Increasing customer loyalty is the most certain way to grow long-term revenue for golf courses. Loyal customers deliver new customers through positive referrals, while disloyal customers deter customers through negative referrals. The document outlines a model showing that a 10% drop in customer loyalty can result in an 8% reduction in total customer worth based on factors like spending, referrals, and attrition rates. It emphasizes measuring loyalty through customer recommendation surveys and focusing on factors like course conditions, value, and service to drive loyalty.
2. What Is The Most Certain Way To Get Long Term Revenue Growth? Loyal customers deliver new customers through the positive referrals they make Disloyal customers steer away customers through the negative referrals they make Increase Customer Loyalty
4. What is the Ultimate Question “ Please rate how likely you would be to recommend _________ Golf Course to a friend or colleague.”
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6. Average Counts of Referrals by Loyalty Response 1 Based from NGF Research at golf facilities
7. The Impact of Customer Spend Overall Average Green Fee Revenues Per Customer $620 1 Based on NGF’s Benchmark database for all golf facilities nationwide Assuming $45 Average Green Fee + Food and Beverage Per Round $7.00 + Pro Shop Sales Per Round $3.86
8. The Impact of Positive & Negative Referrals 1 Based off of NGF’s Benchmark database for all golf facilities nationwide Assuming $45 Average Green Fee + Food and Beverage Per Round $7.00 + Pro Shop Sales Per Round $3.86 Referral Impact for Promoters = 1.19 Referral Impact for Detractors = -.89 Average Customer Spend = $620 -.89 x $620 = 1.19 x $620 =
9. What’s a Loyal Customer Worth? 1 Based off of NGF’s Benchmark database for all golf facilities nationwide Assuming $45 Average Green Fee + Food and Beverage Per Round $7.00 + Pro Shop Sales Per Round $3.86 Total Customer Worth
10. What Drives Loyalty May Surprise You Factor Overall Course Conditions Overall Value of Course Condition of Fairways Golf Course Design Condition of Greens Scenery and Aesthetics of Course Condition of Tees Friendliness / Service of Staff Condition of Bunkers Overall Quality of Golf Shop Overall Quality of Practice Facility Overall Quality of Golf Shop Merchandise Pace of Play Condition of Golf Cars Amenities (clubhouse, pro shop, locker room) Overall Quality of Golf Shop Apparel On-course Services (restrooms, drinking water) Food & Beverage Service Tee Time Availability Affordability Loyalty Driver Ranking 1 st 2 nd 3 rd 4 th 5 th 6 th 7 th 8 th 9 th 10 th 11 th 12 th 13 th 14 th 15 th 16 th 17 th 18 th 19 th 20 th Importance Ranking 1 st 5 th 9 th 10 th 2 nd 8 th 12 th 7 th 16 th 18 th 13 th 20 th 4 th 17 th 15 th 19 th 14 th 11 th 6 th 3 rd
14. The Industry’s Revenue Impact Model Spend of Current Customers: Will leak in the future from attrition of current customers Total Customer Worth Results from Assessment
16. Ways NGF Can Help You Ben Fowler, PGA [email_address] (561) 354-1628 NGF Report: #1 Way to Grow Revenues
Editor's Notes
Hello, my name is Ben Fowler and today I will be presenting NGF’s new report on the “#1 Way to Grow Revenues.” Since 1936, the National Golf Foundation has been helping golf businesses succeed. To fulfill our mission of helping golf businesses succeed we offer golf business research and consulting services to our 4,750 member facilities and organizations world wide. In this report, you will learn how leading golf operators are maximizing their revenues by optimizing operations through the Voice-of-Customer. Over the past eight years our Voice-of-Customer services have been executed at over 800 facilities with responses from close to a half million golfers. Some of the clients that rely on NGF’s Voice-Of -Customer services are KemperSports, OB Sports, CourseCo, Montgomery County Revenue Authority, Baltimore Municipal Golf Corporation, the US Navy Golf Program, Coeur d'Alene Golf Resort, Pasatiempo Golf Club and many others.
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