"Clear Solutions for the Business of Golf"
Call Us Today
(847) 808-7651
  • sub banner 1

Aug OtR abstract: Latent Demand: Opportunity or Indictment?

Latent Demand: Opportunity or Indictment?

Our friends in Jupiter FL have recently returned to the “latent demand” argument supporting the current health and rosy future for the game of golf.  It’s part of a larger restatement of the golf consumer base from “players” to “total addressable market.”  By that I mean the 1-2 punch of them now showing growth in the participant base by including off-course participants (i.e. exclusive range, TopGolf and simulator golfers) as well as lumping in latent demand (defined as non-golfers who are very or somewhat interested in trying the game).  With these two magic tweaks, the NGF’s 2018 State of the Industry view goes from meeting the harsh reality of a declining consumer franchise head on to the days of wine and roses.  If only it were so (or so easy).

As I looked at the graphic of Joe Beditz’s presentation at the 2018 Golf Business Symposium in Dallas that shows the ascending bars representing increases in latent demand between the years of ’13-’17 increasing from 9M-15M it brought the following line of thinking to mind:

  • What tangible value is there in measuring “latent demand”?  As analysts, we’re constantly looking for cause and effect relationships; if latent demand matters to the industry in any way, there should be some correlation between this steep increase and our core metrics of participants, rounds, spending or all three 
  • If the number of participants is declining and latent demand is increasing, doesn’t that mean that our conversion rate is getting worse?  If so, then increasing latent demand isn’t an opportunity, it’s an indictment that our ability to convert the interested uninitiated into the game is getting worse
  • Latent demand most likely includes a number of former golfers which isn’t a bad thing but, if so, our conversion rate should be higher.  How do we appeal specifically to former golfers who should be the latent demand “low hanging fruit”?
For our Executive Summary recipients, you can get the rest of the story one of three ways (all can be previewed and purchased at Pellucid's website (www.pellucidcorp.com)):
  1. Subscribe to the Pellucid Publications Membership  for $495/yr.  Annual subscribers get access to all Pellucid publications (Outside the Ropes monthly digital newsletter, annual State of the Industry report portfolio (PowerPoint presentation, PDF commentary report, access to Orlando video of presentation), monthly Geographic Weather Impact Tracking (US, 45 regions, 61 markets), Top 25 US Golf Markets Ranking Scorecard (25+ dimensions and ranking for largest 25 markets) and the National Consumer Franchise Health Scorecard (expanded data and tables underlying the SoI's summary figures)
  2. Subscribe to OtR, 12 monthly issues for $130/yr with a money-back guarantee if you're not satisfied at any time during your subscription.  Subscribers also get access to the historical archive of past issues (50+) via the members-only section of the Pellucid website.
  3. Purchase single issues (including this one) for $14.95 per issue; click here to view available issues by title and select those of interest to purchase and download

©Copyright 2018 Pellucid Corp. All rights reserved. Quotations permitted with prior approval. Material may not be reproduced, in whole or part in any form whatsoever, without prior written consent of Pellucid Corp.