Answer: Flanagan Theme Park should not approve the Daily-Dilly promotion right now. However it can still use well-designed Daily-Dilly deals at the right time in the future.
Reasons for not approving the Daily-Dilly promotion right now:
1. Prevent from losing currently or potentially loyal customers
As was mentioned in the case, the main problem for Flanagan Theme Park is customer experience. If these problems are not fixed, introducing Daily-Dilly to promotion can only worsen the customer experience and lose currently or potentially loyal customers more quickly.
Although as Ruth said there may be a minority of people who do buy more than the Daily-Dilly coupon value, they would hardly become loyal customers if they have bad experience in the theme park. That is to say, introducing the Daily-Dilly promotion before improving the customer service can only be a disaster for customer loyalty.
2. Daily-Dilly deals can hardly provide steady and predictable cash flow
The Daily-Dilly deals can’t solve the cash flow problem. Although the cash flow from Daily-Dilly is probably predictable, the cash flow from traditional channel can become highly unpredictable or even dropped dramatically after launching the Daily-Dilly promotion. This may even worsen the current cash flow problem.
Right steps to use Daily-Dilly promotion:
There are two goals for Flanagan Theme Park: ①short term: attract more customers to the park ②long term: build a strong customer loyalty. Flanagan can use Daily-Dilly wisely to achieve these two goals together. Here are my suggested steps:
1. Improve customer service experience step by step. This is the most fundamental problem to fix in the business.
2. Take a phased approach to use Daily-Dilly for the promotion of improved customer experience. For example, provide food coupons on Daily-Dilly when installing more eateries in