Fore!mula For Success - Loyalty Cards - December 2008
We know that the success of any business depends on repeat customers, yet what is not quite so intuitive, particularly in highly competitive markets, is devising ongoing effective strategies to keep customers coming back again and again. One marketing strategy that is proven to be successful is loyalty card programs. An integral component of an awards program (featured in the August issue of Fore!mula for Success), loyalty cards reward your frequent customers, encourage good buying behavior, help collect customer demographic information, allows you to easily track purchases, and makes the point-of-sale process more efficient.
A loyalty card should be issued in exchange for providing a basic level of personal data, such as first and last name and a valid e-mail address. Loyalty card customers benefit from receiving some type of reward such as discounts on purchases, cash back on purchases, credit toward future purchases, and/or preferred customer services. Using Fore! Reservations bar code or scanning technology, you can quickly and easily collect important customer data at the point of sale, speed up the check-in and payment process, and track customer purchases and sales history. Other benefits include:
* Customers tend to spend more at each visit and visit more frequently.
* Purchases can be verified so the chances of fraud are minimized.
* Awards are secure so customers don't have to worry about lost cards.
* You can measure your results.
"When we started with Fore! Reservations two years ago we initiated the loyalty program at the very start," says Linda LaCroix, Manager, at Middleton Golf Course, in Middleton, MA. "While we have a lot of participants, it's especially popular with our women players and new golfers. It was so simple to set up and the redeeming process is easy, too." Participants in Middleton's program earn a straight 5 percent back on all purchases including green fees, cart rentals, merchandise, food and beverage purchases, which can be accumulated and redeemed for any purchase. The credits expire at the end of each year. "The program does what it is supposed to do - the more you come in, the more you earn. Plus, it's another way to entice people to give us their current information," Linda says.
A loyalty card program offers important benefits to the golf course operator. Customer demographic data that is collected can help guide future marketing and advertising initiatives. The ability to track customer spending is also valuable as this can help determine specific merchandise to sell in the pro shop. This data can also assist the pro shop manager in making recommendations for individual purchases, creating a more personalized shopping experience for the customer.
"There are a multitude of things I can do with the data, but ultimately I use it to ensure my customers feel more welcome to play here than anyplace else," says Jeff Wambold, General Manager, at Allentown Municipal Golf Course, in Allentown, PA. For the Allentown loyalty card program, customers purchase the cards for $10, which are loaded with $10 to be used toward the purchase of pro shop merchandise. Participants then earn 3 percent back on the purchase of green fees, 4 percent on cart fees, and 5 percent on driving range fees. In 2008, the first year of the program, Jeff sold 5,600 cards and merchandise sales more than doubled over previous years.
"It was a start-up year and customers were very happy," Jeff says. "They like to see how much they are earning and their award balance prints on every receipt."
This coming year, Jeff anticipates expanding the program and benefits to include food and beverage purchases, and increasing the purchase cost of the card to $20. He also plans on offering comeback coupons. "While the number of rounds played is decreasing throughout the Lehigh Valley our rounds are going up." Three years ago, Allentown logged approximately 40,000 rounds. This year, the course is at nearly 50,000 rounds.
If you'd like additional information about the benefits of starting up a loyalty card program, please contact Fore! Reservations support at This e-mail address is being protected from spambots. You need JavaScript enabled to view it or (630) 789-9784. For upcoming issues of Fore!mula for Success, we'd love to hear your successes with Hotel/Third Party Billing and Attending Regional Users Conferences. Call us at 630-789-9705 or contact us via e-mail at This e-mail address is being protected from spambots. You need JavaScript enabled to view it and we will include it in a future issue of Fore!mula for Success.
