Computer systems and software have become a critical investment for most private clubs, both for operating efficiency and responding to member needs for technology-based services. An increasing number of clubs are also using Web-based products to deliver services to their members. As clubs consider upgrades or replacements of their systems, they sometimes face difficult decisions that might benefit from strategic technology planning to evaluate and prioritize needs and develop a long-term strategy for addressing them, working with senior staff and the club’s governance.
Club Technology: Challenges & Issues
The NCA Foundation, in a joint venture with the Hospitality and Financial Technology Professionals (HFTP), recently conducted a focus group with club controllers and technology specialists to assess technology needs and trends affecting private clubs.
Participants noted that a key challenge continues to be getting older members to use the existing technology available to them, for functions such as accessing the Web site, making dining or tee time reservations, or paying their monthly statement online. Much like other small businesses, many clubs would like to improve efficiency by moving more functions online, yet some expressed concern that members either did not have access to a computer or were unsure how to use one. Despite that challenge, some clubs are seeing significant increases in their Web site usage, as more members look for information and assistance online. Given the downturn in the economy, more clubs are moving toward online newsletters and dues statements, to avoid postage and printing costs. At some clubs nearly half of the members are now paying online. Some also are beginning to use wireless point of sale systems to improve operating efficiency.
Encouraging effective use of current technology isn’t just a challenge for club members—it also applies to a club’s professional staff. However, staff training is seen as an issue for some clubs, with employees reluctant to spend the time to learn software and systems they should be utilizing on the job.
Many clubs identify integration of club database structures as an industry-wide problem. Even clubs that adopted integrated systems in the past have found, as new needs or services arise, adding third-party technology often does not integrate with their existing database. The more clubs expand their services and offer programs that require technology support, the more challenging this can become, as multiple systems are maintained to support member needs.
Clubs could make more effective use of their available business intelligence to support analysis and decision making—a task that is increasingly important in challenging economic times. Many clubs allow members to access their personal records online and encourage them to update information as needed. Updates entered by the member trigger an e-mail to club staff to update the permanent record in the database. Many noted that younger members are more likely to take advantage of this function online; older members tend to call the club’s staff to make the changes. Seasonal clubs whose members don’t live nearby on a year-round basis often face challenges in keeping up with members who fail to notify them of where they are living at a given point in time.
Support for technology systems and software varies considerably, with some handling the functions with in-house staff, while others prefer to use the services of outside consultants. Web site support is generally a function of in-house staff, though generally not a full-time employee, due to cost constraints.
Technology support in private clubs generally falls to the administrative and accounting staff and most do not have full-time staff dedicated to IT. Some have opted to outsource the maintenance support for their IT systems and others have utilized shared staff, whereby clubs with similar IT support needs that are close enough geographically can utilize a common employee for this purpose. Some clubs have also been able to use interns on a part-time basis, to supplement their full-time staff for relatively little cost. The student chapters of HFTP may be a potential source for interns to consider for the future. Web site administration is commanding an increasing amount of staff time in private clubs, as clubs do more with online delivery of communications and services.
Future Directions for Club Technology
The element of personalized service, which is expected in a private club, leads many to foresee systems and software that will make it easier for clubs to tailor their member services and how they are delivered. As some focus group participants noted, when members walk into the club, all the staff should know they are there and should be prepared to respond to their personal preferences. Personalized service also involves member recognition for special events (birthdays, anniversaries, etc.) to increase member satisfaction with the club. Some clubs are finding it challenging to invest in the capital needed to set up systems to support a highly personalized level of service and difficult to find the right staff to maintain them.
Further investment in technology training is essential for many clubs, to make better use of technology and to support development of systems. Though younger generations tend to be more technology savvy in general, more training on technology skills for managers is viewed as a key factor for the future. Some of the technology that clubs may need in the future already exists within other segments of the business community and the hospitality industry, such as hotels, but will likely need to be adapted for the unique needs of private clubs. Some see the future leading to more subscription-based products, though others feel this may not be practical until the cost becomes more affordable and clubs have more widespread access to secure and reliable internet connectivity.
Many feel that use of social networks will grow and expand and will become common within private clubs—possibly in the near future. Even older generations are using networks such as Facebook or LinkedIn to connect with one another. Some clubs indicated members have already established social networks on their own, outside of the club’s systems, raising issues regarding what limitations can be imposed by the club and the pros and cons that would present.
Systems for customer relationship management (CRM) are likely to play an increasing role in creating value and services for club members, helping clubs personalize and tailor their offerings to the unique preferences and interests of each member. This includes preferences for food selection and preparation, wine choices, and interest in club programs or activities, among many others. However, the key is to use the information available in an effective way. Some clubs may not fully utilize data they already have—either because staff is unaware of what is available or they are uncertain what to do with it. This would suggest more internal communication and training programs would be useful. Given the emphasis on personalized service in a club setting, CRM systems offer the potential for enhancing the value of membership if used effectively and efficiently.
