Overview
Kinsmen Sports Centre has been known as the sports facility and the organization providing the related services. Although Kinsmen Sports Centre has been doing relatively well since its opening, it has started facing certain issues recently; particularly, a drop in attendance of some of the company’s services has been noted. Despite being generally positive, the data retrieved in the course of the analysis has also displayed a rather disturbing tendency for the customers to avoid certain services provided by the organization; it is suggested that the lack of efficient communication is to blame for the recent changes in the customers’ attendance.
Customer Survey
It is desirable that the customer survey should be introduced into the NPS framework; thus, the provision of the services of a higher quality will become possible. Indeed, the results obtained in the course of the analysis have shown that the company lacks efficient communication with the customers. The specified feature of the company’s operations can be viewed as a major flaw of the information management approach, which is currently used in the organization.
The introduction of a customer survey into the design of the firm’s interactions between the staff and the clients, as well as among the staff members, will contribute to developing a faster response towards the changes in the environment of the target market. Despite the fact that the current satisfaction rates are quite high, as the recent reports shows, there is a strong need to improve the feedback system, as the dissatisfaction rates have grown compared to the data retrieved in the course of the previous assessment.
As the results of the aforementioned report say, the issue with the system of booking, which the company uses as the basis for its operating framework, leaves much to be desired. Because of the inconsistent communication process, the requests sent by the customers are often confused or left unattended; therefore, the dissatisfaction rates are growing, and the amount of customers’ complains is getting increasingly big. More importantly, the variance of the revenues retrieved by the company and, therefore, the satisfaction of its clients, has grown, which proves that the customers’ feedback has become harsher.
The latter changes can be attributed to the fact that the company pays very little attention to the feedback provided by the clients. Indeed, a comparative analysis of the revenues, which the company has been receiving over the past few years, shows that the variance percentage of the company’s income has grown to 60%. While the variance of the attendance is not as high as the one related to the organization’s income, the fact that it has reached 12% also shows that the organization needs to redesign its approach towards communication with the customers.
Customer Lifetime Value
While the attendance rates can be viewed as moderate, the company may experience the need enhance the strategy for increasing customer satisfaction. Thus, the Kinsmen Sports Centre will benefit from an increase in the number of loyal customers and may attract even more clients. Seeing that rearranging the existing customer support strategy will take time, it will be reasonable to offer the current customers, as well as the target audience in general, an incentive for using the company’s services. To be more specific, the design of the customer lifetime value model must be incorporated into the company’s operations.
Moreover, the above-mentioned strategies in retaining the existing customers and attracting new ones can be used as the tool for increasing the customer lifetime value of the organization. As the statistical data provided in the reports shows, the attendance rates for different facilities in the Kinsmen Sports Centre were strikingly different. The ones that the programs designed by the organization were supposed to deliver happened to be the lowest ones, landing at the zero mark. Consequently, it can be suggested that the quality of the programs, as well as the services, which they have to offer to the clientele, should be improved according to the feedback received from the latter.
The membership rates, on the contrary, made the highest attendance rates, peaking at 11%; this means that the Kinsmen Sports Centre should consider promoting the membership to other denizens of the target audience. Herein the necessity to enhance the existing communication tools and rearrange the communication strategy lies. In order to facilitate a fast and efficient acquisition and transfer of data, the latest information technologies, including modern social networks, should be utilized.
The customer lifetime value of the company will be calculated in accordance with the following formula: sales average value multiplied by the number of repeated transactions and the average retention time for an average customer (either in months or in years). While the formula in question can be considered rather generic, it will still provide an opportunity for comparing the amount of customers, which the company used to have prior the introduction of the new strategy, and the amount of clients, which the company has gained after the integration of the new communication approach into its operational framework.