Cabo San Viejo – Rewarding Customer Loyalty [pic 1]1)What are the characteristics of Cabo San Viejo’s customer base? How healthy is the firm’s customer base? Ans) Cabo San Viejo founded by Dave and Florence Blumenthal in 1977 in Palm Spring, California. It is a vacation/fitness resort which provides healthy lifestyle to its guest. The enormous number of Cabo San Viejo’s spring guests are rich or the upper middle class and females from California. In Palm Springs during the fall, winter and spring 82% of the guests have an income of over $150K. The guest’s average age is also rising, from 47 years in 1992 to 58 years in 2005. In summer time in the Cabo, the rate of Spa’s decreases, so its increase the guests from lower income bracket of less than $150K and about 70-80% guests are female. The spas customer base falls within the baby boom demographic. On average baby boom women are educated, these women held a job and have fewer children. These guest’s needs are health, relaxation, stress relief, fitness and vacation time and CSV is known for providing these kind facilities. Also, CSV offered a number of special programs for the targeted audience, including executives, healthcare practitioners, people with medical conditions. They take three to four vacation a year. One-thirds portion of Cabo’s first-time guests returns for the second time with in half decade. And remaining two-thirds portion of the guest visit the Cabo visits after five years. And these variations happen due to the huge cost. Two-thirds of the guests or 67%of the guests heard about the Cabo due to networking effect or by the word of mouth and a majority number of guest lives in California and west coast region. The health experience provided by the CSV are appreciated by 62% of the guests and the guests claim that the experience was much more than the expectations while 55% ranked the health experience beyond what they expected. 74% of the guests claim that they had an outstanding experience, 21% of the guests claim that CSV is very good and only 1% are unsatisfied. All the guests came here with the intention of leading a healthy life. By observing all the above characteristics, we can say that firm’s customer base is very healthy. Visitors had a variety of motivation to come back to Cabo San Viejo’s. Generally, visits to Cabo was marked by an experience of discovery and adventure. There are so many people who have experienced a sudden life change, such as divorce and career change, will often come back to learn and grow.