Golf Course Marketing: A Business Case for Free Golf Lessons

Dear Golfer or Golf Industry Professional,

The golf business has had some tough sledding over the past 10 years. We've seen course closures, slumping play and participation rates. The data on the immediate future is looking like more of the same.

This guide is intended to arm country clubs with a deployable and proven solution to grow revenue and greatly improve club culture. It is our belief that facilities need to act immediately and aggressively if they are to win market share and survive the next round of course shutdowns.

As golfing populations age out and/or when the market decides to make a correction, things are going to get crazy.

On the bright side, we feel that country clubs have a huge opportunity to win net new business quickly. Based on our research, we know that golf instruction is the best possible gateway into our game. Yet, clubs are failing miserably to deploy instruction in ways that deliver long-term growth of the game and facility revenues.

Please review this document and the associated data critically. I welcome your feedback. I urge you to consider these alternatives for your club, or pass along to other underperforming facilities. It could mean the difference between survival and failure for many golf courses.

I welcome you to reach out to me directly if you have comment, questions, or would like to discuss any aspect of these programs.

Casey Bourque, PGA

The Golf Industry’s Biggest Challenge

The golf industry is facing many current challenges relating to supply, demand and profitability. All this, despite the enormous economic tailwind and participation bubble we're currently experiencing.

If your golf course isn't winning in this economy, along with the once-in-a-lifetime surge of senior golfers temporarily buoying the market, I would be concerned about your future.

The Economy

The market has been soaring for the past 7 - 9 years since the last economic recession. Unemployment is at rock bottom, stock markets and real estate values have done nothing but rise during this time. As a result, disposable income is well above average levels.

The Baby Boomers

There is a huge glut of senior golfers right now. The Boomers (ages 65 - 75) are retiring, playing a lot more golf, and spending the most money. In fact, the 55+ population is playing more than half of all rounds of golf. Without the engagement of this generation, the industry would be in huge trouble.

There’s an enormous requirement to replace older golfers with younger ones.

So, the challenge becomes...

What happens when (not if) one or both of these factors go away?

When the next market correction occurs, and the Baby Boomers age out of the game, golf courses that aren’t well-positioned are going to be hit REALLY hard.

Now is the time when golf courses need to aggressively pursue market share - while there’s market share to be had. When the correction happens, nobody is going to be spending money on golf memberships, charity events, and learning new games. They’ll be preoccupied with other more important things.

Somehow, golf courses need to attract younger, new players to their facilities to replace the older population. This means getting creative, learning about your marketplace, and delivering a product that younger crowds will value. The trick is to do this without alienating your vital population of senior players, which tend to favor traditional golfing methods, dress codes, etiquette and rules.

A Proven Solution to Win Market Share

It appears that golf courses are completely failing to leverage their biggest, and most obvious marketing tool: Golf Instruction

Out of necessity, we believe that the industry is going to have to completely rethink the way that golf instruction is deployed as a marketing tool for country clubs.

In the pages that follow, I have outlined the business case for deploying free golf lessons as the "no-barrier-to-entry" gateway for newcomers to take up golf at your facility.

This guide addresses the following:

• The undeniable business case for free lesson programming
• How to deploy free lesson programming to market your club without cannibalizing current teaching programs
• Why free lessons serve to benefit all facility stakeholders: players, course owners, and existing instructors
• How to hire and train staff to achieve maximum return on investment
• Why a long-term mindset leads to incredible cultural shifts at facilities
• How to engage every staff member in your local marketing efforts
• Budgeting and tracking performance of your free golf lesson programming

What's Wrong With Your Teaching Program?

Golf instructors typically work as independent contractors, providing lessons to members and guests. We believe that this system establishes misaligned objectives between the instructor and the facility. The instructor is trying to maximize lesson rates and build a business for themselves - not necessarily for the benefit of the club.

Golf courses tend to consider golf instruction as a paid amenity for their current golfer population - not as a significant source of new business generation. Sure, beginner clinics purport to bring new people in, but according to the numbers, the needle isn't moving.

That said, we believe that basic golf instruction is the ultimate gateway into the world of golf.

"Learning the fundamentals of golf, understanding basic rules, and meeting new people are absolutely required for anyone who is expected to make golf a regular thing. There’s no other way." - John Brown, Principal - KPI Golf Management

The problem is that money tends to cloud empathy with customers, judgement and execution. Instructors are charging as much as they can on the front end, at the expense of huge upside for the facility on the back end. Stay tuned, I’ll explain.

If basic instruction is offered for free, beginners are afforded a low-cost or no-cost opportunity to learn the fundamentals, plug into the social environment at the facility, build relationships with the staff, and begin to feel comfortable using the club as a place of primary recreation.

