Case 1-3 Canyon Ranch

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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, while the amount of customer data is increasing steadily, and customers are becoming more sophisticated, it becomes crucial to be able to harness the value of customer data, and CRM systems, in this regard, are the solution. However, some authors admit that substantial investments in CRM are not right for everyone (Groonroos, 1990, 3-11). It is argued that in a small business, it is relatively easily to manage customers than in a large hotel chain, for example, which is required to process a large amount of information and thus needs huge investments in technology, process redesign, and people. However, in order to cope with this problem, information technology (IT) is essential, if used properly. Therefore, there is an overwhelming consensus among scholars and business practitioners that IT is the key success factor for CRM implementation. It is argued that IT allows achieving wider market coverage with less entry costs and increased marketing effectiveness (Exhibit 1) (Gamble, Stone, and Woodcock, 1999). In order to better understand, how to harness customer data and build an effective CRM system, it is essential to use the decision matrix with two dimensions: repurchase frequency and customizability (Exhibit 2). [pic] Exhibit 2. The decision matrix. As our analysis showed, Canyon Ranch best fits into the left top quadrant, since they have

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