Introduction
The ever-increasing cutthroat competition across industries and within industries has inspired many organizations to invest heavily in developing stable customer relationship. Less competitive business plants are finding it difficult to adopt themselves to the sensitive market hence losing their market share. To retain market share, it is important that an organization develop good customer relationship.
Palmer (2008, p.135) cites establishment of good customers relationship as key to success in any service venture. In this regard, customer value addition has been cited as the best way of enhancing customer royalty. Customer value addition is the sum total of gains which an entrepreneur promises a customer. Therefore, this report presents findings on the effectiveness of Wynn Lass Vegas’ value addition in fostering competitive edge. In addition, the report will analyze the approach used by Wynn Lass Vegas in its service delivery.
Case Study
Wynn Las Vegas is one of the world leading casinos and is exemplary when it comes to customer service delivery, customer satisfaction as well as investment in infrastructure. Enz (2009, p. 167) asserts that Wynn Lass Vegas property is the first Casino to receive both mobile five star and AAA five Diamond ratings. The facility has a massive capacity of approximately 2,000 guest rooms, which are perfectly furnished. In addition, the management of the Casino has always endeavored to focus on improving customer services delivery.
This has been done by offering recreational facilities such as private drive, pool, elevators and musical entertainment to all its customers. The facility has ultra-modern amenities and a sumptuous environment that are always furnished with outstanding service. Moreover, the Wynn Lass Vegas management has been vigilant in paying attention to details as well as anticipating customers’ needs; hence delivering customer satisfaction promptly.
Wynn Lass Vegas is furnished with the latest state-of-the-art in all its facilities. For instance, rooms are fitted with radio frequency identification (RFID) to ensure swift internet connection for its clients. There is also luxury car dealership within the casino that ensures all the clients’ needs are afforded within the premise.
Similarly, Enz (2009, p. 167) describes the casino as the first to combine both the accommodation key and the frequent-player key. This is just a glimpse of some value added services that are provided by the organization. On the competitive ground, Wynn Lass Vegas leads the way by offering hyper-services anchored on customer value addition.
Apart from indoors recreational facilities, the amenity provides outdoor recreational services. These facilities include an expansive golf course that attracts clients from all over the world. Besides, the casino has a nicely build swimming pool in which the clients cool off their bodies during hot summers. The tennis lovers are also catered for by ensuring that their needs are taken care of. In addition, other unique features make the place a world-beater.
Analysis of customer value addition
Lovelock and Wirz (2007, p. 8) indicate that customer value addition provides persuasive reasons why a client should spend his or her money on a particular commodity or service. Thus, the managers take it upon them to differentiate their services to have a more appealing outlook. Woodruff and Gardial (1996, p. 54) consider customer value addition as means through which the firms meets the needs of their customers in more conducive manner.
Modifying products and services promotes customers willingness to spend their money on products that provide addition satisfaction and pleasure. In addition, Woodruff and Gardial (1996, 54) argue value addition looks at structuring a p roduct to customers perception of what the product should look like. However, they argue that delivering customer value should be served through product consumption.
Otherwise separate customers satisfaction means an extra costs that would eventually reduce the profits margins (Woodruff and Gardial (1996, p. 55). In this area, Wynn Lass Vegas has differentiated its product to make them unique from competitors. Apart from enhancing unique taste the organization has also attracted new customer have glimpse of the firms products.
Manning (2007, p. 28) contends that value addition creates strong customer relationship that provides a win-win philosophy. To them value addition not only lock in customers but it also set high standards that cannot be met by the competitors. Therefore, the entire process facilitates a competitive advantage for the organization.
Although value addition implies increases in prices but this increase is justified by the improvement in the quality of product and services that are delivered. On its part, Wynn Lass Vegas has invested heavily in innovation and new service development ventures. As the casino improves its quality, the customer appreciates the value received for their money. This innovation venture not only meets the needs of the existing customers but its reputation attracts more customers to the facility.
However, value addition is not necessarily a mission that is done blindly but it requires identification of customers’ needs. Manning (2007, p. 183) show that customer information forms the basis of product differentiation and quality improvement. Acquiring this information is usual a hard task that require determination that is solely vested in organization strategic plan. In Wynn Lass Vegas, the management diligently pays attention to details as well as striving to project or predict customers’ future needs.
Having a customer need foresight has proved a vital component in fortifying customer relationship with the firm. Scholars have also identified that most customers are more interested in paying for new services and using new things. Woodruff and Gardial (1996, 57) consider value to be the externality between the positive and the negative outcomes that is derived from enhancing customer relationship. By fulfilling this intrinsic desire, Wynn Lass Vegas establishes a lasting bond with the customers.
Product Bundling
Wynn Lass Vegas uses several methods to add value to their customers. The main criterion that is used to meet the intrinsic customer needs is through provision of additional services. The firm offers additional services through bundling the products offered the customers. For instance, Wynn Lass Vegas offers music entertainment to all customers without separating the overhead charge.
