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
CRM systems consist of history purchase and information of customers. It can help track customer more easily. It can reduce the process time and increase productivity.It will resist the activities of competitors attempting to attract customers’ patronage. Customers will loyal and would not switch
From an organizational and profitability standpoint, an efficient, easy to use, and unified CRM system, captures all key and critical data from sales and marketing to commercial operations, all the while focusing on sales process, sales efficiencies, and increasing sales, all contributing to the bottom-line profitability of the organization. Data has proven that CRM platforms increase the productivity and profitability of individual departments and subsidiaries, these same platforms and characteristics will have the same ramifications on a larger scale organization, especially an organization that spans the global footprint, such as
Chen, I, J. and Popovich, K. (2003) Understanding customer relationship management (CRM). People, process and technology. Business process management journal, Vol. 9 No 5. Retrieved from http://cis.csuohio.edu/~ichen/CRM.pdf
Customer relationship management is a business strategy that attempts to ensure every customer interaction that is appropriate and consistent regardless of the communication channel and that CRM is a core business strategy for managing and optimizing customer interactions across the public or private’s institutions’ traditional and electronic interfaces. CRM can be used to gain clearer insight and more intimate understanding of customers' behaviours and in helping to build an effective competitive advantage and its relationship to the e-business process (Khirallah 2000) and that committed customers can be viewed as company assets who are likely to be a source of favourable referrals and are more resistant to competitors' offers (Khirallah 2000).
An effective Customer Relationship Management (CRM) program can be used to identify, retain, satisfy and obtain customers by using technology to optimize strategies for understanding customers’ needs to manage business interactions with current, former, and prospective customers. Additionally, CRM also enables companies to maximize internal, external, marketing and customer service operations to better address the needs of the customer building a better relationship with customers that a more profitable. (Ahmad & Buttle, 2001)
Increasing competition and duplication of Canyon Ranch’s services by other industries, such as medical centers
The CRM system contains positive attributes, but the implementation is risky. Despite the risks that are involved, establishing a strong team that can help the system work effectively and efficiently will improve the company’s key performance factors. Communication amongst the administration that
Today, customer relationship management is very important to the business world. Most of the companies established a department and the programs to manage their relationship with the customers. Customer relationship management (CRM) is a business strategy which designed to help a company to understand and look forward to the needs of its potential and current customers (Anderson & Stang, 2000). Customer data is being collected in several different areas of the company, stored in a central database, analyzed, and distributed to key points (Anderson & Stang, 2000).The business world once was “product-centric”, the companies just provided what they could produce. However, it is now become “customer-centric”, they provide products and service
In order to establish a suitable CRM system and increase the success rate, understanding CRM processes is especially important. Building CRM system, there are many works need to do(). Firstly, the target customer market should be identified. Different customer strategies are focused on different target customer markets based on their profitability. Then, firms set customer objectives, for example, acquire customer satisfaction and loyalty. After that, the leaders and managers should support and commit the implementation of a CRM system. At the same time, when companies change their targets, a plan about changing
It’s very important to a business to have good customer relationships; CRM Software’s main objectives are to attract new customers while maintaining and satisfying their current customers and trying to win back the trust of former customers. Customers are one of the most important variables for a business owner to pay attention to, when trying to create a profit. Customer Relationship Management software keeps track of customer information to help the company maintain a strong relation with the customers. Good CRM Software brings together information from all databases within a company and gives
Practicing CRM requires an efficient and integrated internal business system. Many businesses benefit from the organizational discipline CRM imposes, as well as from the technology itself.
CRM (Customer Relationship Management) is an information industry term for methodologies, software, and usually Internet capabilities that help an enterprise manage customer relationships in an organized way. For example, an enterprise might build a database about its customers that described relationships in sufficient detail so that management, salespeople, people providing service, and perhaps the customer directly could access information, match customer needs with product plans and offerings, remind customers of service requirements, know what other products a customer had
CRM systems can be used to deliver personalized services to users to develop long standing and advantageous to customer relationships. This personalization includes effective use of resources like filtering information to users, personalizing services to customers ,based on customer purchase history sales creating chance to cross-sell related services This approach to personalization offers immediate services and user interfaces and execution of multiple tasks remotely
CRM systems play a major role for enterprises to understand the customer behavior and the value of the customers. As CRM system give a 360 view, this only is acquired with collecting appropriate customer information, interacting with
Customer relationship management (CRM) is widely implemented and centralized system which offers a place for interaction under a company. An employee can handle again the repeated problem which occurred in the past by re-investigate it. Besides, CRM provides a place to identify what customers wants. Employees can track customer’s expectation by their feedback and communication that can improve their buying experience and stay interact with customer in order to understand their true needs.CRM also has ability to let the company see the customer interaction in clear picture. Different customers from different segments require different products and services, but this complex situation can handle well by CRM. Furthermore, CRM provides quality and efficiency system in the company management that helps company achieves their success by building long-term customer relationship.