Customer Relationship Management in Hospitality

This assignment delves into the crucial role of Customer Relationship Management (CRM) within the hospitality industry. It examines how CRM systems influence customer satisfaction, enhance operational efficiency, and ultimately drive profitability for hotels. The task requires students to research and analyze various aspects of CRM implementation in hotels, including its benefits, challenges, and best practices.

Customer Relationship
Manager

Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
a) Key aspects of customer relationship management.................................................................1
b) Benefits of customer relationship management......................................................................3
c) Impact of quality system on CRM...........................................................................................4
d) Process necessary to effective CRM.......................................................................................5
e) Role of internal staff in achieving effective CRM..................................................................6
f) Role of external stakeholders in achieving effective CRM.....................................................7
TASK 2............................................................................................................................................7
a)Effectiveness of loyalty scheme to gain information about customers....................................7
b) Information gained informs marketing and customer service policy......................................8
TASK 3: Article 3 - A Case Study of Customer Relationship Management..................................8
Review of CRM in the organisation............................................................................................9
Proposed improvements to CRM processes..............................................................................10
Proposed improvements to the role of staff in promoting good customer relationships...........11
A plan for the implementation of improvements.......................................................................12
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Customers Relationship Management can be determined to be the business strategies that
are helpful enough for the companies to manage and analyse interaction of customers. This is
done so that firm will be able to develop strong relationship with their service users (Banga,
Kumar and Goyal, 2013). In other words, it encourages companies to be aware of the impact on
the business for the competitive strategies applied by other firms. Different firms have diverse
set of preference and their own way on implementing strategies to attract customers. Further, it is
a broad concept that covers various topics like getting feedback, making customers involved,
providing them services as per their need and requirements, etc. However, in simple words it can
be stated that CRM enables to understand customers and focus on the growth aspects. Main aim
of any firm is to gain maximum profit. This is only possible when they are able to understand the
requirement of customers and deliver them services accordingly (Rahimi, Rahimi and Gunlu,
2016). Further, CRM is an effective form of strategy that enables to develop positive perception
in the mind of customers. This report is based on different aspects of CRM. More specifically, it
covers benefit to business from effective CRM and ways to achieve them. Further, it covers the
role of loyalty schemes in CRM. Lastly, it also covers a case study of customer relationship
management.
There are firms that deliver their customers with similar set of products and services. In
order to be better form other, firm make use of strategies so they will be able to develop strong
customer base. In this context, CRM is an effective way that enables to improve the performance
level in attracting customers.
TASK 1
a) Key aspects of customer relationship management
Customer relationship management (CRM) is the business tool that assist organizations
in managing and building relationship with consumers (Maggon and Chaudhry, 2015). Every
firm aims to enhance their bonding with consumers so that they can be made loyal towards
brand. It includes several strategies that can help in maintaining healthy relationship with
consumers. Customer relationship management is the tool that analyses the needs of consumers
by offering them satisfactory products (Faullant and et.al, 2017). By this way company can
maintain healthy relationship with their clients.
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CRM is considered as business model that helps the firms in increasing their revenues
and enchaining sales volume of entity to a great extent. For example, Hilton Hotel applies CRM
practices in its workplace (Krishnan and et.al, 2014). Entity make communication on social
networking sites with customers and make them aware about company's products. Through these
sites corporation gain attention of mass audience and develop strong relationship with them.
There are three major aspects of customer relationship management (Nagarajan and et.al, 2013).
Operational CRM
It is type of activity which is related with front office business process. Customers visit
the organization and there they get necessary detail about products and services through front
office desk. This interaction helps them in developing perception for the firm and building
relationship with them (Ali and et.al, 2013). Hilton hotel has strong operational department
where employees make effective communication with the clients and make them satisfy by
providing quality services (Anand, Khan and Shukla, 2013).
Collaborative CRM
It is another aspect of customer relationship management in which Hilton hotel directly
communicates with the consumers in order to take their feedback about the hotel and its services.
Interaction is done through various channels such as phone, email, social networking sites, face
to face interaction etc (Chen, Jin and Wu, 2015). This helps in analysing their needs and
developing bonding with them.
Analytical CRM
It is the type of activity in which Hilton hotel analysis the data of consumers so that
overall objective of entity can be fulfilled. Designing and execution of marketing campaigns,
management decisions are part of such type of CRM practices (Taylor and et.al, 2017).