Enz (2009, p. 167) also highlights that the casino provides shopping, dining and gambling facilities for all its clients. All these facilities allow a customer to indulge in various activities without necessarily paying extra cash. Jones and Hill (2009, p. 316) describes product bundling as a basis for product differentiation that fends of competitors pursuit of matching organization performances.
Service bundling in essence is a vital tool of marketing and at the same time, it offers competitive advantage to the firms. Consumption of most services is mutually exclusive. Since the Wynn Lass Vegas clients use one ticket, if a customer decides to utilize the golf course he or she cannot be able to use the gambling hall at the same time. Although clients enjoy access to many facilities within the premises, their utilization time is limited to one feature at the time.
The strategy has helped the organization to gain increased income, as many clients are attracted to the facility although they scarcely use all that they pay for. As a good rapport is created between the firm and its customers, some of them even inform their friends about the firm. Gale (2010, 68) highlights that the management should emphasize on economic value-added to steer ahead customer value and satisfaction.
In this regard, Wynn Lass Vegas has used economic policy to enhance customer satisfaction while boosting their revenues from increase in customer increase. However, management should be rational in their service dissemination to enhance customer satisfaction without been extravagant.
Unique performance
Wynn Lass Vegas has differentiated its services making them distinct from those of their competitors. Room furnishing makes the entire scenario to be unique and to be in its own league. This is because Wynn Lass Vegas has installed Ethernet connection that facilitates ultra-fast internet connection. This facility attracts clients from diverse fields such as business, politician, academician who need to keep themselves updated with the current affairs.
Enz (2009, p.167) admits that Lass Vegas Golf course is expertly designed to attract the most prominent people in the world due to its spectacular plan. In addition, casino remains a unique social feature that has been recognized by two international rating institutions, the mobile five stars and AAA five Diamonds. Such high accolades won by the firm have popularized the firm’s reputation to the global market.
Ideologically, all people are driven by pride and social class to spend their fortunes on unique features especially when free offers are provided. Similar sentiments were put forward by Klassen and Menor (2006, p.4) who added that unique designs should be blended by strong management advantage to enhance product and services outlook. Kotler et al (2010, p.325) suggest that all organizations willing to increase their future performances should build on creating good customer relationship through value addition.
Therefore, the unique display of Wynn’s services has enhanced the firm’s ability to furnish an impeccable international image. In addition, the high standard set by the firm has hindered competing firms from entering into the market (Wright and Lovelock, 1999, p.155). Thus, the casino is enjoying monopoly advantage for being the market best.
Strategic Planning
Enz (2009, p. 167) depicts that customer value addition is not an after-thought decision but it forms its initially vested in the firm’s strategic plan. Inclusion of modalities of meeting customer satisfaction in the strategic plan makes places the customer at the core of the business.
Woodruff and Gardial (1996, p. 54) state that clear incorporation of customer needs in the organization’s strategic plan expands customer satisfaction beyond the narrow confines of product improvement. In addition, they nullify the traditional approach that entailed offering customer satisfaction as an afterthought of product development (Gardial 1996, p. 54). Nevertheless, the strategic should be dynamic to allow future adjustment according to customers’ future needs.
Many marketers have failed to pin point the various advantages that are associated with customer satisfaction. Stone and Ron (2007, p. 121) declared the death of customer relationship management that advocates for value addition. However, from the outcomes at Wynn Lass Vegas, it is evident that customer value addition plays an integral role in creation of a business empire. It is evident that most managers are coy of investing heavily in customer value addition simply because they are dissuaded by fear.
All business endeavors are steered by determination to confront risk and hurdles that characterizes any business endeavors (Buttle, 1997, p. 69). As is the case with Wynn Lass Vegas, the management has reaped the benefits of investing in formidable customer service delivery. However, as the management strives to invest in building good customer relation, it is prudent to engage substantial market knowledge and customer relations.
Customer satisfaction
The management of Wynn has based their strong customer satisfaction on the on-continued building on mutual understanding. Pride and Ferrell (2010, 309) contend that continuous customer focused leadership offers unique and unmatched customer gratification.
Furthermore, the long relationship that has been developed by the organization into regular customers has made it possible for the management to anticipate customer future needs (Dibb and Simkin, 2001, p.467). In addition, Pride and Ferrell (2010, p.309) recognizes customer value addition as tool that has help to restructure distribution channels by eliminating the intermediaries.
This has been possible effectively been used by the Wynn Lass Vegas whose service delivery has been directly linked with the customer. Elimination of the intermediaries has helped the firm to cut down on its production services. Furthermore, Wynn Lass Vegas has been able to reduce it advertisement expenditures significantly since satisfied customers has been spreading the reputation of the firm everywhere.
On the questions of how to standard and measure and improve performances. Baker and Hart (2007, p. 405) identifies customer satisfaction as the epicentre. They further assert that customer data allow the management to determine the extent of performance both on volumes of product sales as well as the rate at which new clients are received. Generally, most managers used customer data to develop new product brands (Craven, 2002, p. 138).
