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THE MAGAZINE OF THE NATIONAL CLUB ASSOCIATION

F A L L 2 0 1 1 | W W W . N A T I O N A L C L U B . O R G

ClubResource NeedsTechnology

WHAT CLUBS WANT TO KNOW

ClubResource NeedsTechnology

WHAT CLUBS WANT TO KNOW

8 CLUB DIRECTOR FALL 2011

With the rapid advance-ment of technology,many private clubsare challenged to keeppace—let alone get

ahead of the curve. As an increasingnumber of private clubs consider theirtechnology needs, taking into accounteverything from computer systems andsoftware upgrades to technology-basedmember services, it becomes obvious thatthe technological landscape that privateclubs must navigate is more complexthan ever before.

The Task ForceIn order to take a closer look at tech-

nology use in the private club industrytoday, the National Club Association(NCA) joined forces with HospitalityFinancial and Technology Professionals(HFTP) to create a task force to assess thesituation. The NCA-HFTP TechnologyTask Force, comprised of club and hospi-tality industry professionals includingclub technology consultants, accountingand finance executives and club man-agers, has been conducting research tohelp define the current state of club tech-nology use in the club industry. This datawill be used to help develop informationand strategic planning guidelines for edu-cation and advancement in the privateclub technology field and to determinefuture technology trends and needs in theclub industry.

In order to understand how clubs usetechnology, the NCA-HFTP TechnologyTask Force and the HFTP Research Insti-

tute worked together to develop a survey,distributed via e-mail, to the membershipof both associations in April of 2011. Ofthe approximately 1,550 members whoreceived the survey, 217 members fromHFTP and NCA responded.

Technology Challenges:Where Clubs Want Help

#1 NEED: GUIDANCE ON USE OFELECTRONIC COMMUNICATIONS

A key finding that emerged from thesurvey was a demonstrated need forinformation on electronic communica-tions. All but the largest clubs (800 ormore members) identified electronic com-munications, such as club websites, e-mail, social networking and text messag-ing (listed in order of identified impor-tance), as critical areas of informationneed. The largest clubs, along with cityand athletic clubs, ranked club softwareas the most important area about whichthey needed information, but electroniccommunications came in a close second.

Other areas of information needs, inrank order of priority, were software,overall IT management and systemshardware.

Not surprisingly, given the nature oftheir club culture, city clubs ranked socialnetworking much higher in importancethan did other club types, putting it at thetop of their list of electronic communica-tions issues. Social media is fast becomingone of the most popular areas of commu-nication expansion. In the past severalyears, consumers across the board have

Top Private ClubTechnology Challenges1. Electronic Communications

2. Software

3. IT Management

4. Hardware

E-CommunicationsTop Areas of Information Need

1. Club Websites

2. Email

3. Social Networking

4. Text Messaging

BY TANYA V ENEGAS ,

J ESS I CA HOWTON &

JACK I E ABRAMS

FALL 2011 CLUB DIRECTOR 9

become increasingly interested in mobileconnectivity—integrating and syncingtheir personal communications from allof their various devices—and this trendisn’t showing any signs of slowing. Assmart phones and tablets continue to pro-liferate in the marketplace, members willbecome more accustomed to constantlyhaving information at their fingertips, nomatter where they are or what they’redoing. Of course, many will likely expecttheir club communications to be accessi-ble 24/7 as well.

CLUB WEBSITES: FREQUENCY & USEWebsite use has been a growing trend

within the club industry and the surveyindicated that the majority of clubsresponding (98%) currently have a web-site. What was surprising is that there arestill some clubs (2%) that don’t have awebsite at all. Some clubs were earlyadopters of Internet technology, andamong club websites, 62 percent havebeen active for 6 or more years. Twenty-nine percent of clubs have had their cur-rent websites for 3 to 5 years, eight per-cent for 1 to 3 years, and one percent forless than 1 year.

Not only have clubs embraced the cre-ation of their websites, they’re doing agood job of keeping them updated aswell. Nearly half of the respondents indi-cated that their club’s website underwenta complete redesign less than 2 years ago.Forty-four percent redesigned their web-site between 2 and 5 years ago with theremaining 7.3 percent having undergonea website redesign more than 6 years ago.

There’s more to website upkeep

25 to 50 percent of club membersutilize their club’s website.

How Club Members Utilize Club WebsitesClub Calendar — 91%

Member Statement — 75%

Member Roster — 49%

Confirm/Search for Information — 48%

Tee Times — 39%

Event Reservations — 37%

Online Payment — 24%

A La Carte Dining Reservations — 18%

Other — 8%

Note: Bar graphs reflect instances where clubs were able to select multiple responses.

