- Ankita Singh
CONSTRUCTING CUSTOMER LOYALTY PROGRAM:
We go through 7 strategy steps to design a loyalty program for Cabo San Viejo which are as follows:
STEP 1: PRESENT SITUATION ANALYSIS & GAP ANALYSIS
Before we suggest a customer rewards or loyalty program, it is important to understand what is the company’s long term vision, For whom this program is to be implemented i.e. who are the company’s best customers, what are their needs and expectations, the reasons for having such a program and the expected outcome. So the first question is:
What is Cabo San Viejo’s long term vision? Was the company directing its activities in overall achievement of this vision?
The vision of the company was to help people live healthier lives. Initially there was a gap between the operational objectives of making people lose weight by way of low calorie diet and the vision of getting people to live healthier lives by inculcating sustainable lifestyle ways. However, this gap had been bridged but the positioning gap remained.
Who were Cabo San Viejo’s targeted customers? Was there any gap between targeted and actual customers?
If we go by the vision statement, anybody wanting to live a better and healthier life was Cabo San Viejo’s targeted customers. These could include smokers, obese men and women, even obese children, stressed couples or singles, workaholic professionals, over worked top executives and managers etc. However, Cabo San Viejo was attracting mostly females (70%-80% of the guests) with an increasing average age over the years, the last average being 57 in the year 2004. Thus, mostly older females were visiting the resort who wanted to indulge themselves and feel better about their body and themselves. Also, their household income was high. Comparing this with the summer guests, the latter group had less income and was also comparatively younger in population. Thus, we can link the age, income level and affordability.