However, an expansion of the scope not only facilitates acquisition wide range of information. Hence, the newfound metric scale allows information to be assessed against performance indicators of the firm. Nevertheless, achieving a productive balance not only affords customer understanding but also foster fiscal efficiency (Baker & Hart, 2007, p. 406).
Limitations of Customer Value addition
Even though customer value addition has been successful in fostering good customer, relationship the strategy has several precincts. There are several challenges that are associated with this marketing process. The main challenge presented is that of the perception of customer when it comes to value added.
Lusch and Vargo (2006, p. 185) highlight sellers perceive customer value in terms of seller-controlled variables. These variables include aspects such as customers’ freedom of choices in consumption pattern. However, according to their analysis most customers do not appreciate the value of bundling since they only concentrate on what they want ignoring other services. Therefore, Wynn Lass Vegas strategy of bundling fails to serve the intended purpose.
The other limitation that is associated with new customer value is undermined by the economic worth of a customer. This understanding requires the customer to translate value in monetary form. Thus, a customer thinks value in terms of a deal and therefore they fail to recognize addition services they did not pay for (Lusch & Vargo 2006, p.185). This notion makes customers to perceive value as low cost. This analogy inhibits Wynn from offering wide range of services at high cost.
Finally, some customers perceive or only understand product value as value-in-use. This perception makes customers to see the product value in their own understanding. Such analogy makes customer only to value of the product in use rather than having the holistic worth of the products bundle in offer. Thus in this perspective customer utility is dependent on their experiences.
Recommendations
In order to fortify its market placement or position, Wynn Lass Vegas needs to improve on some areas to ensure that other players in the sector do not threaten its market position. The following recommendations are offered based on finding or analysis in this report.
The casino should consider offering free trial services to its customers. Once the firm generates new product or adds a new item to its brand, it can allow its customers to use them without surrendering their credit cards details. This would help attract many customers who would be willing to try the samples without any fear of suffering financial losses. For a casino such regular offers would help attract customers who would otherwise show disinterest.
The casino should also consider offering long guarantee of membership to its members. The extension of membership means that clients are more motivated to invest their money in the casino since they will be there for a long time. In addition, this would mean that the organization would manage to lock in their customer from visiting competitors.
Finally, it is recommendable that the management starts to develop customer evaluation mechanisms and feedback systems. Such mechanisms or systems will help the organization to monitor customer trends. Once trends and changing perceptions are identified, then the organizations will always be able to respond to customer needs appropriately. On the other hand, a functional feedback system means that customers are kept up to date.
Conclusion
As the need to increase sales increases, firms and organizations are pressed to come up with innovative ways of attracting and maintaining customers. The key issue or challenge is how to maintain good customer relationship. Wynn Lass Vegas has achieved a milestone in good customer relation by ensuring all customers receive value for their money.
The continuous investment in value addition has made the casino one of the most successful organizations in the world. However, maintain value addition has been a challenging overture for the firm. The challenge for the organization has been in how to integrate customer needs in the strategic plan of the firm. Although the future of Wynn Lass Vegas looks bright, there are a number of issues worthy looking into to guarantee best results in the future.
References
Baker, M., J., and Hart, S., 2007. The Marketing Book. Butterworth- Heinemann: Burlington
Buttle, F., 1997. Relationship Marketing. Elsevier/Butterworth-Heinemann: Oxford.
Craven, R., 2002. Customer is King: How to exceed their Expectations. Virgin Publishers: London
Dibb, S., & Simkin, L., 2001. The Marketing Casebook: Cases and Concepts. 2nd ed. Prentice Hall: London
Enz, C., A., 2009. Hospitality Strategic Management: Concepts and Cases. John Wiley and Sons: New Jersey.
Jones, G., & Hill, C., 2009. Strategic Management Theory: an Integrated Approach. Cengage: New York
Klassen, R., D., & Menor, L., J., 2006. Cases in Operations Management: Building Customer Value Through World-Class.Califonia: Sage Piblishers.
Kotler, P., Bowen, J., & Makens, J., 2010.Principles of Marketing. Prentice Hall: London.
Lovelock, C., & Wirz, J., 2007. Services Marketing People, Technology, Strategy. Prentice Hall: London
Lusch, R., F., & Vargo, S., L., 2006.The Service-Dominant Logic Of Marketing: Dialog, Debate, And Directions. M.E. Sharpe, Inc: New York
Manning, G., L., 2007. Selling Today: Creating Customer Value. Pearson Education: San Francisco
Palmer, A., 2008. Principles of Service Marketing. McGraw-Hill: London.
Stone, B., & Ron, J., 2007. Successful Direct Marketing Methods. Mcgraw-Hill: New York
Woodruff, R., B., & Gardial, S., 1996. Know Your Customer: New Approaches to Understanding Customer Value. Wiley-Blackwell: New Jersey
Wright, L., & Lovelock, C., 1999. Principles of Services Marketing and Management. Prentice Hall: London