Canyon Ranch

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Canyon Ranch is operating in a highly competitive hospitality market, one in which their competitors are fighting tooth and nail to gain market share in a saturated market. Implementing a successful CRM strategy is imperative in the resort / spa industry given that the competition is diligently working to improve their processes and mold their consumers into brand loyal, frequent visitors. The first major leak in their process-centered CRM system is that Canyon Ranch mentioned that they do not have a formal recognition or reward program. Although their implementation of the “Centennial Membership” program was a step in the right direction, in order to entice travelers to visit the Canyon Ranch locations on a regular basis, they must offer discounts, benefits and perks to those patrons that not only frequent the Canyon Ranch locations, but also spend a significant amount of money at the resorts every year. I am strong proponent of tiered rewards clubs for resorts, especially high-end, niche resorts much like Canyon Ranch. One way to implement this type of tiered rewards program is to create a point system based on dollars spent, services purchased while at a Canyon Ranch property, also based on recommendations and/or online engagement. On the subsequent page is a rough prototype that illustrates the different scales of recognition that are available at Canyon Ranch. The basic membership, which will be available to everyone, will be presented on your first stay at Canyon Ranch. The blueprint to this rewards program is to award 1 “Health and Happiness Point” per dollar spent on lodging and the amenities at the numerous Canyon Ranch locations. Given that the average amount spent per visitor is $2,000-$2,500, the incentive program should begin roughly above this measurement. Patrons will remain in the Silver Status category at Canyon Ranch resorts from $0-$2,499. Since this preliminary level is achieved by everyone, there will be no added value for falling in...
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