When you know the total amount of revenue your golf club member or guest will generate, you will be able to make better decisions on how to acquire and retain customers.
It is good to highlight we should calculate from now on the more customer-focused metrics like customer lifetime value (CLV). If you’re trying to exceed a specific revenue goal in a given time frame, you’ll need to know your CLV in order to actually achieve that.
The benefits of customer lifetime value
Customer lifetime value is the most indicative of the effectiveness of your golf club’s customer experience (CX) strategy. It is a very good way to maximize the efficiency of your customer experience development efforts.
How many times you have utilized the analytics feature of your tee time booking software to discover who are the great spenders (+preferred tee times, services, etc.), the frequently playing guests, or those who frequently do not show up at their tee times?
According to the book Marketing Metrics, businesses have a 60 to 70% chance of selling to an existing customer while the probability of selling to a new prospect is only 5% to 20%.
The customer lifetime value is a predictive indicator that aims to quantify the total worth of a customer over their entire relationship with your golf club. The analytical feature of golf club management softwares is a great help to have a better understanding of your golf club guests and members. At the same time, they will also help you to mitigate the number of “no-shows” golfers.
Your success relies on how much you understand and able to utilize customer lifetime value.
The customer lifetime value depends on:
- The average customer lifespan (is the amount of time in which golf club member or guest purchases service from you) = 1/churn rate.
- An estimate of future profits.
Since it is based on historical data it will help you to predict future revenues and profit.
Don’t stop at finding your golf club members’ and guests’ CLV. Dive deeper and figure out what behaviors have the biggest influence on customer lifetime value (e.g., Show/No Show at the booked tee time). Use your golf club management software and tee time booking software to understand your customers’ attitudes and behavior.
Customer lifetime value is most useful when combined with an understanding of the root causes of customer behaviors and loyalty.
Identifying customer types increases your ability to gain insights that are necessary for the development of the most relevant offerings. This way of thinking also contributes to a better customer experience. The better golf club management and tee time booking software will help you to develop customer personas and segment your customers.
You must be analyzing your golf club customers’ spending and behavior in some way now. The more that a golf club can unite data sources, the better it can understand how a customer engages across marketing and sales channels.
By having a single view of a golf club customer, the golf club will be in a better position to optimize sales and marketing strategy and give better customer value.
A great way to reward your loyal and valuable golf club customers is to personalize your service, sales, and marketing.
Personalization is essential across
- the customer journey,
- influencing brand awareness,
- brand loyalty, and
- lead generation.
Golf clubs must achieve as soon as possible a personalized, unified experience across all channels and at all stages of the customer journey.
I found in a CapGemini study that customers with high emotional engagement are more likely to have a strong brand affinity compared to someone with low emotional engagement.
Forrester Research (2017) found that
70% of emotionally engaged consumers spend up to two times or more on brands they are loyal to, compared to less than half (49%) of consumers with low emotional engagement.
First steps
Let’s start by segmenting your guest & member lists based on their behavior, purchase history, or other customer interactions so you can send hyper-focused marketing messages.
Loyalty efforts should involve as many parts of the customer journey as possible. Our golf club customers are expecting to be appreciated at every stage of their customer journey.
I would put loyalty at the center of everything and think about how it could contribute to the golf club’s customer experience development efforts.
This article is brought to you by Golf Booking Software.