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Publications & White Papers
Recent Publications & Articles: Strategy How To Grow Your Golfer Database How To Grow Your Golf League Business Are You Black Listed "what most golf courses don't know about bulk email" The Art of Golf Course Discounting Country Clubs Swing Into Actions to Stem Loss Strategy
By Norman Sinclair, Golf Business Magazine Driving Force By cutting expenses and repositioning the club’s offerings, Dean Horn (Franklin Golf/Course Logix) has Oakhurst Golf & Country Club pointed down a pathway for success Ror decades, automobile manufacturing dominated the industrial landscape of Michigan, as the Big Three automakers (Ford, General Motors and Chrysler) churned out American-made cars with metronomic consistency. While blue-collar cities such as Detroit attracted men and women in search of high-paying jobs, other regions lured tourists in droves, establishing tourism as The Wolverine State’s second-largest industry. But on September 11, 2001, Michigan’s economic landscape changed. The auto industry, which was already reeling from foreign competition, began hemorrhaging. Manufacturers slashed thousands of blue- and white-collar jobs, and Michigan’s overall economy sputtered (it remains at the lowest levels in decades). Golf wasn’t immune to the hardships, as bands of golfers who had once traveled from distant locales began forgoing trips to Michigan for destinations within driving distance. What’s more, many of the executives who belong to, or would have otherwise joined, private clubs began dropping their memberships. Understandably, something had to change. So, Oakhurst owner Craig Valassis turned to a family friend and business associate, Dean Horn, to help pull the business out of the doldrums. Horn and his company, Franklin Golf, managed two high-end resorts in Fort Lauderdale for Valassis’ father, as well as seven other properties in five states. One of Horn’s first major changes was dropping Oakhurst’s refundable membership program. He also introduced membership tiers, such as dining and athletic memberships, to open possibilities for people who weren’t looking for (or couldn’t currently afford) a full golf membership. He also re-priced the club’s guest program from $100 for golf to $70 to $80, with a $50 guest fee on Wednesdays. Next, Horn went about instilling a new philosophy for doing business among his management team. “I’ve never been a follower,” says Horn, who quickly began identifying functions that could best be handled with in-house personnel and those that would be more cost-effective if they were outsourced. “I didn’t mind ‘stepping outside the box’ and encouraging the staff to be more accountable even as they were given more freedom to make decisions and to be involved in strategy, process and results.” “It made sense because we didn’t have to pay insurance and we’re not paying for equipment,” Horn explains. “We write one check each month, and there are no peaks and valleys.” In addition to outsourcing, Horn commissioned outside tax accountants to examine Oakhurst’s property tax liabilities, which exceeded $250,000 annually. This, in turn, led to an appeal that ultimately reduced the club’s yearly tax bill by $60,000. Horn says the collective efforts so far have wiped out the $1.5 million loss, and he expects to see positive cash flow this year after fixed expenses are paid. “We want to have the business people out here,” Horn says. “We have wireless capability and state-of-the-art technology for meetings and conferences.” As such, members of Automation Alley routinely host business sessions at Oakhurst, and the club often conducts special golf programs designed exclusively for executives. This symbiotic arrangement provides club members (and the management) access to top local, national and international business contacts. Perhaps Horn’s biggest accomplishment has been repositioning Oakhurst to appeal to a younger membership, one whose average age is 48. “What people do and expect of a club now is not what it was a decade or more ago,” says Horn, noting that he and other club officials scrutinized all aspects of Oakhurst’s food-and-beverage operation to ensure they were providing what members wanted. “Younger members don’t want to go to a glitzy country club restaurant. They want to go to a place to have good food at a good price and have fun.” In fact, carry-out orders comprise more than 30 percent of Oakhurst’s dining business. Because of its younger clientele, Oakhurst—much like a growing number of private clubs—also found itself competing against other school and recreational activities for parents’ time. Truth is, Oakhurst’s members with school-age children were playing only 1.9 rounds each month. To generate more play, Horn beefed up the club’s junior programs and also implemented children’s offerings in tennis, swimming and crafts. Today, the club’s junior golf program includes 175 members. Norman Sinclair is a Michigan-based freelance writer.
