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1 The Case on CRM in Samsung Everland Cui Ranhong, Kim ChangEn** Department of Industrial Engineering, Myongji University Abstract The SAMSUNG Corporation owns and operates the Everland property southwest of Seoul, South Korea. Opened in 1976, Everland is the sixth largest theme park in the world. It provides a variety of leisure and recreational facilities in an international, world-class, comprehensive resort town. To satisfy customer and grasp customer information, Samsung Everland carried out CRM system on Before Samsung Everland carried out CRM system, the management of customer was dispersedly; the out resource of customer did not be used efficiently. CRM s carryed out, not only can ensure the new and old customer, but also can ensure the customer information, and increase the activity participance ratio, grasp customer s contribution ratio correctly (entrance, facility using, and sales ability), and provide personalize and difference service. To grasp and analyze the customer data is one of important things and problems in leisure industry. Samsung Everland successfully carried out CRM system and settled the question of customer data and data analyzing, thereby increase the revenue. 1, Everland Introduction Yongin Farmland was first opened in 1976 as the only family oriented amusement park in Korea. This marked the beginning for development of a world-class theme park in Korea. On 25 March 1996, Joong-Ang Development Co, a subsidiary of the Samsung group, specializing in entertainment and social services, announced its plan, an ambitious goal of transforming Farmland into a great resort complex under the name of Everland. In concert with Samsung Group's management of humanity, integration and globalization, Joong-Ang has made a commitment in developing 3,700 acre land into a world class total destination resort complex for the 21st century. Currently, Everland is consisted of four theme parks, Festival World, Caribbean Bay, zoo and Speedway. Festival World equipped with more than 40 theme attractions and a park offers various Flower Festivals and Seasonal Events. Caribbean Bay opened in July of 1996 as the largest water-park in the world with both indoor and outdoor water facilities to operate yearlong. In the zoo, it supplies the customer special safari and there Page 1

2 are many kinds of animals. Speedway is the best motor on-road racetrack in Korea. In 1996, the Everland achieved a record for annual guests, over 9 million people! In 2002,Everland ranked number 6 on the list of worldwide list theme park destinations (by Amusement Business, USA, magazine). Caribbean Bay has broken the world record for the water parks with more than 1.5 million guests in a two-year period. Hereunder is the introduction inside of the park. Table 1-1 Inside of the Everland park Festival World Caribbean Bay Zoo Speedway Home Bridge Proud of having its own peculiarity and originality, Festival World as a theme park complex consists of five theme zones Caribbean Bay offers a variety of fun and exciting water related attractions. From the entrance of the park, guests travel thought a 17th century Spanish colonial setting with high stone walls and colorful building. Shipwrecks, pirate caves, old temple ruins and tropical trees are a part of this wet mysterious journey. The Bay wave, Lazy river, Sandy pool and the Kiddy pool are all a part of this fun filled family water park. Everland Zoo, is the first of its type in Korea. A free roaming range for many animals, and housing facilities that replicate natural habitats. Visitors have a wonderful opportunity to see these animals up-close in their natural settings. Everland Speedway is Korea's first on-road racetrack and offers a thrill of speed. You can be a professional racer at Everland Speedway. HomeBridge Hostel would be with Everland all the time. Guests with a one-day pass at the HomeBridge Hostel can use their one-day Festival world pass for two days! And group of 30 or more people will be offered Special Package Tour. (Caribbean Bay + Festival World + HomeBridge Hostel + Hoam Art Museum + Dining + Transportation Museum) Global Fair. American Adventure Magic Land. European Adventure Equatorial Adventure Outdoor Facilities Aquatic Center Park Rules Safari World Animal Shows Bunny Zoo Children's Zoo Cabin Hostel Hillside Hostel Page 2

3 The total Everland s history can be listed as following. 1) farmland open 2) animal safari open 3) years total customers quality exceed 3 million 4) motor park open (today s speedway) 5) selected as the 8 th world theme park ( by Amusement Business, USA, magazine) 6) the birth of Everland (festival world + caribbean bay + speed way) 7) the birth of caribbeen bay, the first indoor water park in the world 8) ranked number 7 worldwide ( by Amusement Business, USA, magazine) 9) ranked number 7 worldwide( by Amusement Business, USA, magazine, basis on the customer quantity) 10) musical millennium story opened 11) Everland snow bust opened 12) ranked number 6 worldwide( by Amusement Business, USA, magazine, basis on the customer quantity) Theme Park Name Magic Kingdom Table 1-2 World Theme Park Entrance Q'ty 2004 Location USA, Florida Entrance Q'ty (thousand) 14,044. Increase/decrease ratio 0 Tokyo Disneyland Japan 13, Disneyland USA California 12, Tokyo Disney Japan 12, Disneyland Paris France, Paris 10, Universal Studio Japan Japan, Osaka 8, EPCOT Center USA, Florida 8, Everland Korea Ginggi Dao 8, MGM Studio USA, Florida 7, Lotte World Korea Souel 7, Disney's Animal Kingdom USA, Florida 7, Universal Studio Florida USA, Florida 6, Blackpool Pleasure Beach UK 6, Islands of Adventure USA, Florida 6, Disney's California Advent USA California 5, From Monthly Amusement Industry Data, Page 3

