TLDR The amusement park operator experienced a 5% drop in visitors and a 10% decline in customer satisfaction due to outdated attractions and increased digital competition. By implementing AR/VR attractions and leveraging data analytics for personalization, the park increased visitor numbers by 15% and customer satisfaction by 20%, highlighting the importance of Innovation and CX in driving success.
TABLE OF CONTENTS
1. Background 2. Strategic Analysis 3. Internal Assessment 4. Strategic Initiatives 5. Customer Experience Implementation KPIs 6. Customer Experience Best Practices 7. Customer Experience Deliverables 8. Implement AR and VR Technologies 9. Personalization through Data Analytics 10. Renovation of Existing Attractions 11. Additional Resources 12. Key Findings and Results
Consider this scenario: The organization is a leading amusement park operator in North America, currently facing challenges in enhancing Customer Experience.
It has observed a 5% decline in visitor numbers and a 10% fall in overall customer satisfaction scores over the past two years. External challenges include increasing competition from digital entertainment options and rising customer expectations for immersive experiences. Internally, the park struggles with outdated attractions and inefficient use of technology in operations. The primary strategic objective of the organization is to redefine the amusement park experience, leveraging technology and innovation to increase visitor numbers and customer satisfaction.
The amusement park industry in North America is at a critical juncture where digital transformation and customer experience innovation are not just nice-to-haves but essential for survival and growth. As visitor expectations evolve and competition from digital entertainment intensifies, amusement parks must reimagine how they engage with their audiences.
The overall state of the amusement park industry is characterized by steady growth but facing significant disruption from digital entertainment platforms.
We begin our analysis by examining the competitive forces shaping the industry. These include:
Emergent trends include the increasing use of augmented reality (AR) and virtual reality (VR) to create immersive experiences, and a shift towards personalization of the visitor experience through data analytics. Major changes in industry dynamics include:
For a deeper analysis, take a look at these Strategic Analysis best practices:
The organization boasts a rich history and a strong brand but is challenged by aging attractions and a slow adoption of technology in enhancing customer experience.
SWOT Analysis
Strengths include a well-established brand and prime location. Opportunities lie in adopting new technologies like AR and VR to create immersive attractions and using data analytics for personalized visitor experiences. Weaknesses are seen in the outdated attractions and the underutilization of technology in operations. Threats include the rising competition from digital entertainment options and changing consumer preferences.
VRIO Analysis
The organization's brand and location are valuable, rare, and costly to imitate, providing a solid competitive advantage. However, its operational efficiency and technological innovation do not support these advantages, highlighting areas for strategic improvement.
Capability Analysis
Success in the amusement park industry demands innovation, digital transformation, and exceptional customer experience. The organization needs to enhance its capabilities in these areas, particularly in leveraging technology to create unique, personalized visitor experiences and in operational efficiency to manage costs and improve service quality.
Based on the industry analysis and internal capability assessment, the following strategic initiatives have been defined to drive growth and enhance customer experience over the next 3-5 years.
KPIS are crucial throughout the implementation process. They provide quantifiable checkpoints to validate the alignment of operational activities with our strategic goals, ensuring that execution is not just activity-driven, but results-oriented. Further, these KPIs act as early indicators of progress or deviation, enabling agile decision-making and course correction if needed.
These KPIs will provide insights into the success of strategic initiatives in enhancing the visitor experience and operational efficiency, guiding further investment and strategy adjustments.
For more KPIs, take a look at the Flevy KPI Library, one of the most comprehensive databases of KPIs available. Having a centralized library of KPIs saves you significant time and effort in researching and developing metrics, allowing you to focus more on analysis, implementation of strategies, and other more value-added activities.
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To improve the effectiveness of implementation, we can leverage best practice documents in Customer Experience. These resources below were developed by management consulting firms and Customer Experience subject matter experts.
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The team utilized the Blue Ocean Strategy framework to guide the implementation of AR and VR technologies in creating new, immersive experiences. This framework, designed to help organizations create uncontested market space and make the competition irrelevant, proved invaluable. It was particularly useful because it encouraged the team to focus on innovation and differentiation, rather than competing on the same dimensions as other amusement parks. Following this approach:
The successful deployment of the Blue Ocean Strategy enabled the amusement park to introduce groundbreaking AR and VR attractions that significantly enhanced visitor experiences. This not only increased visitor numbers but also established the park as a leader in technological innovation within the amusement industry.
For the strategic initiative focused on personalization through data analytics, the organization adopted the Customer Journey Mapping framework. This framework helps businesses visualize the path their customers take from first becoming aware of their brand to the post-purchase phase. It was chosen for its ability to identify key touchpoints where personalized experiences could have the greatest impact. The process involved:
The application of Customer Journey Mapping provided a structured approach to enhancing the visitor experience through personalization. This resulted in increased customer satisfaction scores and higher levels of visitor engagement and loyalty, demonstrating the value of a focused approach to personalization.
In tackling the renovation of existing attractions, the organization applied the Balanced Scorecard framework. This strategic planning and management system is used to align business activities to the vision and strategy of the organization, improve internal and external communications, and monitor organizational performance against strategic goals. It was particularly relevant for ensuring that the renovation efforts were aligned with the overall strategic objectives of enhancing visitor experience and maintaining competitive advantage. The team proceeded by:
The use of the Balanced Scorecard framework ensured that the renovation of existing attractions was not only executed efficiently but also aligned with the strategic goal of enhancing the overall visitor experience. This strategic approach led to a significant improvement in visitor numbers and satisfaction, reaffirming the park's position as a premier destination.
Here are additional best practices relevant to Customer Experience from the Flevy Marketplace.
Here is a summary of the key results of this case study:
Evaluating the results of the strategic initiatives reveals a successful transformation in enhancing customer experience and operational efficiency. The significant increase in visitor numbers and customer satisfaction scores can be directly attributed to the innovative use of AR and VR technologies and the personalized visitor experiences enabled by data analytics. These results underscore the effectiveness of the Blue Ocean Strategy and Customer Journey Mapping in creating differentiated and engaging visitor experiences. However, the technology adoption rate, while impressive, suggests room for further improvement in maximizing the potential of these technologies across all park operations. Additionally, the renovation of existing attractions, although positively impacting repeat visitor numbers, indicates a need for continuous investment to keep pace with evolving visitor expectations. Alternative strategies, such as more aggressive marketing of renovated attractions and exploring partnerships for cutting-edge technology development, could further enhance outcomes.
Based on the analysis, the recommended next steps include doubling down on technology-driven attractions by exploring new AR and VR applications that push the envelope of immersive experiences. Further investment in data analytics capabilities is advised to deepen personalization and enhance visitor engagement. Additionally, a continuous renovation plan should be established to ensure all attractions remain relevant and engaging. Finally, exploring strategic partnerships with technology firms could accelerate innovation and reduce implementation costs, ensuring the park remains at the forefront of the amusement industry.
Source: Customer Experience Strategy for Amusement Parks in North America, Flevy Management Insights, 2024
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