Table of Contents
Play for profit involves carrying out an activity without setting time limits, allocating goals to achieve or rules to follow. In the morning, Worlds of Play held a meeting in Seattle. The aim of the meeting was to discuss ways of improving the profit margins of the company as it has been experiencing constant reduction in profits. Alex Harrington, a consultant and an expert in business strategies took part in the meeting.
According to Alex, the company needs to increase the visits paid by each customer to the Worlds of Play amusement parks. He also suggested that the company should aim at increasing the average amount of money spent by each customer during their visit. The third idea is to find ways of attracting customers who have never visited the amusement park. Alex came up with an idea of incorporating three goals through the introduction of preferred guest cards by the company.
Merits of Using the Card
A preferred guest card is intended at giving customers better value for their money. Customers are expected to start earning bonuses on their card on signing up. In Marriott Rewards, the idea has worked. Marriot offers its customers a great number of credit cards to choose from. However, the same idea has worked against Starwood, which only offers two types of credit cards with limited signing up bonus of only one for every lifetime. Alex suggested we come up with a variety of preferred guest cards.
He pointed out that the cards would offer customers opportunities for earning points. For the company to benefit from this, each card holder would earn points for referring their friends and people they know to the parks. Marriot for instance benefits through offering fifty thousand points to its customers for just referring others to use their services. A customer would also earn points for the amount of money they spend on the services offered there.
The card, according to Alex, would allow us to lure our customers into spending more money on our services just to earn free nights. Alex suggested that for every dollar a customer spends, we should allocate them three points. To be able to earn a free-of-charge night at our parks, a customer is expected to have at least six thousand points. It then translates into spending approximately two thousand dollars on our park services to earn a ree night. This would help the company attract more customers especially in a holiday season.
According to Alex, the preferred customer card would help our company in earning partnerships with airlines that would offer equal settlement to their esteemed customers. Our customers may be able to use their points to pay for a flight. An esteemed customer of the airline would also be able to transfer their points to stay in the park, depending on the agreement we reach between us and the airline. This would be beneficial to our company as we would earn direct advertising to our customers.
Alex also proposed that we offer elite category for our membership cards. This would help in attracting wealthy people into the parks. Elite members would earn a 50% higher bonus on their points. This would mean that the rooms they stay will be upgraded and they will be given discounts on the purchases they make. This would allow rich customers to see the value for their money and incentivize them to come back.
The introduction of preferred guest cards would highly benefit the company. Partnering with an airline would mean that the company would earn advertising from the airline. Notably, awarding points to customers for recommending our amusement parks to people they know would mean that our customer base would increase at a very fast rate. Giving free night offers to our customers would make them come back more frequently. The introduction of preferred guest cards would be a great move for the company.
Related Free Business Essays