Golf's Trending – Great! But What's Next? - Part 2/2

Welcome back to the second part of this blog series. If you haven’t caught up on the first part yet, you can swing over to the front 9 using this link and give it a read.

To jog your memory, golf is currently undergoing a captivating evolution that's capturing the attention of traditionalists, purists, fun-lovers, tech enthusiasts, and change-seekers within the industry - and everyone in between.

In this second installment, I'll continue exploring golf’s dual growth paths and finding those bridge builders.

?? "If there's something strange / In your golfinghood / Who you gonna call? / BRIDGE BUILDERS ??"

From URL Communities to IRL Golf Courses

Let’s tee off this second part of the article by zooming in on golf courses and clubs and all the intricacies involved in operating and developing them.

As mentioned in the first article, many courses and clubs tend to present themselves similarly. Like us humans, there’s a certain comfort in blending in, not drawing too much attention, and going with the flow - like a dead fish. However, in business, this conformity might not always be the most lucrative approach. Those who fail to stand out often find themselves competing solely on price.

The landscape of golf course development, operation, positioning, marketing, and success has significantly evolved over the past three decades.

With the digitization of the world, the rules of the game have changed drastically. What may have worked in the past could now be considered outdated or ineffective. While you don't always need to reinvent the wheel, staying current is crucial because golfers' behaviors and spending habits have evolved and will keep on evolving.

Let's talk about setting up a new golf course. Who in their right mind would build a golf course today solely catering to local club members or selling golf shares exclusively to locals? If you haven't already noticed the latest trend in golf course funding, allow me to introduce you to Links Golf Club (LinksDAO), a membership designed for the modern golfer.

Here's a quick rundown of their story:

LinksDAO embarked on a fundraising endeavor, raising approximately $10.4 million in just 48 hours by selling NFTs. The concept revolved around a decentralized autonomous organization (DAO) aimed at golf enthusiasts, offering blockchain-based membership and voting rights. A collection of 9,090 NFTs was sold to fund the project, with different tiers offering various perks to Links Golf Club’s partners such as COBRA PUMA GOLF , Five Iron Golf , Topgolf , and more.

Currently, the group is renovating the Spey Bay Golf Course in Scotland, marking the first crowdfunded purchase by LinksDAO. This development holds significant implications for the real estate industry as it challenges centuries-old norms. It signifies a shift from digital community initiatives to owning tangible assets. The transition from digital vision to physical reality is not just a passing trend.?

We need more trailblazers like Jim Daily , both within and outside the golf industry, to bring innovative, fresh thinking, and tech-driven solutions to unlock the commercial potential of golf. Keep an eye on this space.

Getting the Digital Customer Experience Right

The landscape of golf course operations has undergone a revolution. While managing a golf course in the past resembled overseeing a regional hobby club, today's competition is fierce, especially for people's leisure time. Fortunately, industry players have emerged offering golf course operational management systems that streamline operations and digitize processes.

Companies like WiseGolf ( WiseNetwork Oy ) in Finland and Fore Group in the UK have quickly gained traction?in this market. Whether it's building a custom golf CRM system or implementing a comprehensive cloud-based management solution, the competition in this space will remain intense. Many golf courses still rely on outdated solutions from smaller regional operators, which may lack the agility and adaptability required in today's digital era.

You can also add your unique touch by transforming the conventional driving range, typically located at every golf club, into a digital and immersive experience. Key players in this arena, such as TrackMan Range, Toptracer, InRange, and Total Range strive to bridge the gap between traditional and non-traditional golf experiences. These technologies enhance the range's enjoyment, utility, and most likely profitability, catering to both data-driven, results-oriented practice sessions and pure social golf entertainment with friends.

Browsing through golf course websites, one common theme emerges almost always: the assertion that the course caters to all types and levels of golfers. While inclusivity is undoubtedly vital for the future of golf, positioning every course as a one-size-fits-all destination can backfire. By attempting to appeal to everyone, a course risks becoming indistinguishable from its competitors. Failing to establish a unique brand identity means relinquishing one of the most potent branding strengths and allowing customers to define the course's position themselves.

Marketing becomes challenging when positioning is vague from the outset. Without a clear identity, marketing efforts are likely to be ineffective. While purchasing a staggering amount of media space is an option for some, it's insufficient if a golf course fails to differentiate itself from the competition. Unfortunately, comprehensive, clear, and insightful marketing concepts are rare in the golf industry. Thankfully, these issues are relatively easy to rectify with a robust brand strategy and professional marketing execution.

In today's digital age, a golfer's first introduction to a new course almost always happens through social media, search engines, or the course's website. For golf course managers and owners, two crucial questions arise:

1. Can you honestly argue that updating your website or enhancing your social media presence isn't immediately critical?
2. Can you justify delaying these changes until next year, as has been done in the past?

If you've answered these questions honestly, you'll realize that help is readily available. There are numerous skilled and flexible digital agencies in the market. When selecting a partner for this, my (biased) two cents is prioritizing those with a deep understanding of golf and a passion for propelling the sport forward.

