Managing Customer Experience in Hospitality Industry - The Savoy Case Study

This article explores how The Savoy, a top hotel in the UK, manages customer experience by utilizing market segmentation, understanding customer needs and wants, and examining factors that influence customer engagement. It also discusses the creation of a consumer experience map and how to optimize each touchpoint to influence consumer behavior and response.

HOW TO MANAGE THE
CUSTOMER EXPERIENCE

Table of Content
PART 1............................................................................................................................................3
INTRODUCTION...........................................................................................................................3
1-Defining market segmentation and an exploration of The Savoy use of individual
characteristics for purpose of market segmentation.....................................................................3
2-Explaining the importance of customer’s needs, preference and wants...................................4
3-Examining how The Savoy can utilize consumer behaviour & attitudes of varied market
segments to build brand loyalty and trust....................................................................................5
4-Reviewing various factors influencing customer engagement.................................................5
5- Evaluation of wider range of different target consumer group’s needs & expectations in
term of consumer engagement for The Savoy.............................................................................6
6- Definitions of consumer experience map................................................................................6
7- Creation of detailed consumer experience map that charts the consumer journey model and
examine activities & action at each touch point..........................................................................6
8- Discussing how hotel can optimize each of consumer touch points to influence the
behaviour and respond & action of consumers. ..........................................................................8
CONCLUSION................................................................................................................................8
PART 2............................................................................................................................................9
INTRODUCTION ..........................................................................................................................9
1-Customer Relationship Management........................................................................................9
2-Digital Transformation of Customer Experience...................................................................10
3-Advantages and Disadvantages of Guest-folio.......................................................................11
4-Illustrating Customer service strategies..................................................................................12
5-Explaining how customer service strategies improve customer experiences.........................12
6-Evaluating delivery of consumer service tactics and communication in The Savoy and
making justified suggestions......................................................................................................13
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................16

PART 1
INTRODUCTION
Consumer experience is considered as totality of sensory, affective, cognitive and
behavioural customer’s responses during each stage of consumption procedure including utilize,
pre and post purchase phases. It also refers to how a venture engage with their target market at
key stages of their purchasing journey. The current assignment will be based on The Savoy,
which falls under the category of top 10 hotels in the UK. The study will explain market
segmentation and key features, value, & significance of comprehending needs, preferences and
wants of target consumer groups for hospitality industry. It will define factors that drive &
influence customer’s engagement of different target consumer groups within sector.
Furthermore, the report will also justify buyers experience map and how all touch points
throughout customer experience create venture chances for chosen hotel.
1-Defining market segmentation and an exploration of The Savoy use of individual
characteristics for purpose of market segmentation.
Market segmentation is sdefined as one of those practices that management has been
conducted in order to divide their target audience into approachable units (Pafi, Flannery and
Murtagh, 2020). This practice effectively creates subsets of a market, that is based on priorities,
demographics, and other psychographic criteria that have utilized to better comprehend each
buyer. It is also considered as key marketing tactic in which chosen or target groups of customers
are determined so that specific items or product lines might be presented to them in term of
appealing to their interest’s level.
The Savoy and its marketer after selecting all as its target consumers, may consider their
key features in effective manner and these are;
 Target segment of hotel belong to multicultural background as each consumer follow
particular region or culture.
 They are capable to conduct appropriate research before taking essential decision
regarding products purchase or service utilization.
 They have a certain income extent according to which they may take approach to select
and utilize particular item or service of hospitality industry.
 Another characteristic of individual is that they are able to differentiate goods and take
right decision on time.