4 Tips to Grow Your Database Many public and semi-private courses in North America are finally starting to catch on this email marketing thing-a-ma-gig. Many courses have started growing their own email database. Some of these databases are very simplistic and some are more robust than others. Just the fact that Courses are harnessing the power of the web is a great thing. We also know that email marketing has a 3% success rate on average. That being said, you will need at least 1,000 golfers in your database to get 30 golfers at your golf course. The one question that everyone keeps asking is “How Can I Grow My Database?” What if you had 3,000 eclub members? Some of my clients have more, and I helped them get there. Below are some simple strategies to follow when cultivating your email database. 1. Fishbowl/Kiosk One of the best ways to populate your database is run a free golf giveaway contest at the golf counter. All you need is a fishbowl and some 3x3 cards where golfers can fill out their contact info. Keep it simple….you just need their name and email address for now. The main goal is to get a full golfer profile, but at the counter you can’t expect your staff to ask 20 questions. Once your fishbowl is full, you can send them an invitation to join your eclub, where they will need to go to your website and fill out a complete golfer profile. You can bypass a lot of the data input by installing a kiosk ($400) in your golf shop. You should expect 10 to 15% of the fishbowl people to actually join your eclub. Don’t forget to actually draw a contest winner. It’s up to you how often. 2. Segmentation Most of the course’s email databases that I’ve seen just have name and email address. It’s important to have a full golfer profile (name, age, gender, handicap, outing planner, league participant, and much more). That way you can send targeted emails to just the people that want to receive them. If you just send out shotgun eblasts, you will saturate your email recipients, and train them to start disregarding your emails. 3. The Small Print When emailing a special rate, or a special golf package, you should always include the golfers name on the coupon. Some email marketing systems can actually personalize the coupons on your website. You should require that golfers can only use the coupon if there name is on it. This will prevent golfers from sharing the coupon and never getting their friends to join your eclub. Tip #423 A email is only as good as the offer. Make sure your email/coupon has value. 4. The Front Line Your counter staff is probably one of the most important contributors of growing your course’s database. If they are not promoting your eClub, your database’s chance of success is slim to none. You can also run monthly employee contests to see who can get the most people to join your eclub. There are also many phone strategies that can help increase your database, and if you find the right one that fits your course, you should see your database double in no time. By following the tips above, you will now have a foundation in place for your database and email marketing process. Remember that it takes dedication and time to grow your database.
-------------------------------------------------------------------------------------------------------------------------------------------- 4 Strategies to Grow Your League Business If you attended the MGCOA Show last November, you probably sat in on the break out session that discussed how league play can make or break your golf course. Below I have included four ways to grow your league business.
Are you Black Listed? Are you Black Listed? Golf Courses who are sending out bulk email are finding out the hard way. They are typically using an antiquated bulk email system or some sort of homemade contraption. 1. Email Validation When someone registers on your website to access specials, or a contest, do they have to validate their email? Can someone just enter any old email address? If the answer is yes, then there are 2 issues that come into play. (1) You might think you have 5,000 people in your database, but you really only have 2,000 people with valid email addresses. (2) When someone enters an invalid email address, and you send out a bulk email, the World Wide Web will penalize you for sending out emails to addresses that don’t exist. Better yet, someone enters an email that is not theirs, and the recipient will flag your email as spam. Getting flagged as spam is 2. SPF Records Today, nearly all abusive e-mail messages carry fake sender addresses. The victims whose 3. Opt Out Function As I stated in section one, people who receive your email, and click on the “report as spam button”, will definitely secure your fate to appear on the black lists. Most black lists say that if 3% of your emails are reported as spam, then you are considered a spammer. The trick is to make it as easy as possible to unsubscribe. At the footer of every bulk email, you should have an “Opt Out” or “Remove Me From Your Mailing List” button. It should be automated and simple for the recipient to be excluded from your database. If not, then your chances of being black listed will be even greater. 4. Use a Reputable Service Provider Follow these 4 tricks above, and you will definitely improve your deliverability rates.
