Customer management is an essential business function that plays an important role in not only creating and maintaining the business’s image but also ensures that old customers keep coming back and bring new ones as the business grows through referral and positive reviews from customers on public domain. Our experience tells us that it is lot more cost effective to nurture existing client relationships and take advantage of the additional opportunities than to concentrate on seeking and wining new clienteles. The objective of this customer management plan is to suggest a course of action aimed at improving Luxury Spa’s rating on Customer Satisfaction Index. The customer management plan being presented analyses present customers, identifies the target customers, defines employee behavior and the best possible ways of handling customer inquiries or complaints. The Plan will help to nurture a robust and profitable relationship with the customers, not just simply handling should a problem or enquiry arise (Linoff & Berry, 2011). In addition to this, the Plan allows scope for improving and adapting as a consequence of periodic evaluations that will translate into a better efficient customer relationship management plan.
Luxury Spa was established in 2011 by leisure entrepreneur Lesley Forest. It operates as an out-and-out wellbeing company with 56 spas in major cities and towns across the United Kingdom offering a range of services such as spa treatments, massages, swimming pool, Solarium and Jacuzzi. With over 300 employees, Luxury Spa is looking to open up to 5 new Spas before the end of 2018.
The Company targets the premium segment. Its main objective is to cater to the customers representing the 3 ACORN sub-categories (CACI, 2014).
The above three categories of customers come under Acorn;s classification of population as Affluent Achievers. These people are financially most successful section of the population in UK residing in the affluent, highly prestigious rural, semi-rural and suburban regions of the country. They Affluent Achievers comprise mostly of the older or middle aged people, the generation of ‘baby-boomer’ along with several empty nesters and well-to-do retired people. A number of localities encompass big numbers of prosperous families with school age children, predominantly the more peripheral sites (CACI, 2014).
According to CACI-ACORN, this category of people reside in huge accommodations, some of which are worth several millions or substantially more expensive than the average for the neighbourhood and many of these families will possess more than one properties. Mostly well educated these people are employed in managerial and professional occupations or have their own businesses generally earning well above average.
Quite a number of people belonging to this section have strong bank balances, good investments, and appreciating properties which give them the capacity to spend as and when they want and with a higher frequency. Usually tech savvy, this section of the population can confidently manage their own finances, and are usually established high up the social rung which makes them are “healthy, wealthy and confident” customers (CACI, 2014).
Luxury Spa will provide an array of premium quality spa and fitness services and it is essential that it taps into the Affluent Achievers section of the population. These people prefer good quality service and do not care much about the high prices which gives the business scope for earning comfortable margin by providing high-value premium quality services. Their word of mouth and positive recommendation will help to push Luxury Spa higher on the consumer satisfaction index.
Price: The Affluent Achievers do not have the dearth of money when it comes to personal indulgence. The price of the products can therefore be kept slightly on the higher side. However, the service quality will have to justify higher prices. There had been dissatisfaction among the consumers regarding pricing of services. The target would be to improve the quality of service provided. For services such as French manicure, facial, etc., Luxury Spa will use premium quality products sourced directly from top product manufacturers. The services would be delivered through highly trained and experienced professionals.
Demographic Composition: A very important aspect of analyzing customer needs is to understand the necessity to take into consideration the fact that the customer base will include customers with disabilities, customers having diverse cultural and ethnic backgrounds and customers travelling in from overseas locations. Each will need facilities that suit them the best. While designing service delivery all these factors will have to be kept in mind. The management and managers must ensure that sentiments of none such customers are ever hurt by the conduct of any personnel or the policies and practices followed by Luxury Spa.
Improving Environment: The environment at each Luxury Spa outlet has an important role to play in determining the satisfaction derived by the customers from their services. The ambiance must be elegant, tranquil and inviting – softly yet adequately lit, judicious use of scented candles, incense sticks, would work best. We would suggest complete remodeling of a section of the spas that would provide Asiatic services such as Ayurvedic and Yoga therapies to suit the theme.
We have analyzed Luxury Spa’s services using 7 Ps and suggest certain improvements that are expected to enhance customer experience.
