Due September 22, 2009
1. What is the value of customer information to Canyon Ranch? To Canyon Ranch, customer information is vital in order to successfully implement their business model. The value that it provides to the business is the ability to understand each customer’s unique needs and provide appropriate alternatives that will allow each guest to achieve their individual goals. This is essential for Canyon Ranch to attain its mission to “inspire people to make a commitment to healthy living, turning hopes and intentions into the highest enjoyment of life” (www.canyonranch.com/inspiration/mission). By gathering and sharing guests’ information, Canyon Ranch can assimilate it to “understand their customers, built loyalty, and cross-sell its offerings” (Applegate , Austin, Soule page 156), all of which are critical to the success of the business. The VP of Marketing was quoted saying “everyone experiences a different Canyon Ranch; we’ll meet you where you are” (Applegate , Austin, Soule page 156). If the company doesn’t know ‘where that is’, they will never be able to live up to this pledge. Their customers are looking for a Ritz-like experience, not a ‘Marriott’ experience. They want unique, custom opportunities and to miss the details pertinent to each customer could cost Canyon Ranch their competitive edge. Canyon Ranch has been regarded as the “gold standard in the industry” (Applegate , Austin, Soule page 156). To maintain this standard, they must know their customer better than they know themselves. This is only possible by gathering and assimilating quality customer information.
2. As CIO, how would you make the case for CRM and BI systems at Canyon Ranch? The case for Business Intelligence (BI) and Customer Relationship Management (CRM) systems is simple: Canyon Ranch is unable to provide the level of service across all locations without the information that both systems provide. BI data is needed to understand general trends in the market. For example, the fact that trends are moving more toward overall health and well-being as opposed to simple, traditional relaxation is key to Canyon Ranch ability to plan longer term. The upward trend of men participating in spa services is another trend that could be further explored with use of a BI system. As a complement to the BI system, the CRM is critical to ensure Canyon Ranch not only knows the market, but it understands how each individual guest fits into these market trends. Not only will these systems allow Canyon Ranch to understand the customers and the market they are in, but it will also help facilitate the business planning process. By better understanding customer needs and behaviors, they can more effectively offer services that are of interest to their guests, which will in turn help improve staffing and overall resource efficiency. Particularly true in the Health and Healing department, higher-priced staff members must be used as efficiently as possible to ensure the most value from each resource. Using CRM and BI tools effectively, Canyon Ranch can ensure that resources are maximized by focusing on areas that are of interest and value to their customers.
3. What impact would these systems have on strategy and capabilities? By integrating the BI and CRM systems, Canyon Ranch can more effectively deliver on three strategies: of increasing synergies, strengthening their marketing, and reducing turnover. First, well-integrated systems will increase synergies across between departments as well as across locations. Canyon Ranch executives have expressed a desire to increase synergies between the Health and Healing department and the other service areas. Establishing a tight a connection between these departments is key. When a customer requests a service from the Therapeutic Bodywork and Massage organization, the Canyon Ranch employee should be able to understand the customer’s goal and perhaps suggest a...
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