2-Explaining the importance of customer’s needs, preference and wants
Understanding about customers requires in today's market is quiet important for
management, as it aids management in improving the efficiency and customer satisfaction for the
company.
Increasing Profitability: It is quite important for firms to gather information about
customers as, it aids 'The Savoy' to know more about their demanded market trends (Yen, Teng
and Tzeng, 2020). With adapting to new trends and analysing about customers converts easily
customer trends into organization profits. Increasing sales results in more brand evaluation and
profit maximization for firm.
Market Segmentation: Another reason for companies for knowing about customers’
needs and wants to have understanding about different types and segments of customers. As once
customers being separated into various segments and categories, it became an ease to marketing
about products more accurately towards target customers. For example, 'The Savoy' chooses high
class people to market.
Market Requirements: One of important reason to get knowledge about customers
wants and what are their wants and requirements (Ilyas and et.al., 2021). To observe about in-
growing marketplace trends customers may follow or new market requirements for easily
convincing and attracting variety of consumers. Focuses on consumer’s personal taste and
preferences and creating generic interest of the customers in liking and providing them with great
services too.
Increasing Brand Value: Also an important reason to understand about customers.
Wants and needs by them so firm may able attract more and more of customers resulting
increasing sales for hotel and direct impact on brand value for the company. With a great and big
brand value it became more flexible for company to attract customers towards them. This also
aids in getting engagement of more new consumers and increasing in value and market share for
firm.
Competitive advantage: With proper information about customers 'The savoy' may
tends to acquire advantage over other competitors (Park and et.al., 2019). This aids in resulting
converting other hotel companies customers into our company's customers. As it's customer’s
behaviour to shift from non-availability areas towards to place with full of resources.

3-Examining how The Savoy can utilize consumer behaviour & attitudes of varied market
segments to build brand loyalty and trust
For purpose of sustaining venture into hospitality industry, it is quite essential for hotel to
utilize attitude and behaviour of different target market segments. It may provide organization
chance to build excellent brand loyalty in the market and trust as well. For example,
demographic market segmentation is the best example of segment (Funk, Sütterlin and Siegrist,
2021). The Savoy can utilize behaviour and outlook of these individuals in term of developing
plan according to age, gender, income and other types of non-character traits. By conducting this
practice in effective manner, firm my build trust between target market and its venture and also
help to convert potential consumer into loyal.
Psychographic is another market segment that drive the attention of company toward
focusing one consumers’ interests and personalities (de Leaniz, Crespo and López, 2020). It is
essential for hotel and its management to consider hobbies, interest level and values as well as
lifestyle of individual person which enable them to retain potential guest and drive their attention
toward conducting word of mouth promotion. This practice in turn contribute to build excellent
brand trust and loyalty in specific market. It can be said that consumer behaviour is considered as
one of those elements or concepts that a firm, whether it is large or small may attempt to
consider and gain benefit from that.
4-Reviewing various factors influencing customer engagement.
Marketing: One of the main reasons for influencing consumers, with the more marketing
and promotion of firm results in getting more engagements. With the use of high and good
marketing and promoting about firm’s various services provided aids in increasing more
customer base to company. If hotel aims to focus on market more about services and brand value
imposes a positive impact in increasing customers base and generating more revenues by the
firm.
Services: Customers engaging influencing is not just about sales when it comes towards
hotel industry its more about providing with satisfaction. To get top needs about customer’s
requirements may cause a major influencing shift in consumer’s arrangement. By keeping in
touch with customers and providing them with excellent services results in lasting relation with
them. For example, 'The Savoy' emphasize majorly on providing customers with great services
hence ending up in gaining more customers engagement.

Pricing: Another major factor influencing as customer tends to move towards point
getting best pricing and services both at the same time. If firm is providing consumers with best
in class services at best price range may outcome in more consumer base than ever.
5- Evaluation of wider range of different target consumer group’s needs & expectations in term
of consumer engagement for The Savoy.
For purpose of engaging customers with chosen hotel, it is important for marketer to
consider the key needs and beneficial expectations of target market group. In the recent time,
customers prefer to obtain the best accommodation services, while they stay in hotel. For
example, they may tend to take pleasure of advanced technologies such as smart key to lock or
un-lock their rooms (Gil-Gomez and et.al., 2020). It may give them feeling of security and assure
that their luggage is safe in the organization. Furthermore, those individual who believe to
purchase everything according to their lifestyle may expect to visit in one of those hotels where
each service and product from meal to room services are up to the mark. For instance, people
how live luxury life style may expect to take pleasure luxury things, which drive the attention of
management toward offering everything accordingly as it may help to retain loyal consumers and
engage them with firm forever. Each category of target consumer whether they are demographic
or psychographic based always tend to feel better and refer others to feel the same, which enable
marketer and other stakeholders of the Savoy to take pleasure of increasing consumer base
continually.
6- Definitions of consumer experience map
Customer experience map is made up of all buyers journey touchpoints that an individual
might have with a company and their interaction that take place at each touch stage (What is a
Customer Experience Map? How to Create an Effective Customer Experience Map, 2019). It
includes key advantages for organization such as improve marketing, better sales training and
enhance consumer retention rate. By understanding where & how individual buyer are
interacting & hearing with key resources or sources, firm may gain benefit of improving its
message & reduce advertisement spend in areas that are unnecessary.
7- Creation of detailed consumer experience map that charts the consumer journey model and
examine activities & action at each touch point
Stages Awareness Considerati
on
Decision Service Loyalty

