Joan

Issues

Cabo Can Viejo is now struggling on whether or not to implement a rewards/loyalty program for the firm. Cabo Can Viejo is now expecting through this loyalty program to remain competition, increase sales, remain previous customers and attract new customers, enhance the brand recognition, and build strong customer relationship. However, Cabo Can Viejo still faces several issues if it wants to implementing a rewards program.

Firstly, Cabo San Viejo currently has an outdated CRM system. But if Cabo San Viejo wants to connect with the CRM systems, it means that Cabo really needs set up a new system that are able to serve for various locations in the system. So a complete and updated CRM system is very important for implementing the loyalty program. However, the physical cost of a new CRM system is expensive. Plus, there are still some cost of training and installation. So the new system is even more costly. Therefore, the financial plan is one of the major consider issue for Cabo San Viejo.

Secondly, they do not have an updated CRM database if they really want to implementing a reward or recognition system. Since for their old customers, it is lack of previous data collection for their preferences. So it is may harder for Cabo San Viejo to implement the loyalty program for their old customers. Hence, how to introduce their old valuable customer the new loyalty program and make them comfortably enjoy the new program are the one of the major issues that Cabo San Viejo is facing currently.

Thirdly, beside of the old customers, Cavo San Viejo also wants to attack some new customers such as some younger audience. For those potential customers, it is much more attractive to have loyalty program since those younger individuals have grown in this kind of marketing environment and they are accustomed and expect to rewards programs for some extends. But how to provide an attractive and competitive loyalty program for those customers is a big consider under...