Think Big Entering A New Decade

Thinking of big changes in 2020?  Writing for Golf Course Industry Magazine, GGA Partner Henry DeLozier shares four macro changes to consider as the new decade begins.

Golf no longer exists in a vacuum, separate and distinct from market forces that shape other mainstream businesses. Gone are the days when golf club and facility managers could operate without a sensitive finger on the pulse of social, environmental and political changes affecting their business. As we enter the third decade of the 21st century, here are four macro changes to be aware of and to use to your advantage.

1. New solutions to labor shortages

Traditionally, labor costs for golf courses have ranged from 52 to 56 percent of golf course maintenance budgets. With increases in minimum wages and the ripple effect throughout organizational charts, labor costs continue to escalate. Derek Johnston, a partner at Global Golf Advisors, says labor costs have jumped as much as 6 percent.

Operators managed the first wave of escalating labor costs by reducing head counts and outsourcing certain activities to third-party contractors. Now, they are being forced to get more creative to deal with what is by far the facility’s single largest line item. Some have reacted by flattening their org charts, eliminating supervisory positions and restructuring responsibilities for some managers and staffers. As a result, staffing levels that ranged from 19 to 25 employees per 18-hole course are in significant decline.

Labor will remain a primary focus and concern for operators in 2020. Suggestions for managing rising costs are to re-evaluate all operational activities with an eye for possible benefits to be gained from outsourcing; take labor-intensive components of your operation and determine how the work could be accomplished more efficiently; and look at non-golf sectors for solutions being implemented in other fields such as hospitality and manufacturing.

2. Increased environmental awareness

Golf courses throughout North America have embraced opportunities to increase their environmental stewardship. Beekeeping, which sustains the bee population and ensures ongoing pollination; bat houses, which address mosquito infestations; and habitat restoration for butterflies, especially monarchs, whose habitat supports pheasant, quail, waterfowl and many other species; have been introduced at many locales.

Making golf courses and their surrounding grounds environmental sanctuaries is resonating with key market influencers, including millennials and women, who are also prime targets for increasing play and membership. Audubon International CEO Christine Kane reports that clubs as sanctuary communities are on the rise nationwide: “Audubon-recognized sanctuary communities have increased more than 20 percent over the past five years,” according to Kane.

Progressive superintendents and golf managers who expand the reach and impact of their environmental efforts will be viewed favorably by community leaders as well as current and prospective members and customers.

3. Expanded reach of social media

Superintendents and facility managers have become important sources of content relevant to club members and consumers. Photographic images of flora and fauna on club grounds are of interest to members who take pride in their clubs’ beauty and connection to the environment.

Instagram and Twitter can be used to show images sourced by staff members — golf course workers, cooks, janitors, golf professionals — who are alert to opportunities to snap butterfly habitats, wildflowers and all sorts of wildlife that call the club home. Such images are often posted to the club website and distributed to club members and visitors as a means for extending brand engagement.

Gone are the days of the cut-and-paste guidance for how to repair a ball mark. The increased relevance and timeliness of today’s news is attributed to the capability and proliferation of social media.

4. Comprehensive planning

The growth of strategic planning (supported by specialized plans for marketing, communications, finance and membership) is another example of general business’s influence on a more enlightened group of golf managers. Just as most any business relies on a strategic plan to guide its decision-making, golf is recognizing the importance of establishing a clear vision that serves to prioritize programming and investment. Top performers rely on data-based plans to distinguish their facilities not only in overcrowded markets, but also with consumers debating their leisure activities and spending. Those facilities that create market differentiation will prosper in 2020 and beyond.

What Works on Social?

The most popular channel may change over time, but the social media momentum continues to grow. For some clubs it can be difficult to know what to post, when and how often. We asked GGA’s Linda Dillenbeck to spell out all things social.

There is not a day that passes that doesn’t have a news report about something posted on a social media channel. Nor does a day pass when you don’t see consumers glued to their devices and feverishly typing the latest content they simply must share.

Whether we like it or not, social media has changed the way consumers communicate and gather information. Today, brands must have a social media presence or they miss the opportunity to reach 78% of the U.S. population who rely on these platforms to connect, gather information and socialize.

Consider these facts from Statistica and the Pew Research Center:

  • 68% of U.S. adults report they are Facebook users. Roughly three-quarters of those users access Facebook daily.
  • Facebook use is relatively common across a range of age groups, with 68% of those in the 50 to 64 age range and nearly half of those 65 and older report they use the site.
  • Over 70% of Instagram users are between the ages of 25-65. The share of users 35-54, a key target for future club prospects, is 30.2%.
  • Twitter has 67,000,000 users in the U.S. Of that number, 46% access the site daily.
  • LinkedIn has approximately 154,000,000 users in the United States, around half of whom are college graduates living in high-income households.
  • Women are nearly three times as likely as men to use Pinterest (42% vs. 15%).

