Canyon Ranch Case Study

Table of Content

Canyon Ranch, established in 1979, is a Health Resort and Spa that combines medicine and relaxation for a luxurious vacation experience. It caters mainly to individuals who can afford such a lifestyle and desire to indulge in the amenities it offers. While not a necessity, luxuries are sought after by those who can financially afford to improve their overall well-being and satisfaction. Canyon Ranch serves as a getaway for individuals seeking respite from workplace stresses and guidance towards a lifestyle that offers value for their investment.

Initially, there were two resorts – one on the east coast and another near Las Vegas. Over time, both resorts gained more customers, including many repeat visitors. The company’s achievement in cultivating a devoted customer base can be credited to the customized connections it has formed with guests during their stays. Right from the beginning, the company has consistently interacted with each customer individually to provide a service that enhances the quality of every visit.

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Each customer has a set of daily activities to follow during their minimum 3-day stay, with the opportunity to include additional activities upon arrival. This is because the majority of customers book their trip within 3 weeks prior to their arrival. The funding for these activities is derived from discretionary funds, and not all individuals can afford the expense of 2-4 thousand dollars for just a few days. As a result, the business is impacted by economic factors and the specific clientele it serves.

Using their custom-built Information Technology system, they could schedule clients’ arrivals and track the services they signed up for. However, the system couldn’t track additional purchases like classes, events, and spa items such as lotions and soaps. As a result, they lacked information about customers’ spending habits and frequency of purchases. The old system only provided details about the timing and frequency of activities and resort attendance.

The company has implemented upgrades that allow for the viewing of certain information, but there are still more benefits for them to understand. These include determining if customers come during an anniversary or birthday, scheduling return visits before leaving the resort, offering grouped ideas for Health/Spa packages, and tracking every item used or bought during their stay to analyze the value and profit. Data mining the customer not only helps understand their medical needs but also identifies any issues they may have.

When is their anniversary and birthday? This allows us to purchase or send cards to them and extend a chance for them to return during that time for a discount. Additionally, sending surveys to gather feedback on their favorite and missing aspects of our services will provide valuable insights. The key to success lies in maintaining excellent customer service and delivering valuable offerings.

By remaining aligned with the company’s main goals and mission, you ensure that you stay ahead of your competitors. The recent challenge we faced was that our competitors started recognizing the value and uniqueness of Canyon Ranch, resulting in the emergence of various day spas and hospitals offering similar services such as equipment and massages. Additionally, people now have fewer discretionary funds to spend multiple times a year.

My suggestion for both the stockholders and Canyon Ranch is to assess the elements that contribute to our excellent customer care. It is crucial to comprehend our customers and their requirements fully. Moreover, it might be a viable option to provide a 10% discount to both our customers and their friends in order to expand our customer base. Furthermore, we can contemplate inviting specific companies to arrange visits for their top executives so they can experience what we have to offer. Is there a possibility for our IT department to aid in training and assisting our program coordinators?

In order to address the turnover in the position and minimize costs for the company, I propose that employees in this role communicate their immediate information needs to the IT department. We can develop a program to integrate with the CLS system, allowing us to input and retrieve necessary information through queries and reports when clients arrive.

Furthermore, prioritizing proactive training for our team on common changes made by customers during their stay is crucial. This will promote familiarity in handling scheduling conflicts and lead to smoother transitions. Through collaboration, we can deliver excellent service and up-to-date information to both guests and staff, thereby enhancing the company’s reputation for hands-on expertise and gaining a competitive advantage. Additionally, considering travel expenses is imperative in decision-making.

Expanding its locations to include the South and the Midwest would provide Canyon Ranch with a warm and secure destination for self-care. These regions have attractions for travelers, and relocating to different cities or states could offer financial incentives, as many companies are currently receiving benefits for doing so. Moreover, this expansion would increase opportunities to find the perfect fit for our staff and attract professionals interested in moving to these areas.

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