Canyon Ranch Case

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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, technology in general has always been looked at as a threat to the spa industry. Perception of the use of technology would need to be changed at all levels of the company, prompting them to think of the CRM initiative as their primary instead of secondary toolset. * Size: Canyon Ranch has two destination resorts and three SpaClubs. The company is growing, and so are the services. For example, The Berkshires has over 230 different services in both Spa and Health and Healing departments, as well as lectures, fitness classes, and outdoor activities. This means there are lots of touch points and data to work with and keep track of for each customer. * Structure: Canyon Ranch has historically relied on a decentralized IT infrastructure, with both the destination resorts and the SpaClubs working independently. The more decentralized an organization’s customer interactions, the greater the challenges in practicing CRM. Specific to Canyon Ranch, the greatest challenge would be making sure all of the information flows from reservations to on-site. * Technology: They have relied on a legacy system that has been grandfathered into several generations of leadership, called CLS. While the system is vastly outdated compared to contemporary systems, the fact that Canyon Ranch has access to the source code (BASIC), any upgrades they make to their system can be done much more smoothly and cost efficiently. * Process: Are the traditional inputs, such as the call center or paper based reservations on-site, able to adapt to a newer system?

Does a CRM strategy fit with Canyon Ranch overall Positioning? A CRM strategy definitely fits in with Canyon Ranch’s overall positioning. Canyon Ranch positions themselves as a luxury destination resort, providing one-on-one service to fit the unique needs of their guests so they can live a happier, healthier, more fulfilling life. In essence, they are the destination for holistic health. As a point of difference, they offered the Health...
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