Customer Relation Management: Techniques, Benefits, and Stakeholder Contribution

This document discusses the main elements of Customer Relation Management (CRM), evaluates the benefits of successful CRM, analyzes the relationship between CRM and quality management system, discusses the process of CRM, evaluates the role of employees, and discusses how external stakeholders contribute to an effective CRM system.

Customer Relation
Management

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY ..................................................................................................................................1
1.1 Discuss main element of Customer Relation Management (CRM).......................................1
1.2 Evaluate profit in order to achieve successful CRM in the organization..............................2
1.3 Analyse the relationship between CRM and quality management system ...........................3
2.1 Discuss the process of CRM in order to achieve effectiveness in the organization..............4
2.2 Evaluate the role played by employees in successful Customer Relation Management ......5
2.3 Discuss how external stakeholders contribute in effective CRM system..............................5
3.1 Evaluate some existing systems and suggest some improvement ........................................6
3.2 Develop a proposal for improvement for CRM process .......................................................7
Covered in PPT............................................................................................................................7
3.3 Evaluate that how plan will be formulated in the organization to improve their customer
relation.........................................................................................................................................7
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................9

INTRODUCTION
Customer relation management (CRM) is the technical system which helps the
organization to promote their relation with customer and try to satisfy them with the help of their
services. Main goal of CRM is to improve business relation where organization put several
efforts to stay connected with customers who helps in improving profitability (Al-Azzam and
Khasawneh, 2017). Basically CRM is an tool which help the management to connect sales,
production and distribution functions. For the understanding of this concept, This project report
selected Hilton Hotels & Resort which is American based hotel chain company. It is founded in
31st May 1919 by Conrad Hilton and its headquarter situated in McLean, Virginia, U.S.
Project report cover various topics such as main elements of CRM such as techniques &
positioning of it in the organization. Profit to be achieved from successful CRM and how it
impact. Along with this relationship between quality system or CRM and it's process in the
business to achieve high efficiency as well as effectiveness.
MAIN BODY
1.1 Discuss main element of Customer Relation Management (CRM)
Customer Relation Management: It is an management approach which helps the
managers to interact with current & potential customers. According to this system, company use
this tool as data analysis where organization use customer's history in order to improve their
relation with them (Hardjono and San, 2017). For effective implementation, Hilton Hotel use
various technique as well as effective positioning of CRM which discussed below:
Techniques of CRM:
 Comprehensive view of “Customer Journey Map”: Collecting customer's information
is essential step and it will done in order to interact with customer. Customer journey
map helps in focusing few points from interaction to post purchase services.
 Develop loyalty program: Every organization have their loyal customer so management
need to conduct such kind if loyalty program for their valuable customer (Techniques of
CRM. 2019).
 Personalizing the interaction: Personalization of relationship not only helps in
increasing profitability but also maintain post purchase relationship that is also very
important to establish.
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Positioning of CRM: In the organization, positioning of CRM will consider as strategic
instrument which helps in tackle competitive pressure and further motivate to improve
performance. In context of Hilton Hotels, management have to maintain competitive edge where
they have to done effective positioning of their services such as food, accommodation and other
facilities. With the help of CRM software, managers determine the required and further strategies
develop accordingly.
1.2 Evaluate profit in order to achieve successful CRM in the organization
Customer Relation Management (CRM) is very important for the develop or growth of
business in the market. It helps in retaining customer and encourage to promote sales growth that
is beneficial for organization (Homburg, Jozić and Kuehnl, 2017). Benefits of CRM which
enjoyed by Hilton Hotels are discussed below and how CSR promote customer relation &
increase in sales.
Benefits of successful CRM:
 Increase customer satisfaction: More information about customer taste, preference &
desires will helps in satisfy their needs. With the help of effective implementation of
CRM will provide such benefits where Hilton Hotel provide customize services as per
the requirement of their clients.
 Build long term relation: It helps in providing more information about their client which
improve their relation and make their bond more stronger. Customer relation
management used to develop deeper relation with customer which further incarese
demand as well as profitability.
 Increase sales: Once organization learn about their client's requirement or they produce
accordingly which increase productivity as well as profitability. It also provide ability to
introduce additional products & services to satisfy customer which automatically increase
revenue.
Above mention CRM benefits impact organization and helps in maximising productivity
as well as profitability of the company (Mirzaei and Iyer, 2014). Along with this, CSR activities
helps in improving company's image which further increase product demand as well as
profitability.
CSR is an corporative commitment where they conduct various activity in order to
provide sustainable development in the society. Corporate social responsivity directly impact
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consumer's behaviour which further helps in increasing sales and their relation with organization.
