- Introduction Case study (continued) 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 fran- chising 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, lack ing a clear CRM vision and strategy, and invested in a rather ad hoe way in CRM systems. The franchising concept Characteristic of C. Fun Parks is the resort's 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 park's 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 franchines expressed concerns. They particularly expressed concerns about the Case study (continued) 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 1 Let's 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 headquarter's databases. However, the local databases don't 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 initi- ated, but have not yet resulted in an increase in sales, spending, retention or satisfaction rates Question 1 As a CRM consultant, make the desired analysis and come up with recommendations. Use the content of this chapter to prepare your report