Customers
action
View online
advertiseme
nt, see
social
media
campaigns
and hear
about hotel
services
from
friends.
Conduct
research, and
compare key
features and
pricing
tactics used
between by
two or more
hotels.
Make a
purchase.
Receive
service or
product,
contact CSM
and read
service
documentatio
n.
Make another
purchase and
share positive
or negative
experience.
Touchpoints Traditional
media,
word of
mouth and
social
media
channels.
Word of
mouth and
websites.
Mobile
applications
and official
organizational
website.
Smart phones
and email.
Social media
review and
comments.
Customers
experiences
Hesitant
and
interested.
Curious and
super
excited.
Excited Unsatisfied Satisfied and
too much
excited.
KPS Number of
people
reached.
New website
visitors.
Online sales
and
conversion
rate.
Product and
service
reviews,
waiting line
and consumer
service
success rate.
Retention rate
and target
market
satisfaction
score.

Business
aims
Increase
awareness
Increase
visitors on
websites
Increase
online booking
and
conversion
ratio.
Increase
consumer
service
satisfaction.
Generate
positive
reviews and
maximize
retention rate.
Above consumer experience journey map is created in detailed in the context of The
Savoy target market, among which each customer takes essential action and conduct a specific
activity, that enable to final decision. For purpose of generating awareness and collecting
information about the best accommodation or hotel service, guests reach to chosen hotel website
where they may get overall information about everything according to their interest. This touch
point and action may provide business growth chance for company in term of putting
information and updating its website in form of adding important info, which help brand to retain
& acquire new target market.
8- Discussing how hotel can optimize each of consumer touch points to influence the behaviour
and respond & action of consumers.
Savoy and its stakeholders can optimize each stage of consumer touch points in effective
manner in order to influence essential responses, attribute and actions of all guest, which enable
them to enhance the satisfactory & experience level of each. For example, marketer can enhance
target market satisfaction and reach at all stages in term of taking right decision. They may create
a website and social media account on specific channel such as Facebook, where number of
user’s rate is wider than other channels. With the help of this activity they may generate
awareness among each guest about what firm plan to offer and making change in existing
offerings as well. In this manner, they may influence consumer’s behaviour and give appropriate
response in term of solving their issues about anything related to Hotel services.
CONCLUSION
By summing up above discussion, it has been summarized that by considering and reach the
key stages of consumer buying behaviour, organization has retained & acquired target group of
buyers. It has increased the productivity and performance level of company that is not possible to
increase rapidly by any hotel in effective manner. By reaching at each stage of consumer touch
point, marketer has grabbed the current business growth opportunities and also built

organizational power to gain further chances as well. Furthermore, from above analysis, it has
been identified that by comprehending key touch points where consumers reach to take their
decision, marketers have developed the best strategies that in return supported to generated
unexpected outcomes.
PART 2
INTRODUCTION
Customer experience (CX) is a perception of a business or brand created after any and
every interaction with them no matter how brief or detailed it was. The experience includes every
stage, pre-purchase, during consumption and post-purchase. A business can influence customer's
experience during every stage by giving them better assistance. Customer experience spread
words, good or bad, it can ensure customer loyalty, retain customers, and advocacy for brand.
In the following report, the customer relationship management would be learned. The
impact of digital technology in customer experience, advantages and disadvantages of customer
relationship management would be discussed in the context of hotel “The Savoy” of London.
1-Customer Relationship Management
Customer relationship management is a strategical process to regulate and maintain its
interaction with the customers through technology. It is a technological system used by
organizations to manage the external engagement with the customers at every stage of customer
life-cycle, from pre-purchase to post-purchase. CRM is practised to build and maintain
customer's positive experience. CRM is reached from company website, mass emails, telephone
calls and lastly, the most frequently used weapon for every company, social media. Company has
been adapting to social media to make space within potential customers and maintain a positive
reputation among them. Customer relationship management compile the data from various
communication channel that allow them to gather more information about their target market and
audience and to meet their needs and as a result retain them to drive sales growth (Ridwan, Nur,
and Mariah, 2021). CRM can be used on all past, present or future/potential customers. This
strategy connect brand to the customers directly. The primary objective of the systems remain
same; increase sales and retain customers.

