Assignment 2: Cabo San Viejo by Stefan S****t and others
Course: Customer Relationship Management Faculty: Erasmus School of Economics
Content
1. Cabo San Viejo’s customer base 3
1.1 General information 3
1.2 The ageing of the customer database 3
1.3 Customers are becoming more heterogeneous 3
1.4 Lack of cross-selling 3
1.5 Complaints and the lack of a loyalty program 4
1.6 Conclusion 4
2. Rewards program 4
2.1 Stimulating retention 4
2.2 Cross-selling 4
2.3 Connect personally 5
3. Structure rewards program 5
3.1 Cross-selling program 5
3.2 Program for young ‘middle-aged’’ customers 5
3.3 Overall loyalty reward program 5
Cabo San Viejo’s
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Therefore there should be a bigger focus on ‘cross-selling’ from the day-spas to the Health resort.
5 Complaints and the lack of a loyalty program
Furthermore lately there have been some complaints and remarks about the lack of a loyalty reward program. Returning customers feel they should be rewarded for bringing their business to CSV. They feel the need to feel appreciated for being a returning customer. One client for example said: “All of us loyal customers think that. If I’m a return guest at CSV and I’ve been coming here for years, I’ve obviously got the money to afford it, so it’s not about money and it’s not about the tangible value of the rewards” (P8, customer quotes). 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. Also most of CSV’s competition is using reward programs. The customers therefore expect CSV to do the same.
6 Conclusion
To conclude, it’s probably safe to say CSV shouldn’t be happy with the current trend of their customer database. There is a lot of room for improvement on cross-selling but the most important threat is the ageing of the customers. This could very well lead to a point where CSV doesn’t have enough customers to be profitable anymore.
Rewards program
It would make sense for CSV to adopt a
Global statistics. Since the mid-twentieth century, the spa industry has grown significantly around the world. In 2013, the market size of the global wellness industry grew up more than 3.4 trillion U.S. dollars. According to “The Global Spa & Wellness Economy Monitor Report”, the global spa industry generated $94 billion last year. Thermal/mineral springs sector of wellness industry generated $50 billion worldwide. But wellness tourism (or travel associated with maintaining or enhancing health or wellbeing) was the fastest-growing part of the industry for the past few years. The amount of the earning of this part of the industry was equal to 494 billion. For period from 2012 to 2013 number of people that had taking wellness trips grew by 12% according to U.S. spa industry revenue report for 2013 (“ Statistics and facts”, n.d.).
My mission is named in honor of Saint Francis Solano, he was a Spanish Franciscan Missionary in Peru and Paraguay. It is the twenty-first and last of the California missions. It was founded by Fray Jose Altimira on July 4, 1823. Mission Sonoma, it’s shaped like a square of long buildings, forming a quadrangle, made of adobe bricks and wood. In one corner was the church, adjacent was living quarters and parallel were the workshops, kitchen, and storage. In addition, there were orchards, gardens, vineyards, fields of grain, a grist mill, houses for the soldiers and Indian families, a jail, a cemetery, and an infirmary.
Loyalty programs include frequent flier miles or points systems associated with credit card offers that can be used only with the original company, creating a perceived loss or cost when switching to a competitor. Most programs are able to get consumers to spend more money just to get to free or bonus item.
Mission San Buenaventura is named after a Saint named Saint Buenaventura. My mission also has a nickname it’s nickname is Mission by the ocean. It is named that because it’s near the ocean. It is located in the meadow of the Chumash Indians. The reason why it is located there because it was supposed to convert the Chumash Indians. It was built on the month of march31, 1784 on the memorable Easter morning. The family’s of the soldiers helped Fr. Serra build Mission San Buenaventura.
Years ago, there was once a small town called Chaves Ravine within Los Angeles, California and this town was a poor rural community that was always full of life. Two hundred families, mostly Chicano families, were living here quite peacefully until the Housing Act of 1949 was passed. The Federal Housing Act of 1949 granted money to cities from the federal government to build public housing projects for the low income. Los Angeles was one of the first cities to receive the funds for project. Unfortunately, Chavez Ravine was one of the sites chosen for the housing project, so, to prepare for the construction work of the low-income apartments, the Housing Authority of Los Angeles had to convince the people of the ravine to leave, or forcibly
The mission honors, Saint Francis Solano, a Spanish Franciscan Missionary in Peru and Paraguay, also known as Sonoma Mission. It’s the twenty-first and the last California mission founded by Fray Jose Altimira on July 4, 1823. It has a square shape of long structures made of bricks, wood, and tile roofs and formed into a quadrangle. In one corner, was the church, adjacent were living quarters and parallel were the workshops, kitchen, and storage. In addition, there were orchards, gardens, vineyards, fields of grain, a grist mill, houses for the soldiers and Indian families, a jail, a cemetery, and an infirmary.