Product: Luxury Spas offers a range of personal physical wellness services such as spa treatments, body massages, swimming pool facilities, Solarium and Jacuzzi. It also offers its customers gym memberships to its own fitness centres. Luxury Spa can introduce Ayurvedic Treatment, Facial Treatment, Foot Spa, Sauna, Steam Room and Yoga Therapy. The gyms should house the most modern sophisticated fitness equipment and offer a range of fitness plans including weight reduction, body toning, weigh training, strength training, etc. The customers would have the option to choose from a wide range of services.
Promotion: The Company should undertake direct branding and promotional campaigns pitching to the class of population who would take out time for personal indulgence. The Company will advertise its services through the television ad campaigns, digital marketing using social networking websites and lifestyle magazines. It will also distribute pamphlets with promotional offers through lifestyle stores at high-end shopping malls, the airport, luxury restaurants and hotels and have tie up with some of the best-known resorts, boutique hotels and luxury hotels for providing spa services.
Price: Since Luxury Spa serves the premium segment of consumers the prices charged for wellness and fitness services will be slightly on the higher side justified by superior quality of equipment and products used to deliver the services through highly trained professionals such as masseuse, gym instructors, beauticians etc. Both monthly subscription-based membership to gym and spa as also one time service options would be available and the fixed membership fees would be lower than fees charged for availing one time service option.
Place: Luxury Spa will launch its own mobile app that can be downloaded from app stores using smartphones, tablets etc. The existing website will also be revamped to provide country-wide online booking facilities. The customers can book their spa sittings using Luxury Spa’s online portal and mobile app. Special discount of 10% is allowed on spa and gyp services booked through Luxury Spa’s mobile app. The website will also provide option for availing various membership plans for the services offered by Luxury Spa.
People: The gym instructors, beauticians and masseuse are the core people. Luxury Spa would need trained personnel for the new services introduced such as Ayurvedic and Yoga Therapy, weight loss programs, aerobics etc. The existing staff members are highly under-trained for the new range of services that would be offered. The Company would hire new highly trained personnel for junior levels renowned institutions and for senior levels it will hire trained individuals with proven track records and strong references. There will also be experts to guide the guests on the type of spa and fitness service that will suit them best, should they enquire.
Process: Luxury Spa will continue to focus on its customer-centric approach in its bid to delivering superior quality customer experience. The Company will use IT supported channels for maintaining client database that can be analysed to generate valuable insight into trends in consumer demand and then develop further on the array of services that can be delivered. The checkout and payment systems will also be made faster using plastic money, and reducing cash transactions to the minimum. Coupons for payment can be availed online through Luxury Spa’s website and mobile application. Advance payments can also be made online. Membership fee payment and membership renewal can also be done easily using the online route.
Physical Evidence: To ensure superior customer experience the Company ensures a tranquil and inviting environment at all its spas. For provision of new services such as Ayurvedic and Yoga services, a separate section within the spas will be created. The ambience will me a mix of mysticism and romance, simplicity and elegance with a view to provide complete relaxation to the guests. The uniform of the staff will also be revamped. While he logo will remain the same and displayed vividly on the back of the uniform, the uniform colour would be a pleasant blend soft peach and light cream colours giving a soothing appearance to the eyes.
Customer Handling: Luxury Spa follows a policy of personal, approachable and cordial relation with the clients, both existing and prospective. All clients are treated most cordially and with equal respect. The Company ensures that all clients’ enquiries are addressed immediately by the employee approached or if he/ she has inadequate knowledge, the employee must assist the client to come in contact with the employee who is qualified to handle customer queries. Mostly this part is taken care of by the employees stationed at the reception counter and at customer help desk on each floor and each section of the spa building. The other most important thing is handling customer is addressing customer complaints.
Managing Customer Data Base and System of Customer Feedback: For identifying areas that need further improvement a system of customer feedback needs to be maintained. Easy to fill questionnaires and suggestion books help to better understand and analyse customer needs and scopes for improvement. It also helps to monitor whether the organization is going up or down on customer satisfaction scale. Equally important is a centralized customer database. For repeat customers, database can be used to retrieve information regarding age, service preference, preferred payment option, membership renewal date etc. which ensures that the repeat customers are not always pestered for this information every time they visit any outlet of Luxury Spa. Customers like it when the service provider knows what the customer would prefer. It makes them feel special – an important thing is raising customer satisfaction. It also helps in sending greeting cards and gifts vouchers to customers on such occasions as birthdays and anniversaries.
