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: 61.) 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 und 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) urrent 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 S5900 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 $ 60 S 50 S 50 $ 40 $ 45 $ 40 $ 40 $ 35 $ 35 S 30 S 30 $ 25 Prime Twilight Super Twilight 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 07 Club Members 0.75 0.75 0.8 0.8 0.8 0.85 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 Current Database Information sil General Regular Club Golfers Members Members $99 $5,900 1375 140/24 8.500 3,240 10,660 Approximate # of people in database Approximate Retention rate Total Rounds of Golf Database Info - Do you have the following info for each group? Address Telephone number Email addresses (approximate %) Birthdate Gender Income Education Proximity from the course NO NO NO NO NO NO NO NO YES YES YES YES NO NO NO NO YES YES YES YES NO NO NO NO of rounds played per year for each cardholder # of rounds played by guests of the cardholder? Dollars spent on golf per year for each cardholder Dollars spent on Pro shop merchandise Dollars spent on food and beverage Dollars spent at the driving range Dollars spent on lessons YES YES NO NO NO NO NO YES YES NO NO NO NO NO NO NO NO NO Crication Activities Surface mail Newsletters Surface mail Renewal Form Surface mail special offers Email newsletters Emiul special offers and Events Email Renewal lom Telephone renewals Telebone special oners NO NO NO YES YES YES NO NO YES YES YES YES YES YES YES YES Spring you Income Statements and Member Renewals General Golfers Regular Members $99 13/5 3,240 $ 240 $ 120 $ 50 Club Members $5,900 140/24 10,660 8,500 $ 340,000 $975 $600 $ 34,000 Membership Ave, Rounds Total Rounds of Golf Played 2021 Green/cart fees (100% gross profit) Guest Green Fees (100% gross profit) Food and Beverage (est) (50% gross profit) Pro Shop $ (est) (50% gross profit) Events (est) (50% gross profit) Total Revenues Total Profits 2019 members (Year End) 2020 members (Year End) 2021 members (Year End) 2019 $est. Revenues 2020 S (est.) Revenues 2021 $ (est.) Revenues 2019 membership fees (est.) 2020 membership fees (est.) 2021 membership fees (est.) 2019 S. (est. Profits 2020 S (est. Profits 2021 5 est.) Profits % of Profits Total Profits 2021 $ 42,500 $ 30 $500 $ 10,000 $ 20 $90 $ 50.18 $559 $8,065 $509 $7,470 200 68 170 58 180 65 $111.800 $548,420 S95,030 $467,770 $ 426.550 $100,620 $524.225 $ 19,800 $ 401,200 S 16.830 $ 342.200 $ 17,820 $ 383.500 S101.800S 507,960 S 86,530 S 433.260 $ 383,250 $ 91.620 S485,550 40.0% 9.5% 50.5% $ 960,420 Club Club Regular 200 Regular 170 68 58 2020 Beginning # of players card members (from 2019) Retained members New members Year end # of members Retention rate 115 55 170 58% 55 3 58 81% 2021 Beginning # of players card members (from 2020) Retained members New members Year end # of members Retention rate 108 72 180 64% 47 18 65 8196 Project Joe Roliardi owner of the Spring Crock Golf Course has been approached by a business consultant (Randy Fouth) from RJ Sips CRM solutions. RJ Sips' works to give you everything you need to run your business in one centralized, casy-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 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. The Spring Creek Golf Course is an 18-hole championship course that has seen shrinking revenues over the past 10-15 years, but the business is currently viable, since the property is paid off. Spring Creek usually fills around 50% of its tee times, with some weekend tournaments and weekday outings, golf leagues, Additional revenue streams include a driving range, restaurant and bar, pro shop, lessons, leagues, and special rates for juniors and high school students. More recently, Joe saw both regular and Club memberships decrease in 2020, in part due to the Covid19 pandemic. As a result, Spring Creek dramatically increased their recruiting efforts in 2021 and have partially caught up. But Still Joc is concerned about running out of potential members over time. As a result, he is very interested in customer retention. Joe generally classifies his customers into three groups, general golfers (with no memberships) Regular members, and Club members. He does have the Spring Creek Golf Course Medalists' Newsletter and has been using Constant Contact software to email offers to his customer list. The annual cost of the subscription is about $10 per customer, not including the administrator's time. The number of regular golfers continues to decline, but Joe has been able to acquire new golfers to replace them. Still, he wonders what will happen in the future. Joe sees the major issue associated with the current database is the inability to track non-golf purchases (F&B, Pro Shop, and events). Without this data, Joe has no way to determine who his best customers are. 