Executive Summary Club 24 Gyms The purpose of this paper is to analyze the current status of Club 24 Gyms’ CRM system and how it currently views customer orientation. The analysis of the model currently being used and recommendations on how to improve this model are included in the findings. One of the major findings is that there is no real CRM system in place. Also, Club 24 Gyms believed that it was operating for the customer but they do not currently have a good method of delivering quality customer orientation.
Recommendations for this business include implementing a CRM system and developing an action plan based on Club 24 Gyms core values that change how they deliver customer orientation. They will do this by adding a CRM system and implement a training program based on “Dermot Copps & Company’s'” Customer Orientation. By making these changes new goals and measures were set up that have specific targets to reach that would not be able to be tracked without these new systems in place. At best Club 24 Gyms has a minimal CRM program in place and through this project we have determined that it does not operate in a fully customer centric manner.
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In the first part of this project we analyzed and assessed Club 24 Gyms’ customer orientation. What we learned was that although the company thought they were doing everything for the customer, it was discovered that it was looking more at what they could do to make the customer happy without really knowing what or how to do so. Through research we found an extremely useful method of customer orientation done by Dermot Copps & Company in 2008. If followed, Club 24 Gyms would run its business more focused on what the customer wants vs. hat the company wants. We wanted to ensure that Club 24 Gyms placed a higher value on customer satisfaction than short term profitability. We also looked at the sad excuse for a CRM system in place. Club 24 got information from their customers 3 different ways: personal interactions, online surveys and emails from the advisory board. The big problem is that none of this information was retained or analyzed in order to create a better experience for the members. That being said there are many proposed changes to the way Club 24
Gyms views and interacts with their customers and how those interactions will be tracked and analyzed in order to give the member more. Part 1: Retrain current managers and staff on the basics of customer orientation and how it will translate from the company to the members going forward. The concepts that are included are focusing on customers’ needs, exceeding the customers’ expectations, discovering new ways to deliver customer service, constant evaluations of performance, delivering need based service in a timely manner and partnering with customers to deliver the best value.
It will be necessary to have daily training in order to change the mindset and actions of the employees. This will reinforce all employees’ roles in the overall member experience and how imperative it is to deliver exceptional service every day they are working. The basis of our training will revolve around the 5 Levels of Customer Orientation based on the concept developed by Dermot Copps ; Company. Training will consist of one section per week for 5 weeks. Once training is complete the employees are tested employee becomes club certified as a customer orientation specialist. . Responsive-this will outline Club 24 employees willingness to respond to customer needs and have a helpful and supporting attitude 2. Proactive- teaching the team how to be more proactive in finding new ways to provide the member a value. 3. Planning- training the team to always be active and systematic in order to serve the customer better. 4. Partnering- teaching Club 24 team the importance of developing partnerships and relationships in order to become a trusted partner. . Managing- staff will learn how to extract competitive advantage and is able to achieve the companies goals by giving great customer service. If the employee understands the message Club 24 is trying to convey to the customer and can deliver it all the time they may keep their job. If the employee cannot grasp the concepts and values they must be let go. All of the new hires must be able to respond to a customers’ needs an enjoy giving the customer the satisfaction they deserve.
Therefore there must be a zero tolerance rule in place so that if an employee is caught not operating in the interest of the customer they must be written up. If there is a second offense they are fired on the spot. On the flip side an incentive plan will be implemented in order to reward those who go above and beyond to serve and please the customer. Every time a fellow employees or customers send an email to the manager that states your exceptional service, the manager will then give out a gift card as a reward.
We feel that this will promote an environment of competition which will also benefit the customer. Step 2: In this next step we are going to revamp the current system that Club 24 Gyms has which consists of member surveys and the member advisory board. In order to upgrade our member advisory board system we have come up with some improvements which will help enhance the current system. One key initiative is to have a monthly member survey email sent out to our entire customer base. We would also like to add a member contest in order to add some incentive for completion of this survey.
This would help boost participation and in doing so it would provide management with some great constructive feedback in order to provide better service and equipment to our customers. We would also like to expand on the program by requesting more information and making this advisory board more accessible. Some of the ways of implementing this change are to add drop boxes for quick suggestions, use staff members to personally remind members and push the program, and utilize the kiosk in the gym for instant personal feedback. This new system could provide us with some very useful benefits.
It will help and encourage more interaction between members and staff and it will also show the commitment Club 24 has for its customer base. These enhancements will also allow us to act on new information and suggestions in a faster manner and it will allow the members to see their suggestions are actually being used. Club 24 Gyms is missing one crucial component to a true CRM system. This would consist of a way to track and analyze the data we would receive from our member interactions and be able to act on what we have learned in order to give a better experience for many more members.
In order to do this we must add a CRM program since Club 24 Gym only has a system that is mostly utilized for billing and check ins etc. Once this program is in place we will be able to create programs more specific to the needs of the member, field complaints and track the progress and outcomes as well as stay on top of the changing customer trends as they change in our diverse demographic. Step 3 After looking at some industry specific CRM systems we believe Club 24 Gyms will be very successful with Salesforce.