External relationships
It helps in building relationship with suppliers, partners, distributors etc. That makes the
internal system more strong (Schmidt, Möhring and Keller, 2017). With the help of this tool
company can identify needs of consumers and can approach their suppliers and distributors
accordingly. They give then necessary details about test of clients so that these external persons
can provide them quality raw material as per the requirements (Anand, Khan and Shukla, 2013).
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b) Benefits of customer relationship management
CRM is beneficial tool that helps the firm in achieving its goal to great extent (Anand,
Khan and Shukla, 2013). By this way entity can know better about needs of consumers and can
satisfy them by providing satisfactory products and services. Benefits of CRM in Hilton hotel are
as following:
Increase sales figures and revenues
It is the strategic process that support the entity in increasing its sales volume and
enhancing revenues of business unit. Hilton hotel aims to satisfy its guests by offering them
products and services as per their needs (Chen, Jin and Wu, 2015). It is only possible when it has
all relevant information about various needs of clients. Company make relationship with them
and coordinate with these people well. It helps in analysing their requirements and providing
them products and services accordingly which helps the hotelin attracting more customers
towards the and increasing profitability of entity. (Dawson, and et.al, 2017).
Improve operational efficiency
CRM is the approach that helps in improving efficiency level of the operations. For
building relationship with buyers Hilton hotel takes feedback from clients. That helps in
identifying loopholes in the system (Taylor and et.al, 2017). By this way management makes
necessary changes in the operational plan through which it can meet with its objective. This
helps in improving efficiency level and reducing cost of entity as well.
Staff satisfaction
Company works to earn more profit and sustain in the market for longer duration. For
achieving this goal, it is essential to satisfy the staff members so that skilled person sustain in the
market for longer duration. For meeting with the needs of consumers Hilton hotel trains its
employees (Schmidt, Möhring and Keller, 2017). The more knowledge they have then they will
get more engaged in the operations and will perform their duties effectively. By this way all staff
members will coordinate well in order to resolve issues of consumers so that strong relationship
can be built with them (Anshari and Lim, 2016).
Cost saving
In the initial phase CRM practices were costly for the Hilton Hotel and it was time
consuming as well (Dawson, and et.al, 2017). But over the time Hilton hotel has improved its
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working process and used advance technologies which has supported the entity in reducing its
cost and improving the relationship with the consumers (Anand, Khan and Shukla, 2013).
Increase customer life cycle value
It is essential for the entity to retain the consumers in the organization for longer duration.
It is only possible through effective CRM (Lehmkuhl, 2014). It can increase life cycle between
consumers and business (Liew, 2013).
Better synchronization and collaboration
Marketing is best tool through which company can enhance its collaboration and can
improve its services as well. Through effective CRM practices cited firm can synchronize its
operational function and can develop collaboration (Advantages of Customer Relationship
Management, 2017). By this way entity can easily communicate with the mass audience and can
attract them towards the brand to great extent. This is the beneficial tool that can assist in
accomplishing goal of the entity soon (Customer Relationship Management: What Are The
Benefits?, 2017).
c) Impact of quality system on CRM
Quality management is considered as essential part of business unit, Hilton hotel
continuous try to improve its quality of products and services so that it can satisfy its consumers
and can retain them in the firm for longer duration (Anand, Khan and Shukla, 2013). In the
modern competitive environment, it has become essential for the entities to provide unique
products to consumers which can satisfy their needs. There are many hotels which are providing
same services to their guests. In such condition brands are much more depended upon quality.
Quality products and services can attract more people towards the corporation and can make
them loyal towards the brand (Wan, Paris and Georgakopoulos, 2015). Quality management
impacts on the customer relationship management to great extent.
Hilton hotel adopts total quality management technique in order to maintain quality of
products and services of hotel. It ensures that it offers standards services and continuously make
efforts to improve services (Mitchell, Spring Marketplace, Inc. 2017). Company put 100% to
develop its quality in order to offer valuable products and services. By this way people will feel
satisfy and the sales volume of entity will get increased. If corporation is unable to manage
quality then it will not be able to compete in the environment, that will affect its sustainability. If
it offers poor quality products to its consumers then clients will not get satisfied which will
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negatively impact on their relationship (Liew, 2013). In such condition people may move to
other brand which offer them satisfactory services.
