Canyon Ranch Health Spa, Business Model, Strategy, and Viability

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Introduction

        Canyon Ranch is a leader in the spa and health resort industry that was founded in 1979.  It strives to be a place where people can not only choose to relax by getting a massage but can also work on their health through nutrition classes and even work on their fitness.  Canyon Ranch came to be where they are today by offering much more than the local day spa and by paying close attention to each and every individual customer’s needs.

“No matter what feeling better or feeling healthier means to you, Canyon Ranch is a place that helps you connect to a happier lifestyle.  Everyone experiences a different Canyon Ranch; we’ll meet you where you are.”  

                                       Harley Mayersohn, Vice President of Marketing

Issues, however, have started to arise now that Canyon Ranch is starting to face some intense competition and are subsequently looking at possibly greater utilizing their IT system to allow them to offer an even better experience to their customers.

Personalization and CRM Strategy

A major question being asked by Canyon Ranch is whether or not to engage in a personalization and customer relationship management system (CRM).  Canyon Ranch should in fact engage in a personalization and CRM strategy. It enforces the perception of good customer support and high quality service. They need to understand their customers, their needs, and general trends. They can utilize the information they have already gathered over the years to do this. For example, since women represented about 75 percent of Canyon Ranch’s customers, they can focus on offering products and services that keep women hooked. However that is not enough; they need to get closer to knowing their true customers not just their age, gender, and income level, but also their spending habits in the Spa or the Destination Spa. They should be able to track down the cost of every product and service, at what time it was purchased, and how much was spent per customer along with the frequency. Whatever information is collected can and must be utilized by all functions and services across the company as a tool to offer integrated packages.  Canyon Ranch’s main advantage is the high quality and service standards, CRM is important to keep this image. Also, this will allow them to better market their services and continue to grow.  

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By using a CRM system they would be able to offer an even better experience to their customers.  Being a company that does not heavily advertise they rely on word of mouth to promote their company and its services, which will only happen if a customer has an exceptional experience while they are at Canyon Ranch.  Therefore, it should be a priority to ensure that every customer receives an exceptional, unsurpassable experience with which they can share in conversations with friends and acquaintances. Canyon Ranch needs to make their services unique and irreplaceable in order to justify their high costs, which ...

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