Strategic Management of Global Information Systems
Glenn Cunningham October 1, 2011

Canyon Ranch

A visit to Canyon Ranch is to venture into as their slogan extols “the power of possibility”. Its mission as the founders explain it, was created for it to be a place people would be inspired and motivated to translate the healthiest thoughts into action. Canyon Ranch advises those considering entering that “Canyon Ranch is more than a place, it’s state of mind and a way of life” Guests are therefore empowered to take command of their lives through fitness, healthier living, integrative wellness and learning how to deal with stress, all which leads to longer and happier lives.

At Canyon Ranch the idea is that one can relax, be happier, get health and experience a more fulfilling life. People have been in quest of this goal for as long as anyone can remember therefore its Canyon Ranch’s aim to be the answer to that quest.. There have been different avenues in which to achieve this and at different levels of involvement. Self-help groups, social interaction, clubs, books, articles, and various DVD’s on the subject. But a Canyon Ranch experience is so much more than any self help book or aid can be but of course at a much higher price. Yet with 230 different services no self help book can match that kind of appeal.

At one of the Canyon Ranch locations (with the use of the word “location” is intended to be generic) as Canyon Ranch conspicuously doesn’t necessarily call itself a resort, a spa, a golf course, a club or vacation destination as it’s all of these. They do have individual spa clubs but Canyon Ranch is best known as being the total of all these descriptive entities wrapped up into one. Thus simply referencing the name Canyon Ranch conjures up the image of these nouns with even more to go around. The spa clubs gave clients a taste of what a full Canyon Ranch experience could be, a sampler of such to entice those participating in their spa clubs to go all the way with a reservation at one of Canyon Ranch’s destination locations.

Canyon Ranch aspires to being the best in the business and to build a reputation of unparallel excellence. To do so requires a management system that employs the best of what it can produce. Therefore customer interaction and feedback are essential to developing and maintaining the highest level of customer satisfaction. Since Canyon Ranch is not a low cost, budget option for patrons the task is even more important to have Canyon Ranch get it right. Not just to meet expectations but to exceed them so a guest experience results (as termed in services marketing) in being “delighted”. The achievement of this goal will continue to keep Canyon Ranch at the top of the list of premiere destinations and drive profits.

Now any competing rival can lavish guests to the extreme but it the component of combining the pampering with the idea of rejuvenating and making guests if not be healthier then at the very least feel healthier. Health and healing was not intended to be a profit leader like the hotel and spa are but essential to the total experience package afforded to quests which helps to distinguish Canyon Ranch from its rivals.

Staffing is critical to the deliverance of services to clients and thus the right mindset as well as skill sets is important in the selection of personnel. A very close ratio of staff to guests affords the best attention to a customer’s needs as possible. Canyon Ranch has a corporate culture in which there is a match with the people who make up the organization in order to exemplify that corporate culture.

Canyon Ranch’s success is not merely measured in dollars but the number of returning guests which is a clear indicator of the satisfaction factor that is achieved. Advertising is not the basis for promoting Canyon Ranch as word of mouth advertising is the core strategy. However the organization may partner up with another premier brand that is deems appropriate to be connected to and that has relevance to the Canyon Ranch brand. While women are the predominate users the number of men participating has increased as the virtues of Canyon Ranch are spread amongst widening age groups. Canyon Ranch’s clientele most definitely is upper middle class to upper class which is their target group.

While the exhaustive treatment of guests leads to repeat business and referrals leading to new guests bookings, web based advertising has begun to take its place in shaping Canyon Ranch’s marketing strategy. With information technology more strategic planning and decision making can be utilized. The Computerized Lodging Systems began to help track a customer’s history data. Coupled with another software application more preference data was being collected to insure Canyon Ranch could improve upon its relationship with its guests. With the capability to be well informed about any particular guest, Canyon Ranch can anticipate needs, or suggest those that would be most appropriate reducing or even eliminating the need to ask guests what their preferences or needs were. Interaction with guests can insure the bond that Canyon Ranch has worked so hard to establish continues and is strengthened.

The value creation of a CRM to Canyon Ranch allows for the establishment of a system to help deliver the best possible experience for the customer which creates value for the customer as well. Planning and scheduling are derivatives of IT which in turn makes the organization more effective and profitable which in turn has a positive effect on the client base.

Executives at Canyon Ranch must be aware not to run the risk that their uniqueness slips into just another commercial enterprise but to vigorously maintain a distinctive unique service. With a more sophisticated IT and CRM program both data and information can be gathered to improve upon business decisions. Armed with such information decisions as to whether invest in capital improvements such as adding more hotel rooms would be cost effective or not. Tracking wait times for tennis courts may suggest more courts are also needed. An upgraded IT system can have the benefit of staying in touch with clients so as to keep the Canyon Ranch brand foremost in their minds and to start thinking of when to plan a return visit. Exploiting all the human senses touch, taste, sight, smell hearing in addition to thought can have a definite appeal.

Expanding a CRM system to include the grading of personnel can help indicate if their arte gaps in service or employees who are not as effective as they should be.

Canyon Ranch can also continue it partnering by becoming affiliated with those health organizations such as American Medical Association or one of the numerous women’s cancer awareness groups that can serve to reinforce its emphasis on health and wellness. This would then become a sharing of information technology from both Canyon Ranch and any of its partners.

While noted previously, women with an average age of 47 make up the bulk of their patrons. Canyon Ranch’s web site now is marketing in a way that they have seventeen different specials to attract a better cross section of potential clients. This includes mother daughter packages, married and unmarried couples. Acknowledging that word of mouth advertising has been the mainstay of creating business they also offer 10% discounts to both returning guests and a new first time guests whom they bring to the resort.

While thirty years of experience can teach any business a lot but no business can rest on their laurels and that has to be the upper most thinking of Canyon Ranch’s CIO who must set the bar higher in terms of the flow of information between the organization and its self proclaimed votaries of Canyon Ranch.