IHRSA - Dec2006-CBI-Computers

Seamless Member Discourse

IT (information technology) provides the means, but ID (information delivery) systems produce the results

By Stephen Wallenfels

If Ronald Reagan was right when he said, "Information is the oxygen of the modern age," then health clubs have enough O2 on hand to colonize the moon and Mars simultaneously. Thanks to advancements in club management software (CMS), we know more about our business, and the members who drive it, than ever before. With two clicks of a mouse, we can generate useful reports based on: membership category, age, gender, marital status, facility usage, exercise preference, employer, ZIP codes, birthdates'even, in some cases, cholesterol levels and percentage of body fat. But that's only one half of the data-proliferation equation; the other half has to do with delivering customized information directly to those specific member groups.

For example: a typical club offers hundreds of programs and services, ranging from hip-hop classes to pro-shop discounts. The operator, naturally, would like to let current and prospective members know about all of these offerings, but how do you cut through the info-clutter and get the right message to the right person at the right time? The answer is to build a technology platform featuring a fully integrated and multilayered information-delivery system (IDS)'and CMS is the place to start.

Club management software
CMS is the net that gathers and organizes all of the critical stats that club owners need to run their businesses successfully. But what many operators may not realize is the fundamental role it plays in supporting the internal and external information-delivery system. "As an industry, delivering targeted information is vitally important," stresses Sean Kirby, the national sales director for ASF International, a Highlands Ranch, Colorado-based billing and software company that offers integrated sales and marketing services. "The club business is about building and maintaining relationships with customers, and effective communication is an essential part of that process."

The platform
With the CMS foundation in place, the next step is to build a technology platform using information-delivery components that both integrate and automate. These include telephone, e-mail, digital audio/visual displays, and online features, such as Websites, registration and booking tools, newsletters, and interactive calendars.

The information-delivery system
' Telephone: "The biggest obstacle clubs face in communicating effectively," observes Andrea Oh, the director of sales and marketing for Critical Motion, "is that members need and expect information, and clubs don't have the time or staff to adequately meet those increasing needs." One way to do so is by using a telephone-messaging system. Critical Motion, headquartered in Toronto, is the exclusive distributor of PhoneTree, an automated phone call and messaging system "that's fully customizable and interfaces with the CMS through a simple file-import procedure," explains Oh. PhoneTree can make up to 120 calls per hour using two phone lines (up to 3,000 with more robust configurations); can leave different messages depending on who answers the phone (resident or answering machine); and can include interactive options, e.g., pushing a button to be connected with the club for more information.

' E-mail: While e-mail is increasingly popular as a fast and low-cost means to communicate with customers, there are challenges and opportunities that can significantly influence its effectiveness. Richard Ekstrom, the president of Cornelius, North Carolina-based Retention Management, which offers an e-mail-based member communication and retention tool, points to recent changes in e-mail restrictions and anti-spam regulations as a growing concern. "It's also important," he stresses, "that clubs have a way of tracking whether or not the e-mail was received, that the content is accurate and appealing, includes links back to the club's Website, and has automated features that interface easily with CMS." Retention Management uses club-usage data from CMS to target members with specific e-mail messages. MyProAudio, by Critical Motion, adds a twist by providing customized audio messages through links embedded in the e-mail.

' Digital audio/visual displays: Personal viewing screens, serving as an entertainment medium on cardio equipment, are becoming the rule rather than the exception. "But many club operators don't appreciate their value as a tool for delivering targeted information to club users," asserts Tom Lapcevic, the president of ClubCom, headquartered in Woodinville, Washington. "When the screens are combined with an integrated network of televisions placed in strategic zones throughout the facility, a club's ability to deliver relevant information to its members is enhanced significantly." ClubCom features thousands of professionally produced ads for club programs and profit centers; Channel Cast (a menu of music and video options for in-club TVs and personal viewing screens); and the automated delivery of customized messages to specific zones at specific times.

' Websites: Club Websites, particularly ones with event calendars and online registration capabilities, are an essential communications resource. Trumba Corporation, based in Seattle, Washington, offers a highly functional calendar, along with a set of active calendar technologies, that allows users to receive information specifically related to their personal interests and needs. "Our fully hosted services include synchronization with personal calendars, such as Outlook or Google, e-mail reminders, and," notes Joanna Pomykala, Trumba's marketing manager, "even text-messaging regarding timely news about club activities and special events."

