The Evolution of Private Golf Course Technology: A Conversation with Robb Smyth of Cobalt Software
The Evolution of Golf Course Technology: A Conversation with Robb Smyth of Cobalt Software
In a recent episode of the Tech Caddie podcast, host Mike Hendrix sat down with Robb Smyth, a seasoned golf technology expert and Senior Leader at Cobalt Software, to discuss the evolution of golf course technology. Smyth brings a unique perspective shaped by his background with family-owned businesses, major corporate acquisitions, and his current role in a company poised to innovate within the private club industry.
A Legacy in Golf Technology
Robb Smyth’s journey in the golf industry began with his family's company, Smyth Systems, founded by his grandfather in 1949. Initially focused on the retail sector, Smyth Systems eventually entered the golf industry through a personal relationship with Brookside Country Club in Canton, Ohio. The golf professional at Brookside, Jim Logue, needed a solution to better manage inventory, which led Smyth Systems to adapt their retail software for golf operations. This relationship marked the beginning of the company’s deep involvement in golf technology.
Smyth Systems evolved into a full-service golf technology provider, becoming synonymous with high-end retail and point-of-sale systems, boasting clients like Muirfield Village and Kapalua. Smyth’s involvement in both the daily-fee and private club markets gave the company a unique flexibility, helping it stand out against competitors.
However, like many family-owned businesses, Smyth Systems was eventually acquired by Jonas Club Software in the early 2000s. Robb’s journey with the company continued as it was folded into Jonas's expanding portfolio. Though the acquisition marked a turning point, it also sparked Robb’s realization that corporate culture differs greatly from the hands-on approach of family-owned businesses.
From Family-Owned to Corporate Acquisitions
During the podcast, Smyth shared insights on the transition from a family-operated business to one run by private equity firms. After Jonas, he moved on to work for IBS, another golf software company. IBS was later acquired by EZLinks, marking Robb’s first encounter with the growing influence of private equity in the golf industry. He discussed how this shift in ownership affected business priorities, often placing more emphasis on revenue growth and less on client relationships—a stark contrast to the Smyth family business where passion and personal service were the driving forces.
Despite the successes Smyth achieved in these corporate environments, including major deals with top-tier clubs and management companies, he began to miss the family-business dynamic. "Again, not right or wrong, but when you get away from the family owned business, you lose what I would call a passion. You lose that desire, you lose that craving to be number one and do everything you can every single day, because it's somebody else's money, right?," Smyth said.
Cobalt Software: A Return to Family Values
After leaving EZLinks, Smyth eventually found his way to Cobalt Software, a family-owned business based in Boca Raton, Florida. Initially a software provider for the insurance and healthcare industries, Cobalt pivoted into golf course management software when approached by Boca West, one of the largest and most prestigious private clubs in the U.S. Boca West needed a comprehensive, custom-built software solution for their unique operational needs, and Cobalt rose to the challenge.
The company’s focus has since shifted entirely to the private club industry, with Cobalt becoming a disrupter in all-in-one golf course management software. Smyth shared that the software’s ability to integrate all aspects of club management—from tee sheets to dining reservations to member billing—has made it an attractive solution for large clubs seeking to streamline operations.
"Our system is built to replace multiple software systems, allowing clubs to operate seamlessly under one platform," Smyth explained. "We handle everything from the back office to the member-facing app, providing an integrated experience that simplifies life for both club managers and members."
The Importance of the Member Experience
One of the biggest trends Smyth has observed in recent years is the increasing focus on the member experience, particularly after the COVID-19 pandemic. “Pre-COVID, a lot of clubs were focused on back-office functionality and accounting,” Smyth said. “But today, members expect a seamless digital experience. They want to book tee times, make dining reservations, and access club events all through a single app."
Cobalt’s software prioritizes this member experience by offering a unified platform where all club activities are accessible through a single interface. “If members can make a tee time, they should also be able to book a dining reservation with the same ease,” he noted. This focus on simplicity and integration extends to the app’s real-time syncing capabilities, which allows for immediate updates across the system.
Adapting to Industry Shifts
When discussing the broader golf technology landscape, Smyth highlighted the fragmentation of the public course market, with more than 50 different companies offering tee sheet solutions. However, he emphasized that in the private club space, the stakes are different, and clubs are looking for long-term relationships with technology providers who offer both robust support and comprehensive features.
Smyth emphasized that support is a top reason why private clubs switch technology providers. “A club could have the best software, but if the support isn’t there, the system will fail,” he said. This dedication to client support is one of the pillars of Cobalt’s philosophy, along with a commitment to maintaining a family-run atmosphere despite their growth.
Looking Ahead: Cobalt’s Future
As Cobalt continues its expansion, the company remains focused on private clubs, delivering a sophisticated suite of tools tailored to meet the high standards of these exclusive establishments. With over 300,000 reservations processed annually at Boca West Country Club alone, Cobalt has proven its ability to handle the complexities of high-end club operations while staying true to its family-oriented roots.
That 300,000 reservation figure is not only impressive—it’s a testament to Cobalt’s scalability and potential for long-term success. Despite having fewer than 25 live installations, industry data indicates that clubs are paying around $35,000 annually for Cobalt's software and support. For an early-stage startup with ample capital, Cobalt is showing the staying power necessary to compete with established players like Northstar and Buz Software. While Buz Software currently supports under 200 clients and Northstar services fewer than 500 golf clubs, Cobalt seems well-positioned to begin closing the gap.
It may take several years for Cobalt to challenge the likes of Clubessential, which serves over 800 golf clients, or Jonas, with more than 1,000. Accelerating growth through acquisitions is one possible avenue, though current indicators suggest Cobalt isn't actively pursuing acquisitions just yet. Marketshare data provided by smbGOLF's IGDB data.
For Robb Smyth, his journey through the golf technology landscape has brought him back to the values that defined his beginnings: hard work, dedication, and a commitment to client success.
"We want to give clubs what they deserve—a technology partner that cares as much about their success as they do," Smyth concluded.
IBS: 60 Tee Sheet Clients
EZLinks: 603 Tee Sheet Clients
Jonas/Clubhouse Online: 953 Tee Sheet Clients
Clubessential: 759 Tee Sheet Clients
Buz Software: 42 Tee Sheet Clients
Northstar/Chelsea: 100 Tee Sheet Clients
Published 9/23/24
