Case 1-3 Canyon Ranch

Table of Contents
1. Summary of the problem 3
2. The technology that is used to analyze the case and the technology that was discussed in the case. 3
3. Summary of Available Information 3
4. Pre-Analysis of the study 4
5. The analysis section 4
6. Recommendations 7
References 8
Lessons learned from the case 9
Meeting minutes 9

Case 1-3 Canyon Ranch

Summary of the problem

In spite of dramatic growth of the spa industry, little attention is still paid to information technologies, thus, operations remain low tech. As CIO at Canyon Ranch, based on the customer information available to Ranch Canyon, it is necessary to decide how …show more content…
Therefore, it is reasonable to use reward strategy to increase customer loyalty and boost share of wallet. Canyon Ranch can utilize customer data to evaluate the profitability of each customer and then use this information to reward behavior. Attracting new customers is more expensive than managing existing ones. Companies can improve profitability by between 25 and 85 percent by reducing customer defections by 5% (Reicheld and Sassre, 1990, 301-307). Even though loyalty is now being debated, frequent-traveler programs and CRM are essential. CRM leads to higher profitability due to increased sales, declining customer acquisition costs, and increasing profitability of customers willing to pay a premium for better service. Reward strategy will be further explained in Recommendations section.

Recommendations

Successful spa operations start with a standardized level of procedures and a prioritized sensitivity to guest needs (Rutherford and O'Fallon, 2006). It is important to ensure a dynamic balance to meet the fiscal requirements of the stockholders and the expectations of the guests. An emphasis on increasing profitability is essential, especially for Health and Healing department. Spa managers should monitor the spa and hotel operations on an ongoing basis to timely notice if expenses are not in line with anticipated revenues or budgeted amounts. Taking actions on these deficiencies