We know that this “indoctrination” into golf only occurs after many iterations, visits and practice sessions - not in a single deep dive session. Beginners need these “touches” to have the chance to build their skills and confidence, to meet new people, and begin establishing personal relationships in this new foreign place. It's important to recognize that the pace at which people acclimate varies greatly.

At standard lesson rates, (especially for families) this learning process can be extremely cost prohibitive, especially when compared to all of the other recreational activities that exist out there.

Golf courses aren’t competing with other golf courses. We’re competing with fitness centers, hiking, biking, running, hobbies, other sports, events, and other activities. All forms of daytime recreation and entertainment are in competition.

To be clear, free lesson programs require club ownership to deploy a long-term mindset. We know that newcomers to golf (or any activity for that matter) spend far less money than avid participants. They don’t yet know how to play golf, or even if they really like golf at all. More importantly, they probably don't have a strong social network at the facility.

We break down these walls by minimizing barriers to entry, deploying empathy, courtesy, matchmaking, and hospitality - all without any hint of up-selling or quick profit mongering.

Over time, as we have documented here and in other places, the long-term returns to facilities far exceeds that of any hourly rate which would otherwise be charged for paid lessons. These returns come in the form of additional lessons, green fees, food and beverage spending, referral business, membership sales, equipment purchases, and the like.

"As golf course owners, we’re far less likely to tap into a wonderfully profitable long-term if we sabotage the indoctrination process with short-term sales pitches."

Below, we've outlined exactly how we would recommend deploying, hiring, and marketing free lesson programming to promote your club - along with quantifying anticipated returns for the club.

Free Lesson Program Overview

Basic golf instruction is offered for free to all players. Programming is designed for beginners, newcomers, less experienced players, casual players, families, and senior golfers.

Clubs can choose to define each session, or leave things open-ended or more student driven. We believe the help should extend beyond the typical "shot hitting" and into etiquette, rules, and procedures around the club. These areas play a big role in helping people feel comfortable adopting the club as their own. They need to know that they are welcome and that they’ll fit in.

Avid golfers looking for more technical help are better served in paid private instruction programs. Over time, students will tend to “graduate” beyond the topics covered in the free sessions. This should happen without any pressure and at their own comfortable pace.

The free lesson program serves as a “feeder system” for your existing private instructors who are currently offering paid programming, deeper analysis, coaching, hourly rates, etc.

Club Culture is the Secret Sauce

Returns on free golf instruction come by way of longer-term benefits - rounds, merch, F&B, membership, club culture, etc. In fact, the long term dollars far outweigh any lesson rate that could be charged in the short term, even at very low conversion rates. I’ll get into that shortly.

For best results, the free instruction offering needs to be made without any strings attached whatsoever. No short-term sales pitches or disguised angles to sell them stuff.

As Gary Vaynerchuk says, "When you give, give...and when you ask, ask". Basically, he's saying that people will sniff out your intent. Acting like you're giving away free instruction, but then slipping in a sales pitch for a $400 lesson series at the end won't ever work. Don't do it.

If you're giving it away for free, then do so with out any expectation whatsoever. You'll earn trust and attention. Later, when you have something genuine to offer, then you ask. Never mix the two.

It must be clearly understood facility-wide that gains come over time. Patience wins because the long-term returns are much more substantial in terms of customer lifetime value.

Students are introduced to people or welcomed into other areas of the club based on their interest levels - not a quick sales pitch to book a lesson series or sign up for weekly paid clinics.

I’ll say it again. Persistent up-selling or pushy sales practices will sabotage your long-term results and your program will fail.

Training your staff is crucial. The program will fail if your staff is taking a short-term approach. Be sure that your team understands that it’s bad business practice to shoot for small quick wins at the expense of the enormous long-term upside and financial health of the club.

Converting Free Lessons into Paid Customers

We fully understand that not every free lesson student will become members of the club, play lots of golf, and deliver any positive ROI. We know this going in, and we don’t expect everyone to love golf and make it their lifestyle.

It’s a numbers game. Our mission is to expose as many new people to golf and the facility as we can. Bring people out, let them learn, have fun and mingle. Maybe they like it, maybe they won't.

We are trying to maximize what we consider “conversion rates”. Do not obsess over individuals who aren't ideal for the program, or even those who seem to be abusing the program. Always be hospitable, accommodating, welcoming. There will be people who are not good fits, and that’s expected.

With lots of participation, i.e., 30-50 people per day, even a 2 - 5% success rate is a huge win at most clubs - depending on average customer values.

Deploying Your Marketing Campaign Allocating/Reallocating Budget and Staff

The cost associated with hiring this new position should be considered a marketing expense rather than a payroll expense. Marketing the club is this person’s primary responsibility, not teaching - in fact, this position could supplant your “Membership Director” position.

