Cabo San Viejo - Hbs
Assignment 2: Cabo San Viejo by Stefan S****t and others
Course: Customer Relationship Management Faculty: Erasmus School of Economics
Content
1. Cabo San Viejo’s customer base 3
1.1 General information 3
1.2 The ageing of the customer database 3
1.3 Customers are becoming more heterogeneous 3
1.4 Lack of cross-selling 3
1.5 Complaints and the lack of a loyalty program 4
1.6 Conclusion 4
2. Rewards program 4
2.1 Stimulating retention 4
2.2 Cross-selling 4
2.3 Connect personally 5
3. Structure rewards program 5
3.1 Cross-selling program 5
3.2 Program for young ‘middle-aged’’ customers 5
3.3 Overall loyalty reward program 5
Cabo San Viejo’s customer base
1 General information
Cabo San Viejo (CSV) is a health resort based in Palm Springs. CSV has one big resort and four smaller day-spas. The company was founded in 1992 where the concept was ahead of its time. In the following years the total amount of stays at the big resort (Palm Springs) kept on increasing (Exhibit 7). 96% rate their stay at CSV highly, while 62% rate their stay at CSV beyond what they expected. A lot of customers (67%, Exhibit 6) know CSV via ‘word-of-mouth.’ 32% return within 5-6 years from their first visit, from those returning customers another 62% returns again within the next 5-6 years (Exhibit 6). To evaluate these number, branch figures would be needed so there is no way to say if these figures are good or not.
2 The ageing of the customer database
At first most of this seems positive, however the average age of the customer database kept on rising. Over the past twelve years the average age has increased from 47 to 57 in 2004 (Exhibit 7). If this trend continues, the average age will keep on rising and this could result in a major decrease in customers. In a theoretical scenario the company could eventually end up without any customers. Rejuvenation of the consumer base is therefore
Course: Customer Relationship Management Faculty: Erasmus School of Economics
Content
1. Cabo San Viejo’s customer base 3
1.1 General information 3
1.2 The ageing of the customer database 3
1.3 Customers are becoming more heterogeneous 3
1.4 Lack of cross-selling 3
1.5 Complaints and the lack of a loyalty program 4
1.6 Conclusion 4
2. Rewards program 4
2.1 Stimulating retention 4
2.2 Cross-selling 4
2.3 Connect personally 5
3. Structure rewards program 5
3.1 Cross-selling program 5
3.2 Program for young ‘middle-aged’’ customers 5
3.3 Overall loyalty reward program 5
Cabo San Viejo’s customer base
1 General information
Cabo San Viejo (CSV) is a health resort based in Palm Springs. CSV has one big resort and four smaller day-spas. The company was founded in 1992 where the concept was ahead of its time. In the following years the total amount of stays at the big resort (Palm Springs) kept on increasing (Exhibit 7). 96% rate their stay at CSV highly, while 62% rate their stay at CSV beyond what they expected. A lot of customers (67%, Exhibit 6) know CSV via ‘word-of-mouth.’ 32% return within 5-6 years from their first visit, from those returning customers another 62% returns again within the next 5-6 years (Exhibit 6). To evaluate these number, branch figures would be needed so there is no way to say if these figures are good or not.
2 The ageing of the customer database
At first most of this seems positive, however the average age of the customer database kept on rising. Over the past twelve years the average age has increased from 47 to 57 in 2004 (Exhibit 7). If this trend continues, the average age will keep on rising and this could result in a major decrease in customers. In a theoretical scenario the company could eventually end up without any customers. Rejuvenation of the consumer base is therefore