Throughout this process we will be listening, questioning, and engaging. While business is complicated, accountability is not. Our process provides stability to ensure that your vision becomes reality.

The Critical Path

The JJ Keegan+ WIN™ (What’s Important Now) formula is an seven-step process that can be viewed as the “critical path” on which our engagements are performed. We leverage 21 proprietary and extensively tested models to validate the research undertaken.

This process will fully address the key questions. With supply exceeding demand by 10% within the nation, and most forecasts predicting a flat industry for the next decade, we will proceed with diligence and implement a process which we will employ, from macro, to micro.

We will examine the uncontrollable and controllable factors that determine the potential investment return if the golf course is developed by determining if sufficient value will be created to attract and retain golfers.

There is a simple formula that determines whether a golf course will be financially successful.

To the extent that the experience created for the customer equals or exceeds the price charged, customer loyalty is created. To the extent that the experience is less than the price charged, customer attrition occurs. Customer loyalty is the foundation for successful golf course.

Step 1

Strategic: Geographic Local Market Analysis

We will define the primary and secondary trade areas for the golf course. Age, income, ethnicity and population within 5, 10, 20 and 30-mile radiuses will be measured. The MOSAIC profile, as illustrated below for seven (7) markets will be determined. We will calculate the demand vs. the supply within this trade area, as those statistics determine the financial potential for your golf course.

The key questions to be answered are: Do the demographics indicate that there is there sufficient demand to meet the available supply? Are the age, income, ethnicity, and population density sufficient to sustain the golf course? How many golfers per 18-holes are there within the competitive local market?

Step 2

Strategic: Weather

We calculate the number of playable golf days in a year (compared to a 10-year trend) to allow us to clearly differentiate between the impact of weather and the impact of management on a course’s financial performance.

The key question to be answered is: What impact has weather played on rounds vs. management policies? Are there sufficient playable days to generate a return on the proposed investment?

These first two tasks quantify the uncontrollable factors that impact a golf course’s financial performance and clearly define the course’s investment potential. The results from this analysis define the strategic vision for the facility and the viability of the course. Steps 3 through 7 are undertaken, if appropriate, to ascertain how the course should be operated to reach its current potential.

Step 3

Tactical: Technology – The Foundation

We ascertain if the tee sheet is integrated into the POS system, the size of the e-mail database, the efficacy of the web site, whether proactive e-mail marketing is occurring appropriately, and the extent to which social media have been adopted.

The key question to be answered is: How effectively has an integrated golf management solution been deployed to create the collection of data required to properly manage the golf course?

Step 4

Tactical: Yield Management, Key Metrics, Financial Modeling and Course Valuation

We will define the primary and secondary trade areas for the golf course. Age, income, ethnicity and population within 5, 10, 20 and 30-mile radiuses will be measured. The MOSAIC profile, as illustrated below for seven (7) markets will be determined. We will calculate the demand vs. the supply within this trade area, as those statistics determine the financial potential for your golf course.

The key questions to be answered are: Do the demographics indicate that there is there sufficient demand to meet the available supply? Are the age, income, ethnicity, and population density sufficient to sustain the golf course? How many golfers per 18-holes are there within the competitive local market?

Step 5

Operational: Facilities and Maintenance Review

A golf course is a living organism. Primary constraints include annual renovation expenses and the equipment required to maintain a course.

The key questions to be answered are: What is the proposed style of the golf course? The design, agronomic and turf practices, and equipment levels necessary will be considered. What is the optimal and best use of the property?

Step 6

Operational: Management, Marketing, and Operational Review

The entrance to the clubhouse, staffing, organizational structure, merchandising, food and beverage, accounting and budgeting procedures, information systems, advertising, marketing, and public relations are usually evaluated and compared to the industry’s best management practices.

The key questions to be answered are: Will the value provided equal or exceed the associated fees? Are the proper operating procedures going to be consistently deployed through each step of the “assembly line of golf “?

Step 7

Operational: Customer Preferences and Customer Loyalty Survey

By utilizing a golf course’s database, purchasing an e-mail list of local golfers, and employing electronic survey tools, enlightening insights can be obtained from asking 25 key questions. Highlighted above is an example of a chart that prepared noting the likely distribution of your customers.

Fifteen percent of customers generate 60% of course revenues, and many daily fee golf courses have at least 50 customers who spend in excess of $4,000 annually. While on average, only half the golfers who played a course one year will return the next, identifying potential core customers provides the foundation for your marketing program.

The key questions to be answered are, Who are your core customers and how much do they spend? What is the annual retention rate among your golfers? What are the barriers to increased play, what is the golfer’s perceived value, and what is the primary reason one course is selected over another? How loyal are customers? What are the key loyalty drivers that create satisfaction and what is the financial referral impact of promoters vs. detractors?

Knowing how your golf course may be compared to the competitive set in the local market is vital.

YOU WIN

This seven-step formula creates a tapestry of sound principles and common-sense solutions. For your golf course, the potential of the golf course will know, the strategic vision determined, the tactical resources identified and the policies and procedures appropriate for consistent execution implemented. The result is that the customer experience will be enhanced resulting in the golf course achieving fiscal sustainability.