Today, as software trends evolve with new programming techniques and faster delivery channels, club owners still need to have reliable, complete and timely information in order to make informed decisions, and to properly assess, decide and act on measures to sustain and/or stabilize their clubs. Here, we’ve talked to a slew of experts on club management software to bring you the newest developments and the most important features available today, making it easier to choose the right software to take your business to the next level!
“There are a number of factors to consider when evaluating club management software, but the criteria varies depending on the size, scope and requirements of your business,” says Jodi Swartz, Chief Marketing Officer for Conexion Club Management Solutions. She advises club owners to look for a solution that is strong enough to provide what is needed to support current club operations, but could also handle future growth. To do this, work with your club management software provider to make the right decisions up front so you won’t have to switch providers when you’ve outgrown the product. Jon Harlan, President of Bio-Logic, which publishes Gym Assistant Software, says it is always important to consider an exit strategy and determine how difficult it would be to get out of the system if you ever decide to switch to a new provider. Keep in mind that the least important features are often the ‘bells and whistles’. “The truth is that 80% of clubs use only 20% of the available applications,” says Christi DeVoe, Director of Product Design for QuanComm. According to DeVoe, the most often used applications include the accounting and billing engine, front desk check-in, POS and series management for personal training.
At first glance, many software providers might seem to provide the same things, but taking the time to do due diligence and learn about the differences before making a decision can be critical to the success of your club. Carole Oat, Sales Manager for Twin Oaks Software, says club owners should consider how good support will be, and should not be afraid to ask about call back times and charges associated with technical support. “Focus on the software provider’s reputation and customer service record,” says Swartz. Don’t be afraid to ask questions. For example, ‘What other satisfied clients does the company have?’, ‘How long have they worked together?’, ‘How are they helping other fitness organizations grow?’ and ‘Do they incorporate feedback from actual clients into product development, or is it developed in a vacuum?’ Kyle Zagrodsky, President and CEO of Go Figure, lists ease of use, available training, support and flexibility as the most important features to look for in club management software today. “Club owners never cease to amaze me with the creative ideas they come up with to manage a club,” he says, “Software that is flexible enough to handle those ideas is a must.”
The Internet: More and more club owners are using new technology to communicate with members via the Internet and email, says Carole Oat, Sales Manager for Twin Oaks Software. For example, every club should allow members to join through their website, and clubs should have the ability to communicate with members automatically via email, keeping them informed about what’s going on at the club. According to Christi DeVoe, Director of Product Design for QuanComm, web portals provide yet another reason for members to keep visiting your club’s website by offering virtual online communities, nutrition, and exercise information. Integrating web portals with club management systems can take it a step further, enabling member self-service functions like reviewing statements, usage history, submitting change requests and processing account payments – which can also reduce staffing needs. DeVoe says hosted systems are also becoming more popular as a way to reduce demands on clubs. Instead of having an IT department in the club, the vendor maintains the software, database and hardware, while the club users access the system via the Internet. According to Larry King, Owner of Shape.Net Software, some web-based systems even allow club owners to access their club’s information from anywhere that has an Internet connection.
Training Day: According to Oat, the key to getting the most out of any software program is to learn how to work all the features, which means all staff members need to be trained how to use it. It also helps if the program is user friendly and easy to learn, but at the end of the day, any software is only as good as it’s users! Zagrodsky agrees, stating, “If your club software is not easy to use, easy to learn and easy to train your employees, or does not have easily accessible support when you need it, you may as well throw it away.”
Ron Poliseno, Director of Client Development for CheckFree, recommends taking a gradual approach to learning a new software program, and recommends that club owners ask their software vendor if their club can grow into the application by paying for the basics first before moving on to the intermediate option and, finally, the advanced. This method of upgrading gives you ample opportunity to become experts with your club management application without paying for the advanced version from the beginning.
Access to Data: The software you choose should allow you to easily pull a variety of reports. Some club owners are even offering customized classes for members based on analysis of reports showing the demographics and visit times of members, says Kathleen Julison, Owner of Red Canyon Systems. It’s also helpful to look at frequency and consistency of visits to determine when members start to fall off in their routines.
According to Zagrodsky, member retention is what club owners are thinking about the most these days, and club management software can play a huge role with keeping members happy. “It contains copious data about your members, their workout patterns and club usage, and now club owners are starting to realize the value of this data and how it can be used to analyze why members quit and how to identify those members before they quit so club owners can do something about it,” he says. Types of information club owners should easily be able to access include: identifying who the biggest spenders are, cost per square foot, revenue and profit in each profit center, attrition rates, billed versus collected ratios, and the club’s returns and expenses.
Some club owners don’t want to hassle with the time and effort it takes to extract information from club management software and choose to outsource this function. “Outsourcing the billing, collecting and database management allows the club owner to have access to the information without having to continually train and rely on their employees,” says Tony Ferraro, President of Electronic Billing & Collecting Services, “An outsourcing company should know what questions to ask the owner to ensure the information requested is extracted properly and is useful.”
Keep it Safe: Poliseno says, “Security of personal and financial data that is related to information privacy laws continues to be a concern.” Indeed, ensuring that member and club data is safe and that all systems and software are PCI compliant remains the number one priority for most organizations. According to Ferraro, the costs involved to ensure data security may ultimately determine if this function should be handled in-house or outsourced, so be sure to look into both options when deciding on software.
