Canyon Ranch Case Study
1. Should Canyon Ranch engage in a personalization and CRM strategy? Why?
Canyon Ranch should engage in a personalization and CRM strategy because this will enable them to consolidate all their customer data into a central view. Canyon Ranch currently has a decentralized IT infrastructure. A central view will allow them to aggregate the data they already collect and use this to address the different needs of the customers in the fastest and most effective manner.
The use of CRM could also be used to target specific marketing programs for individual customers. It will help the company evaluate its customers, which in turn will aid Canyon Ranch in developing features, products or services that will suit clients’ preferences. The different locations could use this information in advance of a customer’s visit to prepare a more personalized experience for them.
The CRM strategy can also be used to identify additional data that needs to be captured. Additional purchases as well as wait-list sign-ups will provide additional insights into the demand for current offerings and allow Canyon Ranch to add more of the high demand items and reduce those not being utilized.
2. Perform a SWOT analysis for Canyon Ranch.
Strengths
• Canyon Ranch is regarded as the gold standard in the industry, commanding rates 25-30 percent higher than its competitors
• Strong customer base
• A wide variety of services and its Health and Healing department sets it apart from its competitors
• Solid talent recruitment strategy
• Executives have substantial knowledge about their customers
• Canyon Ranch owns the source code to CLS so it’s easy to customize the system as needed.
Weaknesses
• Decentralized IT infrastructure system
• High employee turnover rate (Program coordinators)
• There was no readily available plan for how to improve on the “best-in –the-business” spa experience
• Did not have point-of-sale (POS) software so the value of purchases could not be tracked
Canyon Ranch should engage in a personalization and CRM strategy because this will enable them to consolidate all their customer data into a central view. Canyon Ranch currently has a decentralized IT infrastructure. A central view will allow them to aggregate the data they already collect and use this to address the different needs of the customers in the fastest and most effective manner.
The use of CRM could also be used to target specific marketing programs for individual customers. It will help the company evaluate its customers, which in turn will aid Canyon Ranch in developing features, products or services that will suit clients’ preferences. The different locations could use this information in advance of a customer’s visit to prepare a more personalized experience for them.
The CRM strategy can also be used to identify additional data that needs to be captured. Additional purchases as well as wait-list sign-ups will provide additional insights into the demand for current offerings and allow Canyon Ranch to add more of the high demand items and reduce those not being utilized.
2. Perform a SWOT analysis for Canyon Ranch.
Strengths
• Canyon Ranch is regarded as the gold standard in the industry, commanding rates 25-30 percent higher than its competitors
• Strong customer base
• A wide variety of services and its Health and Healing department sets it apart from its competitors
• Solid talent recruitment strategy
• Executives have substantial knowledge about their customers
• Canyon Ranch owns the source code to CLS so it’s easy to customize the system as needed.
Weaknesses
• Decentralized IT infrastructure system
• High employee turnover rate (Program coordinators)
• There was no readily available plan for how to improve on the “best-in –the-business” spa experience
• Did not have point-of-sale (POS) software so the value of purchases could not be tracked