Wed Jul 2 2014What is one member worth to you?
Have you ever calculated what one member actually spends during their life as your member? One major USA golf management company's average member lifespan was eight years, which was pretty good considering the number of members and membership types they had throughout their massive club portfolio.
In Australia the average length of membership would be somewhat higher, so for easy maths, say it is 10 years.
Get your calculator and a piece of paper out to write down your specific course information based on the following:
|Annual food spend||x10||$600||$6,000|
|Annual beverage spend||x10||$600||$6,000|
|Annual guest fees||x10||$1,200||$12,000|
|Annual merchandise spend||x10||$300||$3,000|
|Annual driving range spend||x10||$300||$3,000|
|Total *(not including CPI over their membership)||$5,000 Year 1||$45,000 Year 10|
And of course you have to add golf events, weddings, conferences, and new members they may have introduced over this period. This is priceless!
This same theory can be used for any business, regardless of whether it is membership-based or not, by doing the same type of calculations on your best clients.
Online calculator -http://www.harvardbusinessonline.com/flatmm/flashtools/cltv/
If you need help finding more members or in retaining them longer, contact me at email@example.com to discuss a variety of specialised services that we can provide in this area.
By Mike Orloff, Director - Golf Industry Central
© Copyright Golf Industry Central, October 2008
Mike Orloff is a golf marketing and operations specialist with management experience in the golf industry in Australia and United States. He offers marketing and operational advice for golfing facilities in the areas of revenue generation, membership attainment and retention, new player development, staff recruitment, event management and retail management.
Marketing to grow golf businesses is Mike’s main focus these days.
As a current US and Australian PGA Member, Mike has more than 22 years of experience working his way up from pro shop assistant to general manager of two to five-star operations for two of the biggest international golf management companies globally. Now Mike is offering his experience, knowledge and tools to golf clubs and other golf-related businesses in Australia and New Zealand.
Articles by Mike Orloff