Marketing Plan

Jack Schibrowsky’s Database Marketing Spring Creek Golf Course Project

Project Situation Analysis (30 pts) 

First, review the financial data and make a report. 
Include all of the following:
Total annual Revenues and Gross Profit, Number and Percentage of rounds, revenues and profits from
the membership program (5 pts) 

Calculate the current LTVs for Regular and Club Members You will need to determine the most logical
number of years and justify it. (Provide the LTV tables) (10 pts) 

Calculate the changes in LTV (Include the LTV tables) if:
(1.) Spending goes up by 10% and retention goes up by 5%
(2.) Spending goes up by 20% and retention goes up by 10%

Leaky Bucket → How many new Regular and Club Members are needed each year to maintain the
current number of members for each group. (3 pts)
Summarize the current financial situation. (2 pts)

Project CRM Proposal Analysis (40 pts)

Randy has proposed a program for the Golf Course to provide a turnkey CRM system that will double Spring
Creek’s profits. Joe has contacted you, his long-lost niece or nephew to help figure this out. He has sent you this
basic info. He guarantees that you will be able to increase spending by 10% and Retention rates by 5%. But
argues that with a little work the numbers will be much higher. Typically the increase is more that 10%
retention and more that 20% spending increases. 

Cost of the RJ Sips’ Turnkey CRM is only $10,000, plus an annual fee of $10 per person to administer the
program. The fee will be charged for the members only and not for General golfers. So for Spring Creek Golf
Course that is around 200 regular members and 75 Club Members, $2,750.

 In addition, it is estimated by Randy that you will want to spend another $15 per person per year on CRM
activities/programs. That would be $4,125.

 The Spring Creek Golf Course Rewards are $1 for every $10 spent. For regular members that includes golf,
F&B, Events, and Pro Shop. For club members it will include F&B, Events, and Pro Shop. 
But the current rewards program for Regular Members is 1 free round of golf for every 7 played. That translates
into an average of 15% off golf. There is no discount for Club members. Here is the estimate of current and new
costs with 10% rewards on everything.

 Regular
members
Club
Members
Total
Rewards
Current CRM rewards $ 6,480 $ 6,480
Proposed CRM rewards $ 6,120 $ 7,735 $ 13,855
Total Difference (annual) $7,375 
* This is from a table that is given and I have provided in the file. * ^^^

RJ Sips’ works to give you everything you need to run your business in one centralized, easy-to-use database
platform. Services include: Marketing Automation, Email Marketing, Landing Pages, Marketing Analytics,
Segmentation, Profiling, Referral Programs, Businesses basics, CRM strategies, and Membership Programs. 

Randy has proposed a program for the Golf Course to provide a turnkey CRM system that can potentially
double Spring Creek’s profits. Joe has contacted you, his long-lost niece or nephew to help figure this out. He
has sent you this basic info.
This all seems like a lot of money to Joe, but Randy keeps telling him it is a no-lose situation.

 #1 How much will the CRM program cost in total and how much is that per customer per year? (10 pts). 
#2 If the CRM program were to increase retention by 5% and spending 10% for each customer group, how
much would Joe increase his revenues and profits? If the CRM program were to increase retention by 10% and
spending 20% for each customer group, how much would Joe increase his revenues and profits Use LTV tables
to help to calculate this. 

#3 2, Currently Joe is able to stabilize his membership base with a concerted effort to recruit new regular and Club
members (Some regular members upgrade to Club memberships golfers each year (only a small % are . This
costs him around $15,000 in traditional marketing expenditures. How much is the estimated acquisition cost for
each customer (assume the cost is the same for each type)? (10 pts).
How much could joe save on acquisition costs if his calculation of per person acquisition cost remained the
same and Joe wanted to simply maintain his current # of customers? To calculate this, figure out how many
fewer customers he would have to recruit to fill the leaky bucket with a 5% and 10% increase in retention. (10
pts). 

#4 Summarize the CRM program in terms benefits and costs. Pay attention to the none financial aspects like
added information available and how Spring Creek Golf course might change its marketing. (10 pts). 

Each Regular and Club member will be issued a rewards card that will swiped for check in and for the rewards
for F&B, Events and Pro Shop purchases

* two card images in file * 

Relationship Marketing Plan (30 pts)
Recommend a total of 5 bonding activities for the new CRM program for Spring Creek Golf Course. Up to 6
points per recommendation for a total of 30 points.

 They can be Financial, Social, or Structural. Make sure that you recommend the best alternatives. They will be
evaluated using the following criteria 
The complete description of the bonding activity (including anticipated costs). 
The goal/objective of the bonding activity
 Likelihood of accomplishing the specific objective 
Benefit vs. Cost 

For each activity, give it a name, description and justification.
Example → Initiation fee and cumulative membership discount (Do not use this one).

Jack is proposing that Spring Creek Golf Course require a $2,000 initiation fee to become a Club member. This
is typical at most Country Clubs plus it results in Structural bond and barrier to exit. To make the fee more
palatable the additional fee will be paired with a reduction of $100 per year in annual membership fees for 4
years until the membership fee is reduced to $5,500 or $400 less than the beginning annual fee of $5,900. It will
stay at that level going forward. 

Here is a table of the financial transaction
.
Current Program Proposed Program
Yearly Total Yearly Total
Year 1 $5,900 $5,900 $7,900 $7,900
Year 2 $5,900 $11,800 $5,800 $13,700
Year 3 $5,900 $17,700 $5,700 $19,400
Year 4 $5,900 $23,600 $5,600 $25,000
Year 5 $5,900 $29,500 $5,500 $30,500
Year 6 $5,900 $35,400 $5,500 $36,900
Year 7 $5,900 $41,300 $5,500 $41,400
Year 8 $5,900 $47,200 $5,500 $46,900

* Table will be provided in File* ^^^^^^

The reduction in annual membership fees creates an additional barrier to exit. If the club member decides to not
renew their membership, they lose the cumulative reduction in their annual fees. 

