According to marketingpower.com, there are two common measures of growth. Year-on-year percentage growth (annual growth %) uses the prior year as a base for expressing percentage change from one year to the next. Over longer periods of time, compound annual growth rate (CAGR) is a generally accepted metric for average growth rates.” In a survey of nearly 200 senior marketing managers, 69% of people responded that they found the “annual growth percentage” metric very useful.
I agree with the senior marketing managers surveyed in the above description, when it comes to the value of measuring annual growth percentage for any company. This is exactly what I recommend and do with all of my businesses as well as every golf course that MMC® works with. We want to see their annual growth rate as well as their compound growth rate over three years. We study as many of our clients’ properties as possible after we have completed a no-risk/self-funding golfer acquisition program for them. All golf properties every year should calculate the growth percentage from the previous year which will give them an exact accounting of how successful or unsuccessful their golf course has been.
Lots of golf pros and manager are so busy with day-to-day business operations they have very little time to spend on the numbers, but this is so incredibly important. Numbers never lie, you know from year-to-year if you are growing or if you are falling back and failing to grow the game, your golf course and your golf career, all of which can be measured in real time.
This does not mean start cutting costs because you cannot cut your way to prosperity. You must earn more and keep your expenses as low as possible while providing the maximum service expected from your golfers, but never diminish the quality of service to make your numbers look better. Always compare apples to apples and oranges to oranges.
Getting in the routine of measuring your annual growth percentage will grow your golf course, the game and your golf career.
For more free tips on growing the game, increasing rounds through golf course marketing, golf marketing, golf course campaigns, golf campaigns, professional golf membership sales and advancing your golf career visit us today @ www.golfmarketingmmc.com or call 904-217-3762.