Customer Relationship Management in Hotels

This assignment delves into the significance of Electronic Customer Relationship Management (ECRM) in the hospitality industry. It examines how hotels leverage ECRM strategies to enhance customer satisfaction, build loyalty, and ultimately drive business success. The analysis includes a review of various ECRM applications, their impact on competitive advantage, and real-world examples from prominent hotel chains like Hilton.

To critically analyze the impact of CRM
(Customer Relationship Management) on
consumer satisfaction at Hilton Hotel

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................4
TASK 1............................................................................................................................................4
1.1 Formulate and record possible research project outline specifications.................................4
1.2 Identifying factors that contribute to the process of research project selection.....................5
1.3 Undertake a critical review of key references........................................................................5
1.4 Produce a research project specification................................................................................6
1.5 Providing an appropriate plan and procedures for agreed research specification.................7
TASK 2............................................................................................................................................9
2.1 Match resources efficiently to the research question or hypothesis......................................9
2.2 Undertake the proposed research investigation in accordance with the agreed specification
and procedures...........................................................................................................................11
2.3 Record and collate relevant data where appropriate............................................................11
TASK 3..........................................................................................................................................11
3.1 Use appropriate research evaluation techniques..................................................................11
3.2 Interpretation and analyse of the results in terms of the original research specification.....11
3.3 Make recommendations and justify areas for further consideration....................................14
REFERENCES..............................................................................................................................16

LIST OF TABLES

INTRODUCTION
Research can be defined as a systematic and careful study on a particular topic with the
use of different methodologies and tools. In simple words, it is an in-depth technique which is
helpful in solving issues or problems. The present study is based on understanding the impact of
Customer Relationship Management (CRM) on client satisfaction at Hilton hotel. In order to
meet the objectives of current research, there are various tools used by the researcher. This
research would be helpful in knowing satisfaction level of customers who visit Hilton (Nia,
Balaei and Niyari, 2013). There are many factors because of which researcher thought of
selecting this topic and in investigating it. Hence, these factors along with applied research
methodology will also be discussed.
TASK 1
1.1 Formulate and record possible research project outline specifications
This research is based on the impact of CRM on customer satisfaction at cited hospitality
organization. It would be helpful for Hilton to know about the areas in which they should make
improvements. This would also assist organization to know their customers more closely and
providing them services which would satisfy them.
Aim:
“To critically analyse the impact of CRM (Customer Relationship Management) on
consumer satisfaction at Hilton Hotel.”
Objectives:
 To understand the process of CRM in Hilton hotel.
 To identify link between CRM and consumer satisfaction.
 To identify the level of consumer satisfaction in Hilton. To recommend CRM strategies for improving customer satisfaction at Hilton.
Research question:
1. What is the process of CRM in Hilton hotel?
2. What is the link between CRM and consumer satisfaction?
3. What different CRM strategies can be applied by Hilton hotel for improving the level of
customer satisfaction?
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1.2 Identifying factors that contribute to the process of research project selection
There were many reasons because of which researcher thought to conduct this research
on said topic that is related to analyse the impact of CRM (Customer Relationship Management)
on consumer satisfaction at Hilton Hotel. Following are the factors which are contributed
towards the process of research project selection:
Gain knowledge: The given research study will assist in gaining knowledge regarding CRM. In
addition to this, Hilton Hotel is one of the fastest growing hospitality organizations in the UK.
There are various strategies with the help of which hotel management can maintain relationship
with their customers. This would also enable me to know more about the methods and tools used
by Hilton through which they have worked on maintaining their standards.
Personal interest: I have personal interest on understanding issues and problems that are related
to CRM. Hence, the current study would help in knowing the areas in which the firm lacks.
1.3 Undertake a critical review of key references
According to Rajola, 2013 “customer satisfaction is the key factor through which firm
can gain profit” (Rajola, 2013). In this context, satisfaction of customers has been taken as the
central determinant through which firm could achieve its goals and objectives. Key finding of
this research is that enterprise should understand their customer’s needs, wants and requirement.
Accordingly, they should provide services or products through which they would be able to
satisfy their customers. In addition to this, company should focus on providing quality services
through which firm would be able to make regular customers to the loyal ones (Quintana, 2013).
Similar research was conducted by Scullin, Fjermestad and Romano, 2004. They stated
that “it is very essential for company to maintain positive relationship with their customers”
(Scullin, Fjermestad and Romano, 2004). Further, “when company maintains good CRM
program, it helps organization to satisfy their clients effectively.” In addition to it, this study also
helps in understanding different techniques and methods through which organization could
maintain customer relationship management so as to satisfy their client base. Study also
concluded that firm which maintains CRM would be able to grow, gain profit and increase there
market share. Research also described about different tools and methods through which firm gets
to know the ways to improve their CRM so as to make clients loyal towards the organization
(O’Fallon and Rutherford, 2011).