2-Digital Transformation of Customer Experience
In simple words, digital transformation is corporation of digital technology in the main
system and practices of an organization. The industry of hospitality is highly competitive and the
way of how customer search for their hotels is also shifting. There are many mobile applications
and computer software that guide them to their preferred hotel, those profiles are driven by other
customer's reviews, the price of stay and quality service. Hotels are now building their brand to
fit most appropriately on those points to get best reviews on experience and expectations, so they
can retain and bring even more guests and customers to their service. The guests have became
demanding, and they want easy access for their queries. Every company is transforming their
system to the digital world. It has become the main platform where a company can find their
target customers and reach out to them. On the digital platforms, customer is the one driving the
car, they can search what they want, choose what they want to, compare between the hotels and
review them on the same platform (Rahimi, and Kozak, 2017). Now, hotel The Savoy have
transformed themselves into customer-driven hospitality business, where they put customers in
the control of interactions. At this age of digitalization customer expectations drives their
experience. The hotel understanding that gathers more information about them then before, and
be consistent as today, customer not only compare hotels on the sites but also through their
network.
To enhance the customer relationship, the hotel Savoy have opted for the CRM system
Guestfolio. The Savoy have installed a system on their main entrance that scan the customer and
allow the doormen to seamlessly announce it to staff so that they greet the customers with their
name, which make the customer feel closer to the organization. They try to gather as much
information they need to make every guest's experience personalized and provide branded
communication (Zhang, and et.al, 2017). In the guest-folio the transaction account of a single
guest is recorded and their information is also saved there.
The hotel is incorporating advanced technological features to improve guests/customer's
stay. They are integrating new types of interactive changes that not only add new dimension to
the customer experience but also changes and enhances customer engagement by upgrading their
social media presence, customer conversation rates with them and easy access to hotel
information (Kokins, Straujuma, and Lapiņa, 2021).

3-Advantages and Disadvantages of Guest-folio
Guestfolio is a great way to create customer relationship with the hotel and give them
best experience and yet it comes with some drawbacks that hotel should be aware about and must
find solutions. The new digitalization has helped the businesses to acquire advanced technology
and build their brand and retain the customers but some drawbacks are unavoidable and without
solutions that concerns not only the company but also the customers.
Advantages Disadvantages
Guest-folio helps in integrating personalized
experience for the customers and guests.
To give personalized experience the company
might sometime seems to break boundaries and
invade privacy of the guests.
Guest-folio makes it easier and organized to
keep record of transactions.
It can be organized way to record yet the
process could be complicated, hectic and too
much to record every customer's record
different from another.
The automatization of system records every
transaction on its own without any human
effort.
Although the system is automatized, the cost of
system buying and installation is huge for even
a large hotel group like The Savoy.
The system opted by the Savoy is helping them to retain their customers and enhance the
customer relationship and meet expectations to give them best experience. The personalized
experience make guests feel important to the hotel and as they get branded communicative
services it adds to the benefit (Cobanoglu, and et.al, 2021). Also, on the technical side, the guest-
folio system makes easier for the staff to keep records of the guests, it keeps records of
transactions during the stay as well their profile information gathered before and during the stay
and as it is automatized and record even small to small transaction with the hotel any
misunderstanding could be avoided and work force could be utilized for different work.
As the company wants to give personalized experience to every guest they need to gather
information about the client, those informations may put off the client and can make it seem