One of the reasons we chose this program over the other ones is because of the top of the line technology and how it uses the newest cloud environment where you can access your data anywhere, even your mobile phone or tablet. Salesforce is #1 on the website “Top 10 reviews” (http://crm-software-review. toptenreviews. com/) as it earned an excellent score in all 5 categories which include: Features, Contact Info, Sales & Marketing, Ease of Use and Help and Support.
Many different industries also utilize this program such as Social Enterprise, Communications, Financial Services, Healthcare & Life Sciences, High Tech, Manufacturing, Media, Nonprofit & Higher Education, Public Sector and Retail. One of the leading private health clubs in the industry, 24 hour fitness, uses this program and it works very well for them integrating all of the clubs they have over the country. Salesforce has many features and functions that will benefit Club 24 Gyms. There are several products that would be useful to Club 24 Gyms that Salesforce offers including the Sales Cloud (CRM) and the Service Cloud.
In the Sales Cloud there are several editions to choose from and out of all 5 editions we will choose The Group Edition for our CRM Product. This edition includes Sales and marketing for up to five users. With Group Edition, you get basic CRM, including Web lead capture and Google AdWords to generate leads and reports and dashboards to manage through the sales cycle. You also get desktop integration and one app from the AppExchang. We chose this edition since it offers the use of up to 5 users with the option to upgrade if and when Club 24 grows.
Here are all of the features included: Accounts & contacts, AppExchange app integration, Chatter collaboration, Content library, Document attachments, Email integration (Gmail, Outlook), Google Apps integration, Mobile access , Reports, Task & activity tracking, Competitor tracking, Customizable sales process, Dashboards, Email templates & tracking, Google AdWords, Lead scoring, routing, & assignment, Microsoft Word mail merge, Opportunity tracking, Partner collaboration (Salesforce to Salesforce), and Web-to-lead capture.
The cost of this product will be $15 per month per club ($75 total) in which we would use one for each club. In terms of cost, this is a pretty low cost per club and will ensure that we can track and analyze all sales interactions and help build a greater understanding about our members. It will also help us generate leads from Google Adwords which we are currently using in order to keep better track of each sales cycle as well. We will also add a Service Cloud product Professional Edition. Club 24 Gyms is a service business and we feel that we need to concentrate our efforts in this direction as well.
In this edition we will have basic service and support for any size team. The features that make us feel that this will help are case tracking, agent console, solutions, mobile access, Web and email case capture, and auto-assignment and escalation rules. Club 24 Gyms can also use the Service Cloud to join conversations about the company, products, and services via Twitter and Facebook. These features will create more interaction that will allow Club 24 Gyms to track and record conversations that happen on Facebook and Twitter.
Club 24 Gyms already interacts on both social media outlets but does not use to the fullest extent. For example with the new system, if someone comments on the Facebook page, one of Club 24’s representatives will be automatically notified and can respond and retain the information in order to help create a better gym experience for all. This product does cost $65 per month and we would need to also have 5 users, one for each club which would cost $325 per month. It is a larger expense but Club 24 Gyms would have gained much more in the long run in terms of better programs, happier members and more members.
The Service Cloud and Sales Cloud are quite easy to use. However we believe that our user will have to become certified to use the program. Customers who were trained by salesforce. com have 52% higher user adoption rates and increased sales pipeline by 132% (Source: MarketTools Inc. salesforce. com logon analysis). We have the option to train individual users in classrooms, in instructor-led virtual classes, or in self-paced online courses. Each manager must become certified in using this program so that it will be implemented to its fullest potential.
Once Club 24 Gyms implements the new CRM system (Salesforce) it will now have the tools to truly be connected to their members. Once all of the staff is trained on Customer Orientation they will deliver the service that the member expects and even go above and beyond. By implementing these recommendations Club 24 Gyms will now be able grow the company to new heights based on what the customers want. In this industry the members drive the business so if Club 24 Gyms keep their members happy the company will keep growing much further that the competition that does not honestly operate for the member.
Goals| Measures| Target| Improve Customer Service| Member Retention based on past years| Improve by keeping 10% more members by year end 2012| Add High Quality membership options based on what our customers want| Increased interaction with members on our CRM system about memberships| Develop one new membership by April 2012| Update the equipment when a new technology comes up| Listen to our members on the CRM (if feasible financially)| Add one new piece of equipment quarterly| Streamline billing issues at the club| Track how many we handle in club vs. ur billing company| Decrease the amount of times that we send to the billing company completely. | Have the cleanest clubs in CT| Listen to our members as we communicate with them through survey and CRM| 99. 9% of responses are positive by June of 2012| Increase instances where the staff goes above and beyond for the member| Member or staff will bring to club manager and tracked in our system on a month to month basis| Increase the amount of interactions that are positive|