Canyon Ranch Health Resorts is an organization designed to inspire and motivate individuals in their quest to become a more health conscientious human being. “Canyon Ranch prides itself with being a company that can influence one’s quality of life from the moment one arrives to long after one returns home” (Applegate & Piccoli, 2004). The founders of Canyon Ranch (Enid and Mel Zuckerman) wanted their business to be a place where individuals could “relax, enjoy oneself, and explore the potential for a happier, healthier, and more fulfilling life” (Applegate & Piccoli, 2004). In keeping with Canyon Ranch’s mission of providing a relaxing, high quality, and healthy organizational structure; Canyon Ranch is divided into “three revenue-generating departments: Health and Healing, Hotel, and Spa” located in numerous locations throughout the United States (Applegate & Piccoli, 2004). The most popular venue is Health and Healing, but due to high commissions paid to employees who work in that department, it is not as profitable as the Hotel and Spa. Canyon Ranch also offers a wide array of amenities to include “sports and fitness, therapeutic body work and massage, skin care and salon, metaphysical services, medical services, and nutritional services” (Applegate & Piccoli, 2004). Even though Canyon Ranch is the standard for high-class services and features, competition has increased and Canyon Ranch is slow in regards to taking steps to improve the overall business structure. Canyon Ranch has had some difficulty embracing the benefits of incorporating and investing into a centralized information technology system fearing that customers would feel a depersonalized and dehumanizing experience, which in turn goes completely against the mission and philosophy of the organization. But if Canyon Ranch does not embrace all of the perks of information technology, in addition to increasing marketing and advertising, their premier gold standard could change.
Should Canyon Ranch in Berkshires develop a clear customer relationship management strategy and make it a cornerstone of its positioning as a preeminent destination spa? If so, what should this initiative look like?
Yes, Canyon Ranch in Berkshires should definitely develop a clear customer relationship management strategy. One of the biggest problems with Canyon Ranch is that the customer has too many obstacles to overcome before they even reach Canyon Ranch. For instance, a customer must call Canyon Ranch directly in order to make a reservation. Then the customer must call a 1-800 number three weeks prior to arrival of preferred destination in order to provide details about the goals they would like to achieve during one’s stay. Furthermore, when they arrive at Canyon Ranch, there is a strong possibility that a customer’s information was not coded correctly and that the services they want to take advantage of are not available. Not only does this potentially frustrate and disappoint a client, but makes the program coordinator’s job even more difficult because they have to fix the glitches and try to appease the customer who just spend thousands of dollars to rejuvenate and relax. If upper level management would have explored the option of providing substantial training on the benefits of incorporating information technology into the business at a faster pace, maybe Canyon Ranch would be seen in a more positive light. The case study also addresses that the primary audience focused on the “47 year old woman, with a high income level, and grown kids” (Applegate & Piccoli, 2004). Canyon Ranch should look into focusing on the male demographic and creating packages that would be appealing to them, and maybe even explore the option of family spa vacation packages. Through a drastically improved IT experience, customers should be able to create their own account through Canyon Ranch’s website so that they can make note of personal goals,...
References: Applegate, L., Austin, R. and McFarlan, W. (2008). Corporate information strategy and
management: Text and cases. 8th ed. Boston: McGraw Hill, 2008.
Applegate, L., & Piccoli, G. (2004). Canyon ranch. Harvard Business School, 805-827.
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