invasion of privacy. Additional, the system could be complicated to operate and seem too much
effort for every guest and the buying and installation of system is expensive, adding to the cost of
hotel expenses even for a large hotel group The Savoy.
4-Illustrating Customer service strategies
These are the plans made for checking and evaluation of customer’s interaction with the
organization (Suresh, and Kumar, 2021). Improved customer experiences attract more customer
base as loyal customers tends to stay connected with same firm.
Feedbacks: One of the strategies used by various firms, with getting to know more about
customers what they want or their requirements is through feedbacks firms may tends to enhance
customer services. As important to collect feedbacks for get to know about weakness of firms
and converting them into opportunities hence results in excellent customer service and
engagement.
Continuous Checking and evaluation: Another important factor to keep in mind with
continuous observation and evaluation about customer’s moods and requirements for coming up
with effective method to increase customers services. Also, aids in generating more engagement
of customers with the firm.
Knowing Customer's Demands: This method deals with about pre determination of
customer's demands. As with usage or market analysis company may tends to determine about
what customer demand for product or services (Matsumura, Ueda and Sagane, 2019). With
delivering of services about customers need enhance the working of company also results
increasing revenue and sales. And also aids in gaining competitive advantage over others.
5-Explaining how customer service strategies improve customer experiences
Increase in demands: Improved customer services results in increase in demand for
customers. As customers tends to visit hotels providing them with good services. Also aids in
improved customer experience and more promotion and revenue generation by company.
Ability to Pay: When customer gets perfect services and services it tends to enhance
experience with hotel and may result in more ability to pay (An and Han, 2020). With an
increase in the shift of customer satisfaction results in shift for the firm too.

Loyalty: With customers having good services by the firm them tends to stay loyal
towards single hotel. For example The Savoy greets customers with an excellent services results
in customer to stay loyal to hotel and visits more often than ever.
Giving more customers: With having great experience by customer may results in
frequently coming back showing loyalty and enhanced experience. Also, results in the attracting
more customers to firm as they tend to promote hotel and its services results in more customer
eagerness to come and gain experience by themselves.
And with delivering customers with great services results in various customer experience
in enhancement also with gaining more and frequent customers, increased in growth of firm, and
huge increment in sales revenue for firm.
6-Evaluating delivery of consumer service tactics and communication in The Savoy and making
justified suggestions.
Consumer service strategy is one of the best approaches that contribute to make a
company successful and productive as well as profitable in term of acquiring new consumers
along with them management may effort to retain existing. For example, feedback collection
from potential guest, may support manager of the Savoy to determine the areas where further
improvements are needed and also drive their attention toward developing tactics to overcome
each in effective manner (Díaz and Duque, 2021). By collecting feedback from them they may
make possible and essential modifications. It can be said that feedback from consumers side
move overall operational department toward modifications whether they are major or minor.
Along with providing benefit, this strategy may affect success of brand in term of consuming
time as they deal with certain people's who raise their issue or put complain, which is important
for management to solve.
In the Savoy, operations management may take approach to utilize more strategies and
develop so in effective manner, which enable them to retain individuals and drive their
satisfaction toward next level, that no other brands or hotels in the hospitality industry may do
that. They may take action to evaluate and monitor mood swings of consumers as they take
action or decision to purchase or not to do that according to trend. So it is essential for them to
determine the trend and then take right action as it may provide them key edges. While, it may
put negative affect as well in term of misunderstanding and lack of clarity about what they

exactly want. It is quite important for hotel and management to take varied additional approaches
into their consideration as strategic recommendations and these are:
 They can engage consumers to fill feedback form, which encompasses key questions.
This form will be provided via hotel application that consumers can download and
straightly communicate with front office team. In this manner they can take small review
of individual person, which enable to determine where important changes are needed.
 Marketer can take initiative to develop official website where they can also take reviews
from existing customers and share information with new, which drive their focus toward
purchasing services or products that their hotel plan to offer.
CONCLUSION
From above analysis, it has been concluded that by maintaining consumer relationship in
effective manner, marketer and management has retained potential guests forever. They have
enhanced their satisfactory level even better than last few months or weeks. By conducting this
practice, organization has taken pleasure of increasing consumer base, which is not that easy for
any company to do so. Furthermore, it has been identified that technology advancement has
enhanced the performance and effectiveness of marketing team. It has driven their attention
toward developing the best advertisement that has gained the attention of international
consumers. Along with above initiatives, hotel and its stakeholders have taken more that in
return contributed to gain competitive advantages.

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Online
What is a Customer Experience Map? How to Create an Effective Customer Experience Map.
2019. [Online]. Available Through: <https://callminer.com/blog/what-is-a-customer-
experience-map-how-to-create-an-effective-customer-experience-map>