Despite the reach of social media, we often hear the reason clubs are not active on most of these platforms is because they don’t have enough time. Our first recommendation is always this: Find the time.

Your members and prospects are engaging with these platforms on a daily basis, and what they read, see and hear there plays a part in their decision-making. Without any Club presence, you forego this opportunity to engage with their lives and influence them.

Furthermore, a lack of presence can leave you at a competitive disadvantage. In the cases of Instagram and Facebook, these social media platforms will create “unofficial pages” displaying user photos and comments about their experiences. This hands consumers control of your brand message, allowing them to dictate the tone of conversation and could lead to a misrepresentation of your Club in this space.

Channel choice

To select the social sites most appropriate for your Club it helps to understand each platform’s purpose as well as consumer expectations for the type of content they seek.

Facebook users want to be entertained, educated, informed and obtain answers to questions in real time. On Facebook, your posts can be longer and include website links. You can also create events (open or closed) to promote to your members, prospects and wider stakeholders.

Instagram is a platform to share your story through photos and video. When users log onto Instagram, they want to be inspired and surprised by what they see at your Club.

The primary purpose of Twitter is to allow people to share thoughts, opinions, news and events with a large audience. Tweets that generate the most engagement are “how-to” lists, questions and quotes.

Remember, both the nature of the platform and demographic of the users there will dictate that not all are appropriate or impactful for your Club. So be selective, and double up your efforts on which are most fruitful rather than spreading yourself thinly across too many of them.

Crafting your message

The thought of creating content for social sites can be intimidating at first, however, we believe there is plenty of information to share. A few examples include:

  • An individual post of each golf hole with a short description of how to play the hole (that’s 18 or 36 posts).
  • Photos or short videos of your chef preparing signature menu items.
  • Unique and interesting design features found in your clubhouse.
  • Member events and activities. A word of caution here, never post a photo of a member unless they provide permission when the photo is taken.
  • Short golf, swimming or tennis videos offering tips from the professionals on staff.
  • Announcements of staff hires, renovations, special events, etc.
  • Flora and fauna found around the grounds of your Club.

Once you begin posting your content, it is important to monitor the statistics for likes, shares and comments. This information will help you to understand the type of posts generating the most engagement. Once you are equipped with that information, you can focus on how to generate more of the same.

Social media marketing does require time and effort. But once you establish a habit of a monthly or weekly content plan and roll this out you can manage your time investment efficiently, and focus your efforts on establishing a two-way conversation and social identity for your Club. One that, crucially, is consistent with its brand and ethos.

Inspiration

Instagram

Twitter

Facebook

 

This article was authored by GGA Manager and Marketing expert Linda Dillenbeck.

Three Steps to Connect Marketing to Sales

In theory, sales and marketing should be two of the most integrated and connected aspects of your Club’s operation.  The reality, unfortunately, is that in some businesses they are operating almost independently and singing entirely different tunes.  For the Club, what this divergence leads to is ineffective messaging and lost prospects.  The importance of connecting sales to marketing is clear, so the question is: how can we achieve it?

To understand how to improve this connection, it is first important to understand the difference between the two disciplines of marketing and sales.

Marketing is a management planning process; it is focused on the strategies and techniques of crafting goods and services, all the way from a concept to an end-product or service.

The sales process is focused on the strategies and techniques of convincing a customer to exchange their cash for that product or service.

The marketing process develops a perceived need for your product in the mind of a customer, and the sales process then allows the customer to satisfy their perceived need for your product by purchasing it.

Although separate and distinct disciplines, marketing and sales efforts must be carefully aligned to achieve their highest potential in generating a steady stream of customers for your Club.

Using this three-step procedure to connect your marketing to sales will put you on the path to generating more qualified prospects and selling more memberships.

Step One – Clearly Define Your Four P’s

Successful marketing captures your business through the lens of your customer’s needs – and the satisfaction of those perceived needs – by defining the “Four P’s” of your offering: Product, Price, Place, Promotion.

To test how well-defined your product is at this moment, ask each member of both your management and sales teams to give you their “elevator pitch”.  If those pitches are not identical, or if they are not focused on precisely what differentiates your Club from its competition, then you have work to do.

Defining your Product properly begins with your mission statement – the single sentence that describes why you exist.

Once you have that definition, you must develop your brand position – an expression of what makes your Club distinct, unique, and fills a particular consumer need in a way that none of your competitors can.

Your brand position is critical: If you do not understand what you are offering, neither will your prospects.  Even more disturbing is this reality: If you don’t define your product, someone else will, and you may not like their story.