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According to a research conducted by Modell and Humphrey, 2008 “for assessing
satisfaction of customers, there are many frameworks” (Modell and Humphrey, 2008). “These
frameworks are very helpful for the managers in the organization to hold upon effective tools
through which customer satisfaction is possible. This report also states that customer retention is
very important as it helps firm to grow effectively. In this context, it is essential for the
organization to know the needs and issues faced by customers (McCorkindale, 2010). They
should also focus on solving their issues and through this, company would be able to retain
customers.
“Customer relationship management determines ways through which management would
be able to understand their customers more closely” (Kim, Kim and Park, 2010). Schust, 2013
has stated that “It is a tool which enables to understand customer’s requirements and accordingly
provide them products and services which would satisfy them” (Schust, 2013). Research
conducted by Rajola, 2013 was done to know the ways by which customer relationship could be
maintained with the help of CRM (Rajola, 2013). Organizations can adopt different types of
strategies through which they could make their customers loyal. Customer loyalty is very helpful
for the firm to achieve their targets effectively. Moreover, it can also be beneficial for the
enterprise in attracting more and more customers through word of mouth. Maintaining customer
relationship management would enable firm to know their customer’s likes and dislikes
(Karkkainen, Jussila and Janhonen, 2011). According to the data collected in CRM, organization
would be able to provide their customers with services or products.
1.4 Produce a research project specification
Rational:
Background research has reflected that small number of customers and poor satisfaction
are major issues for Hilton hotel. These issues have direct impact on sales and profitability of the
organization (Hilton Prague Old Town Design, 2014). Main reason behind these issues is related
to the availability of inappropriate CRM system in the organization. Hilton hotel is using
traditional system of customer relationship management which is not appropriate for satisfying
all the needs and requirements of customers. So, researcher has selected this subject for
determining the impact of CRM on customer satisfaction with respect to the Hilton hotel.
Investigation will focus on various features and characteristics of CRM as well as the needs and
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requirements of customers towards CRM of the company (Hilton hotels: Brand Differentiation
through customer relationship management, 2011).
Scope:
Accomplishment of the current investigation will increase the scope of future research.
Number of researchers can complete investigation on similar subject but for different industries.
Including this, it will be significant for the management of Hilton hotel as with the help of this,
they can determine their actual problem and get appropriate solution for improving customer
satisfaction (Modell and Humphrey, 2008).
1.5 Providing an appropriate plan and procedures for agreed research specification
Research methodology
Research methodology can be defined as a theoretical analysis of different research
methods which can be applied by researcher in conducting investigation on CRM and customer
satisfaction with respect to Hilton hotel (McMillan and Schumacher, 2014). There are some
important tools and methods of research methodology which are described as under:
1. Research philosophy: It can be defined as a belief about a particular way by which
researcher can collect appropriate facts and figures about the existing CRM system and
level of customer satisfaction. There are two types of research philosophies such as
positivism and interpretivism. For the current investigation, author will apply
interpretivism research philosophy as current study is based on subjectivity rather than
objectivity and scientific experiments (Daniel and Sam, 2011). It will be significant for
getting solution of every research question in an effective manner because it plays
significant role in collecting qualitative facts and figures.
2. Research design: Planning of the investigation can be done by using appropriate design
of research. For the current investigation, author will apply descriptive research design
because it will be appropriate for conducting survey and case study analysis of Hilton
hotel. Including this, descriptive research design focuses on subjective concepts and
aspects of research subject. So, it will help in understanding various aspects of CRM and
customer satisfaction towards the Hilton hotel (Flick, 2011). In addition, it will also
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beneficial for conducting survey through meeting with the customers of Hilton hotel for
determining their level of satisfaction towards CRM system of company.
3. Approach of the research: It helps in conducting investigation in general as well as
specific manner. There are two types of research approach such as inductive and
deductive. Current investigation will develop a new theory on impact of CRM on
increasing the level of customer’s satisfaction. So, author will apply inductive approach
of the research. It will be significant for conducting specific investigation on CRM and
customer satisfaction of Hilton hotel. Along with this, it is based on research questions
rather than hypothesis which will help in getting answers of every research question
(Goddard and Melville, 2004).
4. Research technique: As per the above discussion, it is a subject investigation so, author
will collect qualitative facts and figures on CRM and customer satisfaction. So, author
will apply qualitative techniques for the data collection and analysis. It will be helpful for
examining all the collected information for making an appropriate conclusion in the
respect of current investigation (Bhattacharyya, 2009).
5. Data collection: For understanding research problem in an effective manner, author will
use both primary and secondary data collection methods. Primary data collection tools
will be utilized by author for getting fresh and new information about the existing CRM
system of Hilton hotel and satisfaction level of customers. On the other hand, secondary
data collection methods will help in getting facts about the similar research studies which
have been conducted by other researcher on the similar subjects (Kumar, 2014). These
will help in getting insight to understand the concept and problem of the research.
