Growing Golf: Strategies to Attract New Golfers and To Keep the Ones You Have
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1 Growing Golf: Strategies to Attract New Golfers and To Keep the Ones You Have Trillium Sellers, PGA & LPGA What does the research say? 1
2 Golf Industry Leaders -National Golf Foundation -Golf 20/20 - Professional Golfers Association of America (PGA) - Golf Play Golf America - The First Tee - Ladies Professional Golf Association (LPGA) -We Are Golf National Golf Foundation NGF is a non-profit, objective and independent resource dedicated to supporting all the people, companies, facilities and associations that earn their living in golf National Golf Foundation In the last five years, we have lost close to 4 million golfers in the US From 2009 to 2010, we lost one million more golfers than we gained Golf participation in the U.S. has fallen to levels not seen in 25 years, as only 9.2 percent of the population plays golf The number of female and junior golfers have dropped 23 and 35 percent, respectively, over the last five years. 2
3 National Golf Foundation Golfers in Millions Source: NGF golf participation study National Golf Foundation Trend In Openings of 18 hole equivalents: Source: NGF golf facility database National Golf Foundation Trend in Closures of 18 hole equivalents: Source: NGF golf facility database 3
4 National Golf Foundation Source: NGF golf facility database Golf 20/20 WGF is a non-profit organization that unites the golf industry in support of programs that promote, enhance the growth of, and provide access to the game of golf worldwide Golf 20/20 Survey Results Non-golfers were asked the following question: What level of interest do you have in playing golf? - Very interested - Somewhat interested - A little interested - Not at all interested * Very or somewhat interested in playing golf (based on a 4-point scale) 4
5 Golf 20/20 Interest in Playing Golf In Millions of Non-Golfers Golf 20/20 Of the 27 million who are very or somewhat interested in playing golf, about half have played before. Golf 20/20 Demographics by Age Latent Demand* Golfers % 10% % 36% % 37% % 17% * Very or somewhat interested in playing golf (based on a 4-point scale) 5
6 Golf 20/20 The goal was to answer three questions: 1. Does golf have an image problem? 2. Has our image changed? 3. Could our image be holding back growth? Golf 20/20 Overall Results: Pro Con Undecided Affordability 20% 44% 36% Accessibility 48% 21% 31% Environment 33% 17% 50% Economic Benefit 37% 13% 50% Good Values 44% 10% 46% Healthiness 58% 10% 32% Percent of all adults over the age of 18 Golf 20/20 Affordability: In 1994, 67% of non-golfers thought golf was too expensive 45% think the same today 6
7 Golf 20/20 Accessibility: 13% of non-golfers thought golf was discriminatory in % think the same today About 50 million golfers believe that the game is not accessible to everyone Golf 20/20 Do we have an image problem? Yes, golf continues to be viewed by many as an expensive game, which goes hand-in-hand with perceptions of it being an elitist game. PGA Initiative 7
8 Golf 2.0 A targeted, focused, long-range strategic plan for the golf industry to substantially increase the number of golfers, the rounds of golf played and the revenue generated from golf over the next decade among current and potential consumers of the game All results are from a survey done by the Boston Consulting Group Golf 2.0 Golf 2.0 8
9 Golf 2.0 What are we doing about it? Golf 2.0 9
10 Golf 2.0 Retain the Core Know Your Customer Golf, PGA Professionals, and golf facilities need to better know who its customers are, not just rounds played but total customers, and how to segment them. Delivering different experiences to each segment and best practice customer service will protect this group from further erosion and give us time to grow new customers. Learn and use the details. 10
11 Retain the Core Golfers Deepen Engagement Golf facilities must nurture current golfers and guide them to be our most loyal customers through the use of customer service techniques and affinity marketing. Utilize customer information for loyalty, leagues, etc. Regular Golfers Making at Least $150,000 Annually This a segment size of less than 1 million people that has a high per household spend and a high desire to bring others to the game. When asked, "What are your most important reasons for not golfing/not golfing more," here are the top three reasons they gave that are unrelated to the barriers of cost and time: 1.My spouse/significant other doesn't play (37%) 2.Congestion on golf courses (17%) 3.Golf isn't welcoming for women (12%) Lapsed Men With No Kids This is a large target population of 26 million people that has a relatively high latent demand to play the game. When asked, "What are your most important reasons for not golfing/not golfing more," here are the top three reasons they gave: 1.My spouse/significant other doesn't play (22%) 2.Golf isn't welcoming for beginners (19%) 3.Congestion on golf courses (17%) One group member told us, "I'll get out to the driving range, but I don't really have the time to play 18." 11