Website FunctionalityWhat Clubs Want to Add Most

Online Bill Payment — 66.4%

A La Carte Dining Reservations — 56.0%

Special Event Reservations — 50.0%

Member Statements — 37.5%

Tennis Court Reservations — 27.6%

Room Reservations — 25.0%

Tee Times — 19.8%

Sports/Athletic Lesson Reservations — 19.0%

Personal Training Reservations — 17.2%

Forums for Members, Hunting/Fishing/Sportsman/Golf/Art/Wine, etc. — 12.5%

Room Reservations — 12.5%

Services for Mobile Devices — 12.5%

Spa Reservations — 11.2%

How Long has it been Since ClubsRedesigned their Websites?

Less than1 year6.67%

1 year42.00%

3 yearsor more33.99%

2 years17.33%

How Often Do ClubsUpdate their Websites?

Daily36.88%

Weekly44.38%

Other5.00%

Monthly13.75%

10 CLUB DIRECTOR FALL 2011

than an occasional redesign. Participat-ing clubs were also asked how ofteninformation on their website is updatedand who maintains the content on theclub website. Forty-four percent saidthey update their website on a weeklybasis and 37 percent update their sitesdaily. A smaller percentage of clubs(14%) only update their sites monthly.Regarding those responsible for web-

site updates, the most common responsefrom clubs was a full-time staff adminis-trator (37% of respondents). Almost ascommon, 30% of the respondents indi-cated that website maintenance was han-dled by non-IT club staff. Eighteen per-cent of respondents have a part-time staffadministrator who maintains the web-site, and 15 percent indicated that thetask was handled by others in the club,including communications staff, otherdepartment managers, directors of mar-keting/membership, general managers,or even members.When clubs don’t have a Director of

Communications on staff or other staff tomanage the website and digital communi-cations, outsourcing may be a viableoption. Twenty-eight percent of U.S.businesses are now outsourcing many oftheir web communications according tothe 2011 Social Media MarketingIndustry Report—almost double the per-centage of those outsourcing last year.The three areas most likely to be out-sourced were design and development,content creation and analytics.Clubs were asked to indicate how they

manage content on their website andwhat reports they utilize when analyzing

club website statistics and metrics. Thepercentage of clubs utilizing a web siteprovider to manage their content andthose who don’t purchase content man-agement from an outside source wasroughly the same. The majority of clubsanalyze their website use by monitoringoverall traffic (72 percent), pages mostvisited (71 percent) and levels of e-mail—sent, received and read (65 percent).Member use of club websites was pre-

dominantly for checking the club calendar(91%), accessing their statement (75%) orthe member roster (49%), or searching forclub-related information (48%).In addition, clubs also have on-site

computers available to provide memberswith Internet access (83%), and 75 per-cent of clubs have a formal business cen-ter for member use.

OTHER SIGNIFICANT IT CONCERNS:KEEPING CLUBS RUNNINGAs noted earlier, an interest in infor-

mation on club software ranked secondamong clubs responding to the survey.Specific areas of interest for informationon software included, in rank order, clubmanagement software programs, humanresource/payroll/timekeeping software,server operating systems, purchasing andinventory software, and grounds andfacilities maintenance programs. Withregard to IT management, clubs felt thatthey needed more information onInternet policies and procedures, as wellas on IT planning, hardware mainte-nance, and IT training and staffing.Hardware was also an area where

clubs indicated the desire for additional

Who Maintains the Content on the Club Website?Full-Time Staff Administrator — 37.04%

Non-IT Club Staff — 30.25%

Part-Time Staff Administrator — 17.90%

Other — 14.81%

SoftwareTop Areas of Information Need

1. Identifying Appropriate Software2. Evaluating Software3. Learning/Supporting

New Software

4. Software Licensing Issues

HardwareTop Areas of Information Need

1. Firewall/Internet Access2. Wireless Technology3. Network Infrastructure4. Servers5. POS Hardware6. Mobile Devices7. Desktop Hardware8. IP Telephony

IT ManagementTop Areas of Information Need

1. Internet Policies and Procedures2. IT Planning3. Hardware Maintenance4. IT Training5. IT Staffing

53 percent of clubs reported that they expect to spend the sameportion of their operating budget on technology in 2011 as in 2010.

FALL 2011 CLUB DIRECTOR 11

SOCIAL NETWORKING IN AMERICA TODAYThe number of people using social networking sites since 2008 has nearly doubled and the average age of users has also increased. Of

American adults surveyed, 79 percent indicated that they regularly use the Internet, and of those, 59 percent reported that they use at least

one social networking site. The study also shows that the average age of those who use social networking sites has increased to 38 (up from

33 in 2008), and more than half of all users of social networking sites are now over the age of 35.