“Make sure the provider is also CISP Compliant (Cardholder Information Security Program),” says Oat, “This is extremely important in these days of security breaches and identity theft to protect members’ account information.” If a provider is compliant, it means they have passed a rigorous audit process with VISA to become certified. Go to www.visa.com to see a list of compliant providers.
Back it Up: We all know it, but too often we don’t make it a priority until it’s too late. Don’t wait to learn this lesson the hard way, if you don’t already have one, implement a back up plan today! Harlan stresses this, saying that installed systems require automated online data backup.
Personal Training: Every club that hopes to run a successful personal training program should look into investing in a top-notch software program. At minimum, it should incorporate booking and scheduling capabilities that allow members to purchase packages and to book and change appointments online. To take this to the next level, look into wireless and mobile integration, which can extend member outreach directly to cell phones or other handheld devices for anything from appointment reminders to renewal notices to birthday greetings.
Rules, Rules, Rules: “Rules-based systems are configured to support and enforce club rules in areas including new member dues and discounts, cancellation and leave of absence policies, and renewal policies, just to name a few,” says DeVoe. A system with rules built in enables virtually any staff member to process member freezes, cancellations, renewals and enrollments. This frees up club owners, who can be secure in the knowledge that club policies cannot be overridden without appropriate management approval.
Automation: “A good system can allow certain events to be scheduled and occur automatically when the scheduled time arrives,” says DeVoe, These can include scheduling cancellations, member freezes, restores from freeze, and renewals. Additionally, processes like dues posting, member billing, statement generation, etc. should be automated so that user intervention is not required and user mistakes cannot occur. Freeing up employees from manual tasks will also give them more time to work on customer service, says Kelly Sweeney, Vice President of Sales & Marketing for ABC Financial.
Go Green: Oat says the ability to go paperless is also a popular new trend that can save clubs money and time. Everyday items like membership contracts, change forms and freeze forms no longer need to be printed out, but are just a mouse click away thanks to new ways to capture information, including electronic signature capture and license scanners.
Stay Alert: Alert notification systems allow club management, staff and members to be notified automatically about important information pertaining to the club, says Martin Izzi, CEO of Northstar Technologies. Real-time operational business intelligence that alerts club management of risk or opportunity with respect to the business as it is happening or before it happens can be a real life-saver!
The Bottom Line: It’s important to look for an EFT process with low billing rates, says King. So what constitutes as ‘low’? While fees vary from processor to processor, you can expect to pay a small per-transaction fee for each credit card or ACH authorization, as well as a percentage of credit card settlements. Additional fees may be charged for ACH returns, credit card chargebacks, etc. Fees can also depend on the volume of business and the credit score of the club owner, and are only part of the picture. Other considerations include customer support and reporting tools, so beware of companies that lock you into rates that cannot be changed. Instead, look for software companies that give you some flexibility when choosing your merchant process. “When it comes to billing, you’ve got to be able to get it right. The industry average is 2-5% returns when managed properly,” says Oat.
When it comes to the software, club owners are typically charged a flat fee per month, and prices range from around $85 on the low end to $700, but can go substantially higher for highly customized systems. Some considerations that influence price include whether the software is outsourced or purchased, how it is licensed, the level of sophistication and how customized it is to your club’s needs.
Sweeney points out that club management software can also impact a club’s bottom line on the positive side by lowering costs and increasing revenue. “Often, software can reduce the time required to perform certain tasks, thereby reducing payroll,”
Size Matters: “The system you choose should match the scale and degree of complexity for your club,” says Harlan, “A small, independent club would not be happy with a system that is geared towards large facilities or multi-club operations, but a small club with a sophisticated owner will greatly benefit from the marketing and analysis functions found in a more comprehensive product.”
The Service Side: According to Sweeney, “Club management software should improve the customer experience by allowing members to have real-time access to accurate information concerning their membership and billing.” Izzi agrees, adding that having an online capability inherent in the software that allows you to be able to continue ‘touching’ the member even after they have left the club is one of the most important things club owners can look for.
When to Update: Exactly how often club owners should consider updating their club management software really depends on the specific needs of the facility, but the effectiveness of all the tools used should constantly be evaluated, and most companies agree that you shouldn’t go beyond three years without giving it a serious look. According to Oat, when you are ready to evaluate your program you should take a look at your statements, reports and the company you use. Are they still prominent in the industry? Is the support living up to expectations? Has the program been updated? Is training available when there’s staff turnover? Are you hearing about new innovations and releases? Zagrodsky says, “If it’s working for you, keep using it. If it’s not, take a look at what else is out there. You and your staff should feel comfortable using your club’s software and you should buy from a company that delivers great support and service when you need it at a price you can afford.” DeVoe adds that club owners should always re-evaluate their club’s software when a significant event occurs, like opening a new location or profit center, because your current club management software may not be suitable as your business grows and evolves.
It may be best to view software as the very foundation of your business, so look for a solution that can meet the needs of your entire organization. From billing to retention, package and inventory management to health and risk assessment, from online booking to other web-based solutions, make sure it has the ability to maximize the member experience… within the four walls of your club… and beyond!