4 2, CRM Introduction 1) CRM definition Customer Relationship Management definition: First, it must be stated that CRM is not easily defined. You can ask 100 different professionals their definition of CRM and get 100 different answers. In simple terms, Customer Relationship Management (CRM) is defined as finding, getting, and retaining customers. CRM is also defined as tracking customer behavior in order to develop marketing and relationship-building programs that bond consumers to a brand often by development of software systems to provide one-on-one contact between the marketing business and their customers. CRM is the core of any customer-focused business strategy and includes the people, processes, and technology associated with sales, marketing, and service. The core strategy of CRM is to use the precious out-resource of customer data that inside the control of company to increase customer value, effectually satisfied the customer s individual requirement, improve customer relationship and increase company s competitive ability. To carry out the CRM will increase company s sales management ratio, provide more chance to search and know the market, satisfied and keep good relationship with customers, decrease the company operation capital, and create long time profit. As one of the company model, CRM requires to identify, forecast and know the latent customer and existing customer s requirements, so that to improve customer reservation ratio, growth ratio and profit ratio. 2) CRM Model CRM Model can be divided into four levels(figure 1). The first level is Customer Strategy, which means that strategy should be carried out focus on the customer. The second level is a special level that called Customer Insight. Though it is very important to get the customer data base, if the customer does not be correctly identified and understood, the company will go on a wrong way to develop. If the presented strategy is in correct customer direction, and in customer insight activity, the staff member can achieve the business process. This is the third level, business process and people & construction. In this level, there are three businesses processes to approach customer, marking, sell, and service. CRM s fourth level is Solution Technologies, at where to supply the solution of information technology. It mainly include the ecrm, SFA(sales force automation), store front, and call center. Hereunder is the figure about these four levels. Page 4

5 Figure 2-1, CRM Model 3) CRM s Main Factor The required customer information to achieve CRM is to grasp the continuous changeable DB (data base) of customer requirement. To arranging all gathered customer information is the first step of CRM, and the main CRM factor is to present out new customer data. Figure 2-2, CRM factor and information s relation map Page 5

6 3, CRM in Everland 1) Background Before the Samsung Everland carried out CRM system, the management of customer was dispersedly; the out resource of customer did not be used efficiently. Before CRM, the event and activity participation & the profit of each customer were low, the important information of customer was small and did nto arrange in order. It was also difficult for Everland to maintain the old customer and create new customer. CRM s carried out, it not only can ensure the new and old customer, but also can ensure the customer information, in order to increase the activity participance ratio, grasp customer s contribution ratio correctly (entrance, facility using, and sales ability), and provide personalize and difference service. The total CRM project development time in Everland was from 3 rd.jan, 2001 which basis on the process analysis, operation design, program development, and the construction of integrated data. On 30 th April, the testing operation was opened on F/W membership and WEB reservation and the integrated membership management system was opened on 14 th, May ) Everland s service system To satisfy and maintain the old customer, create new customer, Everland created his service system as following. Table 3-1 Everland service system catch-up VOG (voice of guest) guest card happy card guest praise card Thank-q service (kindness+ impression) before service * listen to the guest's words * the system that ask the visited guest's impression directly *the system that reflect the guest's suggestion in the activity after discussion *the system to give happy card to the customer in unfortunately situation *the system that customer recommend the kindness staff member *analyze customer types and satisfied customer's requirement previously *identify customer information and satisfy customer's special requirement Page 6

7 3) CRM s Main Applying area in Everland (1) Web site management Samsung Everland s most customer information is from its website, it is an abundant and at all times updated web site. The HOK Planning Group was retained to update the overall Master Plan for the site, create a New Town plan for property adjacent to the existing community, as well as develop a concept for a new Entertainment Retail district adjacent to the existing gated attractions. In Everland web site, not only does a Korean nationality can be a member, but also the foreigner can be. When joining in the Everland membership, customer will be required to insert some personal information, such as the name, birth day, gender, address, telephone NO., address, and also about the marriage, job and others. After being a membership of Everland, the website can supply every member a personal room to take part in all of the online events and activities; contact Everland employees by if the member have any question; get points and coupon of ticket discount and so on. It also realized the online reservation for all membership that gave more convenience to customer. It also supplied customer more online games and other leisure activities to attract visitor s participation. Everland s website also contains lots of latest activity and event s ad. From the online membership system, Everland realized the one-to-one communication system to approach customer by and telephone. Everland s all time update website supplies all kinds of online events, activities, ad. and so on. It increased Everland s member quantity (map 1: online visitor s pageview data), and collected customer s information. Map 3-1: Everland s online visitor s daily pageviews Page 7