The Pew report shows that the majority of people use Facebook (92%), though LinkedIn (18%) and Twitter (13%) have also gained in popu-

larity. Despite the overall reports of social networking site use, people are far more likely to actively engage with Facebook (52% of users) and

Twitter (33% of users) every day than are those who use LinkedIn (6%). This is true for private clubs as well. Sixty-seven percent of clubs

using social media are using Facebook, as opposed to Twitter (32%), LinkedIn (25%) or other social media sites (25%) as reported by VCT

Corporation’s 2011 Club Communications Survey.

Source: June 2011 Pew study, Social Networking Sites and Our Lives.

resources, and survey respondents identi-fied a need for information specificallypertaining to firewalls and Internetaccess, wireless technology, networkinfrastructure, servers, POS hardware,mobile devices, desktop hardware and IPtelephony (listed according to order ofinterest indicated by respondents).When clubs were asked to indicate the

single biggest IT challenge they face attheir club, answers covered a broad rangeof topics. The most cited challenges werea lack of technology funding (for bothsystems and staff), difficulty in evaluatingand selecting appropriate software, andthe challenges of new software implemen-tation and training.

Technology SpendingMany businesses, including clubs, are

challenged by the costs to implement andmaintain an up-to-date IT system. Clubsneed to provide funding for everythingfrom hardware and systems upgradesand replacements to new software and ITsupport. The survey took an in-depthlook at how clubs have structured theirIT systems, how they are spending theirIT budget and what they intend to spendin the year to come.

IT MANAGEMENTOftentimes, it’s very expensive to have

a fully trained, in-house IT staff, espe-cially when clubs may not need theirexpertise every day. Accordingly, mostclubs (68%) outsource their IT work bycontracting with outside tech supportcompanies. Aside from outsourced assis-

tance, the use of dedicated on-site ITprofessionals is minimal: only 20 percentof clubs employ one or more full-time ITprofessionals and five percent of clubsemploy part-time IT staff. The remaining25 percent of respondents reported thatanother employee, such as the controlleror clubhouse manager, has responsibilityfor the club’s IT needs in addition totheir other job functions.Club IT personnel, regardless of their

skill level, are in charge of overseeing alarge group of personal computers,including point of sale stations. Clubsmost commonly reported that they had16–25 computers on site (35%). Clubswith 26–50 computers were slightly lesscommon (25%), followed by those hav-ing 15 or fewer (21%), and finally, bythose having 51 or more (19%).

BUDGETING TECHNOLOGYEven though the economy is still

struggling, technology is advancing at anastounding rate, and the survey soughtto determine whether club technologyspending would increase accordingly. Aslight majority of clubs (53%) reportedthat they expect to spend the same por-tion of their operating budget on tech-nology in 2011 as they did in 2010.However, other clubs are forging aheadwith plans to expand IT spending.Almost 39 percent of respondents planto spend more of their operating budgeton IT needs this year, while only eightpercent plan to decrease IT spendingfor operations.For capital budgeting the responses

were even more positive, with 42

Biggest Private ClubIT Challenges

� Finding efficient, timely and costeffective IT support and maintence

� Lack of dedicated IT staff

� Keeping up with new technology

� Integrating different programs,technology and tools within onecomprehensive system

12 CLUB DIRECTOR FALL 2011

TECHNOLOGY USE BY AFFLUENT CONSUMERSAffluent consumers are becoming increasingly intertwined with technology, and the Internet has been fully integrated into their daily lives.

A 2011study of affluents and digital media reported that affluent consumers were highly receptive to digital communications. Seventy-nine

percent of affluents surveyed, including 70 percent of those ages 65 and over (one of the largest demographic segments of club members),

lead lives that were integrally intertwined with technology.

Though affluents are generally hardest to reach in terms of communications, since they watch less TV and listen to less radio than average

consumers, they are surprisingly the easiest to reach in digital media. Affluents are the heaviest users of digital media, spending an average

of 26 hours a week online, compared to the general population, which spends an average of 22 hours on the Internet.

Source: 2011 Study of Affluents and Digital Media, IAB and Ipsos Mendelsohn.

percent of the respondents planning toincrease their technology purchases in2011. Interestingly, many of the smallestclubs intend to increase IT spending inboth their operating and capital budgets,perhaps due to the fact that spendinglevels had been reduced in the past andthey anticipated catching up this year.Improving technological efficiency canalso help lessen the burdens on a smallstaff and tangibly increase productivity.

