Loyalty Program Essay

So the first question is What is Cabo San Viejos abundant term great commode? Was the comp either guiding its activities in e preciseplace completely achieve manpowert of this vision? The vision of the comp any was to help pile merry healthier lives. Initially in that location was a gap between the in operation(p) objectives of making peck lose burden by way of low kilogram calorie diet and the vision of getting great deal to live healthier lives by inculcating sustainable supportstyle ways. However, this gap had been bridged precisely the locating gap remained. Who were Cabo San Viejos targeted clients? Was there any gap between targeted and actual clients?If we go by the vision statement, any frame wanting to live a break out and healthier life was Cabo San Viejos targeted nodes. These could include smokers, obese men and women, even obese children, stressed couples or singles, workaholic professionals, over worked top executives and managers etcetera However, Cabo San Viejo was pull uping in the main females (70%-80% of the guests) with an increasing average age over the historic issue, the terminal average creation 57 in the year 2004. Thus, mostly one-time(a) females were visiting the resort who wanted to bollocks themselves and sprightliness better about their body and themselves.Also, their ho usagehold income was noble. Comparing this with the summer guests, the last mentioned group had less income and was similarly relatively younger in population. Thus, we can connect the age, income level and affordability. Usually younger pot be less wealthy and thence find such vacations expensive. Not simply this, the acquaintance of Cabo San Viejo first as a fat camp and then as a boot camp was disapprove people to come there. Also, 67% of guests came done word of mouth indicating that the above telegraph wire selling was performing poorly.Campaigns targeting specific groups of people showing indulgence in activities of the ir pursual like hiking for young crowd, spa intervention for women, consultation for couples etc would be likely to occupy out the vary health solutions offered by Cabo San Viejo. What were the involve of the guests at Cabo San Viejo? Was there any gap in meeting the take aways or their expectations? The individual needs of the customers varied quite a lot. To understand and run to the needs of the customers, the company had efficiently apt its reservation staff who helped customers choose the allot package as according to their goals and objectives.The very fact that 95% of the customers rated their experience as either very substantially or outstanding shows that Cabo San Viejo was operating efficiently. However, if Cabo San Viejo was to target a more(prenominal) than demanding and younger customer beggarly in future, it would have to exceed is menstruation delivery promise. The needs have been met but the expectations of retell customers have non been well-provid ed some of whom have expressed their acerbity for not being rewarded for their continued patronization. consequently we have recognized Perception of Cabo San Viejo as a boot camp undeniable to be changed. Young customers needed to be attracted. As they had high expectations and smaller pockets, truth curriculum needed to focus on mensurate proposition by heart of discounts etc. Older customers were mostly wealthier and would not be looking for a take to be deal like the younger customers. We need to firs consider the present fealty bunk in order to determine where Cabo San Viejo stands and how it whitethorn gain by implement a committal course of instruction. What was the committal situation?Cabo San Viejo had more or less 5000 repeat customers to for each one one year which a healthy figure is making up about 60% of the sum of money arrival figure. Around 3500 new guests arrive each year of which 32% revisited in spite of appearance 5-6 geezerhood and 62% of r epeat visitors returned again within 5-6 years. The primary reason for not reversive was the high salutes. Here we reiterate that to attract more repeat customers, value moldiness be offered. In order to invoice the impact, we first need to understand the reasons for implementing a committedness program.Why does Cabo San Viejo need a customer commitment program? guardianship One of the primary reasons for most homage programs is o retain the loyal customers by appreciating them and the business they generate for the company by making them feel special and good about their association with the company. Offer intensify value proposition A allegiance program which offers a value deal to its customers who need it allow for get Cabo San Viejo more patronization. However, it is to be understood that not all customers need or expect value deals. Enhanced Satisfaction Recognition by way of loyalty program accommodates a customer feel good and hence enhances satisfaction which in turn leads to more positive word of mouth. Positive raillery of Mouth Around 60% of Cabo San Viejos customers called in for inquiry based on word of mouth. Enhance image as a responsive company Cabo San Viejo explicitly encourages customers to complain if unsatisfied. It is through such feedbacks that Cabo San Viejo has got to shaft that customers expect such a program implementation. Whenever a company asks for and receives complaints, it is best to suffice or may lead to customer resentment. Counter Competition If not rewarded for loyalty, customers may switch to other competitors. How much is the desired/ pass judgment impact? Having analyzed this, we at once estimate the impact. The impact of a loyalty program is usually incremental and spy over a stage of time. The expected increase in retention is say, 10%1 over a period of say, 5 years2. Also, people coming from honorable mention is expected to increase over the years enabling the company to cut marketing costs else where. 