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PowerPoint Presentation
Voice-of-Customer Operating Model
Ben Fowler, PGA [email protected](561) 354-1628
Page #1
What is the most certain way to get long term revenue growth?Loyal customers deliver new customers through the positive referrals they makeDisloyal customers steer away customers through the negative referrals they make
Increase Customer Loyalty
Page #2
The Concept That Started A Loyalty Revolution
1/200612/2003
What is the Ultimate Question
Please rate how likely you would be to recommend _________ Golf Course to a friend or colleague.
The Economics of Customer LoyaltyBuyer Economics All spending of customers at the golf courseReferral Economics Word of mouth about the golf course
11/2008
Average Counts of Referrals by Loyalty Response 1Based from NGF Research at golf facilities
012345Number of Referrals
012345678910Customer LoyaltyAverage # of Referrals by Customer Loyalty1
Positive
Negative
Overall Average Green Fee Revenues Per Customer $620The Impact of Customer Spend1Based off of NGFs Benchmark database for all golf facilities nationwideAssuming $45 Average Green Fee + Food and Beverage Per Round $7.00 + Pro Shop Sales Per Round $3.86
The Impact of Positive & Negative Referrals1Based off of NGFs Benchmark database for all golf facilities nationwideAssuming $45 Average Green Fee + Food and Beverage Per Round $7.00 + Pro Shop Sales Per Round $3.86Referral Impact for Promoters = .88Referral Impact for Detractors = -.72Average Customer Spend = $620-.72 x $620 =.88 x $620 =
Whats a Loyal Customer Worth?1Based off of NGFs Benchmark database for all golf facilities nationwideAssuming $45 Average Green Fee + Food and Beverage Per Round $7.00 + Pro Shop Sales Per Round $3.86Total Customer Worth
What Drives Loyalty May Surprise YouFactorOverall Course ConditionsOverall Value of CourseCondition of FairwaysGolf Course DesignCondition of GreensScenery and Aesthetics of CourseCondition of TeesFriendliness / Service of StaffCondition of BunkersOverall Quality of Golf ShopOverall Quality of Practice FacilityOverall Quality of Golf Shop MerchandisePace of PlayCondition of Golf CarsAmenities (clubhouse, pro shop, locker room)Overall Quality of Golf Shop ApparelOn-course Services (restrooms, drinking water)Food & Beverage ServiceTee Time AvailabilityAffordabilityLoyalty Driver Ranking1st2nd 3rd4th5th6th7th8th9th10th11th12th13th14th15th16th17th18th19th20thImportance Ranking1st5th 9th10th2nd8th12th7th16th18th13th20th4th17th15th19th14th11th6th3rd
Page #10These loyalty drivers % are determined by calculating the correlation coefficient of how satisfaction on each driver was tied to how the customer responded to the net promoter question. A factor with a 100% loyalty driver correlation coefficient would mean that all customers who responded with satisfaction on that factor were promoters, and all customers responding with dissatisfaction were detractors.
What if loyalty drops to 23%?
Total Buyer Economics would be: $1,841,034Total Referral Economics would be: $428,408Total Customer Worth would be: $2,269,439Projections are based on:A facility playing 33,243 rounds Having a $45 average green fee paid per round + $7.00 food and beverage per round + $3.86 golf shop sales per roundHaving 2,994 unique customers
Calculate ROI with NGFs Revenue Impact Model (RIM)At 33% customer loyalty for a typical facility:
Total Buyer Economics is: $1,856,954Total Referral Economics is: $579,760Total Customer Worth is: $2,436,714A thirteen percentage point drop in loyalty would equate to a $167,275 loss in total customer worth or a 6.9% reduction in total customer worth
The Industrys Revenue Impact Model
The Industrys Revenue Impact Model
The Industrys Revenue Impact ModelTotal Customer Worth Results from Survey
Spend of Current Customers: Will leak in the future from attrition of current customers
Page #14
Model Customer Worth With A 10% Drop In Loyalty
Ben Fowler, [email protected](561) 354-1628
Voice-of-Customer Operating Model
Page #16
Chart1585620691
Customer WorthBuyer EconomicsAverage Spend Per Player Per Year by Customer Loyalty1
Sheet1Average Green Fee Revenue Per YearDetractors$585Average Customer$620Promoters$691
Sheet2
Sheet3
Chart1-444194542
Customer WorthReferral EconomicsCustomer Worth Based on Word-of-Mouth Behaviors
Sheet1Average Revenue Per Customer from ReferralsDetractors($444)Average Customer$194Promoters$542
Sheet2
Sheet3
Chart11418131233
Total Customer Worth by Customer Loyalty1(Buyer Economics + Referral Economics = Total Customer Worth)$141.00
Sheet1Average Revenue Per Customer from ReferralsDetractors$141.00Average Customer$813.00Promoters$1,233.00
Sheet2
Sheet3