12 Lapsed Women With No Kids This is a large segment size of 17 million people that has an extremely high latent demand to play the game. When asked, "What are your most important reasons for not golfing/not golfing more," here are the top three reasons they gave that are unrelated to the barriers of cost and time: 1.I don't know the rules (22%) 2.My spouse/significant other doesn't play (19%) 3.Limited options besides playing full 18-hole courses (19%) One group member told us, "I liked being out on the course but it just costs so much money." Connecting with Her Golf must recognize women as the most influential member of American families, as women control 73 percent of household spending. Golf must create an integrated marketing strategy to grow our participation rate among women. What are your specific efforts towards women? Top Reasons Ladies walk away.. 1. Don t know anything about golf or golf facilities 2. Don t have clubs to practice or learn with 3. Fear of unknowns and fear of embarrassment 4. Don t know how to play, am not comfortable on the golf course 5. Need someone to learn with 6. My instructor is to technical, doesn t relate to beginners 7. I just want to have fun, not be a champion golfer 8. The game is harder than I thought. There is so much to learn 9. Don t have enough time to learn how to play golf 10. Don t know what to do next 12
13 Staff a female golf professional or female PGM intern Ladies golf leagues Merchandising for women Equipment for women Female as part of the coaching staff Golf exercises for women Yoga Women programs for golf fitness Women s Golf Instruction Get Golf Ready EWGA USGA s Girls Golf Platinum Players Golf should establish messaging and programs for lapsed seniors that emphasize the health, social and fun attributes of the sport. Incentives to play golf at non-peak times and fun, social opportunities to bring along a spouse or significant other to participate is a win-win for seniors and facilities. What are you doing to engage the lapsed seniors? Lapsed Retired Men This is a population of 10 million people that has a very high latent demand to play the game and is a high potential household revenue opportunity. When asked, "What are your most important reasons for not golfing/not golfing more," here are the top two reasons they gave: 1.My spouse/significant other doesn't play (29%) 2.Congestion on golf courses (21%) 13
14 Building Blocks Golf must be perceived as fun, and reaching families who are in the 84 percent of American households without a golfer is key as these are the "building blocks" of our future. Golf must employ tactics used successfully by tennis, soccer and other team sports. Alliances with major youth organizations are key. What are your strategies for targeting kids? Engage Lapsed & Drive New Kids (who already have played and who have not played) This is a total population of 27 million people who represent a solid foundation for the future of the game. Kids' participation and interest enables the whole family to play. When asked, "What are your most important reasons for not golfing/not golfing more," here are the top three reasons they gave that are unrelated to the barriers of cost and time: 1. I don't think it will be fun/just don't like golf (49% Who Have Already Played, 78% Who Have Not Played) 2. I don't know the rules (48% Who Have Already Played, 64% Who Have Not Played) 3. Golf isn't welcoming for beginners (35% Who Have Already Played, 25% Who Have Not Played) Drive New Golfers Do Do s and Don ts of Successful Junior Programs - Be organized and have the schedule available well in advanced for parents - Have a well stocked rental or junior borrower bin for those without clubs. Establish a handme-down system - Organize the instructional program around developmental stages rather than age groups. - Approach your program with the mindset of developing athletes rather than teaching golf - Keep the ratio of student to teacher less than 7:1 Depending on the age, a 4:1 ratio is ideal - Make it fun! 14