A Game That Travels

Since the inception of golf destinations, there have been golf tour operators and travel agencies acting as intermediaries, connecting golf enthusiasts with diverse experiences all around the globe.

However, times have changed, and while the regular customer base of golf travel agencies still comprises older generations, megatrends in this sector such as sustainable development, carbon footprint, experientiality, and variation in travel destinations will inevitably hold more significance for the next largest customer groups - millennials and Gen Zs.

These target groups also present greater potential in terms of customer lifetime value, provided tour operators can attract them to their trips or convert them into regular customers with new products or concepts.

It's somewhat ironic that travel concepts and products tailored to these target groups are largely absent from the service offerings of most traditional tour operators. I can only imagine that selling golf trips to millennials is not a walk in the park, especially if they haven't been selected as a strategic target group and familiarized with their social landscape and needs.

The problem can be addressed by updating one's own service offerings to align with the preferences of newer generations. Before that, though, improving social media presence, website clarity, and the smoothness of the purchase process are essential steps.

Alternatively, one could overhaul the entire operating model. Take, for instance, golfscape , a golf startup revolutionizing the booking process for day-to-day golf travelers. Golfscape offers a quick 3-step booking process, allowing customers to design the perfect golf getaway, select accommodations and tee times, and book instantly online and hassle-free. When I first encountered Golfscape, I couldn't help but think, "It's about time."

The landscape of tour operators is evolving gradually but steadily. As Sara from Golfscape aptly pointed out, "Only golfers are so crazy that they'll do almost anything just to secure a tee time," indicating that a considerable number of current golfers still endure cumbersome non-digital user experiences and perplexing complexity when booking golf trips, despite being accustomed to user-friendly digital services in other aspects of their lives. Golfers are indeed persistent creatures but things are changing.

But if golfers can't figure out how to change themselves, it warms my heart to see some young golf entrepreneurs doing it for them.

From Factories to Fairways

If it wasn't crystal clear already, cutting out middlemen from supply chains stands as one of the most significant cornerstones of today's successful businesses. And direct-to-consumer (DTC) brands are making waves across the golf industry as well.

The benefits of the DTC model are manifold, so let’s quickly recap some of them:

1. Direct Engagement: D2C brands leverage e-commerce to directly engage consumers, offering personalized marketing and interactions.

2. Customer-Centric Approach: By eliminating intermediaries, D2C brands foster direct relationships with consumers, allowing for personalized strategies and insights.

3. Brand Storytelling: D2C brands prioritize storytelling to forge emotional connections with consumers, communicating values and building loyalty.

4. Agile Marketing: Freed from traditional retail cycles, D2C brands adapt quickly to consumer trends, refining strategies based on real-time data.

5. Subscription Models: Many D2C brands adopt subscription models for steady revenue streams and improved customer retention.

6. Offline Expansion: D2C brands blend online and offline experiences, opening physical stores or partnering with traditional retailers for a seamless customer journey.

7. Sustainability: D2C brands prioritize sustainability and social responsibility, integrating eco-friendly practices into their business models.

8. Technology Integration: D2C brands leverage technology for personalized recommendations and enhanced shopping experiences.

9. Global Expansion: E-commerce enables global expansion for D2C brands, though competition intensifies, necessitating differentiation and brand identity maintenance.

Some examples? Vice Golf has been around for "a while" by selling premium golf balls directly online. And there are so many others, you can just google "DTC Golf Brand/Manufacturer". One standout example in this arena is Takomo Golf . Founded in Finland but equipped with a born global mindset, Takomo has set its sights on the largest golf markets, notably the US. And they’re hitting the sweet spot while doing it.

So, what are the major industry players doing then? Some are taking notes, some are watching from the sidelines and letting others make early-stage mistakes for them, while others are attempting to pivot, and a few are gradually changing course.

For instance, Taylormade has embraced a full DTC strategy with Tiger’s Sun Day Red . It’s interesting to see how the brand will manage as Tiger maybe doesn't have that many tournaments left in the tank and competition on this frontier is fierce.

Reaching back to golf entertainment, other leading golf manufacturers like Acushnet Company and Callaway Golf are approaching this topic differently. Acushnet, for example, continues to acquire companies that complement its core business, such as its $25.2 million purchase of Club Glove in 2023.

While Callaway has investments in Topgolf and Taylormade in PopStroke Entertainment Group , Acushnet has not made substantial investments in golf entertainment. What does this suggest? Perhaps not all roads lead to golf simulators and the side of golf entertainment. We will have to wait and see.

Regardless of how you look at it, it's evident that golf is thriving on both traditional and non-traditional fronts. Whether you embrace both or not, golf must build upon this trend and find common ground between the worlds of golf 1.0 and 2.0. Therefore, we need those bright-minded and courageous bridge builders. So, to all the like-minded individuals out there, please step forward and let’s have a chat, shall we?

Long live golf.

PS. Go whack that follow button for our 2Up Golf Agency and make sure to track us on Instagram as well.

PPS. If you haven’t caught up on the first article part yet, you can swing over to the front nine and give it a read.

PPPS. I left out a few sectors such as golf media, golf associations, and golf management to avoid making this too lengthy. I'll address them later, don't worry.