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.
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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.
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