Chapter 2 Case Study

CRM at C. Fun Parks

Background

C. Fun Parks is a concept that was developed by Theodore Brook in 1985. The aim was to give people a short break, to take away their worries and give them a safe place to visit, where everything is provided for their comfort and entertainment, and also their family and/or friends, and all close to home!

From 1985 onwards Brook experienced a great demand for his service proposition. In only a few years he was able to open more than thirty of these resorts in the Netherlands, Belgium, Germany and France.

The first resorts were company owned, managed and operated. But soon Brook found that his resources were limited and this hindered a rapid expansion; the launch of a franchising concept provided a solution. At present, 85 per cent of the resorts are owned and managed by franchisees. Twice a year there is a meeting between the franchisees and the franchise organisation. During the last franchisee meeting, Brook was asked to develop and present a CRM plan. The franchise organisation was, in the franchisees opinion, lacking a clear CRM vision and strategy, and invested in a rather ad hoc way in CRM systems.

The franchising concept

Characteristic of C. Fun Parks is the resorts main building that houses the reception, a res- taurant, a (tropical) swimming pool, a bar, a terrace, a game hall and a convenience store. Apart from the central building, the resorts contain several bungalows, with accommoda- tion available for four to sixteen people.

Guests can choose between several service packages. The budget pack does not include bed sheets, towels, cleaning, welcome food and beverage package, etc., whereas the pre- mium pack will provide these services.

Also, in the park, several activities are organised for guests, ranging from horse riding, bingo and soccer games to nature walks. Outside the park, there are ample opportunities for enjoying a short holiday. The park provides guests with information so that they can enjoy and explore the local environment.

Franchisees have little decision-making freedom over the park. The parks general manager also has to follow and pass a professional hospitality management programme and a special quality management system has to be implemented in his/her organisation. Furthermore, s/he will have to participate in the joint marketing programme.

Franchisee performance

About 70 per cent of the franchisees have been able to increase customer satisfaction rates over the past five years. However, the improvements in profitability and sales show a less satisfying trend over the past three years.

Of course the market has changed, but even if the franchisees take account of external events, they state they need more. Occupancy rates have dropped to 85 per cent; this, although still acceptable, has been higher in the past. Furthermore, guests often delay their choice of a short break, leaving the decision as to whether to book a holiday until the last minute. French guests are known for their impulsive behaviour; a substantial percentage do not reserve a bungalow, and arrive at reception asking for a place to sleep. During guests stay, the spending pattern has also shown a negative trend: they spend less during their stay in the restaurant, in the convenience store, on organised activities, on services, etc. Not all the facilities are particularly profitable either. Although it might not be desirable to hold each facility accountable, there is a need to exploit the tropical swimming pool, for instance, in a more economic way.

CRM on the agenda

Although relations with headquarters and Theodore Brook are quite good, during the last meeting franchisees expressed concerns. They particularly expressed concerns about the effective use of CRM. Brook has been investing rather large amounts of money in CRM proj- ects that have been delayed or even cancelled. Franchisees wanted him to hire an external expert to make an independent analysis and to provide recommendations for CRM. Also, they want this expert to consider, as part of CRM, the feasibility and functionality of a loy- alty programme to improve customer retention rates and spending.

Brook wants to follow up this request. Imagine he has selected you and invites you to present your ideas on this project. What is your initial analysis of the situation? How should they approach the project and seek to improve CRM at C. Fun Parks?

As input for your preparations, C. Fun Parks has provided the following information on the CRM projects.

CRM Project I

Lets say Brook has hired Siebel to implement a CRM system for the internet (web) channel and the call centre. Siebel (Oracle) is a well-known CRM system; by selecting this service provider, Brook sought to reduce risk.

At the core of this project were several processes (lead generation, converting leads into sales, information provision, market research, after-sales service).

The real-time registration and accessibility of the communication history for different channels made it possible to serve prospects and customers any place and any time.

Problems have arisen with the integration of this front office application with back-office systems for administration, billing, invoicing and reservations. Up until now the sys- tems have operated separately.

CRM Project II

The success of CRM depends to a large extent on the quality of the data and the customer profile. To date, several parks have been recording the identity of the guests in their own way; they did not want to rely on headquarters databases. However, the local databases dont only differ in structure, but also in the quality of the registered data. The result is that many (e-)mailings are returned, wasted and result in time-consuming phone calls to call centre agents.

Profiling attempts to seek to know more about each individual customer have been initiated, but have not yet resulted in an increase in sales, spending, retention or satisfaction rates.

Question

As a CRM consultant, make the desired analysis and come up with recommendations. Use the content of this chapter to prepare your report.

Read Case Study "CRM at C. Fun Parks (pages 43-45

Use the content of this chapter to prepare your report.

I NEED 4 PAGES OF A STEP-BY-STEP PROCESS