Rosewood Hotel
Part 4: Recommendation for Rosewood to improve CLV
The fundamental Idea behind Customer Lifetime Value is to maximize profits per customer. While Rosewood does have loyal customers, these customers are limited to the one unique destination Rosewood hotel as they do not identify with Rosewood brand. Whereas the Rosewood strategy for individualistic properties based on the local area, local history and local staff has been successful in bringing in customers, it has failed in retaining customers. This can be related to the very basic concept that people are limited in the trips that they will make to one location in one year.
To be able to successfully maximize CLV, it is imperative that Rosewood reach out to their customer base by making them aware of the Rosewood Brand. The process to move towards the Rosewood brand has to be very subtle in order to have minimum impact on their existing customer base and an individual Hotels’ Management. While several new brand strategies can be developed to integrate the Rosewood name, I would like to focus on Hotel Management in charge of running each individual hotel. Unlike Hilton, Harrah’s or Ritz Carlton, the management in the hotel has been procured due to their ability to provide a local service to a non-branded Hotel with extremely high standards. Each hotel, such as Carlyle, thrives on its location, property history and niche clientele. And the hotel management has been hired and trained to cater to the needs of this niche clientele for Carlyle, not for the Rosewood Brand of Hotel’s. The local Hotel Management has to be 1)trained for the Rosewood Brand and 2)given incentives to cross-sell to other Hotels under the Rosewood Brand. Training for the Rosewood Brand would require integrating Rosewood Brand in the Hotel Banner, Products and Services without changing the Quality of Customer Experience. The hotel Management needed to focus on managing customer relationships by providing a satisfactory experience and using
The fundamental Idea behind Customer Lifetime Value is to maximize profits per customer. While Rosewood does have loyal customers, these customers are limited to the one unique destination Rosewood hotel as they do not identify with Rosewood brand. Whereas the Rosewood strategy for individualistic properties based on the local area, local history and local staff has been successful in bringing in customers, it has failed in retaining customers. This can be related to the very basic concept that people are limited in the trips that they will make to one location in one year.
To be able to successfully maximize CLV, it is imperative that Rosewood reach out to their customer base by making them aware of the Rosewood Brand. The process to move towards the Rosewood brand has to be very subtle in order to have minimum impact on their existing customer base and an individual Hotels’ Management. While several new brand strategies can be developed to integrate the Rosewood name, I would like to focus on Hotel Management in charge of running each individual hotel. Unlike Hilton, Harrah’s or Ritz Carlton, the management in the hotel has been procured due to their ability to provide a local service to a non-branded Hotel with extremely high standards. Each hotel, such as Carlyle, thrives on its location, property history and niche clientele. And the hotel management has been hired and trained to cater to the needs of this niche clientele for Carlyle, not for the Rosewood Brand of Hotel’s. The local Hotel Management has to be 1)trained for the Rosewood Brand and 2)given incentives to cross-sell to other Hotels under the Rosewood Brand. Training for the Rosewood Brand would require integrating Rosewood Brand in the Hotel Banner, Products and Services without changing the Quality of Customer Experience. The hotel Management needed to focus on managing customer relationships by providing a satisfactory experience and using