When consumer having good image about firm then it will force them to used their services or if
they satisfy with the services it increase the demand. In result, CSR help in improving image
which further required to maintain customer relation and increase demand which automatically
maximise production as well as profitability.
1.3 Analyse the relationship between CRM and quality management system
In context of Hilton Hotels, effective relationship of quality system or CRM helps in
measuring various factors which beneficial for the organization (Ogunnaike, Tairat and
Emmanuel, 2014). Implementation steps of quality systems are discussed below:
 Commitment from top management
 Develop implementing team
 Conduct awareness program
 Provide proper training
 Done initial status survey
 Crete document implementation plan
 Produce quality management system document
 Control of document
 Final implementation
 Internal audit of quality
 Management review
 Pre assessment audit
 Certification & registration
Above mention steps helps the manager of Hilton Hotels to develop various policies and
conduct a procedure in order to improve their services. In the hotel industry, management have
to focus on customer service because they are the main factors in the service sector. Hotel staff
ensure to satisfy each customer with the help of their effective services.
Discuss ways to improve or maintain quality in the organization:
Customer focus: In order to focus customer requirement, manager of Hilton Hotel
develop strategy with the help of CRM. Because if clients are satisfied with the services then it is
beneficial for the company.
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Data mining & analysing: With the help of CRM software organizational able to collect
information and analyse in effective manner and it will helps in developing strategy to achieve
business goals & objectives.
Customer needs & expectation: Main purpose of CRM is to develop effective relation
with customer through analysing their needs & expectation that required to maximise
productivity as well as profitability.
These are the ways which helps in improving hotel services of Hilton Hotels and provide
effective quality which increase customer satisfaction as well as loyalty in respect of the
organization.
2.1 Discuss the process of CRM in order to achieve effectiveness in the organization
Need for effective CRM:
In context of hospitality sector, for better service Hilton Hotel need to adopt CRM
software. It provide various approach for communication and analyse customer needs which
further required at the time of developing new products (Mohaupt and Hilbert, 2014). It will
increase customer satisfaction and provide them a feeling of being special. CRM required to
customer those services which market offering and helps in reducing customer defection rate.
Along with this, it needed in order to improve long term relation with customers.
Process of achieving effective CRM:
CRM include 5 steps process of effective implementation and it help organization to
serve better services for day to day process. CRM process discussed below:
 Identify target market: Initially manager of Hilton Hotel need to identify target market
such as target customer on demographic based. For example: Owner build hotels in
metropolitan area or the location which near by tourist places.
 Define overall CRM strategy: They need to analyse that which type of services they
offer and what kind of relation they have to develop with customer. For example:
manager have to select best strategy which is suitable for Hilton Hotel such as online
social CRM community and old fashioned way to handle customers. Each of then
having positive as well as negative impact.
 How to handle each customer type: Hilton Hotel have to focus on their customer
according to the requirement of them for the organization. For example: low pricing
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level customers required less focus and high pricing clients required more focus on
customer service.
 Select a CRM software to measure performance: There two CRM software which
provide effective solutions such as software as a service delivery online (Saas) and
innovation to improve everyday work. For example: Hilton Hotel select online service
delivery CRM software to measure performance.
 Continue to Re-engage customer: Customer engagement is very difficult so manager
of Hilton Hotel re-engage with customer on regular basis which provide positivity in the
organization. There are three ways to re-engaged with customer such as client
satisfaction survey, email or social media. Hilton Hotel select survey or social media
option to re-engage with customers.
2.2 Evaluate the role played by employees in successful Customer Relation Management
In the organization, employees also play very important role because these are the people
who monitor CRM and engaged with customer. According to one survey, 77% employees using
social media site in the work place which is also good because they promote their brand along
with this, they handle customer feedback through online survey (Pourmand and Lari, 2016).
Some times it helpful for the business but most of the time it impact business operations.
Because employees use social media sites for their personal entertained and they avoid their
office work. In fact, 31.49% organization use website blocker in order to stop use of those sites
and staff members focus on their work.
CRM software will be handle by individual where they handle customer's query and
feedback. So hotel management allot some people to handle these queries all the time and give
response on customer feedbacks effectively.
2.3 Discuss how external stakeholders contribute in effective CRM system
Stakeholders of Hilton Hotel contribute in effective manner which improve customer
relation which satisfy consumers in respect to maximise productivity as well as profitability.
External stakeholders of the company includes supplier, shareholders, customers, government
agencies etc. These people directly or indirectly connected with the organization or its process.
CRM deal with overall management and create flow of information between different business
units. External stakeholders will contribute in the organization for effective CRM and it is
discussed below:
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Reporting: Communication required between top management and stakeholders in order
to maintain proper flow of information. Collecting customer information with the help of CRM
activity will help the external parties to give their valuable suggestions and take part in decision
making process.
