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There are approximately 13,000 golf courses in North America open to public play. The vast majority of these
golf courses operate as independent businesses.
Over the past several years, the growth in supply of public golf courses has out-paced the growth in consumer demand.
Fragmentation within the golf industry combined with an over supply of tee times has resulted in a marketplace
characterized by discounting.
Discount marketing by golf courses has led to a general deterioration of price integrity and a significant loss of revenue.
Revenues losses are compounded by the fact that “savings” offered to consumers are not normally reserved for,
and therefore not normally spent on, subsequent golf purchases.
A rewards marketing program will assist golf courses in protecting their prices. Increased revenues result when
rewards are offered to consumers for non-discounted payment and when the redemption of these rewards is reserved
for subsequent golf purchases. These improved revenues can be achieved even without an increase in the customer
base or the amount of golf played.
Swipe card point of sale technology used in conjunction with the web provides the means for administering a
golf rewards marketing program.
While it is feasible for a golf course to initiate its own rewards program, there are several disadvantages to
“one facility” programs. These include the high cost of entry and the limited appeal to public golfers who
purposefully play at several golf courses each season.
A broader “industry led” rewards program has advantages of associated with economies of scale and consumer appeal.
There are also advantages that serve the industry as a whole. Principally these industry advantages relate to
“grow the game” benefits that would be reaped from rewards exchange relationships with other loyalty programs
and from the participation of non-golf course merchants.
Golf is a powerful reward motivation. It is, however, under-represented in the redemption options of most rewards
programs. The introduction of a North American golf rewards currency (Golfmax Points), opens many possibilities of
a wider inclusion of golf as a reward motivator for other loyalty and rewards programs.
Investigated and Competing Programs
Fore Honors
RBC Rewards
Points.com
My Skins
My Golf Rewards
TruCash
Loyalty Access Solutions
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