Disney Case

Customer Value Management

Guide 1
Why it was crucial for the
company to implement a
CRM strategy (internal and
external factors)
2
CRM strategy adopted by
the company

3
Results
 Question 1:

Why was it
crucial for the
company to
implement a
CRM strategy
(internal and
external factors)?
External Factors
Enhancing the Guest Experience
The MagicBand allows guests to
personalize their experience by
making reservations, accessing their
rooms, and even unlocking FastPass
attractions. This personalization is a
key external factor that improves
customer satisfaction and loyalty.
Competitive Advantage
In the highly competitive theme park
industry, offering cutting-edge
technology like the MagicBand gives
Disney a competitive edge. It attracts
more visitors and sets Disney apart
from other theme park operators.
Internal Factors
Customer Data Collection and Analysis
The MagicBand collects vast amounts of
data on guest behavior and preferences.
This data is invaluable for Disney's
internal operations. By understanding
guest preferences and behaviors, Disney
can tailor its offerings, improve park
operations, and create more effective
marketing campaigns.
Guest Feedback and Improvement
The MagicBand also enables Disney to
collect feedback from guests in real-
time. This data can be used to identify
areas for improvement, make quick
adjustments, and continually enhance
the guest experience.
Both Internal and External Factors
Long-Term Customer Relationship Building
CRM is not just about short-term gains;
it's also about building long-term
relationships. Disney's MagicBand allows
them to capture and retain valuable
customer data, which can be used to
create meaningful and lasting
connections with their guests, increasing
customer loyalty and lifetime value.
Marketing and Cross-Selling Opportunities
A well-implemented CRM strategy
enables Disney to engage in targeted
marketing and cross-selling. By
analyzing guest data, they can offer
personalized promotions, discounts,
and upsell opportunities, which
benefits both the company and the
guests.
 Question 2:

What is the
CRM strategy
adopted by
the company?
a. What are the expected benefits for
the company?
2 main benefits:

Improved customer experiences

Frictionless spending
 Improved customer experiences

Guests’ paths
are optimally Fully
managed personalised

Less stress
Minimise waiting Less frustration
time (much lower More enjoyment
than “regular”
guests)
 Frictionless spending
Flawless experience = More time spent in parks
= More money spent

Higher total spending compared to a “regular”

guest
 b. How does the company create an
omnichannel strategy?
By making the customer at Disney go through a seamless
experience with the Magic Band only

Cashless Front-of-the- Opens your

Park entry hotel room door
purchases line passes

Signal when Arranging

close to a Arranging
meet-and-
photogenic seating at greet with
spot on the events like Disney
rides shows characters
c. The collection and use of information in
an appropriate manner to improve the
customer experience

Disney employs cutting-edge technology through the utilization of

MagicBands at Disney World, incorporating radio-frequency
identification (RFID) to enhance the overall guest experience.

These bands enable location tracking within the park, optimizing ride
loading, managing people flow, and triggering on-ride photos and
videos stored on the wearer's PhotoPass account. FastPass+ is
integrated, surpassing traditional ticket systems and reducing the
likelihood of issues like lost tickets or fraud.
Security measures include associating guest photos with MagicBands,
and purchase limits are set unless overridden by a four-digit PIN. The
option for personalization allows wearers to be greeted by name by
Disney characters, with users able to customize preferences.

Nearly half of
Disney World
guests were
using
MagicBands as
of June 30,
2014, and
satisfaction
rates were
high.
This technology is part of Disney's broader strategy, MyMagic+,
aiming to enhance pre-planning and overall guest experiences.
Post-visit, guests can access captured photos and videos for a
fee, further extending the Disney experience beyond the park
visit. The implementation reflects Disney's commitment to
ensuring flawless technology and ease of use for the millions
of annual visitors.
d. The kpi that should be used by the company to
mesure the affectivness of the strategy
Adoption Rate:

Measure the percentage of guests using MagicBands

compared to those still using traditional methods (such as
FASTPASS cards) A high adoption rate indicates the
success of the strategy in encouraging guests to use the
technology

.
1) Strategy development: Marketing / Customers
Summary
Examining the existing and potential customer base

2) Value creation process to the customer

Higher:
Perceived quality
Customer satisfaction
Customer service
Loyalty
Examples: The band calculates optimal times for cut-the-line passes, characters are greeting
you by name

3) Omnichannel integration
Customer going through a seamless experience

4) Information management process

Information collection: Encrypted database
Using relevant customer information: Wearer’s location in the park, minimise waiting time,
manages waiting time and traffic flow for other guests, movement, activities, purchases

5) Performance assessment: Performance monitoring

Main KPIs: easy to use, simple, personalised experience, wearable technology
Question 3:

What are
the results?
 With approximately half of Disney World guests
adopting the MagicBand and an impressive
satisfaction rate of 90%, the product has been a
real success.

Now, guests don’t have to walk through

turnstiles, race to the FastPass, kiosk for
line skipping tickets and relying on cash
or credit cards. All of this changes,
translates into a significant reduction in
waiting times.
 Disney position itself as a potential leader in the wearable
tech industry. By making something new and improving the
customer experience with it, it shows the immense potential of
wearable tech that helps to elevate the overall theme park
experience.

The MagicBand not only enhances the visitor experience but also
serves as a powerful tool for data insights. Now Disney can track
guests movements, activities, and purchases throughout the park.
This system helps to have a complete understanding of visitor
behavior and how to keep upgrading it.
 The financial impact of Disney's MagicBand
has been positive. The MagicBand increased
revenue and reinforced Disney's position as a
leader. With an investment estimated at 1
billion in mMyMagic+, they expected to be
profitable in the quarter ended Sept. 30,
2014.

Disney reached their record attendance on

december 31, 2014. Additionally, both parks saw a
In the end, the MagicBand by
notable 7% year-over-year increase. These stats
Disney is a real success !
demonstrate the success of their investment in
MyMagic+ and the MagicBand.