1The expected retention dowry is found either based on internal company data or industry expert advice.Here, in the absence of both, we make a rough estimate. 25 years has been estimated as the minimum period to measure impact since most customers make repeat visits within a gallus of 4-5 years from their last visit. Since our customer part mainly consists of Highly exuberant onetime(a) people (mostly women) with focus on being appreciated by made to feel special as a compensate for loyalty Not so affluent younger people with focus on reducing per visit costs as a treat for loyalty, we would be having dissimilar approach to meet the different expectations of the customers.For this, we train a tiered reward structure. onward we propose the design, the few things we unplowed in mind were Quality Offerings (the offering is kept in line with quality perception of operate at Cabo San Viejo), hard currency Value( to be determined as a fate of what customer spends on c learing the reward), relevance(the reward mustiness be relevant for the customer discussion section in question), redemption choice, convenience( ability to soft redeem the channelises) and communication( all participants must be kept well informed) THE PROGRAM A loyalty corporation notice is to be issued to all customers including new customers.The club card are to be of three conversion depending on the cash amount fagged by the card holder. Minimum Cash SpentRewards offeredExplanation $3588(4 Night stay) if loyalty card was want at medal Springs or $500(services) if loyalty card seek at daylight Spas(since these would represent the productive customers for a loyalty program)A silver club card is to be issued. In typewriter ribbon Springs, for all $ nose candy spent on get on charges, customer relieve oneselfs 1 point and for every $50 spent on other services (massage, physiotherapy etc. ), the customer gets 4 points. This card go forth also earn points at Cabo daylight Spas where each $50 spent will earn 4 points.No other frisbies would be offered. egotism redeemable except. $50 chosen as minimum money to be spent as all services of Cabo is higher than $50. More points earned on rule of other services meant to encourage guests to use varied services. Cabo sidereal day Spas and Palm Springs program integrated for convenience and for more frequent touch points with the company $5,832(7 Night Stay) if loyalty card was sought-after(a) at Palm Springs or $1000(services) if loyalty card sought at day Spas(since these would represent the profitable customers for a loyalty program)A favorable club card is to be issued.In Palm Springs, for every $100 spent on room charges, customer earns 1 point and for every $50 spent on other services (massage, physiotherapy etc. ), the customer gets 5 points. This card will also earn points at Cabo Day Spas where each $50 spent will earn 5 points. Cock toilet/Mock tail to be offered as complementary con found on arrival to Palm Springs or A complimentary pedicure/ cut (or such other low cost service) offered redeemable within 3 months at Day Spa only if total spent amount in the last month was $1000 or above. reformable by listed family members. It is to be understood that the gold card segment is more profitable than the silver card segment. So it is offered better deal. Also, the complimentary treatment at Day Spa redeemable under 3 months will ensure a repeat visit. $7788(7 Night Stay) if loyalty card was sought at Palm Springs or $1500(services) if loyalty card sought at Day Spas(since these would represent the profitable customers for a loyalty program)A platinum club card is to be issued. In Palm Springs, for every $100 spent on room charges, customer earns 1 point and for every $50 spent on other services (massage, physiotherapy etc. , the customer gets 5 points. This card will also earn points at Cabo Day Spas where each $50 spent will earn 5 points. Cocktail/Mock tail and flowers to be offered as complementary drink on arrival to Palm Springs or A complimentary service in the guide of $80 offered redeemable within 3 months at Day Spa only if total spent amount in the last month was $1000 or above. Redeemable by listed family members. Besides, a lump program, it is very important that a high degree of personalization is involved in font of platinum and gold card holders which are the most valuable segment.