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: 61.) 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 und 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) urrent 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 S5900 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 $ 60 S 50 S 50 $ 40 $ 45 $ 40 $ 40 $ 35 $ 35 S 30 S 30 $ 25 Prime Twilight Super Twilight 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 07 Club Members 0.75 0.75 0.8 0.8 0.8 0.85 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 Current Database Information sil General Regular Club Golfers Members Members $99 $5,900 1375 140/24 8.500 3,240 10,660 Approximate # of people in database Approximate Retention rate Total Rounds of Golf Database Info - Do you have the following info for each group? Address Telephone number Email addresses (approximate %) Birthdate Gender Income Education Proximity from the course NO NO NO NO NO NO NO NO YES YES YES YES NO NO NO NO YES YES YES YES NO NO NO NO of rounds played per year for each cardholder # of rounds played by guests of the cardholder? Dollars spent on golf per year for each cardholder Dollars spent on Pro shop merchandise Dollars spent on food and beverage Dollars spent at the driving range Dollars spent on lessons YES YES NO NO NO NO NO YES YES NO NO NO NO NO NO NO NO NO Crication Activities Surface mail Newsletters Surface mail Renewal Form Surface mail special offers Email newsletters Emiul special offers and Events Email Renewal lom Telephone renewals Telebone special oners NO NO NO YES YES YES NO NO YES YES YES YES YES YES YES YES Spring you Income Statements and Member Renewals General Golfers Regular Members $99 13/5 3,240 $ 240 $ 120 $ 50 Club Members $5,900 140/24 10,660 8,500 $ 340,000 $975 $600 $ 34,000 Membership Ave, Rounds Total Rounds of Golf Played 2021 Green/cart fees (100% gross profit) Guest Green Fees (100% gross profit) Food and Beverage (est) (50% gross profit) Pro Shop $ (est) (50% gross profit) Events (est) (50% gross profit) Total Revenues Total Profits 2019 members (Year End) 2020 members (Year End) 2021 members (Year End) 2019 $est. Revenues 2020 S (est.) Revenues 2021 $ (est.) Revenues 2019 membership fees (est.) 2020 membership fees (est.) 2021 membership fees (est.) 2019 S. (est. Profits 2020 S (est. Profits 2021 5 est.) Profits % of Profits Total Profits 2021 $ 42,500 $ 30 $500 $ 10,000 $ 20 $90 $ 50.18 $559 $8,065 $509 $7,470 200 68 170 58 180 65 $111.800 $548,420 S95,030 $467,770 $ 426.550 $100,620 $524.225 $ 19,800 $ 401,200 S 16.830 $ 342.200 $ 17,820 $ 383.500 S101.800S 507,960 S 86,530 S 433.260 $ 383,250 $ 91.620 S485,550 40.0% 9.5% 50.5% $ 960,420 Club Club Regular 200 Regular 170 68 58 2020 Beginning # of players card members (from 2019) Retained members New members Year end # of members Retention rate 115 55 170 58% 55 3 58 81% 2021 Beginning # of players card members (from 2020) Retained members New members Year end # of members Retention rate 108 72 180 64% 47 18 65 8196 Project Joe Roliardi owner of the Spring Crock Golf Course has been approached by a business consultant (Randy Fouth) from RJ Sips CRM solutions. RJ Sips' works to give you everything you need to run your business in one centralized, casy-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 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. The Spring Creek Golf Course is an 18-hole championship course that has seen shrinking revenues over the past 10-15 years, but the business is currently viable, since the property is paid off. Spring Creek usually fills around 50% of its tee times, with some weekend tournaments and weekday outings, golf leagues, Additional revenue streams include a driving range, restaurant and bar, pro shop, lessons, leagues, and special rates for juniors and high school students. More recently, Joe saw both regular and Club memberships decrease in 2020, in part due to the Covid19 pandemic. As a result, Spring Creek dramatically increased their recruiting efforts in 2021 and have partially caught up. But Still Joc is concerned about running out of potential members over time. As a result, he is very interested in customer retention. Joe generally classifies his customers into three groups, general golfers (with no memberships) Regular members, and Club members. He does have the Spring Creek Golf Course Medalists' Newsletter and has been using Constant Contact software to email offers to his customer list. The annual cost of the subscription is about $10 per customer, not including the administrator's time. The number of regular golfers continues to decline, but Joe has been able to acquire new golfers to replace them. Still, he wonders what will happen in the future. Joe sees the major issue associated with the current database is the inability to track non-golf purchases (F&B, Pro Shop, and events). Without this data, Joe has no way to determine who his best customers are