Customer Service: Dream or Nightmare?

It’s Halloween time so it seems fitting to talk about horror stories.

Imagine this nightmare: losing a longtime course member because of bad customer service.

Once while I was attending a management training seminar, the speaker asked the audience if anyone could share an experience of excellent customer service. I saw eyes in the audience shift up as trying to recall a specific memory of great service. The speaker then asked if anyone could recall an incidence of bad customer service. Time barely passed when an assortment of hands shot up in the air to share or rather vent their occurrences. The speaker’s point was that bad customer service is always more memorable than satisfactory customer service.

Think about it this way – if you went to get an oil change and your car was returned within a fair amount of time, you were charged the price advertised, and were able to drive away with your oil having been changed, would you be so excited that you would want to tell all your friends all about it?

Now, say the mechanic made you wait for two hours, he returned the car with oil pressed into the floor mats and seats, tried to sell you unnecessary maintenance to your car and then proceeded to charge you more than the advertised cost. Would you then tell your friends? The horror story is more likely to be told and not just around Halloween time.

To the same effect, would you rush to book a tee time at a course where you heard the staff was unknowledgable, the pro shop was nearly empty and the food and beverage servers were slow and rude? Probably not.

Customers are going to be your best or worst advertisement so don’t be so focused on filling tee sheets that you forget the best way to do that – keeping customers happy.

Think of every customer as a walking advertisement.

So what happens when customer service goes bad?

The following are some suggestions to turn an unhappy customer to a satisfied one:

Be available – A customer should feel they know where to go with their needs. If the customer feels helpless when a problem arises, quite probably they simply won’t return out of principal, anger, irritation, etc. And they will generally take their recommendation of your course with them. By making yourself available and taking ownership as the person who can fix the problem, you have the power to make it right.

Train and retrain – Quite possibly the single most important factor in customer service is well trained employees. Employees that are not only well versed in the game of golf, but understand how to treat a golfer and their needs. Employees should know company policies; especially the policies for dealing with customer issues.

*Financially it makes sense to put time and money into proper training because a better trained staff can handle more work and keep customers coming back.

Know your customers – Consider Customer Relationship Management (CRM) as necessary. By using technology like Cypress Golf Solutions, you are getting the advantage to find out what your customers are looking for. By knowing that your biggest players only use Titleist balls, you can keep the pro shop stocked. By knowing your customers golfing habits, you can cater to them.

Fix the problem - If there is a problem, fix it, and fix it fast. If it can’t be solved immediately, then be involved with sincerity and communicate with the customer about the steps you are taking to solve the issue. Always follow up by a phone call, e-mail or handwritten letter. Make sure the customer feels satisfied. If they still are unhappy then throw in a free tee time for the customer and three friends, or dinner in the clubhouse. Think about what is really worth losing a loyal customer over.

Finally, remember an apology can go a long way. Turn the nightmare around into a dream and watch the same customers come back to relive it.

Thinking About Refinancing Your Golf Mortgage?

While reading the most recent edition of Golf Business, I noticed an advertisement for First National of America, Inc. The ad states, “Refinancing Your Golf Course Mortgage Can Be Easier Than You Think.” It got me thinking about the countless banks that specialize in servicing home mortgages. But golf courses?

Curiously, I went to the First National website to learn more.

Finding the right lender for anything can be a challenge, but it’s true that specialty lenders are more often at liberty to offer creative financing solutions. As it turns out, First National of America is one of the largest principal lenders to golf courses throughout the United States. Their focus is golf and they are behind the idea that working with a financial source that has previously lended on golf courses is the best way to go.

As lending to specialty properties requires specific knowledge of that marketplace, they are also aware of all the risks involved. By better understanding the unique needs of golf course investment strategies, these lenders often see more long term potential.

While First National is not the only golf course specific lender out there, they tout that they can save a lender steps in getting educated about the business of course-ownership and associated revenue streams. They list the following tips to help a course owner evaluate the viability of them as a prospect and ensure the successful financing of a golf course project:

• Credit: The borrowers and principals must have good credit. Further, the principals must have a balance sheet to support the equity investment required for the project. They also must support project operations during seasonally slower periods.

• Income: Net operating income (NOI) must be available to support debt service on the loan. In a construction loan, projections must show that the course is expected to reach an NOI supports debt service within two years of opening. The operation's debt-service-coverage ratio should be 1.2 or more.

• Collateral: The appraised value should be the discounted value derived from cash flow operations. All revenue streams are to be accounted for, including membership deposits minus the operations and maintenance expenses. The revenue and expense items are also compared to other area courses.

Specialists in the golf industry generally look for a loan to value of 65 percent to 70 percent. In the case of an operating golf course, this is based on a "stabilized value." In a construction loan, value is determined by market-based projections and is evaluated based on an "as completed" value.