The Art of Discounting The problem is that many golf course operators are not educated in marketing and consumer buyer behavior. If a golf course decides to dabble in the discount golf game, they better know what they are doing. If the golf course does not have a sound plan, they can cause a ripple effect, which could definitely damage their business and likely to trade quality dollars for less. I was at a golf course the other day and they were promoting a special that included 4 rounds for $99. The idea was good, but the Pro advertised the special in the golf shop. You already have a captive audience and he did not put any restrictions on the promotion. What happened? Foursomes would come in who would have paid rack rate ($39), noticed the sign and ended up buying the $99 special. This promotion should have been mailed out to a certain database of golfers who live in a different area. This happens every day at golf courses throughout the United States. I just want to make everyone aware that poor decisions made by a few operators, can cause the downfall of their course and have a ripple effect throughout the industry. Identify your weak spots on the tee sheet and target specific promos to develop additional revenue. Do not however take away from the areas that have players, especially when those players are “paying” an acceptable price for that specific tee time. Gone are the days of “one size fits all”. Today savvy operator is likely to offer a variety of products based on supply and demand. Blanket treating is likely to take away from the good you have already established. Know your peaks and valley and design programs to help in the valleys. You might be able to increase prices if a consistent peak is noted. Fully utilization of the tee sheet requires one to analyze the business. Having an email program to improve weak spots on your tee sheet is essential……not to mention it rewards customer loyalty. There is a way to capitalize on discounted golf, but you have to know how. If you are interested in learning more, please call us at 800-599-6310. Effective solutions are cheaper than you think.
-------------------------------------------------------------------------------------------------------------------------------------------- Country clubs swing into action to stem loss
At Stone Oak County Club in Springfield Township this summer, members will be lifting more than nine irons and martinis. It is just one of the ways that country clubs in the Toledo region and across the nation are dealing with an economic crisis that has forced many members to put their memberships on hold or to resign outright. The recession has added to the woes of private golf and tennis clubs, whose rosters have been declining for years because of dual-income households, deaths of longtime members, and disinterest among many young adults. "There are a lot of country clubs hanging on by a thread," said Bay Paul, a country club consultant in the Detroit suburb of Clarkston, Mich. "This year will really tell the story."
Many clubs don't know how to respond to problems, the consultant said. Others are hiring sales personnel, slashing dues and fees, and coming up with less expensive hybrid membership categories that allow users to sign up for individual benefits such as dining or golf. In metro Toledo, Belmont Country Club has signed up 130 new members through such measures. About 35 are traditional members, said Bill Behe, Belmont president. Others have purchased family swim packages for $500 each and golf packages ranging from $1,500 to $5,500. The Perrysburg Township club promoted the program in brochures sent to homes in surrounding suburbs. "We're hoping at the end of the year, if things turn around, a lot of these people will become members," Mr. Behe said. The club lost about 20 members at the end of last year, primarily because of the economy. He was unsure of current membership. But in response, officers came up with the new membership categories, cut initiation fees to $1,000 from $6,000, and reduced monthly dues to $350 from $500. At Stone Oak, the general manager hopes that new amenities will eventually restore membership to 400 from about 325 now. "We've had some departure of members and attrition based on the economy," Mr. Olander added. Some members who left are too focused on saving their businesses to attend country club functions, he added. He is hoping that the new pool and other amenities, promoted in post cards sent to surrounding households, will lure residents of the 600-household Stone Oak residential development and adjacent areas. They are part of a renewed emphasis on family activities, he explained. It's business as usual, though, at Toledo Country Club on River Road. About 35 of the club's 385 members have taken leaves of absence. Erwin Effler, club president, blames the losses on tough times. Club officials don't expect membership to return for three years to the desired 400. In the meantime, the club is encouraging existing members to convince friends to join. The club charges $7,500 for initiation and dues of $450 a month. "I wouldn't say we're doing well, but we're sustaining," Mr. Effler said.
Contact Gary Pakulski at: -----------------------------------------------------------------------------------------------------------------------
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