GolfRz boosts efficiency, profitability, and member experience for private clubs and resorts.
One of eight companies to emerge among Iowa Startup Accelerator’s latest round of graduates in November 2015, the goal of Des Moines-based GolfRz is to make it easier for private golf clubs to generate revenue by bolstering engagement among members and amenities.
GolfRz CEO Dustin Hemesath said he and cofounder Ryan Knutson have propelled the company based on an idea that – in the absence a mobile-marketing strategy – an app alone does little to ensure success on the business end of a course.
According to Hemesath, only around four percent of more than 7,000 private clubs and resorts – with a total U.S. market opportunity of nearly $99 million – have bought into a mobile app. GolfRz, he said, plans to capture 25 percent of that overall market within the next four years.
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In addition to driving attendance, engagement and loyalty, he emphasizes the use of push notifications as one of GolfRz’s biggest selling points to private clubs, to leverage the power of mobile marketing to reach the estimated 20 million golfers who rely on smartphone technology.
How GolfRz works
The GolfRz app empowers members to book tee times, invite others to join a round of golf, integrate handicaps, place orders for food and beverages to arrive at specific times, register for events, and keep score. In addition to sending direct messages to members with regards to upcoming events, cancelations or other alerts, the app can be used to promote leagues, demo days, dinners, weddings, pro-shop merchandise and other happenings.
GolfRz also manages a loyalty and rewards system via the app and on behalf of private clubs, alongside an event and tournament wizard that Hemesath said the company plans to integrate this year. The app also allows members to provide guests with limited access to some features, and automatically pushes out reminders for registered events.
In short, the app is a caddy of sorts for information. Future versions could include features related to valet parking services or tennis reservations, to name a few. Golfers, according to Hemesath, last year spent 86 percent more time in mobile apps than on the web.
“It’s imperative to understand what the club and its members are looking for and back that up into a mobile marketing strategy,” Hemesath said. “For instance, we are the first to integrate food and beverage ordering as part of this new marketing channel. Members expect the best and are willing to pay for it. Our intention is to reflect the mission of each club, which is traditionally focused on providing world-class experiences.”
From consumer app to B2B niche
In September 2014, Hemesath and Knutson began pursuing the startup’s development on a full-time basis, at the same time moving away from a “full-consumer” model that was centered more on gamification, and toward its current business-to-business approach.
The business partners have since called on hundreds of clubs, and conducted thousands of golfer interviews, while working to carve out their niche.
“Just because you have an app doesn’t mean you will succeed,” Hemesath said. “With the addition of a mobile strategy, you increase opportunity for proven success as it creates a differentiator for the club through a new marketing channel. The goal is to get more people to the club and get them engaged, get them activated. Clubs make more money when members are involved and staying active both on and off the course.”
Since they started GolfRz has developed custom-branded apps for clients including Ames Golf & Country Club in Story County and Geneva Golf & Country Club in Muscatine. Now they are gauging how markets from the Midwest to the Northeast and Florida will respond to both its product and pricing structure.
The dedicated app of each Iowa club is available for any user to download for free, via the Apple or Google Play stores, until GolfRz goes live in April. Then it will begin restricting access to only members of respective clubs.
Ready to grow
GolfRz, which is in the middle a $250,000 round of seed funding, is currently focused on nurturing existing business relationships, onboarding new clients, developing a referral program, and supporting the growth of its team.
“We’ve seen some early promise and traction in the markets we’ve approached,” Hemesath said. “Now we are looking to expand. After gaining good grasp on private club side, we will figure out how to approach public courses representing 13,000 locations across the United States.”
Hemesath sees his job as finding the ideal product market fit.
“Not every idea makes it to market,” said Hemesath. “Knowing when to pivot; it’s an entrepreneur’s responsibility to figure that out.”
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Todd Razor is a Des Moines-based writer and multimedia storyteller who covers technology and innovation in the real estate, construction and manufacturing industries.