Finally, First American says that making an effective presentation when seeking financing is as important to the financing effort as the merits of the project. Borrowers should be prepared to represent the entire facility's historical financial statements and a minimum of three years of financial projections. They also must provide their past year's annual financial statement and the most recent interim statement.

Bottom line, in a highly leveraged business like golf, refinancing can be as much of a competitive advantage as turf maintenance. Smart course owners need to continually assess their financial situation against changing market conditions and decide if refinancing is for them. It can be a smart strategy to improve cash flows or take equity out for course improvements.

If you are thinking about refinancing, take time to get educated to approach the appropriate lenders. Most importantly, get the terms and rates needed to meet your specific goals.

Sometimes, when banks compete, courses win.

Should Courses Be Building The Next Generation Of Customers?

In response to a recent blog: “Set Your Course Apart From The Competition: Enhance The Golfing Experience,” one reader wrote that golf pros are lamenting that not enough of the next generation is playing the game and all the advertised specials are tailored towards senior citizens. Further, by making the course more affordable to juniors, courses will be “building the next generation of customers.”

Is there any truth to what this reader said?

According to the National Golf Foundations’s most recent Golf Industry Report, junior golfers (between the ages of 6 and 17) make up only 9 percent of the golfing population. The overall number of golfers last year, counting anyone in this age group who played at least one round of golf during the year, is estimated at 28.7 million, down 2 percent from the prior year.

Those same golfers are spending 13 hours (per capita) on average per week watching television or movies, 9 hours playing video games, 5 hours surfing the Internet for fun, and only 1 hour playing golf. Out of the preceding list, which activity would you rather have your child engaging in?

So, here are some thoughts:

Golf courses could provide free group lessons to youth. For example, you could have lessons in golf course etiquette and rules of the game. I am sure some youngsters, although interested in the game, are apprehensive because a course can be intimidating to beginners. With the exception of the ranger’s role, golf is played without supervision and players are expected to conduct themselves in a specific manner. But, how does one automatically know not to walk in the line of another player’s putt or that a collared shirt may be required on the green?

How about offering elementary schools in the area package deals such as a “Day Off to Golf” which provide lessons in course protocol and general rules of the game. Coupled with something relative to the teacher’s lesson, such as math or logic, (i.e. if you shoot five double bogeys, how many birdies would you have to shoot to make ten over par of 72?) They can tee off in groups for a certain amount of holes while incorporating an educational lesson. Such a day followed by a picnic box lunch outside the clubhouse could round out an interest sparking and pleasurable day of golf.

Courses could also consider blocking out a group of tee times that have little demand and sell them to children accompanied by a parent for a discounted rate. Sure, avid course goers are not going to want to have their favorite golf course invaded by a bunch of preteens, but by choosing days or times with low demand to fill those unwanted tee times, the larger goal of teaching them how to perform on the course and experience the pleasures of the game first hand can be achieved without disrupting a busy Saturday morning tee sheet.

Maybe even a junior singles league that would educate people new to the game in a fun setting. Promoting such a league would offer young singles a healthy place to meet peers having the same interests.

According to Golf Research Group, 80 percent of customers are within a 20 minute drive of the course. Managers could look around the neighborhood and offer discounts to kids in the vicinity accompanied by a parent or adult. Maybe a once free coupon or half-off tee time to beginners?

It’s true that many parents don’t have money to spend on their children to play golf when sometimes they don’t even have the money to play themselves. And, it takes money to play golf as we all know that tee times are certainly not free. Many golfers are now online trying to take advantage of all the discounted tee times that are sometimes available through registering to a perspective site, such as the many websites powered by Cypress Golf Solutions.

The fact remains that golf is addicting. I mean, who wouldn’t want to spend their day walking across a breathtaking green under a warm sun with friends and family, combined with all the mental, physical and personal challenges of the game? We can choose to limit this great game or we can take measures to expand it and watch and see if the next Nicklaus, Palmer or Woods arises because better athletes get better instruction at an earlier age. Expanding the “next generation of golfers” would be a bonus that would turn into a loyal and profitable return as customers in the future.

Is It Time To Pick Up The Pace?

Pace of play is a difficult issue at most golf courses. Groups are either being pushed through too fast or frustrated because play is too slow. Whichever group you fall into, the enjoyment of the game can quickly dwindle if you are standing around waiting to tee off or if you have no time to read your putt. The problem is really hurting the game and hurting the pockets of golf courses owners alike.

As tee times are inventory for golf courses, it is necessary to sell them and sell as many as possible. This is why online tee time websites provide such a great service to courses. These sites utilize the internet to help courses sell online reservations. A golfer can quite simply sit in front of his or her computer and select the preferred day and time they want to play, and often at rates that are priced depending on demand. But how much inventory does the average course offer?

It is fairly common for courses to set tee times roughly eight minutes apart, on average. Obviously, the closer the tee times the more challenging it becomes for players and for courses to monitor pace of play. However, the farther apart the tee time generally means less tee times sold for the day. So the question remains, how does a course attempt to accommodate everyone and speed up play on the course?

