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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


Perception is Reality…Or is it


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.
 
Not surprisingly, a state that had long been home to such storied private clubs as Oakland Hills experienced an influx of high-end daily fee facilities and resorts (Michigan currently ranks third in the country with approximately 900 golf courses). These newcomers to Michigan’s golf scene competed for traveling golfers as well as resident executives, who often gravitated to private clubs.
 
Early in its history, Oakhurst Golf and Country Club garnered its fair share of this latter demographic. By 2000, just four years after opening, the club, which is located in affluent Oakland County, had more than $4 million in membership deposits in the bank. Indeed, the club’s prospects seemed endless.


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.
 
Despite the overall economic tailspin, the effects didn’t immediately impact clubs like Oakhurst. The club’s initial $30,000 membership fee in 2000 had climbed to $45,000 by 2004. Meanwhile, in 2003, Oakhurst officials followed through on promises made to its membership and began construction on a 40,000-square-foot clubhouse. But by the time the Victorian-themed structure opened in 2004, the club had recorded an operational loss of $1.6 million.


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.
 
“I was here from Day One,” says Horn, who had developed a knack for turning around sputtering business. “I used to come around regularly when Oakhurst was just a field and woods.” Even still, Horn’s task in 2004 was daunting.


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.”
 
To free staff members of tasks that might impede this operational approach, Horn ceded human resource duties to a private company, a decision he contends “gives us a thorough human resources department without the liability.” Meanwhile, golf course maintenance was outsourced to Davey Golf, which was already working with the development’s 400 residential properties and maintaining common areas surrounding the golf course.


“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.”
 
More importantly, the management arrangement allowed Oakhurst to retain its superintendent to oversee the maintenance, which ensured there was no drop-off in the quality of course conditioning. Horn estimates the club will save $350,000 over the next five years by utilizing Davey Golf.


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.
 
Of course, you can only cut costs so far without sacrificing quality, so Horn decided to replenish the club’s membership roster. His approach was to align Oakhurst with Automation Alley, a national marketing program that unites business and political leaders from seven neighboring counties and the city of Detroit to promote the area’s high-tech companies. The intent is to attract highly skilled workers and cutting-edge businesses.


“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.
 
Ultimately, Horn contends this ability to change and adapt will be the driving force behind Oakhurst’s future success. “The country club value must be in a place where you can network and your kids can get life experiences. More people now see the country club not just as a place to play golf. When they add things up, you must make it worth the $500 dues they pay.”


Norman Sinclair is a Michigan-based freelance writer.



 



4 Tips to Grow Your Database
By Bay Paul – Marketing Consultant, Course Logix, www.course-logix.com
MGCOA Tee Off Times Magazine




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.


 


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4 Strategies to Grow Your League Business
By Bay Paul – Marketing Consultant, Course Logix, www.course-logix.com
MGCOA Tee Off Times Magazine


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.

Email Marketing Segmentation – If your database is setup right, you can send an e-blast to golfers who play in leagues at other golf courses. Why not send a targeted e-blast that gets them to participate in a league at your course?

Supply/Demand Pricing – Price your league nights based on demand. If your Wednesday and Thursday league is high in demand, charge more than your Monday and Tuesday league night. One quick tip is to keep your before and after league rate the same across the board. You want to keep it simple for your counter staff.

Online League Manager – League secretaries are looking for more efficient methods to communicate to their league players and better ways to post league schedules, rosters, and results. Why not have your website provide an online portal for your league players to view schedules, rosters, and results? Set yourself apart from your competition. Talk about a league retention tool. If done properly, your league will never leave you.

League Beer Specials - This is an old trick, but for some reason many golf courses are not catching on. We all know that many league players come for the beer and not so much the golf. Why not offer a special beer rate for league nights? Many league secretaries factor in the price of beer when selecting a course for their league. If you have high beer prices, there is a good chance that some of your leagues are bringing in their own beer and you should consider special pricing.

Every course is different, but if you follow these four strategies above, you will definitely improve your league business.

Course Logix specializes in helping golf courses increase revenue, while decreasing marketing costs. Our proven system will help grow your own segmented golfer database and provide you tools to communicate to your database via email. We also have vast experience in golf course website design.




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Are you Black Listed?
By Bay Paul – Marketing Consultant, Course Logix, www.course-logix.com
MGCOA Tee Off Times Magazine


Are you Black Listed?
For those of you operators who have started to think outside the box and start growing your own customer database, some of you may have experience being black listed or grey listed.
Blacklists help keep the Internet clear of unsolicited email by giving mail providers a list of naughty email senders they can automatically block and keep away from inboxes. But sometimes legitimate senders get caught up in the crossfire.