Online registration and booking tools afford users the convenience of signing up and paying for programs from the comfort of their home or office, while, at the same time, providing a valuable system for delivering targeted information. Kevin Jernigan, the founder and CEO of Xpiron, Inc., an online registration and booking service located in San Francisco, notes the importance of designing an IDS that's "unobtrusive and seamlessly in line with the member experience." The BookNow service by Xpiron features e-mail confirmations of bookings, reminders of upcoming dates, and, for the club operator, valuable report and analysis tools to help build effective e-mail and/or phone campaigns. "Targeting certain member and nonmember populations with information specific to their needs is essential," Jernigan concludes, "as clubs continue to address new member acquisition and retention challenges."

Bringing it together
The fitness industry continues to evolve as it leverages technology to meet the information and communication needs of its customers. Increasingly, operators are incorporating club operating software solutions, such as Conexion, ABC Financial, CSI, and CheckFree, into their businesses. Meanwhile, progressive operators are focusing on integration. They're combining these and other peripheral Website tools, such as MembersFirst, FitnessInsite, and BookingsPlus with relationship management and communication tools like Retention Management, PhoneTree, and ClubCom, into a multilayered technology platform that ultimately delivers the information that their businesses and customers need to survive'and thrive'in a competitive, communication-driven environment.

The Art of Integration
Greg Maurer, the general manager of the 40,000-square-foot Pike Creek Fitness Club in Pike Creek, Delaware, doesn't mince words when it comes to placing a value on information-delivery systems. "It's the central, critical issue in a club'bar none," he says. To drive that message home, he employs a variety of integrated technologies to deliver relevant, targeted, timely information to his own membership.

The tools
"It all begins with the club management software," says Maurer, which, in this case, is Conexion. "It's imperative that CMS be flexible enough to seamlessly integrate with a variety of technology applications." The other applications that round out his technology platform include: Retention Management (for targeted e-mail); Xpiron (for online reservations); PhoneTree (for automated phone calls); 302Interactive (a local Web designer); fitRewards (an online member appreciation/incentive reward program); and, soon to be added, ClubCom (for televised in-house entertainment and communication solutions). Although any of these applications can work as standalone communication tools, together'when combined into a fully integrated and customizable information-delivery system'they're "truly impressive," notes Maurer.

The challenges
Maurer describes his membership population, from a communication perspective, as challenging. "We're a family club, which means we need to deliver information to a very diverse membership population." That challenge is compounded by the pending addition of the $25-million, 128,000-square-foot, state-of-the-art Hockessin Athletic Club, in nearby Hockessin, which will replace the Pike Creek club when construction is completed next spring. The Pike Creek staff is dealing not only with the ongoing operations of an established club with 23 distinct profit centers, but is also looking to transfer as many members as possible to the Hockessin club three miles away. The bottom line: communications must be ongoing and must function on many different levels simultaneously. "The key," Maurer concludes, "is to create an integrated technology platform with automated functionality that reaches out to members and guests in a variety of ways."

The system in action
Once the new Hockessin facility is open, Maurer will be faced with the challenge of spreading the word about the club's numerous programs and services. What if he were to introduce a new family Pilates class? How would he use his communication system to notify members about this new opportunity? Here's his step-by-step action plan:

Identify the potential target market with a Conexion report that isolates family memberships.
Export the report into PhoneTree and create a specific phone message that describes the program, including the fitRewards online component.
Broadcast an announcement, via ClubCom, on the club's 42 plasma TVs and 70 equipment-mounted personal viewing screens.
Based on the Conexion report, send out a targeted e-mail notification with embedded links to the club's Website, using Xpiron as the online registration and scheduling tool, which would also send out automated e-mail reminders to class enrollees.
Generate and distribute an e-newsletter, via Retention Management, with embedded links to the club's Website, to the targeted membership group.
Follow up with a reminder call, using PhoneTree, that includes the option to be connected with the club's front desk for additional information or to sign up for the class.

Stephen Wallenfels is a contributing editor for CBI and can be reached at stevewall@charter.net.