How Cross-Selling via Available Data Helps to Continue the Customer-Supplier Relationship

An important instrument to guarantee the continuity and the further development of a valuable customer-supplier relationship during the growth phase is cross-selling. This is the third phase when developing a customer-supplier relationship where interaction processes between both parties continue and more resources are exchanged whereby the mutual dependency increases. The main goal of cross-selling is to further develop the relationship and prevent the phase of decline to happen where continuity of the relationship becomes an issue. Because cross-selling helps a holiday park to hold on to their current and maybe even loyal customers. (Beltman & Peelen, 2013)

the-relationship-life-cycle

Furthermore, customer relationship management is one of the successes of Center Parcs. Center Parcs sees their customers really as ‘’one-of-a-kind’’ so it is about their needs and wants. One of their business objectives is to actively offer personalized services at different contact moments before, during and after the stay at the actual holiday park. According to research, guests who participate in more extra activities are more likely to return. To summarize, Center Parcs wants to retain the ‘’good’’ and loyal customers and stimulate them to increase their total expenditure. (Beltman & Peelen, 2013)

Center Parcs saves and maintains all kind of customer knowledge, so they can decide what to exactly offer a specific customer according to their preferences and values. This kind of database helps the holiday park to develop valuable cross-sell products. One instrument that helps Center Parcs to achieve their goals in the field of customer relationship management is the implementation of SPSS PredictiveMarketing. The ability of SPSS PredictiveMarketing is to determine the most profitable cross-sell offer at the moment of interaction. This is crucial to successfully achieve Center Parcs’ objective to use diverse online channels to cross-sell additional packages, such as leisure facilities, dinners, etc., to customers at the moment they book their stay. (SPSS, 2004)

From the customers’ perspective every holiday park offers a number of unique facilities and activities that fit the visitors’ preferences. Besides that, Center Parcs current customers can book or request information anywhere and anytime through their ‘’My Center Parcs Page’’. This ‘’My Center Parcs Page’’ contains the two different points of view on cross-selling; based on the product history because customers can glance over their booking history of extra services and in this way book these services again for a new stay at the holiday park. The other view is based on individual preferences so when the customer is being reached proactive they receive personalized cross-sell offers. Examples of these offers are: to plan and book additional activities, to reserve a dinner at one of the restaurants on forehand, to order your groceries in advance, et cetera. (Beltman & Peelen, 2013)

So to conclude holiday parks can boost the transaction profit by applying cross-selling and as a consequence this transaction gives the relationship a boost as well. Cross-selling helps to reduce the likelihood of customers ending the relationship before the supplier has had the chance to earn back its investment in the customer. And the customer gets the opportunity to discover the advantages the holiday park has to offer and to ease the transition to the above mentioned saturation phase. (Beltman & Peelen, 2013)

Resources:
Beltman, R., & Peelen, E. (2013). Customer Relationship Management. (2nd ed.). Edinburgh, United Kingdom: Pearson Education Limited.

Chetwynd, C. (2016). How to measure customer experience. Retrieved from https://raconteur.uberflip.com/i/708792-customer-experience-and-loyalty

SPSS. (2004). Customer Case Study: Center Parcs Europe. Retrieved from http://www.spss.ch/eupload/File/PDF/PredMark_Parks.pdf

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