15 Text Do s and Don ts of Successful Junior Programs Don t - Assume that the kids need to be learning technique all of the time - Include too many rules and regulations - Spend a majority of the time on a lesson tee hitting balls onto the range - Assign the inexperienced teachers with the juniors. Teaching kids takes a special understanding and shouldn t be delegated down. Welcome Back to Golf It is critical that we target various segments of the 90 million Americans who describe themselves as lapsed golfers, many of whom aspire to play again. How do you welcome novices? How will you lessen the barriers to entry, specifically with time, expense, and golf s reputation as being unwelcoming? The Image Problem Golf has a systemic image problem to the most important segment of the population - those who don t play the game. It s unwelcoming to beginners, intimidating to non- golfers and not women-friendly. The industry needs to view re-packaging golf as if it were a new product; one with no history. -Peter Hill, CEO of Billy Casper Golf Management 15
16 Drive the New Family Focus With Generations X and Y exhibiting a more family-centric lifestyle than Boomers, golf must look at the entire family, not just dad. Without a fun, time- and cost-sensitive engagement of the family, Americans will look elsewhere to spend leisure time and money. What are your specific hooks for families? Drive the New Golf doesn t have to mean 18 hole stroke play 9 and Dine 6 holes after 6pm Mom s clinics Parent/child play 4 holes on Sunday evenings 9 hole rates Beginner on-course lessons Family rounds Junior chip/pitch/putt contests Ettiquette classes What can you do now? 16
17 A Missing Link Golf Instruction (Player Development) is generally not.. 1. Part of a facilities planning or marketing process 2. Does not have goals and/or objectives 3. Does not have program manuals, written scripts 4. Is not viewed as having any impact on over all facility revenues What can you do? Support long range planning of player development programs Invest time, effort and financial resources in player development CUSTOMER SERVICE AUDIT Are you sure you know what your customers need, want and desire? A review of these aspects is essential since it can give you a snapshot of what you are doing now to help you determine how to provide even better customer service. Customer relationship management is critical. You might consider, based on the individual strengths of your staff, putting someone in charge of junior golf, another in charge of merchandising, etc. In other words, get the right folks in the right seats and see what can happen. 17
18 PROGRAM AUDIT Review the current offerings at your facility to make sure they fall in line with your desire to establish a platform to grow golfers. Create value for your customer and demonstrate value to your facility. FACILITY-WIDE KNOWLEDGE/AWARENESS From the cart barn to the Board Room, make sure that all Team members at your facility are speaking the same language. You want to create the ultimate welcoming experience for your customers, and that can happen if everyone on staff (and beyond) are aligned with the knowledge of what you offer and why it is valuable to your customers. COMMITMENT TO EDUCATION Take advantage of the new knowledge-based behavioral consumer research. It can help you adjust to new culture and be more relevant in the marketplace. Now is the time to be more flexible and adaptable. 18
19 BUSINESS PLANNING SESSION WITH OWNER, BOARD, and PGA PROFESSIONAL Begin planning to operate more effectively in the new world of golf. You can coordinate all the members of your team so they are collectively driving the business. Develop your business planning so that it ultimately develops more golfers. PLAYER DEVELOPMENT =STRONGER BUSINESSES This is what Golf 2.0 is ultimately about. We are experiencing a cultural shift and you must take a different approach to business to be successful. More players can lead to better employment opportunities. Let s get more people playing and increase participation at your facility. Create stronger relationships so that the sale of one putter to one person leads to sales of full sets for the entire family. Drive your business by getting to know your customer better and conducting business in a new, exciting way. Thank you! Q & A Trillium Sellers Trillium@pga.com Chevy Chase Club 6100 Connecticut Avenue Chevy Chase, MD
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