This is likely to increase retention rates by at least 5-10%. And prevents a club member from simply not
renewing one year and then renewing the next year depending on a person’s situation. 

The benefit to Spring Creek Golf Club is that they are ahead in terms of Dollars received from the member until
Year 8. Plus, they get the time value of the money benefit. Currently, only around 20% of the club members are
still members after 8 years. This change is designed to significantly change that. 

Current Membership program
Regular Members $99 per year 
Preferred Tee times 
Reduced Green Fees 
The Spring Creek Golf Course Medalists’ Newsletter 
One free round of golf with annual signup 
First chance sign-up for golf leagues

 Club Membership $5900 
Preferred Tee times
 Includes green/cart fees
 The Spring Creek Golf Course Medalists’ Newsletter
One free round of golf with annual signup
 First chance sign-up for golf leagues 

Spring Creek Green Fees
No Membership Regular membership
winter Summer winter Summer
Prime $ 60 $ 50 $ 50 $ 40
Twilight $ 45 $ 40 $ 40 $ 35
Super Twilight $ 35 $ 30 $ 30 $ 25
Retention Rate Year 1 Year 2 Year 3 Year 4 Year 5 Year 6-10
Regular Member 0.5 0.5 0.6 0.6 0.7 0.7
Club Members 0.75 0.75 0.8 0.8 0.8 0.85 

* info is from two tables that are provided in the file* ^^^^

The Current database marketing membership program is very simplistic but does not capture any information other
than # of rounds played. It is a discount/access card with a reward component for the regular members. 

It is set up as simple easy to administer “Big Gulp” style program, where the Regular member has their card stamped
every time they play. Every eight round is free. For the Club members all rounds are included in the membership. 
So, their
rounds are not currently tracked. Thus, the amount spent at the course is mostly estimated. As a result it is difficult to
calculate LTV and the spending rates for each individual member. Joe has made estimates for you to get a baseline

* two images in file*

Current Database Information
[JS1]
General
Golfers
Regular
Members
Club
Members
Approximate # of people in database $99 $5,900
Approximate Retention rate 13/5 140/24
Total Rounds of Golf 8,500 3,240 10,660
Database Info – Do you have the following info for each group?
Address NO YES YES
Telephone number NO YES YES
Email addresses (approximate %) NO YES YES
Birthdate NO YES YES
Gender NO NO NO
Income NO NO NO
Education NO NO NO
Proximity from the course NO NO NO
# of rounds played per year for each cardholder? YES YES
# of rounds played by guests of the cardholder? YES YES
Dollars spent on golf per year for each cardholder NO NO
Dollars spent on Pro shop merchandise NO NO NO
Dollars spent on food and beverage NO NO NO
Dollars spent at the driving range NO NO NO
Dollars spent on lessons NO NO NO
Communication Activities
Surface mail Newsletters NO YES
Surface mail Renewal Form NO YES
Surface mail special offers NO YES
Email newsletters YES YES
Email special offers and Events YES YES
Email Renewal Form YES YES
Telephone renewals NO YES
Telephone special offers NO YES

* One large Table provided in file * ^^^^^^

Income Statements and Member Renewals

General
Golfers
Regular
Members
Club
Members
Membership $99 $5,900
Ave. Rounds 13/5 140/24
Total Rounds of Golf Played 2021 8,500 3,240 10,660
Green/cart fees (100% gross profit) $ 340,000 $ 240
Guest Green Fees (100% gross profit) $ 120 $975
Food and Beverage (est) (50% gross
profit)
$ 34,000 $ 50 $600
Pro Shop $ (est) (50% gross profit) $ 42,500 $ 30 $500
Events (est) (50% gross profit) $ 10,000 $ 20 $90
Total Revenues $ 50.18 $559 $8,065
Total Profits $509 $7,470
2019 members (Year End) 200 68
2020 members (Year End) 170 58
2021 members (Year End) 180 65
2019 $ (est.) Revenues $111,800 $548,420
2020 $ (est.) Revenues $95,030 $467,770
2021 $ (est.) Revenues $ 426,550 $100,620 $524,225
2019 membership fees (est.) $ 19,800 $ 401,200
2020 membership fees (est.) $ 16,830 $ 342,200
2021 membership fees (est.) $ 17,820 $ 383,500
2019 $ (est.) Profits $101,800 $ 507,960
2020 $ (est.) Profits $ 86,530 $ 433,260
2021 $ (est.) Profits $ 383,250 $ 91,620 $ 485,550
% of Profits 40.0% 9.5% 50.5%
Total Profits 2021 $ 960,420

* one large table in file*  

2020 Regular Club
Beginning # of players
card members (from 2019) 200 68
Retained members 115 55
New members 55 3
Year end # of members 170 58
Retention rate 58% 81%

2021 Regular Club
Beginning # of players
card members (from 2020) 170 58
Retained members 108 47
New members 72 18
Year end # of members 180 65
Retention rate 64% 81%

* two separate tables in file *

Membership Application
Regular Membership ($99) ____ Club Membership ($5900) ____
Name _________________________________________________
Address
______________________________________________________
______________________________________________________
______________________________________________________
Email Address___________________________________________________
Home Phone (optional) _________________________
Cell Phone (optional) ___________________________
OK to Text Me ___
Credit Card Info (optional)
Card Type ___________________
Card # ______________________
Name on the Card ___________________
Expiration Date ____________________
Birthday (optional) _________________

* image in file*  ^^^^^