What are some of the strategies clubs can implement to help address the challenges—and opportunities—that face the golf industry? As the industry looks at ways to accelerate expansion of the game, here are a few observations to stimulate new thinking and action about the game of golf.
Not on an Island
Let’s not forget golf is not in a vacuum, but part of our nation’s broader economy that continues a middling recovery. There are still 1.7 million fewer jobs than there were prior to the recession in 2007 and the growing income gap due to a stagnant middle class economy is a concern for all consumer product companies. The old model of an upwardly mobile middle class that would one day be customers of aspirational luxury brands has been put on hold with the destruction of an estimated 40 percent of the net worth of the average American family. Heck, even Mercedes-Benz USA introduced a $29,000 class of vehicles to ensure they would not miss a generation of value seeking young car owners. This is a new economy and virtually no one, regardless of income, is paying the same amount for goods today that they paid pre-recession. In short, they are looking for greater value. It’s no wonder the joining fee for many private clubs has either been eliminated or substantially reduced and there are lower price points for everything from drivers to premium balls.
When Less is More
How does golf make up for a drop in per capita revenue? Golf’s more established markets—UK, Ireland, Australia and Canada—might provide both a reminder of our past and a glimpse into our future. It is not uncommon for leading private clubs in these countries to require a joining fee of less than $5,000 and dues of $200-300 a month. As a result, they have double the number of members as their American counterparts. Top clubs here add a zero to the upfront fee and have monthly dues five times those of our compatriots. So how do we remake our operational and membership models to double our membership ranks? One idea comes from Great Life Golf & Fitness of Topeka, Kansas, which recently partnered with former PGA Teacher of the Year Mike Malaska, to retool a group of four courses in Sioux Falls, South Dakota, with a golf and fitness center hybrid business model. GreatLIFE Malaska Golf & Fitness Clubs offers a clubhouse retrofitted into a 24-hour fitness center with unlimited golf for as little as $50 a month. Now that’s a new model.
What Barriers?
The new Hack Golf initiative championed by TaylorMade’s Mark King identified long time barriers keeping more people from taking up our game: Time, money, skill and a series of rules—written and unwritten—that confuse and intimidate new and occasional players on everything from cell phone use to attire. One company has flourished since its entry to the U.S. in 2003 by taking a “no rules” page out of the Outback Steakhouse playbook.
On a Sunday visit to TopGolf in the Chicago suburb of Wood Dale, I saw golfers of every shape, size, skill level and income bracket. The one thing they all had in common was they were having fun. Singles, couples, foursomes and sixsomes. Just like bowlers at Lucky Strike Lanes, one by one they took their turn hitting premium range balls imbedded with computer chips measuring everything from ball speed to distance and rewarding the player with points based on how close they hit each shot close to a half dozen target greens. Seventy points for a brilliant four-iron and seven points for a chunked wedge. Almost as good as bowling lanes with bumper guards!
Mr. Blue Jeans in a station next to Mr. and Mrs. Country Club. Shorts and tee shirts next to Italian fabric golf shirts. Only have 45 minutes, no problem! Want to kill two hours, even better. And all the while, a smiling server ferried chicken wings and club sandwiches, Diet Pepsis and Budweisers to the stations. It was a golf social experience rarely seen and it seemed like someone in every group was posting content to Facebook, Twitter or Instagram.
What barriers? More flexible time commitment? Check. Dowdy attire rules? Check. No cell policy? Check. More fun? Double check.
Now, outside of the member-guest, when was the last time your driving range was full? How could it appeal to younger, less avid golfers who make up families at your course? We could all learn a thing or three from brothers Dave and Steve Jolliffe, who started TopGolf as a way to liven up their practice sessions. Did they ever.
The Power of the Jersey
Bob Longmire is long removed from his days as a concert promoter, but one thing he remembers is the sense of community fans enjoyed in the hours leading up to, during and after a performance. Now as the CEO of LEJ Sports and the pied piper of PGA Junior League Golf, he is playing on that same sense of community in building teams of youngsters coached by parents under the direction of PGA Professionals. Long admired as an individual contest of mind and body, golf was missing something. Enter the golf jersey, team name and number on the back. Now Junior League Golf mirrors youth soccer, baseball and basketball in bringing players of varying abilities together under one banner, wearing one jersey. Some parents tell Bob the best part of the program is the jersey itself. I think the best part of Junior League Golf is the parental involvement as I see an opportunity to introduce or reintroduce some of those moms and dads to the game.
Women, of Course
We all know the numbers. Women control three quarters of household spending. Mom controls the family time clock. A record number of women have ascended to management in corporate America and the percentage of female golfers is stuck at 20 percent. What are you doing to make your facility more friendly, welcoming and relevant to them? The early returns are encouraging as private clubs hire more women teaching professionals. Leading business women, such as Donna Orender and Suzy Whaley, are sharing their insights on how to “connect with her.” Organizations such as the Executive Women’s Golf Association and Women on Course have demonstrated the economic benefit to courses that host programs for their chapters.
As Women on Course Founder Donna Hoffman said recently, “The key to getting golf on a women’s ‘to do’ list is about making it about a priority. She finds time to network, exercise, visit with friends and relax. We make sure that Women on Course events address those needs and, most importantly, make the experience welcoming and fun.”
Reston National Golf Course, located near Washington, D.C., and owned by Billy Casper Golf, has seen an increase in younger female golfers since it introduced “glow ball” tournaments in 2012. One year later, six Friday night events were held and attendance jumped from 20 to sellouts of 72 golfers per outing. For $55, participants receive appetizers, on-course keg beer and two glow balls with cart included. The round begins at dusk and the hazards, greens, flag poles, tee boxes and carts are outlined with glow sticks.
The Value of Green Space
Youth soccer. Yoga. Bocce ball. In the last year, I set out to find creative ways clubs were using their green space. These were some of the examples of alternative uses of golf course fairways which came my way. How does this relate to growing members and rounds? One word—relevance. Let’s face it, for the casual or non-golfer our world can be intimidating. Inviting someone in to use our playing fields increases the relevancy of the club to them. I also think we take for granted the natural beauty and serenity of our manicured playing fields. As population density increases in the decades to follow, I expect the appreciation of our green space will grow even further.
Am I bullish on golf? Absolutely. However, I don’t agree with my good friend David Fay that golf will survive as a niche sport. These new initiatives reaching out to younger adults, families and women can introduce a new generation of customers to our sport. Now it’s up to us to be ready to welcome them.
Joe Steranka is chief global strategist for Buffalo Communications and Billy Casper Golf. He is the former PGA of America CEO and is widely recognized for his contribution to the return of golf to the 2016 Olympic Games, branding of the PGA and establishing a strategic direction for the world’s largest working sports organization, and developing extensive relationships with domestic and international media partners. He can be reached at [email protected].