After “product” comes Price, Place and Promotion:

Price is self-explanatory.

The definition of Place is a clear analysis and understanding of the specific target audience for your product, and the tactics you have selected and employed to reach that audience.

Your definition of Promotion is the complete list of methods you will use to broadcast your product to your audience – for example: brochures, a website, mobile apps, print or digital ads.

With your “Four P’s” clearly defined and in hand, let’s move to Step Two.

Step Two – Singing from the Same Sheet Music

Step two along the path to connecting marketing to sales is teaching your team, particularly your sales force, to “sing from the same sheet music”.

To do this you will need to train your team to:

a) be comfortable with presenting your Club according to this script

b) understand the importance of presenting a consistent image and message when promoting the Club in the marketplace

Consistently reinforce and remind your staff of its importance in all employee communications.  You could do this as part of your email signature, through a notice on employee message boards, or verbally during employee meetings.  Just as consumers are bombarded with over 3,000 messages a day, so are your employees.  Make sure it’s your message that sticks.

Constantly encourage employees to share how and when they have promoted the Club and reward them with both private and public recognition for their efforts.

With your marketing in place and your implementation team deployed, it’s on to Step Three.

Step Three – Track, Analyze and Adjust

Your Club is now positioned consistently across all communication channels and your employees are all singing from the same sheet music, but how do you know for certain that marketing is now connected to sales?

The answer is through data collection and analysis.

  • Ask consumers where they learned about you when they visit or call the club
  • Incorporate unique URLs and telephone numbers into published advertising to identify what technique connected with what specific audience
  • Google analytics provides a wealth of data about prospects who have visited your website: where they visit from, what pages they visit, how long they spend on your site and more
  • Social media sites also provide data on likes and engagement
  • Tracking pixels can also be added to emails and webpages to follow the activities of users

Review and analysis of this data will expose what is working and what needs to be adjusted to create maximum impact.

The combination of a clear and consistent Club message, the effective broadcast of that message to your target audience, your sales team singing the same song, and close attention paid to what is working and what is not will connect your marketing to sales – providing a steady stream of qualified prospects to your door and new members to your Club.

This article was authored by GGA Senior Associate and Marketing expert Linda Dillenbeck.

The Influence of Online Reviews

With 90% of consumers reading online reviews before visiting a business, and 84% of people trusting online reviews as much as a personal recommendation, perceptions are forming earlier in the customer journey than ever before.

Reviews have become part of the fabric of everyday life, whether it be assessing your Uber driver’s performance through to the suitability of a recent Airbnb host.

For customers, if they know what to expect, they can have confidence in their decision and know their (increasingly important) time and money will not go to waste.

Visible at every turn

Google searches will now routinely uncover customer ratings and reviews for your club, via various platforms, and this can often result in prospective customers consuming this information before actually clicking through to your website. That means a first impression may well be determined by other customers.

While this lack of control can be daunting, reviews also represent a vital source of information and intelligence of what your customers are thinking and experiencing. This not only allows you to address immediate concerns, but feed them into performance indicators, and they can help to inform future strategic decisions.

Broaden your insights

Depending on the review platform, you may have the opportunity to engage with the reviewer and ask for more feedback about their experience, which is important for two reasons:

  1. To distinguish the validity of their initial review and, if valid
  2. To provide more insights into the particular aspects of their experience

This can apply for both positive or negative reviews and, in the case of the latter, the willingness to engage on the club’s part demonstrates proactivity and a commitment to improving the customer experience. More than that, it represents an opportunity to gain a competitive advantage over other clubs, who typically may find it difficult to monitor and respond to reviews – especially during busy periods.

Although the impact to the bottom line may not be significant, establishing a voice for your club in this space, as with social media, can boost the credibility and perception of your brand.

Keep an eye on the competition

Intrigued to know how your competitors are faring? Or looking at ways you can improve your customer experience?

Taking the time to examine reviews of your competitors not only offers a very recent insight into how they are faring, but can provide invaluable intelligence to how they are developing their product or service.

Analysis can uncover clues to which aspects of the customer experience your competitors excel in. So, where instances of this exist, ensure there is a mechanism to capture this intelligence and look at ways to make the necessary changes and enhancements to the customer journey at your club – with the intent to go beyond the level of your competitors. You may well find online reviews of your competitors an unlikely or untapped source for developing a meaningful competitive advantage.

Harnessing the power of online reviews – takeaways

– Engage with online reviewers by responding to both positive and negative comments
– Capture insights from online reviews and incorporate these into performance indicators for your club
– Examine competitor reviews to gain intelligence on the customer experience they offer and develop ways to exceed it

For help and advice on the role of online reviews in future strategic decisions, connect with Bennett DeLozier, Manager at GGA.

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