6. Sampling: As per the above discussion, author will use primary data collection methods
for gathering information. So, regarding this, author needs to select a sample of research
universe. Author will use random number sampling method for selecting sample because
it provides an equal chance to everyone in order to select (Fiegen, 2010). Along with this,
it will reduce sampling error. Using this method, researcher will select sample of 20
customers which will easily represent the characteristics of entire research universe.
7. Data analysis: Author will use qualitative research technique for conducting
investigation. So, for examining theoretical and subjective data, researcher needs to apply
thematic analysis. In this method, researcher will analyse information using different
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themes, charts, graphs and diagrams. Therefore, it will help in making final conclusion
for this research investigation (Martin and Guerin, 2006).
8. Time scale or Gantt chart: Action plan is a process through which researcher develops a
path through which research goals and objectives could be achieved. In preparing a
report, there are many aspects which have to be covered (Ye and Lai, 2012). In order to
achieve all of them, action plan would be helpful in focusing on all the aspects through
which research objectives could be achieved. Following is the action plan which is
followed by researcher so as to achieve the aim and objectives of research:
Table 1: Action plan for the agreed research specification
Activities/Duration in weeks 1 2 3 4 5 6 7 8 9 10
Determining the problem for research
Developing proposal for research
Formulation of aim and objectives
Defining research purpose
Literature review
Choosing the best research methodology
Analysis and collection of data
Outcomes which has to be interpreted
Research Conclusion
Report submission
Making changes according to feedback
Report resubmission
Following this schedule would help researcher to conduct research effectively and
efficiently. According to the action plan, Hilton would be completed this research in 10 weeks.
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TASK 2
2.1 Match resources efficiently to the research question or hypothesis
As per the above discussion, questionnaire is one of the best methods for collecting
primary and new information about the research subject. It will be beneficial for collecting those
information which help in getting solution of every research question in an effective manner.
QUESTIONNAIRE
1. Demographic information
Name:
Gender:
Age:
2. Are you satisfied with the CRM process used by Hilton hotel?
 Yes
 No
3. Is CRM helpful in understanding your needs and requirements?
 Yes
 No
4. What is the most important feature of CRM for increasing your level of satisfaction?
 Customer care facility
 Post purchase services
 Feedback option for purchased products and services
 Advertising and promotion of products and services using CRM
 Complain box
5. According to you, what is the most suitable customer relationship management which can be
used in Hilton hotel?
 E-CRM(Electronic- customer relationship management)
 Traditional CRM system
6. How much are you satisfied with the effectiveness of customer relationship management in
Hilton hotel?
 Very Dissatisfied
 Dissatisfied
 Neutral
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 Satisfied
 Very Satisfied
7. Suggest appropriate ways through which CRM in Hilton could be improved.
________________________________________________________________________.
2.2 Undertake the proposed research investigation in accordance with the agreed specification
and procedures
In order to meet objectives and goals of research, all the activities in the action plan has
to be achieved. In addition to this, for achieving objectives effectively, primary data has to be
collected and in this process, it is very essentially for researcher to collect email ids. It is
necessary to collect the email ids of individuals who have used the services of Hilton hotel.
Sample would be collected from 20 individuals. With the sample of 20 individuals, objectives of
research could be achieved easily. Questionnaire would be send to these individuals on their
email ids. Through the received data, information would be collected. Through using such
questionnaire, customer satisfaction level could be known. In order to achieve other objectives,
journals and books would be taken into use. Various resources would also be used so as to know
the reliability and validity of research (Sunil and et.al, 2014).
2.3 Record and collate relevant data where appropriate
Attached in Excel Sheet
TASK 3
3.1 Use appropriate research evaluation techniques
Author will use thematic analysis for evaluating facts and figures and getting appropriate
solution. It is one of the best methods for analyzing qualitative and subjective facts as well as
figures. This method includes different themes, diagrams, charts and graphs for examining
information. Along with this, it helps in analyzing information in-depth which will help in
getting appropriate solution of every research question. Including this, researcher can easily
apply this technique on large data set. It will also help in augmenting reliability and validity of
the results (Schmid, 2013).
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3.2 Interpretation and analyse of the results in terms of the original research specification
As per the above discussion, author has applied thematic analysis for examining facts and
figures in an effective manner. Thematic analysis for the current investigation is as follows:
Theme 1: CRM of Hilton hotel is not helpful in understanding needs and requirements of
customers.
