Canyon Ranch Case Study

Canyon Ranch is a Health Resort and Spa that has been around since 1979. It was built on an idea of bringing medicine and relaxation together in one place for a vacation. This is something that is costly and mainly for those who can afford the luxuries of that kind of lifestyle. A luxury is something that people do not always need but want to simply feel good and have the money to spend to make them that way. It is a getaway for the folks who need a break from the stresses of the workplace and help to guide them in a way of living that allows them to feel like they received something of value for the money they spent.

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This began with two resorts one located on the east coast and the other near Las Vegas. It began to grow from the amount of customers and return customers they have accommodated over the years of being in business. The reason for this return customer base is due to the relationships that the company has provided to them during their stay. They have worked with each customer individually since the very beginning to provide a service that adds that personal touch of value to each visit.

Every customer has a schedule of activities that they do throughout each day for a minimum of a 3 day stay as well as opportunity to add other activities after arrival. This was because most customers had only called for scheduling their getaway within 3 weeks of arrival. The money used for this is discretionary money and not everyone can afford a cost of 2-4 thousand dollars for just a couple of days. That means that the economy plays a part in the business as well as what types of clients they care for.

Through the Information Technology system that they had custom built they were able to schedule clients’ arrivals along with what types of services they were signing up for. What this system was unable to show was what they bought once on premises of both added classes and events or the spa items such as lotions and soaps. Without this information they were at a loss of what customers spending habits were and how often they were buying them. The only thing this old system was capable of providing was the times they did certain activities and how often they attended the resort.

In the upgrades that the company decided on implementing this was becoming possible to view but they still have much more that would be a great benefit for them to understand. Such as do they come during an anniversary or birthday? Do they schedule return visits before leaving the resort? Do they offer grouped ideas for Health/Spa packages? What about the value being delivered and the profit made by using different queries within the system by tracking every item used or bought during their stay? Data mining the customer not only helps to understand their medical needs but what they may have issues with.

When is their anniversary and birthday? This allows us to buy or send cards to them and offer a possibility of asking them to return during that time for a percentage discount in order to bring them back again. Also sending out surveys to inquire what parts of the services they most liked or wanted and did not receive while in attendance will allow the company knowledge they might not have. Strategy and implementation of that strategy is to keep the customer service top notched and to continue to have value in what they offer.

Keeping this as part of the main stream of the company means you live up to your own goals and mission. Being rare, valuable, and unique in your offerings allows the company to have the edge on its competitors. The problem in recent years is the competition had begun to adapt and realize how much Canyon ranch had a good thing and many companies began to offer day spas, hospitals begin assisting people with opportunity to equipment and massages, and people do not have as much discretionary funds to spend several times a year.

My suggestion to the stockholders and Canyon Ranch would be to look at what makes their services so attentive to the customers’ needs. Are we capable of knowing all there is about our customers? Is it possible to have them bring a friend and offer them both a 10% discount to increase our traffic? Could we also invite specific types of companies to schedule vacations for their top executives to come visit us? Are there ways to have our IT help in the training and adaptation of our program coordinators?

Due to the turnover in that position and the need of them to have information immediately and knowledge of how to use the IT is something of a cost to the company. What I would suggest in this is to have them share with the IT department what information they need, code a program to work with the CLS system so that we can input that information and pull it out via queries and reports to have on hand as needed upon clients’ arrival.

Also have preempted training on what changes most customers make during their stay and how we might be able to get the user more adept to any discrepancies of schedules that do not fit well due to timing. This means perhaps doing things as a team and not just as individuals. Cross train and have opportunity to provide not only service but up to the minute information to the guest and staff as needed. This will only accentuate the knowledge and hands on approach that the company provides giving it that necessary edge to stay above the rest. Another thing to consider is travel costs.

It is nice to get away and find a place warm and secure to pamper oneself but Canyon Ranch may wish to consider finding more places to host the guests. Someplace like the South and the Midwest might also have areas of interest to travelers. It is simply something to consider as many companies are now receiving breaks for bringing the company to a specific city/state. This will also allow us to have more opportunity to find the perfect match for some of our staff and more opportunity to bring other professional staff members looking to move to that area of the country.


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