For some of you, you might think that your emails are reaching your whole database. The reality is that you might only be reaching 50% or even less.


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.
Here are a few tricks to help keep you off the Black Lists:


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
the fasted way to get black listed.


2.  SPF Records


Today, nearly all abusive e-mail messages carry fake sender addresses. The victims whose
addresses are being abused often suffer from the consequences, because their reputation gets
diminished and they have to disclaim liability for the abuse, or waste their time sorting out
misdirected bounce messages.

You probably have experienced one kind of abuse or another of your e-mail address yourself in the past, e.g. when you received an error message saying that a message allegedly sent by you

could not be delivered to the recipient, although you never sent a message to that address.
SPF records can protect your email address from being forged. Ask your webhost provider to set up your SPF records.


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

Commercial email is getting more difficult with the advent of the CAN-SPAM Act and the increase in ISP filtering. Staying up-to-date on current legislation and policies of ISPs and anti-spam groups is difficult to do on your own. Reputable service providers such as Course Logix dedicate significant resources to managing ISP relationships, monitoring email deliveries, and evaluating current email laws. If you do not have similar resources or an in-house expert, outsourcing could be the best way to get your messages delivered.


 

Follow these 4 tricks above, and you will definitely improve your deliverability rates.



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                                                           The Art of Discounting

                                 By Bay Paul – Marketing Consultant, Course Logix, www.course-logix.com
                                                             MGCOA Tee Off Times Magazine


With the economic challenges here in The United States , golf courses are expected to further discount their tee time inventory in order to attract more customers. Discount Golf in The US is a 150 million dollar a year business , so why not go after a piece.


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.


 


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Country clubs swing into action to stem loss







Photo


At Stone Oak County Club in Springfield Township this summer, members will be lifting more than nine irons and martinis.
A fitness center, the facility's first, will open in July. It's part of $2 million in improvements, including two new swimming pools. "It's adding another amenity," General Manager Keith Olander said of the fitness center. "Country clubs have to do that if they're going to survive."

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."






Photo
In metro Detroit, which like Toledo has been hard-hit by the auto industry downturn, two clubs have closed, said Mr. Paul, vice president of Courselogix, which sets up Web sites and electronic marketing campaigns for clubs.

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:
gpakulski@theblade.com
or 419-724-6082.


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Perception is Reality…Or is it 
By Bay Paul – Marketing Consultant, Course Logix,
 www.course-logix.com
MGCOA Tee Off Times Magazine


Last fall I was golfing with a client of mine.  He owns  a premium daily fee course and has seen year over year growth in golf revenues.  Things might not be as bad as they seem in this upside down economy.  If you asked him how he is doing it, he’ll just tell you “I don’t wait for business to happen, I make business happen”.  He’s been growing a strong segmented database, he communicates effectively to his customers via email on a weekly basis, and he’s automated his outing, membership, and league leads through his website.  “Life is good” he says…



He’s been making all the right moves from a marketing standpoint, but my question to him is “What do your customers think about your place?”  He said “They love it”.  My next question to him is “how do you know?” 


He said “I can’t prove it”, but we both agreed that customers vote with their wallet, and he’s been increasing his profitability every year.


My point is that even if things are going right, it doesn’t mean you should get complacent.  Successful owners and operators are always tweaking programs and making things better.






The Problem:
I believe that owners and operators get jaded sometimes when trying to evaluate the golfing experience.


The Solution:
We decided to ask his 5,000+ eclub members what they thought of his facility.  We sat down and created a 15 question online survey that touches on customer experience, the value proposition, pace of play, course conditions, course layout, and the overall golfing experience. 


He discovered that customer service at the golf counter was just average, which he was touting to me earlier how great his customer service was.  Pace of Play, Course Conditions, and Course Layout were also just average.  The good news in “just average” was that he had a “pace of play issue” for years.  Last year he really worked on his “pace of play” and he was glad to see he received decent comments about the improvement.  We did find out that many people were not happy with the starters and rangers, which was news to the owner, since he spends most of his time in the shop.  We also found out that the perceived value was above average, and the overall golfing experience was slightly above average.  Each question asked also allowed the golfer to type in individual comments about each area.


I asked the same question at the beginning of this story “What do your customers think about your place?”  His answer was “slightly above average”.


It’s funny how perception is reality at least from a customer stand point, but maybe perception is not reality if you are the owner and/or operator.  I’m not saying you should make changes based on some constructive customer feedback, but at least it’s on your radar.  There is no such thing as the perfect operator, and we all overlook things in our operation.  Surveys give us a reality check, which offer us qualitative data to help us make better decisions.

 

 




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