golf course loyalty programs

The Metrics Of Giving

As a bit of a follow up to last week's tip, this week is some food for thought on what you are giving away and what it can net you.  A lot of you may be living in fear of giving away golf, and if last week's tip showed you anything, it is that you don't have to give golf away for your loyalty program to be effective.  That said, let's follow along with the numbers below based on giving golf away as rewards in your loyalty program.

 

The following numbers are an example of what could be with a successful loyalty program.

 

  1. In June 2015 you had 10,000 rounds played and gave away ZERO of them because there was no Loyalty program involved.
  2. In June of 2016 you have 12,500 rounds played, and with those additional 2,500 rounds played you can attribute 70% of them to growth because of the Loyalty program, or 1,750.
  3. If you had 25% of your Loyalty participants earn a free round for the month, and you have 400 participants, that would mean 100 Free rounds would be owed.
  4. If the COGS on a round is $25, then this program for the month cost you $2,500
  5. The additional 1,750 rounds if you averaged only $45 in green fees on each of them would get you a gross increase in revenue of $78,750
  6. If you take the COGS for those 1,750 rounds out of that $78,750 and also take out the $2,500 COGS on the free rounds, you are still left with a gross profit on the rounds gained of $29,500, meaning you are basically spending $2,500 to grow gross profit by $29,500
  7. Further, there are intangibles that will only show over time with this kind of program---for example, developed behavior patterns of golfers ONLY choosing your courses to play at, extra revenue driven from 1,750 rounds of additional golf plus the 100 Free rounds where they will spend money while at the course also---this equates to 1,850 more opportunities to sell merchandise, food, lessons, range balls, cart fees, etc., and don't discount the amount of Goodwill this will create among your clients
  8. Another thing to consider with the 25% benchmark for rewards earned is the 75% or higher failure rate.  Is it okay with your customer base as a whole to make efforts to win something if the feeling about the program becomes that it is something unattainable?  I am not sure what the benchmark for that feeling would be, but if it was 10%, meaning 90% failed, then you potentially have 360 of 400 participants who are walking around a little discouraged with your golf course and considering your competition more than they should be.

Ideas & Tips for Loyalty/Rewards Programs

 

A couple weeks into the availability of a Loyalty/Rewards program, and with some very solid feedback from some of you, we would love to share some ideas and suggestions based on what we have seen and heard.

 

Tip #1:  Set Attainable Goals.  Launching any program that requires your customers to be engaged should compel you to position them to succeed.  Your customers enroll in your new Loyalty program, get excited about it, begin to participate, and then quickly realize they won't ever earn the rewards, they will quickly become disillusioned and the desired effect of increased Loyalty will actually result in exactly the opposite.

 

Tip #2:  Match Your Loyalty Programs to Internal Business Goals.  Use your new Loyalty capabilities to drive traffic to areas of need within your business.  For example, the restaurant at your club has introduced a fantastic new menu for this season and you're excited to debut it and increase revenue.  Launch a program that earns your patrons punches for levels of dollars spent -- "For every $5 spent in the restaurant, receive a star, and when you reach $100 total spent you will be rewarded with $20 on your next dine-in experience."  Some courses are also using the Loyalty program to drive traffic to their driving ranges, pro shops for merchandise sales, and of course to increase rounds of golf played.  Get outside of the typical golf operator box if you want with these programs because you have complete autonomy in what you set up.

 

Tip #3:  If You Don't Want to Give Away Golf, But Want to Build Around Rounds Played, Find Another Reason to Keep Them Coming Back.  Just because you build a Loyalty program based around a certain number of rounds of golf played does NOT mean you have to reward your golfers with a round of golf to build their loyalty to your club.  If a golfer is choosing where he/she would like to play on any particular day and the opportunity is there to earn some reward, any reward, by playing your course, the likelihood they will choose to play your course increases.  A program could be as simple as this: "Play 5 rounds of golf in the month of June, and with every round played after that until the end of July receive a complimentary hot dog and soda."  This drives frequent play for the month of June, and then when given the choice of where to continue to play over the course of the next month, the golfer is motivated to come back to your course, AND you still get to charge him for golf, only giving away about $1 for the hot dog and fountain soda.

 

Tip #4:  Promote Your Program.  Now that you have it, talk about it.  Put it in your monthly emails you send, post all about it on Facebook, have some fun and make a video about it and share it all over the internet, send push notifications out about it, and most importantly, make it a mandate that your staff talks with every customer about it.  It's not any good if you keep it to yourself!

 

FINALLY, it doesn't have to be perfect.  Don't be afraid to follow these tips and launch something just to get it out there and get your customers participating.  For so many of you who are at the beginning of your seasons, your clients are building their patterns for the year right now, take advantage of this and get them engaged and Loyal now.

 

As always, reach out to our team for help if you need it.  You can call my office direct at 858.437.9262 or email our team at support@gallusgolf.com

Setting up your Loyalty/Rewards Programs

 

It's new.  It's LIVE on your dashboard.  It's Simple.  It's going to be huge for you!

 

Introducing YOUR OWN, Custom, Branded Loyalty/Rewards Program.

 

Check out how one of our clients is branding and promoting it:

 

Here is a little more about the program:

 

PLEASE, give us a call to help you set these up in your app.  You can reach out to me directly at rob@gallusgolf.com or 858.437.9262.  Also, here is a link to watch a tutorial video for setting up your loyalty programs:  https://vimeo.com/16563422