TECHNOLOGY INVESTMENTSWhen clubs do plan to increase spend-

ing, where do they invest the money? Asnew technology trends are widely inte-grated into business systems, clubs arecarefully selecting which areas to allocateincreased levels of funding. Many clubsknow that in order to maintain a com-plex IT system, they need to have knowl-edgeable, well-trained staff in place tomanage it. Of those clubs that plannedhigher IT spending in their operatingbudgets, more than 90 percent said theywould spend the newly allocated fundson IT staffing, training and consulting.Other top areas of expenditure were clubwebsites, club management software,new or updated software applicationsand club and member networks.

For those clubs that expect increasedIT spending in their capital budgets, 70percent foresee the funds being allocatedto IT infrastructure improvements(cabling, desktops, servers, etc.). Othertop items on the capital budget agendawere wireless technology, club and mem-ber networks, and new or updated appli-cations and club management software.

IT StaffingWe outsource our IT service to a technology support company — 67.6%

IT is the partial responsibility of an employee at the club — 25.3%

We employ one or more full-time IT professionals — 20.0%

We employ one part-time IT professional — 5.3%

Software Most Used by Private ClubsIrrigation Software — 87.9%

Payroll Software — 79.9%

Point of Sale — 78.3%

Accounting/Back Office Software — 78.0%

Time Management Software — 73.0%

Security Cameras — 65.9%

Tee Times/Tennis Court Reservations Software — 62.0%

Catering/Sales Software — 61.4%

Human Resources Software — 56.8%

Energy Management Systems — 53.7%

Spa Management Software — 46.9%

Dining/Event Reservations Software — 45.2%

Mobile Applications — 44.0%

90+ percent of clubs planning higherIT spending in their operating budgetswill spend allocated funds on IT staffing,training and consulting.

FALL 2011 CLUB DIRECTOR 13

THE TECHNOLOGY LIFECYCLERapid technological advancement,

combined with planned technologicalobsolescence, ensures one thing: technolo-gy systems do not last forever. Clubs wereasked to list which technologies they cur-rently use and whether they have plans toupgrade or replace any elements of theirtechnological infrastructure. Interestinglyenough, most clubs did not have plans toupgrade/replace much of their technology.

Irrigation software was the most wide-ly used technology cited in the survey(88% of respondents) and most clubshave no current plans to upgrade orreplace it in the near future (possiblybecause they have done so already). Themajority of respondents also cited use ofpayroll software (80%) point of sale sys-tems and accounting/back office software(78% use both) and tee time/tennis reser-vation software (used by 62%). Areasbeing considered most frequently forupgrades were dining/event reservationssoftware and mobile applications (both19%). Spa management software, thoughused by slightly less than half of the clubsresponding, was most likely to be addedor replaced in the near future.

SYSTEM SECURITYTechnology is a valuable investment in

and of itself, but the member data thatclubs keep on file is often just as precious.Club networks are becoming increasinglypopular as targets of cybercrime, and net-work security is fast becoming a vital areafor technology investment across manydifferent industries. Clubs were askedwhat, if any security measures they take to

protect their networks, as well as whatmeasure they plan to implement in thenear future. Survey results showed thatthough almost all clubs protected them-selves from major disasters, such as systemfailures and data loss, clubs must also keeptheir antivirus software up to date toensure that they are not vulnerable to newthreats. Almost all clubs use antivirus soft-ware of some kind (95%), though onlyfive percent of clubs surveyed had plans toupgrade this software in the near future.Most clubs (93%) also have firewalls inplace to help prevent security breaches.

Next Steps for theTechnology Task Force

The information gathered in this sur-vey will help guide the NCA-HFTPTechnology Task Force in prioritizing itsobjectives and identifying the informa-tion most needed by club industry pro-fessionals. The Task Force will continueto research the technology needs of andconduct focus groups to identify addi-tional resources for the private club com-munity. Club leaders will also soon beable to access related educational materi-als and articles on the NCA and HFTPwebsites. For more information, contacttask force chairman David Colclough,CCM, Assistant GM, John’s IslandClub at 772-231-8510 or colclough@johnsislandclub.org. �

Tanya Venegas, is executive director of the HFTPResearch Institute; Jessica Howton is researchassistant, HFTP Research Institute; and JackieAbrams is NCA’s communications manager.

Where Clubs areSpending More

� Application Software

� Club and Member Networks

� Club Website

� Club Management Software

� IT Infrastructure (cabling,desktops, servers)

� IT Staffing

� IT Training

� IT Consulting

� Wireless Technology

Club IT Spending in 2011 vs. 2010Operating Budget

Less ITSpending8.24%

More ITSpending38.82%

Same ITSpending52.94%

Club IT Spending in 2011 vs. 2010Capital Budget

Less ITSpending21.43%

More ITSpending41.67%

Same ITSpending36.90%