year and inflating the total number of repeat guests and customer loyalty. 4 This increase in percentage will lead to a greater growth for the company.
There are many positive aspects and reasons why Rosewood should move to a corporate brand.
For these reasons if Rosewood made this change, it is even more important to know if this change will maximize customer lifetime value (CLV). CLTV5 can help determine the key feature the relationship a company has with its customer. CLV is a formula that can be use; it describes the net present value of the stream of future profits expected over the customer’s lifetime purchase. (Refer to Exhibit 1) Both Scott and Boulogne knew that the Rosewood brand was incredible and they knew that the guest that knew …show more content…
Therefore in the long run, this increased retention rate will increase the brand awareness of Rosewood and increase the company’s revenue. After clear observation of the Exhibits in the appendix (Page 3) pertaining to Rosewood and its likely performance, I recommend that Rosewood move to a corporate branded company. There will be an increase in customer retention and ultimately an increase in the company’s bottom line. It is very important to note that entering this market will expose Rosewood to more competition; some of these competitors are well-established companies and will pose a threat to
Rosewood. Rosewood hotels already have a wonderful status with its’ guest, and for this reason I would recommend that when making the transition to a corporate brand, the previous name of the hotels should not be completely overwritten, but it should still be incorporate with
Rosewood. For example, The Carlyle could become, The Rosewood Carlyle. It is also very important that the company maintain its uniqueness and not confirm to the “cookie cutter” characteristics of its competitors. Overall, Rosewood Hotels & Resorts hold great locations and with this new step as a corporate brand will drive the company to incredible
There are many positive aspects and reasons why Rosewood should move to a corporate brand.
For these reasons if Rosewood made this change, it is even more important to know if this change will maximize customer lifetime value (CLV). CLTV5 can help determine the key feature the relationship a company has with its customer. CLV is a formula that can be use; it describes the net present value of the stream of future profits expected over the customer’s lifetime purchase. (Refer to Exhibit 1) Both Scott and Boulogne knew that the Rosewood brand was incredible and they knew that the guest that knew …show more content…
Therefore in the long run, this increased retention rate will increase the brand awareness of Rosewood and increase the company’s revenue. After clear observation of the Exhibits in the appendix (Page 3) pertaining to Rosewood and its likely performance, I recommend that Rosewood move to a corporate branded company. There will be an increase in customer retention and ultimately an increase in the company’s bottom line. It is very important to note that entering this market will expose Rosewood to more competition; some of these competitors are well-established companies and will pose a threat to
Rosewood. Rosewood hotels already have a wonderful status with its’ guest, and for this reason I would recommend that when making the transition to a corporate brand, the previous name of the hotels should not be completely overwritten, but it should still be incorporate with
Rosewood. For example, The Carlyle could become, The Rosewood Carlyle. It is also very important that the company maintain its uniqueness and not confirm to the “cookie cutter” characteristics of its competitors. Overall, Rosewood Hotels & Resorts hold great locations and with this new step as a corporate brand will drive the company to incredible