Golf goes mainstream. Three lessons for growing any business.

Twenty years ago, golf was in trouble. After a period of rapid expansion, fueled largely by the success of Tiger Woods, the game began to decline. Courses were closing, club sales were flat, and the number of people who played the game regularly was shrinking rapidly. Golf was a pastime primarily played by aging wealthy white men and the sport simply wasn’t appealing to other demographics.?

Today golf is enjoyed by 45 million Americans of all socio-economic backgrounds. The industry has seen 10 straight years of over 2 million new golfers, with the past four years exceeding 3 million annually –surpassing the record of 2.4 million set in 2000 during Tiger's peak popularity. The dramatic turnaround of the game provides three important lessons for all leaders who are interested in turning a flat or declining business into an opportunity for explosive growth.

Make it accessible

When I was a kid in the 60’s and 70’s, golf was a “good ‘ole boys club”. Women could join a country club as a social member, but their play was restricted to times that were unpopular with their husbands. Few clubs accepted people of color at all. And you never saw young people, unless they were caddies or sons of the privileged class playing on a college golf team.

All of that began to change in the past couple of decades. Public courses proliferated and many private clubs began to open their doors to everyone. They dropped or reduced their initiation fees, (which sometimes exceeded $100K), and today memberships have returned to healthy levels.

?Programs like The First Tee were founded to make golf more accessible to all youth, including those from inner-city areas. The program has exploded in popularity. In North Texas alone, twenty-five golf courses and practice facilities have partnered to hold classes for as low as $10 per week, with financial aid available, making it accessible to a much wider audience.

?But the biggest shift isn’t about golf as much as it’s about the mindset of those who had historically been excluded from the game. They weren’t just locked out of clubs; they were shielded from opportunities to succeed in life. Organizations like Inner City Youth Golfers' Inc. use golf instruction to help inner-city kids focus on building positive mental frames, learn life lessons, and help them become future leaders.

?The lesson is simple: Ask yourself if your business has intentionally or unintentionally imposed barriers that keep potential customers out. Find ways to lower or eliminate those barriers and watch your business grow.?

Make it relevant

In 2004 the game of golf was slowly dying, just like the aging white men who were its biggest enthusiasts. Millennials showed little interest in joining golf clubs, even if they were affluent, and as a result revenue from dues dropped 25% from 2007 to 2018. Younger people thought the game took too long to play, and the barriers to mastering the sport were too high to justify spending the time it took to play well.

?Most amateurs aren’t interested in becoming the next Tiger Woods or Nelly Korda. They just want to have a good time with friends. Golf responded by creating many new opportunities to enjoy the game. Most courses now offer a nine-hole option, which cuts the time in half and substantially lowers the cost. Facilities like Top Golf have turned old style driving ranges that focused on individual practice, into a fun activity that focuses on group enjoyment. Equipment manufacturers now host public “demo days” where they can showcase their latest products and offer free instruction and tips to potential customers.

?The strategy of finding relevance with new customers has paid off. The global golf equipment market is estimated to be valued $18.34 billion in 2024 and is forecasted to reach $29.3 billion by 2034. That’s a far cry from 2016 when Nike exited the club market and Golfsmith declared bankruptcy. In the past five years there’s been a 40% increase in junior golfers, with over one-third being girls. Today the number of female golfers is over 6 million and the 18-34 age group is the sport's largest customer segment.

?Don’t just think about new segments that your business finds attractive. Take the time to discover what matters to them and tailor your offerings to be relevant to those groups.

Make it easy

There have been many improvements in golf technology since I first started playing more than thirty years ago. Equipment manufacturers like Callaway and TaylorMade focus on making clubs that are more forgiving of the imperfect contact that’s common among amateur players. Swing analyzers and custom fittings are available at most retail outlets to allow players of all shapes and sizes to get affordable equipment that’s built specifically for them. Apps like GolfNow make it easy to check course reviews and book a tee time online. GPS devices allow players to measure distances accurately, keep their score, and share success with friends.

?The advances in technology aren’t just limited to equipment, but also include apparel and accessories. Breathable and moisture shedding fabrics have made clothing more comfortable and new shoe designs help people maintain balance while generating more power. In addition, ultra-light bags and foldable push carts have made it much easier to get around the course without renting a motorized golf cart.

?All of this technology is specifically designed to reduce frustration and increase enjoyment which is the whole point of playing. For example, club manufacturers estimate that the average golfer can hit the ball ten to fifteen percent further, (as compared to 2015), simply as a result of improvements in golf club design. That’s good news for those of us who aren’t blessed with natural talent. After all, golf is just a game and it’s supposed to be fun!

When it comes to technology, don’t just incorporate new features because they’re cool. Find ways to leverage technology that actually improves the experience for your customers.

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In 2004, golf was a shrinking business. Today it’s a thriving enterprise infused with a new diverse crowd of enthusiastic players. Ask yourself how your business could benefit from increasing access, becoming relevant, and making it easy – and crush one down the middle of the fairway!

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Michael is a Director of Strategy at Jump Associates, the world’s leading independent strategy and innovation firm. We work with the world's most admired companies to solve their most difficult growth challenges. Feel free to get in touch with us at [email protected] or www.jumpassociates.com

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