If this trend continues, the average age will keep on rising and this could result in a major decrease in customers. Customers that have visited CSV a few times should be rewarded with some nice candles or some sort of health package or something in that category.
The effort is not that high and the consequence is a happier customer because he or she feels unique. They feel the need to feel appreciated for being a returning customer. Each time a customer goes to a day-spa for a massage, the customer collects points.
CSV has one big resort and four smaller day-spas. These returning customers basically claim there should be some sort of reward program or another way to make them feel special and appreciated, they want to experience that wow-factor that makes them feel like they are the most important customer of CSV.
CSV can pull on customers by introducing a system where customers of the day-spas can collect points, which can be used for free activities at the CSV.
So for these people there should be a sort of point system. Through the program the last variable, attitude towards the brand, will rise slides class 4, P13, A combined approach to loyalty.
Combined with the price segment CSV is operating in this could very well be the explanation of why the average of the consumers also keeps increasing. Therefore CSV should give customers a discount on a second visit. First thing that must be taken into account is a good en solid CRM system.
The CSV resort vacations are simply too expensive for the younger people. These relative young people are the new 50ers in about years, so it is wise to attract and bind them at this stadium already! Structure rewards program5 3.
To help this Cabo San Viejo needs to improve the overall loyalty reward program.
The information about the customers will come from the improved CRM system. CSV can take away undervalued feelings by doing little things like giving flowers when a customer is arriving, a personal greeting by nameand giving little presents during their stay.
This could simply be taken care of with a linked system between the reservation system and the TV network on the resort. CSV can use this opportunity by cross-selling.
In a theoretical scenario the company could eventually end up without any customers. Especially younger people, who have less money to spend, this may be attractive. The bigger the share of wallet of the customer is, the more expensive their gifts should be.
This way the company will attract customers out of the smaller properties to the more profitable resort. A good CRM system is needed to attend on the needs of the different customers as good as possible.
Besides, if a customer visits twice, the chances of an emotional connection will be higher, which can increase the retention rate. Rejuvenation of the consumer base is therefore very important. Another improvement in the overall loyalty reward program is not really a reward, but more one on personalizing.
For example, if a customer likes a massage, he can collect points for a free massage at CSV. In the following years the total amount of stays at the big resort Palm Springs kept on increasing Exhibit 7.
Increasing retention can therefore be the strategic objective. One client for example said: A good CRM system is also needed if the company is going to implement a customer loyalty reward program.Cabo san viejo – rewarding loyalty?Cabo san viejo is currently facing a problem of increasing competition and customer retention.
To solve this, there is a dilemma of adopting a loyalty program or not. However our mission is only to meet competition and increase sales and not to resort to loyalty programs. The San Diego Rescue Mission The San Diego Rescue Mission, years-old, is an original and inspirational organization that involves itself with dealing with the homeless population.
It partners with more than local churches every year and the services it provides are numerous. The Clientele • Cabo San Viejo customers were largely affluent, middle-age, and female • 62% of return visitors returned again within five to six years • Repeat guest comprised between 50% and 60% of all guest nights • 32% of new guests returned to the resort within five to six years • Cabo San Viejo receives about new guest each.
In Cabo San Viejo is one of the leading health and fitness spa resort in Palm Springs, California debating whether to introduce a customer rewards program. Describes the customer management challenges the company faces, and describes the various ways in which a rewards program designed to address these challenges might be.
Cabo San Viejo: Rewarding Loyalty case analysis, Cabo San Viejo: Rewarding Loyalty case study solution, Cabo San Viejo: Rewarding Loyalty xls file, Cabo San Viejo: Rewarding Loyalty excel file, Subjects Covered Customer relationship management Customer retention Marketing Risk management by Youngme Moon, Seth Schulman.
Cabo San Viejo’s customer base3 1. 1General information3 1.
2The ageing of the customer database3 1. 3Customers are becoming more heterogeneous3 1. 4Lack of cross-selling3 1. 5Complaints and the lack of a loyalty program4 1.
6Conclusion4 [ ].Download