Business centers in some clubs are seeing a decline in member use. This may be a result of the personal technology devices that are so prevalent today that reduce a member’s need to use the computer equipment in a business center—particularly as the shift continues more and more toward a paperless environment. Offering notary services may be a new way for clubs to create value through a business center or business services, while still being careful to avoid the appearance of business being conducted in the club.
As clubs consider new system designs and development for the future, careful consideration needs to be given to the ways in which they match the club’s needs with the hardware and software available, seeking input from the staff who would be directly involved in their use. Some perceive that clubs are too likely to purchase systems that offer features that sound attractive, but don’t always work well for the application in which they will be used. Customization of the systems to adapt them to the unique needs of a club can be difficult and costly, though the newer systems seem to be more flexible and efficient. A possible solution to this problem might be the development of standardized guidelines for evaluating new products that would seek feedback from the perspectives of the IT staff, the club’s senior management (including the general manager and department heads) and the board.
The availability of resources to support development of new technologies is certainly an issue for the club industry. New developments often evolve from a competitive situation, in which better business intelligence and more advanced technologies are needed by management in order to have a competitive advantage and sustain the business. Private clubs tend to operate in a different type of environment, which has meant the competitive drive has not been as much of a significant factor in the past, other than perhaps those clubs which are part of real estate developments.
Though resources for investing in technology development are limited in the current economy, most clubs see value in starting now to consider what they might need to do in the future. Clubs that begin to develop a game plan will be prepared when the recession ends and more resources are available. Challenging economic times also spur businesses to become more efficient through the use of technology solutions to reduce staff and operating costs.
The focus group raised a wide range of issues to explore through additional research that will likely involve club managers, club officers and directors and industry vendors, as well as further dialogue with club IT specialists. It is anticipated that the overall findings of the technology study will be published in a report to be released later in 2009 or early 2010.
If you are interested in participating in the joint NCAF-HFTP project, “The Impact of Club Technology on Shaping the Future Club Experience,” please contact Susanne Wegrzyn at 800-625-6221.
Technology Challenges
Focus Group Finds Common Issues
Club controllers and technology specialists met recently to discuss their concerns about the state of club computer systems and software, Web-based products and technology-based services for private club members and staff. Focus group participants found a number of areas in which they agreed were primary challenges. They include:
- Getting members to use existing technology (especially older members)
- Staff training on software and systems
- Integration of database systems and third party technology
- Effective use of business intelligence
- Staff support for technology systems and software
- High cost of systems to provide personalized service and subscription-based products
- Social networking limitations and parameters for a private club membership
- Customer relationship management (CRM) utilization of information
- Club business center purpose/value given the rise of personal technology devices
- Customization of systems and software to meet need of the club, its users and standards for evaluation of the technology
- Resources for investing in technology development
Technology in Clubs
As technology and members’ expectations have evolved, so too has the need for strategic technology planning. Keeping pace with advancing technology, the latest versions of available software and the latest trends can be a difficult feat for even the most technologically savvy. As for club leaders, it often poses a number of new challenges not previously considered. The following are some of the top technology trends to watch moving forward with planning at any club.
Technology Trends for Clubs to Watch
- Hiring full-time IT professional staff
- Business intelligence software
- Improved network and physical security
- Wireless connectivity
- Advanced Web sites
- Point of sale technology in the dining room
- Emergency planning
- Automated member response and survey systems
- Social networks
- Improved system/software integration via hosted environments
- Systems and software to provide member personalization
- Equipment that’s time-efficient, step-saving, green, energy-efficient
- Networking and technology integration to build revenue and control costs
- Tableside devices that display virtual menus with nutritional metrics
Robert Grimes, chairman of Accuvia, a consulting firm for the hospitality, foodservice and retail industries, notes that “The growth opportunities within [the hospitality] industry for the foreseeable future will be those tied to technologies that can either work with existing POS and back-office systems, those that can run on standard PCs for a lower investment cost, and those leveraging Web-based applications.” Another consideration for buying technology in this economy, says Grimes, is whether the technology can be used for multiple applications without the need for many deployment plans, serial onsite configuration sessions, frequent rounds of employee training, or substantially higher unit-level maintenance requirements. He also indicated that some of the current technology trends involve RFID (radio frequency identification), handheld terminals, customer loyalty programming/marketing, particularly through text messaging, and social networking. Digital menu boards and signage are also popular. Flat screens are found in more locations, as they have become more affordable. One good thing about social networking platform Facebook, according to Grimes, is that it has a number of tools available, including e-mail, surveys and other communication methods. More and more businesses are setting up pages so individuals can become “fans,” and that’s one way to aggregate a core market. Grimes has also witnessed a number of organizations offering training sessions on Web sites like YouTube.