Canyon Ranch: In need of implementing CRM strategy Harvard Case Solution & Analysis

Canyon Ranch In need of implementing CRM strategy Case Study Solution


Canyon Ranch, with three Spa Clubs & two Destination Resorts, was undoubtedly the leading destination for thousands of visitors, seeking for a un-match luxury spa vacation & health resort.From early 2004, Canyon Ranch remains to be the leading destination for people who want to have a high quality of spa & health services for themselves, it also manages to be among the top three most preferable destination within the US & around the world according to ‘Travel & Leisure Magazine’, it has a large number of highly satisfied members/customer base.

The resort offers some personal services ranging from Spa, Health &Healing, and Canyon Ranch currently present in both land & oversea, it also had been awarded by some International awards in acknowledgment for its unique &outclass services to its members back from 1979. It is backed by a very enrich history and relevant knowledge and experience of business that distinguishes it from other big giants in the Resort & Vacation Spa industry.Among other multiple outdoor activities and unique services, it provides access to some lectures and fitness classes to the guests with no additional cost to them.

It secures profits from all the existing three business units.But the primary source of contribution has received from Hotel followed by the resort, although the growth for Health & Healing department is relatively high, the input to the overall profit has relatively low due to use of expert and trained professionals in this area that cut a major portion of the revenue earned.

Spa clubs located at Venetian Resort, fulfill the fitness, salon, and spa needs of guests visiting the Resort & Conventional Centre, Florida, Canyon Ranch had recently opened their third spa at Cruise Liner Queen Mary 2.It’s a very bold initiative that plays a very significant role in uplifting the brand image of Canyon Ranch, they also aimed to use the spa as a platform to introduce their other services like Destination Resort, but they need to go a long way to achieve these objectives.

Spa Industry in the US is expanding at a rapid pace this could be witnessed through the increasing number of companies that entered the market, (1,374 resorts, from 1990 to 9,632 resorts, in 2002), consisting of many small organizations to a few large corporations.In spite of highly competitive market CanyonRanch manages to secure gold standards. Moreover, it has a different Health & healing department that provides it a competitive edge over its competitors.

However, many big resorts having big Spas are now considered developing wellness component along with Medical Centersto support their Core activities; some other new entrants are also trying to enter into the business such as Hospitals by introducing spas & wellness component into their business structure.With all these competitive factors Canyon Ranch also committed to competing even for five grand of discretional income.

Implementation of Customer Relationship Management Strategy

Following are the analysis of Implementing CRM strategy for Canyon Ranch to improve its customer service operation.

CRM it is a combination of three small letter that consists of three core concepts, Customer, these are the heart of any profit making business because without a large, loyal & commented customer base the company cannot continue its operations for the foreseeable future. The relationship,it plays a vital role in retaining & satisfying existing customers,stakeholders and even suppliers, also with an excellentcustomer management the business can increase its current customer base. Managementmeans these business stakeholders. In a service sector industry, especially like the Canyon Ranch, CRM strategy is of particular importance as it results in increased profitability, revenue and customer satisfaction. Good CRM strategy focuses on individual client needs, their preferences, helps in tracking customer behavior pattern & suggests recommendations accordingly.(The Wheel)

There are many reasons for the idea of implementing CRM strategy for Canyon Ranch as they are in the Destination Resort & Spas business for an extended period.Also have a reasonably good number of customers database, as they are in the luxury service business segment & usually their clients are of the high-income group who like personalized marketing, product & service recommendations. CRM helps in better understanding the individual customer needs. Therefore, Canyon might consider implementing CRM strategy (Arthur, 2001)

Canyon Ranch In need of implementing CRM strategy Harvard Case Solution & Analysis



Personalization & CRM Strategy for Canyon Ranch

Canyon Ranch possessesreal substantial knowledge about 17,000clients who they manage over an extended period,& these used to visit multiple times a year, the customer base comprises of about 75 % Women, with a high-income group & wanting best & uncompromising service. Men represent a growing market segment with increased focus on physical health &fitness; thisstipulates the growing number of customer in Health & Healing Department followed by 6 % package purchased, senior management willing to rationalize the growing trend. For this management needs to add more value to customer experience, understand their requirements, communication is crucial to monitor expectation, get feedback from customers regarding their experience & ask for are commendation for improvement..........................

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