Rosewood Hotels and CLV

CLV is a very interesting concept, determining the value of your company based on the number of customers it has. I do not believe the company I work for explicitly knows the value of its customers because they are not using sophisticated marketing strategies. They are only using promotions. They mostly try to get new customers in the seats of the theater when an event is being hosted.

The company could possibly use CLV if it had more returning customers. They have customers who come to most of the show but they will need more to be truly valuable. Once this is established, I believe that the CLV rate can be well used as a bargaining chip to get investors. They can say we have a certain amount of customers attending our shows and you can advertise to these people if you invest in our business.

The practical issue of implementing CLV is whether you have a lot of customers and if those customers are periodically or using your services often.

The major issue in the Rosewood case is that customers can have an enjoyable experience at one location but if they are going to another location it may not be the same experience. All of the Rosewood locations do not offer similar services or facilities. That makes it harder to create a stable customer base when you can get mixed reviews on the properties. If one location is more popular than others, customers may frequent that location and leave the other locations to lose out in business.

The advice I would have for Rosewood management is to advertise all of their locations equally, and point out the unique qualities each location has. I would advertise locally to the neighborhoods that are close to the specific location. Once each location is getting fair marketing and advertisement then business will most likely pick up.

Although all of the Rosewood brands are fairly recognizable, me being from New York, I am mostly familiar with the Marriot. That is a very popular hotel chain. I think I would like to visit there because that is what I am most familiar with and I have had good service from this hotel in the past.