3. Is CRM of Hilton hotel helpful in understanding your needs and
requirements? Frequency
Yes 6
No 14
As per the research objectives, researcher wants to determine the effectiveness of CRM
system for understanding the needs and requirements of customers, so, author has included the
above question in the research study. Above theme has reflected that most of the research
participants have shown that CRM of Hilton hotel is not appropriate for understanding the needs
and requirements of customers. But, on the other hand, 6 participants have said that CRM system
of Hilton hotel is appropriate for understanding the needs and requirements of customers.
Overall, most of the customers are not satisfied with the CRM system of Hilton hotel
Theme 2: CRM system of Hilton hotel is not effective for customers.
6. How much are you satisfied with the effectiveness of customer
relationship management in Hilton hotel? Frequency
Very Dissatisfied 8
Dissatisfied 7
Neutral 1
Satisfied 2
Very Satisfied 2
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Author wants to determine that weather CRM system is effective for customers of Hilton
hotel or not, so, author has comprised the above question in survey of customers. As per the
above theme, author has found that most of the customers believed that CRM system of Hilton
hotel is not effective in every aspect. Here, 8 customers are very dissatisfied and 7 are satisfied
with the effectiveness of CRM. Similarly, 4 customers believed that CRM system of
organization is effective for customers as well as organization. Consequently, above theme has
concluded that CRM system of Hilton hotel is not effective for customers.
Theme 3: Importance features which are required in an effective CRM.
4. What is the most important feature of CRM for increasing your level of
satisfaction? Frequency
Customer care facility 4
Post purchase services 3
Feedback option for purchased products and services 5
Advertising and promotion of products and services using CRM 4
Complain box 4
Researcher wants to identify the major needs and requirements of customers towards the
CRM, so, researcher has included question relevant to the features of CRM. After conducting
thematic analysis, author has found that 5 respondents want feedback option for products and
services which is one of the important features. Along with this, as per the responses of 4
participants, customer care facility is one of the important features of CRM. In addition,
advertising, promotion and complain box have also got equal vote of 4 respondents. On the
other hand, only 3 participants thought that post purchase service is also one of the important
features of CRM system.
Theme 4: Electronic- customer relationship management is the most suitable customer
relationship management for customers of Hilton hotel.
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According to you, what is the most suitable customer relationship
management which can be used in Hilton hotel? Frequency
E-CRM(Electronic- customer relationship management) 14
Traditional CRM system 6
As per the above discussed research problem, existing CRM system is traditional which is
not capable enough to satisfy the needs and requirements of customers. So, author wants to
determine an appropriate CRM system for the company. Above question has helped in
determining the view of customers about traditional and electronic system. Researcher has found
that 14 respondents believed that ECRM will be more appropriate as compare to traditional CRM
system of the company. On the other hand, only 6 participants have believed that traditional
system of CRM will be effective for increasing the satisfaction level of customers.
3.3 Make recommendations and justify areas for further consideration
Conclusion:
As per the collection and analysis of data, author has concluded that CRM system is one
of the major requirements of increasing the level of customer satisfaction. Hilton hotel is using
traditional system for developing customer relation which is not effective for satisfying their
needs and requirements in an effective manner. So, it decreases the level of satisfaction in the
respect of customers. Therefore, report has reflected that CRM system has strong association
with customer satisfaction. So, ineffective CRM system can reduce customer satisfaction which
has direct impact on the sales and brand image of Hilton hotel. On the other hand, customized
CRM plays an important role in satisfying the expectations of customers. Along with this, by
using CRM system, company can communicate different information to customers about the
products and services. Along with this, appropriate CRM can also be used by Hilton hotel for
advertisement and marketing. But, existing system of Hilton hotel is not included all these
features so, it is not capable enough to satisfy all the needs of customers. Overall, it declines the
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number of customers for the organization and reduces the overall sales and profitability. So,
organization needs to improve its CRM system.
Recommendations:
As per the above conclusion, CRM system of Hilton hotel is not appropriate enough to
satisfy the needs and requirements of customers. So, organization should improve its Customer
relationship management system as per the customer’s expectations. According to the customers
of Hilton hotel, CRM system must include different features such as feedback options,
advertising and promotion, post purchase services, customers care facility as well as complain
box. All these features help in increasing the customer satisfaction towards CRM. In addition, at
present each and every person of UK uses internet and latest technologies in their daily life. So,
Hilton hotel should also focus on Electronic customer relationship management system. It will be
appropriate for satisfying the needs and requirement of customers which will have positive
impact on the satisfaction level of customers in the respect of Hilton hotel.
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Online
Hilton hotels: Brand Differentiation through customer relationship management. 2011. [pdf].
Available through: < http://202.120.148.199/Files/Hilton+Hotels.pdf>. [Accessed on 25th
January 2016].
Hilton Prague Old Town Design. 2014. [Online]. Available through:
<http://www.howtodo.dissertationhelpservice.com/research-paradigm-and-philosophy>.
[Accessed on 25th January 2016].
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