Note: This position does not need to be extremely high-paying. The instruction itself is intended to be short lessons, basic in nature, and designed for beginners, casual players, seniors, families. A motivated 2nd or 3rd year apprentice would be perfect. Most important is that they are personable and eager to demonstrate their personal value for the facility.

The duties of this new position will be as follows:

• Marketing for the club is primary responsibility
• Available 30 hours per week for group and individual golf lessons
• 10 Hours per week invested in follow-up, outreach marketing, and/or personally inviting newcomers to take lessons
• Lesson content is focused on beginners, newcomers, families, senior golfers
• Lessons are basic fundamentals, how to play, rules, etc. (more technical lessons reserved for hourly paid lessons)
• Lessons are offered for free - booked online
• All club staff is authorized and encouraged to personally invite people to free golf lessons
• Students can come to as many golf lessons as they want for weeks/months so long as they are not clearly abusing the privilege
• Instructor is expected to facilitate social connections - introduce newcomers to other members, golfers, oer club events, etc.
• Highly targeted social advertising campaigns may also be a helpful

How to Market Free Golf Lessons

It's everybody's job. All staff members know that free golf lessons are available, and they are expected to personally invite befitting families and friends out to the club. Everyone on the team is expected to help market the club, and invite people into golf.

Buyer Personas

Determining people to invite should be more inclusive than exclusive. Don’t shoot for perfection. That said, try to choose people and families who seem as though they would derive the most benefit from using the club. If your club is family oriented, find people with kids and invite them to a series of free golf clinics.

Local Community

Everyone on your team goes to the supermarket, to sporting events, to church, family gatherings, etc. Promoting in schools, and youth circles as a family activity will bring people out to try the game. Carry cards or invitations and personally invite the people in your local community who may have never, or rarely considered golf.

Be First to Market

The biggest marketing impact is realized (by far) by those first to market with these offerings. Imagine being the first club in your area to announce free golf lessons to all comers. It'll be big news and a very easy sell. Now, consider you're the 5th club in your area to launch this program. Not such a big deal, right?

Streamlining Registrations

We suggest building an online registration system for all lesson bookings like the one we use. Lesson invitations include a direct website url to the booking page where people select the day and time that works best for them.

The value of registering online is that it’s best for the customer. It has to be quick, simple and accessible from anywhere. They can edit or cancel their reservation anytime they want without interrupting with calls, emails or text messages. Also, you can establish whatever booking restrictions you like (lead time, group sizes, number of registrations, etc.)

Auto responders and reminders help to limit missed appointments. You also need to fill them in on the basics - when to arrive, where to go, what to wear, what you’re covering in the lesson, etc. Letting them know exactly what to expect will help them feel welcome and comfortable.

Additionally, online registrations mean that you’re able to capture basic contact info such as name, email and phone for following up. This is called lead nurturing. Not everyone is ready to sign up on day 1, but it’s important to continue to deliver value and stay top of mind. Circling back with surveys, fun opportunities, personalized offers, and maintaining open feedback loops increases conversion rates wonderfully.

What Instruction Content Are You Delivering?

The instruction should be basic level help. You should also make demo or used equipment available to those who may not have clubs. We want to specifically target the "fringes" of the golf population and bring them into the fold.

Beginners

Most instruction should be for casual golfers and beginners. Simple technique, lots of reps, and fun. Spinoff sessions could touch on how to play golf, basic rules, etiquette, etc.

Families

If the lessons are free, who cares how many you have in the session. Invite multiple families to come out at the same time so they can hang together. The more social the experience, the better. Get the kids having fun, but also pay attention to the adults and get them acclimated.

Seniors

Most seniors won’t pay lots of money for golf lessons, yet we want to retain them at the club as long as possible. Develop programming specifically for them. Helping them swing around physical ailments or limitations can prolong their enjoyment in the game.

Following Up and Lead Nurturing

At least 1⁄4 of the instructor’s time should be spent on reaching out, following up, gathering feedback, making introductions, etc.

We know that most people will not be ready to buy a golf membership after one day on the range. They'll need some time, and you'll need a plan to stay top of mind over the long haul. This is where lead nurturing comes in.

Marketers need to continue to deliver value over time through helpful communication, educational materials, follow up visits, etc. It's part art and part science.

Certainly, there are automated email workflows to scale these processes. If someone attends a clinic, it could theoretically trigger a sequence of emails that present related golf tips, videos, articles, and resources to help them along.

Automation is great, but a personal approach is best. Each individual is going to have their own opinions, questions, feelings and reservations. It'll take empathy and understanding to know how and how frequently you should reach out.

If there's one rule of lead nurturing, it's that there's no hard selling. Pushing for a quick sale destroys trust. Rather, be patient and allow prospects to move forward through the "pipeline" at their own unique pace. They know you sell stuff, and they'll reach out when they're interested.