Providing Value-Added Services & Loyalty Programs: Luxury Spa values its customers dearly. Among the value-added services that would be introduced are day spa and health and diet advisory services, body toning, foot spa and Asiatic massage therapies. The organization will also launch loyalty programs for all customers who have been with it for one year or more. There would be Bonze Card (1-2 years), Silver Card (3-4 years), Gold Card (5-7 years) and Platinum Card (7+ years). Each card will have specific facilities and discounts and move progressively from Bronze to Platinum category. Facilities will include special waiting lounges, dedicated service delivery rooms, number of free services in a month, free gym facilities for higher tire card members in hometown etc.
Payment Options: Luxury Spa will offer a range of payment options including weekends only, early morning, discounts for annual subscription based payments and happy hours. These options other than attracting the customers ensure superior customer experience. For many customers who are early risers and have some free time early in the morning everyday early morning payment options would be most desirables. For females staying at home happy hours between 12 noon to 3 P.M. in the afternoon providing special discounts and offers are most suitable while weekends only are for people weighed down by hectic office work. These help to improve customer satisfaction.
There can and will be dissatisfied customers. An aggrieved customer is customer and hence revenue lost. It is important to address the issues raised by aggrieved customers without any delay to ensure no substantial damage is done to the organization’s image and that such customer do not switch over to any of the competitors. An important part of improving customer satisfaction is recovery of clients who were lost due to some discontentment caused due to mistake on part of the Spa, by delivering to the client what they desired and rectifying own shortcomings to avoid such undesirable circumstances in future (Segelström & Howard, 2010).
Listen carefully, try to understand what caused the dissatisfaction and assure the customer that appropriate steps would be taken for grievance redressal. Speak softly and calmly. It is important to remain calm at all times and not get into any confrontation with the customer. The customer must never feel cheated or being taken advantage of.
Prompt solution of customer issues is important for ranking higher on the customer satisfaction index. The employees should always demonstrate a willingness to promptly solve the issues arising. Employees must inculcate the skills of listening, always responding to customers with a smile and restrain aggressive behavior.
For this it is essential to make each employee responsible for his own action and for augmentation of organizational goal. Employee empowerment is also important as it gives them power to promptly resolve any issues that may arise. Periodic trainings are absolutely necessary.
An understanding of cross-cultural differences (Prezi, 2013) is the key to effective customer communication. The guests who come to Luxury Spa present a mix of diverse cultural, social and ethnic background. It is necessary that the employees are well aware of the way should conduct themselves to ensure that they do not in any way, not even inadvertently, hurt the sentiments of any customer from any background.
Communication should be clear and succinct. Speak clearly, audibly yet softly. Make sure that the customer understands what is being offered and there is no misconception or mis-expectation or ambiguity in this regard. This will help to avoid any unwanted aggrievement of customers. Make sure there are pamphlets and other display materials clearly stating special offers and explain to the customers clearly when enquired about. Also, make sure that the customers understand terms and conditions of service clearly.
For developing effective communication skills periodic training on cross cultural differences and cross cultural communication will be carried out with the help of expert trainers.
References
CACI, 2014. ACORN User Guide. [Online] Available at: https://acorn.caci.co.uk/downloads/Acorn-User-guide.pdf [Accessed 3 May 2017].
CX-Journey.Com, 2015. Moments of Truth. [Online] Available at: https://www.cx-journey.com/2015/08/moments-of-truth.html [Accessed 4 May 2017].
Linoff, G. & Berry, M., 2011. How to Write a Customer Relationship Management Plan. Journal of marketing research.
Prezi, 2013. Consumer Behavior Assignment. [Online] Available at: https://prezi.com/tw97gfogmnda/consumer-behavior-assignment/ [Accessed 4 May 2017].
Segelström, F. & Howard, J., 2010. Understanding Service Recovery. [Online] [Accessed 4 May 2017].
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