Essay on Customer relationships managment and technology
Company Name: Olympic Car Rental Co.
Characters: Laura Walkins(VP-Marketing) , Andy Kim(Manager CRP),Seth Bergman(Senior Financial Analyst),Eva Chan(Southwest regional Manager Sales), Marvin Fleming(OM), Sriny Vajarain,Jorge Martinez & Amy Mckeever( Franichisee operators).
Theme of Case: One of the competitor company named “Enterpise Car Rental Co.”-the biggest player in the market has announced an attractive custom loyalty program. This is considered to be a paradigm shift from the traditional rewarding pattern in Car Rental market. Enterprise Car Rental Co. is already reaping the benefits from the program.
Olympic Car Rental Company’s top management wants to discuss about this …show more content…
Olympic should focus on re-designing of its Customer Loyalty program named “Olympus Medalist reward program”. The lower pricing strategy is looked upon by the users as a Traditional marketing paradigm & on losing interest they get drifted to other competitors, who provide innovative & attractive deals, in turn building long term relationship.
Keep customers from defecting: Inspite of having slight higher number of rental car usage days per year compared to the industry average,Olympic is not able to generate good revenue. Main reason is most of Olympic Medalist members belonged to several other car rental loyalty programs.
Sense of momentum: Joining OMRP has no charge, unlike Enterprise Plus reward program (biggest player) where to qualify for the reward atleast 6 rentals were required.
Divisibility of Reward: It can be seen in slide:3 table, that Rental days claimed for the highest tier-Gold were maximum, in spite of having less active members & less rental days during the year 2012.Also, it was easy for an existing member to move from silver to gold tier & reap its benefits just by increasing the rentals 10 more times in the entire year.
Combined Currency relationship: As seen from Slide:1 table, the Net profit margin is substainlly low.Also,it is projected that the number of business travelers will not grow in the coming years,