ClubCorp Serves Its Members with a Rapid Method of Developing Applications Competition for members is fierce amongst private clubs. With average annual membership fees nearing $3000, the elimination by the United States federal government of most individual federal income tax deductions for club dues, and growing competition from luxury hotels, club membership actually declined slightly during the early 1990s. The problem faced by $1.2 billion ClubCorp International Inc.-how to keep its members and attract new ones-was summarized by Jerry Gelinas, ClubCorp;s marketing director-"Our members decide whether to stay with us every month when they pay their dues." The competitive strategy ClubCorp chose to follow was that of product differentiation, setting itself apart with a higher level of service than other hospitality providers. Kathy McDonald, manager of the Ft. Lauderdale, Florida, Tower Club, one of ClubCorp;s 250 dining, athletic, and country clubs, believes that "The main reason people join private clubs is for recognition." To better serve their members, ClubCorp developed a new information system that would track member interests and link that information to reservations, allowing the clubs to offer more personal service based upon recognition of their members. For example, when Tower Club member and investment banker Paul Sallarulo called and made a luncheon reservation for himself and his secretary, Linda Nobilski, the computer system indicated that Nobilski likes flowers and candy. When the pair arrived for lunch, the club had peach-colored roses and chocolate-covered cherries waiting. The new system also carries a digitized photograph of each member, so that the staff can view the pictures of members with reservations and so be able to greet each one personally. The system is used by the: receptionists, food and beverage managers, chefs, and maitre d;s to personalize all service. In addition, when a member from a club travels to another ClubCorp club in a different city, that member;s computer file is transmitted to the other club so that it too can provide this same kind of personalized service. When ClubCorp decided to develop its new system, it needed to create the system as quickly as possible while controlling its cost. The company chose to use a rapid applications development method that took only 15 weeks to complete, as opposed to an estimated one year using more traditional methods. Cost was held to $167,000, partly as a result of the shorter time needed for development. The higher speed and lower cost were achieved by a combination of factors. ClubCorp used an object -oriented development tool and built system through prototyping, Also, ClubCorp went to an outside development consulting group, lBM Consulting Group