In 1993, the United States Golf Association developed a formula, the USG/Rating that can help players complete a round of golf at an optimum pace:

STEP ONE:
Obtain an official USGA Pace Rating from your Regional Golf Association. This custom rating establishes a target completion time (<169>time par<170>) for each hole on your course.

• The USGA Pace Rating calculates a target time par for each hole on your course, taking into account the length and difficulty of the hole and other attributes of play. Time pars allow players to keep track of when they are expected to arrive at each tee.

STEP TWO:
Purchase and distribute communication materials that give your golfers practical tips for speeding up play on tee, fairway, and green, whether walking or riding.

• Did you know the average player takes roughly 35 seconds to address and hit a golf ball? With an average score of 100, that’s 3,500 seconds = 58 minutes.

STEP THREE:
Implement course management techniques that contribute to the optimum pace of play. These include appropriate start time intervals.

• Get players to the first tee efficiently and on-time. And, make sure the ranger has all the tools needed to monitor play effectively.

STEP FOUR:
Consider follow-up efforts to reward golfers who meet pace of play standards and remedial help with fast play tips for those who do not.

Here are some interesting facts relative to pace of play:

• Courses with several water hazards or other severe difficulties such as tight fairways, thick rough, deep bunkers, or fast undulating greens can increase the playing time by up to 30 minutes.

• In the same GolfDigest.com survey, 57.8 percent of golfers say their own pace of play is fast while only 4.8 percent call their pace as slow; and 56.2 percent of golfers call other golfers slow and only 2 percent fast. (So whose fault is it?).

• In 18 holes of golf, it takes only about an hour to "play." The other 2 ½ to 4 ½ hours is “logical positioning” - getting to the next shots or crossing terrain with the right equipment.

• Slow play has become such a problem that the PGA tour has invoked a 1-stroke penalty for offenders.

• Cart policies can hinder the speed of play. When a course restricts carts to cart paths, it increases the time of a round by an average of 12 percent, or 30 minutes.

Bottom line, faster play means more rounds and more profit for course owners. It might be time to evaluate how fast your course is. Think about how much more annual revenue your course may bring in if it sold even a couple more tee times a day?

Is Your Golf Course Ready For "Off" Season?

Contingent of weather and region, Golf courses most typically host a nine-month season. As the weather conditions become less than favorable and golfers make room to store their clubs in the garage, course managers and superintendents are able to use that time to make improvements to the course and facilities with little or no inconvenience and address business management responsibilities.

To remodel or not to remodel is a good question. Many factors are involved in the decision to give your aging course a tune up. As golf course remodeling is a complicated process, and involves a team of golf industry professionals, The American Society of Golf Course Architects (ASGCA) lists the six most common reasons to remodel:

• Replacing old, worn out components
  
• Correcting hard-to-maintain areas
• Making adjustments to improve weak holes
• Improving aesthetics
• Restoring historic value
• Making the course as good as it can be
  

Further, the ASGA offers free resources on their website, including a downloadable brochure entitled, “The Golf Course Remodeling Process - Questions & Answers.” Topics range from the most basic – “Why remodel?” – to how a project can be funded.

The offseason also provides the opportunity to complete a variety of business management responsibilities including:

• Annual plans
  
• Budget
• Staffing plans
  

Annual plans should be updated and changed on a regular interval and according to requirements. Having a comprehensive business plan and updating is essential working procedures.

Budgeting should be drawn up carefully and in close consultation with the course manager. The R & A Course Management Best Practice Guidelines suggests taking into consideration the following points when planning a course budget:

• A budget should be approved in advance and full details of estimated costs should be included. Allowances should be made for contingencies and finance reserved for them.
• Regular comparisons between budgeted and actual costs should be made. Cost benefits should be actual savings and not the result of expenditure being deferred to a later date.
• In some instances the management will have to take into account in their budgets any investors in the business who require a return on their capital
• Legal requirements such as legislation affecting licenses and other factors
• Health and safety, taking into account new legislation and cost of implementing it
• Risk assessments with regard to staff training for new equipment and machinery
• Education and training requirements for existing and any newly appointed staff

Staff development is a requirement for golf courses managers. A course is generally staffed on a seasonal schedule to meet demand. According to Golf Course News, about 55 percent of golf course superintendents say more than half of their workforce is primarily seasonal. A big money saver is in staffing and proper planning. Temps, college students and internships can help the seasonal rush as their availability is generally seasonal as well.

Equipment is also a focus for the golf course superintendent during the offseason. Everything from purchasing to various mechanical repairs such as engine tune-ups, reel sharpening, and irrigation systems in need of maintenance. Additionally, equipment needs to be protected against any possible extreme cold spells.

Overall, there is really no break in the business world of golf. A smart superintendent will realize that just when the volume of play declines, his or her volume of work increases.

Making use of the offseason effectively is critical and good business.