Feedback system: Stakeholders provide true feedback because these people are
interested in profit. So they help manager to develop effective strategy which maximise
productivity as well as profitability ans it will done with the help of effective CRM.
Above mention stakeholders contribution helps the organization to effectively implement
CRM in Hilton Hotel. It is very essential because it helps in achieving business goals &
objectives.
3.1 Evaluate some existing systems and suggest some improvement
In context of Hilton Hotel, they follow some common CRM process which helps in
maintain long term relation of customers with organization. Hilton Hotel follow below mention
existing CRM process:
HubSpot CRM: It is most effective CRM solution which Hilton Hotel currently used
where they invest in order to ensure that customer base is healthy and growing. It include the
features such as sales & marketing alignment, inbound driven, engaged communication, flexible
to scale etc.
Salesforce CRM: Currently this software hold large market share because many experts
believe that balance between simple and powerful functions helps in capturing huge market. It
focus on real time business process management, lead to conversion approach, analytics etc.
Hilton Hotel follow this CSR process and make sure to add some features in order to improve
post sale services.
Suggestions to improve CRM process:
 In order to improve their CRM process organization have to establish specific goals and
other strategies which required to perform.
 CRM system not only for single department or function, it should be used across all the
departments and make sure to monitor on regular basis.
 Make their CRM strategy social with the help of social media sites because it helps in
influencing purchasing decision of customers.
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Above mention suggestions will help the Hilton Hotel to improve their CRM process and
develop effective relation which customer for longer period which is beneficial for the same.
3.2 Develop a proposal for improvement for CRM process
Covered in PPT
3.3 Evaluate that how plan will be formulated in the organization to improve their customer
relation
Formulation of improvement plan:
 Gather and analysing data: In the Hilton Hotel, by using CRM software hotel manager
collect customer information regarding their requirement which helps in fulfilling their
needs & desires (Soltani and Navimipour, 2016). After collecting data it should be
analysed and then develop strategy to improve their customer services.
 Decision making process: After collecting valuable information, manger put their effects
in decision making process and develop strategy which helps in satisfying customer and
provide effective customer service.
 Monitor: After decision making process, ,manager of Hilton Hotel develop various
strategy which required to monitor that which one is beneficial or maximise productivity
as well as profitability.
 Implement: From the bunch of strategies, manager have to implement strategy into
action in order to analyse final outcomes. At the time of implementing strategy, manager
have to review process as well.
 Evaluate progress: It is the final stage of implementing plan and it is required because if
plan is not progressing then manager have to done some modification for the growth.
Above mention steps of implementing plan help the Hilton Hotel to improve their CRM
strategies and develop effective customer relation as well.
CONCLUSION
From the above discussion it has been concluded that customer relation management is
very beneficial for the organization which helps in improving customer relation with it. Effective
implementation of CRM will helps in improving performance of CRM along with this, it include
customer loyalty, analyse their behaviour and try to reduce their complaints. Every organization
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have to follow the procedure step by step which helps the business to manage their customers as
well as employees.
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REFERENCES
Books & Journals
Al-Azzam, A. and Khasawneh, R. T., 2017. Social Customer Relationship Management
(SCRM): A Strategy for Customer Engagement. In Strategic Uses of Social Media for
Improved Customer Retention (pp. 45-58). IGI Global.
Hardjono, B. and San, L. P., 2017. Customer Relationship Management Implementation and its
Implication to Customer Loyalty in Hospitality Industry. Jurnal Dinamika Manajemen.
8(1). pp.92-107.
Homburg, C., Jozić, D. and Kuehnl, C., 2017. Customer experience management: toward
implementing an evolving marketing concept. Journal of the Academy of Marketing
Science. 45(3). pp.377-401.
Mirzaei, T. and Iyer, L., 2014, March. Application of predictive analytics in customer
relationship management: a literature review and classification. In Proceedings of the
Southern Association for Information Systems Conference (pp. 1-7).
Mohaupt, M. and Hilbert, A., 2014. Customer-centric revenue management in manufacturing-a
decision support system.
Ogunnaike, O., Tairat, B. and Emmanuel, J., 2014. Customer relationship management approach
and student satisfaction in higher education marketing. Journal of Competitiveness.
6(3). pp.49-62.
Pourmand, J. and Lari, M. A., 2016. The study of relationship management with electronic
customer on the quality of customer relationship in Mellat bank. International Journal
of Education and Management Studies. 6(3). p.300.
Soltani, Z. and Navimipour, N. J ., 2016. Customer relationship management mechanisms: A
systematic review of the state of the art literature and recommendations for future
research. Computers in Human Behavior. 61. pp.667-688.
Online
Techniques of CRM. 2019. [Online]. Available Through:
<https://www.entrepreneur.com/article/284650>
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