Industry studies identify growth potential

Golf Course News, Jan 2002 by Overbeck, Andrew

ST. AUGUSTINE, Fla. - In the wake of another year of flat participation growth, Golf 20/20 convened here again Nov. 11-13 to discuss and implement plans to grow the game of golf.

The short term and long term goals are aggressive: increase the number of new golfers to 3.5 million from 3 million a year, while slowing the exodus of golfers to 2.5 million from 3 million a year. By 2020, the organization hopes to have 55 million participants playing 1 billion rounds a year. Since the first meeting, Golf 20/20 has amassed a staggering amount of data to help it both crystallize its goals and identify a plan of attack.

MARKET SEGMENTATION

In addition to quantifying the number of golfers in the United States, Golf 20/20 segmented its consumer research to identify a "best" customer profile.

Of the 36 million golfers in the country, research identified 10.1 million that fit the "best" customer profile. These customers make up 40 percent of all golfers, account for 81 percent of spending and 85 percent of rounds played.

However, in order to bring more new players into the game quickly, researchers also identified 12 million adults in the United States that fit the best customer profile that do not currently play golf, but have expressed an interest in playing or playing more frequently.

"We wanted to identify the best and most profitable customers and then identify the best and most profitable prospects," said Dr. Joe Beditz, president of the National Golf Foundation which conducted the research in cooperation with NFO WorldGroup. Researchers also found that among the

golfing prospects, ball striking was three to five times more important than scoring, course conditions, competition, and exercise. The information will help structure teaching initiatives such as Link Up 2 Golf (see accompanying article) and other skill improvement programs. Fifty-three percent of potential best customers said that they would be very or somewhat likely to participate in Link Up 2 Golf.

"Of the committed best customers, 40 percent said that they had committed to the game in less than a year," said the NGF's vice president of research Jim O'Hara. "We need to quickly convert these potential customers into best customers."

ALTERNATIVE FACILITIES

Research also identified that 62 percent of golfers leave the game because of time constraints. Since alternative facilities (par-3 courses, driving ranges, executive courses, and pitch and putt courses) take less time to play, another significant research effort examined the role of alternative facilities in bringing in new golfers and retaming existing ones. Research conducted by

Sportometrics found that there are 5,542 alternative facilities in the United States and identified the best practices that make the facilities successful. The firm also found that alternative facilities complement traditional facilities: golfers pay and play more at alternative facilities when they are in communities with a larger number of traditional facilities; and golfers pay and play more at traditional facilities when they are in communities with a large number of alternative facilities.

The 6.6 million golfers that play exclusively at driving ranges and alternative facilities represent an immediate pool of potential golfers for traditional facilities. According to O'Hara, most of those users play exclusively at alternative facilities because they are less expensive and less time consuming.

Golf 20/20 is developing industry initiatives to support alternative facilities and operators to integrate their efforts with traditional courses.