2. Vina San Pedro is part of the 3 largest wineries of Chile. In 1994 Compana Cervecerias Unidas purchased 48.4 % of VPS shares, gaining partial ownership.
Demonstrating the success of an initiative like Kudler's Customer Rewards program can help Kudler obtain any future investment capital they may need for further
Developing a loyalty program is challenging. You team must understand what will keep your current customers interested and what will spark them to purchase multiple times.
Customers are the backbone of every business which is why building a solid relationship is essential to the success of every business. In order to remain competitive companies must be able to meet the needs and wants of their customers. With new hotels and casinos on the rise in the Caribbean, the hotels and casinos operated under Diamond Cluster Entertainment are struggling to remain competitive. Their competitors are making themselves known via social media and other online marketing strategies. This company is ignoring the importance of social media which is why they are struggling to remain competitive and build a solid relationship with their loyal customers. Their competitors are also investing in loyalty programs that offer customers free rooms, room upgrades, casino credits, and other perks.
Over the last 77 years, Morgan Stanley has been at the forefront of the financial industry. This is from the firm focusing on creating customizable investment products that are sold to retail and institutional clients. ("Company History," 2012) However, a problem is that many competitors are entering a period of flat growth that is at the top of S Curve. This is when a company will grow so big that it becomes difficult to continue increasing profit margins. (Nunes, 2011, pp. 1 5) In the case of Morgan Stanley, the recent financial crisis has made it more difficult for the firm to improve earnings. As a result, a new strategy must be developed that will motivate the sales force to do more. To determine the most effective approach requires examining six features of a total rewards program, the specific behaviors that will be targeted, assessing the value proposition and how to attract registered representatives.
Customer loyalty is much harder to obtain that customer service satisfaction. The most important first step is to satisfy the customer by meeting their expectations. Customers only give a company one chance and if they aren’t satisfied they will not do business with that company again, as well as tell others of their experience. The next step would be to exceed the customer’s expectations. If a business goes above and beyond to assist the customer they begin to build loyalty. The next step is to truly surprise the customer. In order to dominate the marketplace the company must find a way to make them selves stand out with their product or service, accompanied with phenomenal customer service. Once this has been done customer satisfaction and loyalty will be gained. “Acquiring a new customer can cost four or five times more than keeping a current customer” (Bestmark, 2013). So it’s essential to keep the current customer’s happy and coming back for more.
Today’s organizations fail to realize the value of their customers when it comes to the success of their business. Without customer loyalty the success of your business will always be uncertain. Organizations must sensitively tailor the designs of a successful firm to the particular challenges of understanding, attracting, and keeping valuable customers. “Having satisfied customers just aren’t good enough”. Kenneth Blanchard and Sheldon Bowles, co-authors of Raving Fans, believe this concept is needed to have a successful business. I agree with this concept of customers being the focal point of any business. I would want more than just a satisfied customer; I want a “Raving Fan”.
It is imperative to satisfy customers and give them an amazing experience at the company. While it cost less to sell to existing customers and companies can increase profit by selling to the same customers; if customers are satisfied, there is more chance they will come back for more services or products. Satisfied customers are a free marketing for the company. However, it is the opposite if customers are dissatisfied. Dissatisfied customer will tell 8 to 10 people about his or her experience (O’Brien, A & Marakas, G. 2004). If by any reason, representatives see that the customer is not satisfy, they should act fast and fix the problem. Furthermore, there is more chance for sale representatives to sell to an existing customer that to a new customer. A good strategy for customer retention is to reward good customers. Companies can easily do
There seems to be a pattern emerging at Betsafe, as a loyalty program doesn’t match the standard promotions. We know that players these days like to think that deposits made and general gameplay time work to contribute towards something bigger, such as additional bonus rewards. For that reason, the lack of loyalty program is a pretty big disappointment.