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A Case Study of Mad River Mountain, OH
By: Samantha
Rufo
Topic
Learn how Mad River Mountain anticipated
what their customers wanted and adapted their processes, marketing, and
technology to meet them using customer values as the driving force.
Who
Mad River Mountain is a ski resort positioned at
Ohio's highest elevation and a member of the Peak family of Resorts. With over
125 acres of skiing, snowboarding, and tubing area, Mad River offers 20 trails
challenging enthusiasts of all levels. The area was started in 1962 and does
approximately 200,000 skier visits each
season.
Summary
Basically, in order to develop new sources of
revenue, Mad River Mountain needed to know who their market was, what they
wanted, and how they could give it to them. This case study focuses on how Mad
River took an innovative marketing program called "Master the Mountain" from a
traditional labor intensive, form-based manual system to an automated, web based
system.
The first step that Samantha Rufo (nxtConcepts) took to outline
the project requirements was to research and understand both the Resort and
customer needs. Mad River's goal was to be able to embrace the web and weave it
to their own ends-selling products, streamlining operations, and automating
customer service. By combining the goals with the users needs they wanted to
create new business and tap previously unattainable new
markets.
Goal
To make it easy for people to do business with
Mad River Mountain. Both as a return customer and as a new customer.
The
most popular and profitable program (Master the Mountain) was selected as the
primary focus to let the technology move the program to a new level by reducing
labor costs, opening new markets, and getting quicker turnaround on
payment.
Problem
Successful program sales meant greater
challenges for the Resort's small office staff. They needed a system that would
integrate the technology to the already established marketing program in an
efficient and cost effective way. At the beginning of the project, there was not
an affordable third party solution that sufficiently addressed all these
needs.
Solution
Develop a custom application that would change
and grow as the Resort's and customers' needs change and grow. The industry
specific nature of the marketing program dictated that this would not be the
traditional online transaction. Instead, a highly customized solution that would
be developed using third party technology and a combination of in-house staff
and outside consultants.
The Tools-
1. 3rd Party Vendor
software
- Use front-end software for content managed web pages, an ecommerce catalog,
and for payment processing where sales post directly and in real time to the Mad
River Mountain selling systems.
- Use back-end software to house the main databases, and provide the
communication/response tools for staff and guests.
2.
Infrastructure
- To support the In-house system, a new infrastructure was needed. Including
servers, networking, security, etc. A plan was developed to understand the
scale, specific needs, support needed, and potential for the future.
3. Marketing-Research, Program Development
- Research was needed with user feedback from both the Ski Area and the
customer base to help develop the system to be user friendly and intuitive. A
two year study was undertaken and used as the foundation for the technology
specifications.
- Marketing & selling tools were developed to help motivate customers to
buy. i.e. Collateral, Interactive Presentations, eNewsletters, and direct mail.
- Overall theme for materials focused on the ease and convenience of the new
system.
- Managing and minimizing any uncertainties surrounding the system so that
customers would use it.
- Redirecting behavior from using the traditional manual forms and waiting
weeks for processing and payment to the new online system with immediate
delivery.
Soft Benefits
- Completely automated sales process.
- Reduced demand on in-house staff and customers,
- Shortened processing and turn-around times,
- Elimination of data entry errors.
- Streamlined process. Completely "stand alone" without human interaction
beyond printing the sales and delivering the end product to the purchaser.
- Higher efficiency and customer satisfaction with the sales process.
Customers can serve themselves whenever and wherever they choose. Sales are
available 24 hours a day, 7 days a week.
- Minimal acquisition cost to obtaining new customers and their contact
information.
- A database of customer contact information available for possible future
marketing opportunities.
Hard Benefits
- 30% increase in seasonal program sales-new business!
- 56% of purchasers used the online processing system in its first year.
- 10% Cost savings to the Resort in the form of less labor and printing.
- Paid for itself. The associated marketing programs that offered an incentive
to online users generated an additional $23,670 in income. This was used to help
offset the cost of the online program development and implementation.
Success Story-How this happened
Fresh
perspective
Prior to starting any major project, it is important to know
what the goals are and if the organization's culture can manage the changes
needed to be successful. The Management team at Mad River was able to understand
the benefits and risks associated with a project of this caliber. They also knew
what they would be able to live with and what they could not live without.
Including being realistic about not trying to solve too many problems at
once.
Here are some guidelines they used:
- Good customer feedback mechanisms in place to translate the constructive
feedback into action quickly-surveys (both online and on the property),
accessible office with "empowered" people to help customers.
- Develop unique, fun, and value priced programs that stimulate customers to
purchase and stay loyal-targeted season passes, loyalty programs, and "bring a
friend" type programs.
- Focus on what works. That means eliminating things that don't-reevaluate
each program each season. If it's not profitable, it's eliminated.
- Stay open to new ideas and be willing to take risks-offsite sales, web
processing.
- Implement introductory incentive's to help drive sales.
Understanding & Embracing Technology Mad River Mountain is
a small to medium sized business that did not have a technology professional on
staff. That meant a high reliance on outside vendors and limited in-house staff.
To help mitigate this and develop a strong foundation to move forward, Samantha
Rufo developed a "Point Approach" that managed the steps involved in the process
and the vendors. Including:
- Researching and learning about new technology and what would be applicable,
available, and affordable.
- Putting together a development team of both in-house and out-sourced people.
- Developing education and promotional tactics to encourage customer use.
Including "learning sessions" for staff and users, cdRom informational discs,
collateral materials, and informational flyers.
This case study was developed in relation to the work
provided by Samantha Rufo, a principal in nxtConcepts. nxtConcepts is a next
generation company using innovative ideas, proven marketing programs, and
cutting edge technology to help build business. nxtConcepts is also the
exclusive distributor of "Wonder", marketing enriched technology that is the
equivalent of sliced bread for your business. For more information call
888-215-0820 or 740-815-6925
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