8 (2) CRM promoting area Table 3-2 CRM promoting area Order Item Main Content F/W membership can be registered on line free. All F/W members have their own spaces on the web, can 1 F/W member do reservation search billing and so on. Here mainly management manage F/W member s information, check customer s click point, receive customer reservation, question mail, event participation information, and so on. 2 Facility using/sale management This is to manage the entrance quantity and facility s using ratio. Everland s entrance ticket price is changing with season. 3 Integrated membership management 1) Campaign management. 2) TM management 3) DB, mail management 4) customer question management 5) customer facility using management 6) analyze customer total information Table 3-3 Everland Integration Membership Management Page 8

9 (3) Customer data segmentation The DB of Everland membership was distributed into four groups. Membership group Online membership: The customer can register as Everland online membership from Everland s website. F/W yearly membership: From this group s DB, Everland can increase the eating /drinking s selling, food and other facilities using ratio in Everland. Cooperation membership: This group can increase the ticket selling, and also can take good relationship with cooperation company or individual. Group membership: It includes the student group and company group, and others. The DB of group membership bases on the opinion leader and guiding person. From the membership group, the customer can also be divided into four levels base on the customer consuming. Most valuable customer: VIP program customers who have highest visit point; they can visit Everland lifetime in membership activity. Profitable customer: Have high visit point, lower consumption; can join the membership academy, camp activity. Frequent customer: have high visit point, low consumption, can join in the special sales activity and get the discount coupon Others: have low visit point, low consumption, can join all kinds of event and get discount coupon.. Customer data segmentation management in CRM enhanced customer management. It makes the complex customer data become methodical which is easy to be grasped and used. From those DB s analyzing, the activity and event s participation ratio became higher than before, and it also increased Everland s customer quantity. In the total 930-thousand Everland customers, there is 200 thousand F/W yearly membership, 160 thousand online memberships, and 400 thousand-cooperation memberships. (4) Total employee management To carry out CRM successfully, CRM should not only manage and analyze the customer information, but also manage the employee efficiently. The knowledge and the construction of CRM should be impressed not only by the supervisors, but also the total Everland employee. Page 9

10 First, Everland carried out CRM knowledge education, and also carried out kindness service education, foreign language education, office automation education and so on. Everland also give staff the chance to get education from outside and out sea. Second, Everland provides employee s one employee one room dormitory system. As Everland is one of amusement enterprises, employee faces lots of persons in the day, so they want a place by themselves which can give them a good mood to work the next day, for this reason, Everland put a big capital to supply one employee one room. (5) The achievement from CRM The first half years CRM achievement after it carried out presented: Increased the profit from each customer. Before CRM s carrying out, the profit from each customer was 3400 wen, after increased into 6800 wen. Customer management became smoothness and improved total customer s management. The online customer managing, increased the DB management s speed, and it also increased the customer revisit ratio. The total maintained customer quantity ranked first in Korea leisure industry, and ranked 6 th worldwide till now. It increased the event and activity s participation ratio by customer data s analyzing. It also increased the selling of eating, drinking, food and other facilities using in Everland. 4, Conclusion There are lots of companies failed of CRM and waste lots of money. The reason that Samsung Everland carried out CRM system successfully is because that it correctly grasped and analyzed the customer data, and all the events and activities holding are basis on the DB analyzing. In leisure industry, the most difficult thing is to grasp the customer s data cause it s complexity, and it is more difficult to maintain the old customer and gain the new customer. In this paper, it introduces Samsung Everland and the case that it successfully carried out CRM system, and successfully analyzed customer data. After Everland carried out CRM, it increased the customer quantity and profit. Page 10

11 Reference CRM.com, Frederick Newell, Book21 Publishing Co. (One to One) CRM, Lee Hwan Giu, Kim AiLa, The Nikkan Kogyo Shimbun, Ltd Customer Service on the Internet, Hong ZengHi, Park HiZeng, 2001 ECRM, Kim Zai-mun, 2001 Data Mining for CRM, Zang Nam-sig, Entrue Consulting CRM Group, 2001 (The) CRM handbook, Dyche.Jill, 2003 CRM Management Renovation, Song Huan-Su, 2002 Customer Relationship Management, Cun San-Ce, 2000 Everland Leadership, Samsung Everland, 2001 Case Study of the EverLand's Customer Satisfaction, Cho Chang-Wuk,1999 A study on CRM in the Theme Park Industry, Sun,Hyun-sun,2002 The comparative study on the Diseny & Everland Service Marking, chong Ki,Kim Page 11