IMPORTANT: No Sale Pitches!

Surveys

Surveys are valuable follow ups. You not only gain insights for your programming, but you're also letting prospects know that you're listening.

• How did you like golf?
• What part of the game would you enjoy learning about next time? How was your instructor?
• Is there anything we didn’t cover?
• Is there anyone you’d love to play golf with?
• Is there anything about the club or the program you didn't enjoy?

If you're interested, here's an article on Lead Nurturing online at scale

Digging Into The Numbers

I don't want you to just take our word for it. Let's try to run some basic numbers using some extremely conservative assumptions.

Understanding Customer Lifetime Value

The numbers here are going to vary tremendously. Private clubs selling high-end memberships will be very dierent than municipal or public golf courses.

Regardless, if we’re going to take a long-term approach to growing the club, we need to understand what our customers are worth to us. I get that it's not all about money, but we do need some cash to keep the lights on.

A simple method to calculate an annualized average customer value is to take the total number of customers and divide into your gross revenues. Private clubs are easier than public courses of course.

Let’s say that a public golf course does 30,000 rounds of golf, and grosses $2 Million. Of those 30,000 rounds, the average customer returns to the club 10 times. That means we’ve got 3,000 “customers”. Divide that into $2 M and we get an average annualized customer value of $667.

Each customer is worth $667 on average each year.

Looking at retention rates, we may be able to determine how long the average customer sticks around - let’s say 4 years.

The average lifetime value of each new customer is $2,668.

Of course, this is a very simple representation, and we’re not counting on the value of referral business.

Maximizing Conversion Rates

This math is very simple. Let’s say that we’re running free golf clinics, private lessons, family sessions, and senior helpers as we’ve discussed.

For everyone entering into the top of this “funnel”, let’s assume a worst-case scenario conversion rate of 5%. That's just 1 out of every 20. We’re defining a conversion as someone who becomes a “customer” of the club - they sign up for other programs, buys some stuff, takes some advanced lessons, plays golf, eats and drinks in the restaurant, etc. You can establish whatever definition you like.

The truth is that 5% is a terrible conversion rate at a public course, but it still works like crazy. That mean for every 20 people we invite to take free golf lessons, 19 don’t ever sign up for anything else, ever.

BUT, the 1 person that becomes a customer represents $667 of gross revenue for the year, $2,668 overall.

Each 30 minute lesson is designed to have multiple people - families, groups, clinic-style. Staying conservative, let’s say that each session has only 2 people on average. If the instructor is teaching 6 hours per day, that’s 12 sessions and 24 golfers. Let’s round that to 20 for the sake of simplicity.

So, we have 20 people each day, but considering half of those people are repeat lesson-takers, we’ll assume only 10 newcomers.

This means that every 2 days of instruction yields 20 newcomers, and 1 new customer. That means 2.5 new customers per week (5 day week), 10 new customers per month, 120 new customers per year. Annualized, that’s $80,040. In terms of lifetime value, that’s $320,160 generated for the club.

Your Marketing Expenses

Based on a full-time position, salaries of course will vary depending on who you are hiring and the market that you’re in. As mentioned previously, this position does not need to be a highly paid position.

Based on a $30,000 marketing/salary budget, you're able to offer 12 free 30-minute golf lessons daily for only $11 apiece. If you're able to get 2 people per session, you're only spending $5.50 to get each new body out to your golf course!

That's insanely cheap, considering the value of your new customers.

Additionally, your bandwidth for offering these golf lessons is virtually unlimited. It's not like you're giving away tee times or cannibalizing your "real" business offerings. If demand was there, you could theoretically have 3 people on the range at the same time doing the same thing.

You can scale up or scale back your marketing in both directions very easily.

The Bottom Line

All considered, we know that these estimates and assumption are extremely conservative. A 5% conversion rate is very low for public facilities, but for private clubs may be very high (of course average customer values are also much higher).

In this example, after paying your Marketer/Teacher a flat $30,000 salary, the club will have generated $320,160 in future Total Gross Revenues (10x marketing spend).

The club has developed an enormous dierentiator vs. the local set of golf facilities. Marketed well, the club will be able to attract the lion’s share of golfing newcomers in the area, indoctrinate them into the club, and develop a culture of giving/generosity/hospitality while they’re at it.

Guests feel more welcome over time because there are no hard sells or sale pitches. All staff members participate in marketing the club, and inviting new people out to try golf becomes ingrained in company culture.

Combined with the KPI Golf Membership Sales specific programming, clubs can further capitalize on the power of word of mouth, positive company culture, and membership referrals.

Check out kpigolf.com to learn more and see how clubs are winning in their local markets.