How do you keep members long-term?
by Jon Last, President, Sports and Leisure Research Group
I have always considered myself to be a “half-full” kind of guy, but
by virtually every account, even the most optimistic in the golf
industry look back at 2009 as one that was particularly challenging.
U.S. participation remained flat to marginally down, while many
facility operators and OEMs suffered hits to yield optimization and
profitability.
Our
Sports and Leisure Research Omnibus study just completed in early
January of 2010, provides a fresh and current look at the golfer’s
mindset as the new season approaches, and there are glimmers of
optimism to encourage us. However, concurrent with this welcome
emergence from the depths of 2009, our assessment also suggests that
some fundamental belief systems have been systemically altered.
The Good News
Perhaps
most encouraging, is a renewed vigor among golfers to tee it up with
greater frequency in 2010. In January of 2009, 77% indicated that it
was their expectation to play the same or more rounds of golf as they
did in the previous year. Asked a backward looking question, this
January, a statistically similar 72% reported that they actually did
play the same or more rounds as a year ago. So, with this near term
precedent, it is refreshing to see that in our most recent study, 94%
of golfers expect to maintain or increase their play in the year ahead.
I wouldn’t necessarily take this to the bank and project a significant
increase in rounds played, but our study does suggest that intent and
commitment to play more golf has snapped back from where we were a year
ago.
Similarly, in an era where “value” has become an important calling card,
our latest study pleasantly reveals generally higher price expectations
among golfers for new equipment across all categories with the
exception of putters and golf balls, which remain flat with 2009 price
expectations. At the same time, two thirds of the over 1,000 golfers we
interviewed, expect to spend as much or more on golf related purchases
in the year ahead.
We also see a rebound in golfer sentiment
across a number of attitudinal dynamics. After hitting lows in Summer
2009, most recent results show golfer bullishness in areas such as
willingness to indulge. More significantly, over half agree that the
year ahead will be better than the previous year. Only a third of
golfers expressed similar sentiments, last summer.
But Fundamental Shifts Suggest a “New Normal”
The above not withstanding, there are still a number of alarming trends
that may still impede our opportunities in 2010. Time constraints
remain a significant challenge for golfers,..a more significant barrier
than the financial costs of playing the game. Our research continues to
reveal a stressed, multi-tasking consumer facing increasing demands
from work and family that do not always coincide with golf. In our most
recent study, only a third agreed that they were spending more time
these days with friends and family than they did in the past…a low
mark. In lock step with this phenomenon, 60% strongly expressed that
they’d rather spend time with friends and family than with business
associates. The clear implications are that those golf facilities that
place a premium on making golf time equate to “family time” may see
greater success than those who are less inviting.
This
“cocooning” phenomenon makes perfect sense, when one examines a
heightened “child centricity” evidenced among golfers, in our most
recent research. Looking at the generation of Americans born between
1960-1970, one can see that this cohort is now in the life stage that
typically saw decisions made about joining private clubs. Attitudinally
these “Sandwich Generation” adults are literally caught between Baby
Boomer and Gen X values. These folks may desire to make a greater
investment in golf, but they are faced with often conflicting and
non-mutually exclusive decisions about protective parenting and saving
for their children’s college education.
Simultaneously 63%
strongly agree that “there is really no such thing as job security
anymore”. Even those who have “survived” the corporate purges show
evidence of a tentativeness that now force choices between investing in
golf lessons vs. the kid’s education or “My Super Sweet 16.” Golfers
may desire to “get out of the rough”, but this new normal may
ultimately slow down their actual march back into the fairway.
In case you missed it:
Our eKnowHow article,
"No Shortcut to the Green" provides you with ways to achieve new
heights in revenue that requires management and staff to navigate a
maze of opportunities and pitfalls.
Jon Last is founder and President of Sports and Leisure Research
Group, a White Plains, NY based full service marketing research
consultancy that supports leading brands in sports marketing, travel,
media and leisure categories.
Last’s previous experience includes
more than seven years as Vice President of Corporate Marketing,
Research and Brand Development for Conde Nast’s Golf Digest Companies
division, and eight years at the PGA of America, where he oversaw all
marketing research, consumer marketing and retailing activities
surrounding the PGA Championship, Ryder Cup Matches and PGA Golf
Expositions.
A frequent speaker at national industry
conferences and a recognized expert in the golf, travel and media
research space, Jon Last currently serves on the national boards of
directors for Marketing Research Institute International (MRII), The
Executive Women’s Golf Association (EWGA), Council for Marketing and
Opinion Research (CMOR) and is immediate past president of the
Marketing Research Association (MRA). He received MRA’s national Award
of Excellence in 2004. Last holds an M.B.A. from The Wharton School of
the University of Pennsylvania and is a magna cum laude graduate of
Tufts University.
Contact Jon by email at jlast@sportsandleisureresearch.com.
