München, 07. August 2013 —
Abolition of the value limit by DGV allows extremely attractive HiO promotions with big prizes but no loss of amateur status
Hole-in-Ones as a customer acquisition tool: EMIRAT AG covers risks of golf promotions
The abolition by the German Golf Association (DGV) of the value limit for amateur status has opened up not only the prospect of valuable prizes for golfers, but also new potential for businesses and sponsors. It means that big winnings or valuable non-cash prizes can now be offered with a HiO promotion, for instance to boost awareness or generate new contacts. That is because participants can now safely accept prizes worth over EUR 750 without risking their amateur status as before. But because big winnings or valuable prizes can pose a threat even to a big budget, EMIRAT AG (www.emirat.de) covers the risk of such a HiO promotion and handles pay-outs in the event of a win.
If implemented properly, golf promotions such as hole-in-ones can become effective marketing campaigns – and not just on the golf course. That’s because they can also be held in car showrooms, hotel lobbies and at countless other venues. Big prizes such as cars, cash winnings or houses have long proven to be a strong emotional attraction at the HiO promotional hole. It was not always straightforward to offer them, however: until the 2012 season, the maximum limit for all prizes that a golfer with amateur status could win was EUR 750 – any higher amount would have put that status in jeopardy.
The DGV has updated the rule (rule §3-2a) and abolished the value limit. This means that amateur players can in future play for unlimited cash or non-cash prizes in a HiO or other golf promotion.
HiO promotions to boost image and customer loyalty
The abolition of the value limit offers considerable potential for golf clubs, sponsors and tournament organisers. But, as Ralph Clemens Martin, CEO of EMIRAT AG, explained, “Marketing activities like this can pose a hidden danger and budget limits are quickly reached instead of bringing useful benefits. Often sponsors don’t achieve the result they hoped for. That makes it enormously important to have a well-designed marketing concept behind it – because the aim of these promotions is of course that the golfer becomes a customer.”
EMIRAT is an experienced specialist insurer for such campaigns, and it enables golf promotions offering a jackpot or other big prizes to be realised with a relatively low budget commitment. The risk management specialist bears the financial risk in the event of a win, and the organiser pays a premium calculated in advance. One of the factors determining the premium is the probability of there being a winner, based on the distance from the hole, the number of contestants and the value of the prize. As well as HiO insurance, EMIRAT also develops other creative marketing concepts for the world of golf.