonnie Knutson, professor in the School of Hospitality Business at Michigan State University, brings a unique perspective to this conversation. A self-described "people watcher," Dr. Knutson is not just an academic expert but also a private club member, avid golfer, and regular contributor to BoardRoom Magazine. She’s also an instructor with CMAA’s Business Management Institute.

The Evolution of Exclusivity

Private clubs have long traded on exclusivity as their primary value proposition. In fact, many Gen-X’ers are caught between the old school “exclusivity” club value proposition and the more Millennial “experiences” value set. Dr. Knutson observes that this concept has evolved dramatically across these generations, particularly among younger members who place less emphasis on status symbols like private club memberships and fancy cars.

"The way younger generations define status is different than what you and I grew up with," explains Dr. Knutson. "It used to be if we wanted to meet and interact with the movers and shakers in the world, you went to the club. That has changed."

Today's potential members can network in numerous settings and they value experiences over traditional status markers. More importantly, they were raised with inclusivity as part of their DNA. If they're going to invest time and money in club membership, they want an environment where their friends feel welcome too.

The Value Equation

At the heart of Dr. Knutson's philosophy is a simple algebraic equation: V = E - P. Value equals Experience minus Price.

As Dr. Knutson explains, "The only way you can increase the value of club membership is one of two ways. You either increase the experience or you decrease the price. And I don't know of any club that's decreasing the price."

What's particularly notable is that price isn't measured solely in dollars anymore. Today's members calculate costs in terms of both money and time. Is it worth changing out of comfortable clothes to visit the club for dinner? Is the hassle of coordinating a business meeting or wedding at the club worth the experience?

"Time is money," Dr. Knutson emphasizes. "Baby boomers ask what's the one thing you wish you had more of? The number one thing is time."

The WIITY Principle

Dr. Knutson challenges club leaders to adopt what she calls the "WIITY principle" – What Is Important To You. Too often, club managers focus on promoting amenities: a beautiful ballroom, new sand traps, or pickleball courts. But this amenity-focused approach misses the mark.

"Club managers are so proud of what they've done. They want to talk product," she notes. "The WIITY principle would say, 'I don't really care about the pickleball court. I want to know what's in it for me.'"

This mindset shift from product features to member benefits echoes the famous retailer, Marshall Field, philosophy: "I ask the lady what she wants and then I sell it to her."

Creating Memorable Experiences

With clubs becoming more expensive, the experience side of the value equation becomes even more critical. Dr. Knutson suggests clubs need to create unique, "Instagrammable" moments that members can't get elsewhere.

She recalls how her club once served fresh, warm popovers instead of standard bread and rolls. "My mouth is drooling thinking of it," she says. "The cost goes away, time goes away... I can get bread and rolls at any nice restaurant in town. So that diminishes the value because it's diminished the experience."

Dr. Knutson encourages clubs to look for inspiration in other industries, citing the Savannah Bananas minor league baseball team as an example of creative experience innovation. "If you've ever marched in a parade, everybody is marching lock step going down the street. You notice the totality. You don't notice the individual. If the individual wants to get noticed, they're going to pick up the flag and march in the other direction."

Looking to the Future

One of the greatest threats to private clubs, according to Dr. Knutson, is the rapid pace of change combined with insufficient time for strategic thinking. "Information is changing so fast, the consumer is changing so fast, the economy is changing so fast that we don't have enough time to think and get out in front of it."

In an effort to plan strategically, she subscribes to, what she calls, "backcasting" rather than forecasting. "Where do we want to be or have to be five years from now to be sustainable? Well, if we have to be at X five years from now, then at year four, we have to be here. At year three, we have to be there..."

Understanding Member Perceptions

Research plays a critical role in strategic planning for clubs. Understanding their brand and how members and outsiders perceive your club is critical. However, Dr. Knutson notes that traditional methods often fail to capture members' emotional connections to their club as they revert to cliche descriptions. She suggests a more unique approach that connects with the emotions people may feel, like asking members to describe their club as an animal.

"I don't care about the animal," she explains. "That's just a hook for them to visualize something. You follow up with why that animal? Why a teddy bear? Why a gorilla? Why an octopus? Because that's where you're going to understand their relationship."

She shares an example of a club that assumed members weren't visiting midweek due to high prices. Research revealed the actual barrier was members' perception they needed to "dress up" to visit. Understanding this reality allowed the club to address the real issue rather than unnecessarily lowering prices.

The Joy of Service

Behind the necessary changes most clubs will need to embrace is a team of professionals that understand the vision of the club and are willing and able to get behind it. Because, just as members are looking at their experiences differently, so too do long term staff members. When asked what message she typically leaves with club managers, Dr. Knutson offers a simple yet profound insight: "I have joy in what I do. I have joy in helping people help people. So, if you don't have joy in helping people, you’ve got to find a place where you have joy. Because if you're not having fun, get out of the business."