The Formula for Success

What is the most essential component, after the quality of the physical facility that a golf course must possess to be successful?   I would maintain that the quality and timeliness of accurate and highly detailed information is a predictor of a golf course management company’s financial success.

Is that is the true, what are the essential insights that management must glean:

1)                  Who is there customer and how much do they spend?  We know that at a typical facility that there are at least 50 customers who spend in excess of $4,000 annually.

2)                  Which golfers generate sixty (60%) of the facilities review.  We know twelve (12%) of the golfers usually generate that level of revenue. Twenty-five (25%) percent of the golfers generate 85% of the annual revenue at a golf course.

3)                  What is the utilization of your course by week, by day, by time?  We know that golf courses operate at 52% of capacity.

4)                  To what extent are your operating results affected by weather vs. management policies?  We know, for example, that Chicago has 184 playable days per year.  By during the past decade, the number of playable days has ranged from 163 to 196.

5)                  How are your golfers learning of your golf course?  We know that 44% of the golfers now use third party intermediaries to obtain their tee times.

6)                  How many distinct golfers visit your facility annually?  We know that the typical course has less than 5,000 unique customers annually.

7)                  What is the turnover ratio of your golfers?  We know that from year to year less than 50% of the golfers who played one year will return to play the next. 

8)                  What is the most cost effective marketing medium?  While the popular belief that email is an efficient method, we know that only 40% of emails sent get delivered and of those delivered less than 50% get read.

9)                  What is the difference between the “bears” vs. “squirrels” in rounds played and when should you rarely discount?  We know that for northern courses, a 65 degree day in April will play 30% more rounds than a 65 degree in September.

Note 1:  These statistics, with the exception of #8, were prepared by Pellucid Corporation and Edgehill Consulting in studying the detailed operating results of over 200 golf courses that had integrated their POS with their tee time reservation system.

Lots of data centered around one concept:  how well do you know your customer?  

Contact today "Golfer's Answer to the Rain Man", J. J. Keegan, today at 303 283 8880!