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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 …show more content…

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

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