Canyon Ranch Case
Should Canyon ranch implement a CRM strategy? What are some of the major considerations?
Canyon Ranch should absolutely implement a CRM strategy. For years Canyon Ranch has been the leader in the luxury segment of the spa industry, with a unique value proposition. However, competition has started becoming an increasing threat, as the trend has shifted towards convergence between medicine and spa services. There are a number of new players, and in order to maintain that point of differentiation, Canyon Ranch will need to build their relationships with their customers. In order to do that, they need to implement a CRM strategy.
Some of the major considerations include: * Leadership: Leadership sees the potential value of information to enable better decision making, however there are still some concerns over whether it is logical to make decisions solely based on numbers instead of subjective information. * Human resource Capacity: If they want to implement a robust CRM strategy, this requires a heavily upgraded technical infrastructure; hence a proper staff would be required to manage it either internally or externally. * Communication: Canyon Ranch has traditionally relied on word of mouth and referrals while direct advertising may be a natural extension of the new system. Therefore, marketing also needs to be willing and able to take on new forms of advertising to get the full value out of the system. * Cooperation: Do the other resort locations have the willingness and ability to adopt an enterprise level CRM system? An effective CRM system would need to utilize all locations under the same umbrella. * People: Lower level employees such as program coordinators are juggling multiple tasks, which make it difficult for them to be actively listening to each guest. As we know, listening and responding to customers is critical to a successful CRM strategy. * Culture: For a business that is traditionally focused on the human touch,
Canyon Ranch should absolutely implement a CRM strategy. For years Canyon Ranch has been the leader in the luxury segment of the spa industry, with a unique value proposition. However, competition has started becoming an increasing threat, as the trend has shifted towards convergence between medicine and spa services. There are a number of new players, and in order to maintain that point of differentiation, Canyon Ranch will need to build their relationships with their customers. In order to do that, they need to implement a CRM strategy.
Some of the major considerations include: * Leadership: Leadership sees the potential value of information to enable better decision making, however there are still some concerns over whether it is logical to make decisions solely based on numbers instead of subjective information. * Human resource Capacity: If they want to implement a robust CRM strategy, this requires a heavily upgraded technical infrastructure; hence a proper staff would be required to manage it either internally or externally. * Communication: Canyon Ranch has traditionally relied on word of mouth and referrals while direct advertising may be a natural extension of the new system. Therefore, marketing also needs to be willing and able to take on new forms of advertising to get the full value out of the system. * Cooperation: Do the other resort locations have the willingness and ability to adopt an enterprise level CRM system? An effective CRM system would need to utilize all locations under the same umbrella. * People: Lower level employees such as program coordinators are juggling multiple tasks, which make it difficult for them to be actively listening to each guest. As we know, listening and responding to customers is critical to a successful CRM strategy. * Culture: For a business that is traditionally focused on the human touch,