In the initial years traditional marketing was applied by firms where entities were not
paying attention on consumer's needs (Advantages of Customer Relationship Management,
2017). But now in the modern era customer relationship marketing is applied by the firm where
they develop relationship with the clients in order to retain them in the corporation for longer
duration. If quality of services products of Hilton hotel is good then employees will be able to
build bonding with them which may support in accomplishing goal of business unit (Anand,
Khan and Shukla, 2013).
d) Process necessary to effective CRM
It is essential for the Hilton hotel that to make effective communication with the
customers. It can support in identifying their test and preferences and making people loyal
towards the brand (Customer Relationship Management: What Are The Benefits?, 2017). For
making the effective CRM, it is essential for follow necessary process:
Collection and storing of data
It is the first phase in which company is required to gather relevant information about
tastes and preferences of clients. Data needs to be collected on the bases of demographic,
geographic, psycho-logic segmentation. After gathering all facts and figures Hilton hotel needs
to store all these data into specific folder where they can remain safe for the longer time (Anand,
Khan and Shukla, 2013).
Interaction with audience
It is the only medium through which company can analysis needs to consumer sand can
provide them satisfactory products and services (Anand, Khan and Shukla, 2013). Interaction
with consumers helps the entity in gathering relevant information about them and identifying the
demand.
Analysing sales data
After interacting with consumers, entity is required to analysis their sales data of last
year. By this way they will be able to identify gap between needs of consumers and what
company is offering. This will help in analysing issues in the operation that will support in
making necessary changes in its products and services through which company can satisfy needs
of consumers and can build strong relationship with the customers (Nagarajan and et.al, 2013).
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Make data accessible
It is essential for the staff members that to increase accessibility of data in the field
(Anand, Khan and Shukla, 2013). They must have all information about status, issue, payments
and employees need to take action accordingly. This can support in resolving issues quickly and
improving satisfaction level of clients to great extent. This accessibility can give more accurate
results and customer responsiveness can be improved to great extent (Lehmkuhl, 2014).
Identify target market
Company is require to decide its target market to which it wants to deal. By deciding
target market entity can provide valuable products to them as per their requirements (Anand,
Khan and Shukla, 2013).
Make effective CRM strategy by considering cost
It is another step for achieving effective CRM, in this Hilton hotel needs to make strong
strategy through which it can attract more consumers and can build relationship with them
(Dawson, and et.al, 2017).
Handling of different consumers
In this phase company needs to decide how it will handle consumers and their quarries.
This will support in minimizing problems and resolving complains (Anand, Khan and Shukla,
2013).
Management of CRM software
This software will support in managing data well and measuring performance of the
organization. By this way Hilton Hotel will be able to develop strong relationship with its
consumers and will be able to retain them in the workplace for longer duration (Customer
Relationship Management: What Are The Benefits?, 2017).
Continue to re-engage customers
It is the last phase in which company needs to continue its activities so that it can get
engaged to its staff members (Anand, Khan and Shukla, 2013).
e) Role of internal staff in achieving effective CRM
For developing relationship with consumers and effective implementing of CRM
practices. It requires effective knowledge and consistency (Mitchell, Spring Marketplace, Inc.
2017). For gaining success Hilton needs support of its staff members those who can coordinate
well with the clients and can fulfil their needs. CRM manager needs to understand target market
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and have to deal with them accordingly. That can be beneficial in engaging customers in the
organization for longer duration (Lehmkuhl, 2014).
Every firm aims to earn more profit by satisfying consumers. For implementing CSR it is
essential to guide employees well so that they can coordinate well with the buyers. These internal
staff members plays significant role in the business unit (Nagarajan and et.al, 2013). Staff
members collect necessary information by doing market research and try to identify test,
preferences of consumers. Apart from this, they communicate with the clients and analysis their
problems. After gathering all these information company makes changes in its system so that
entity can resolve customer's problems by providing them satisfactory services (Wan, Paris and
Georgakopoulos, 2015). These internal employees communicate with clients and resolve their
quarries so that trust of them can be developed.
f) Role of external stakeholders in achieving effective CRM
External stakeholders of the firm are such as suppliers, trade unions, society members,
customers etc. These all persons play significant role in the organization. Customers are most
important external stakeholder of Hilton hotel, they are life blood of the business unit. Cited firm
make their products as per their needs and demand (Faullant and et.al, 2017). Trade union
circulate necessary information to clients and convince them to experience its services. That
supports in developing strong relationship with the customers and gaining their trust as well.
Society is essential stakeholder of Hilton hotel, it gives detail about what people want.
Accordingly, company products goods and services and offer the customers. It supports in
developing strong relationship with clients and accomplishing goal of the entity (Maggon and
Chaudhry, 2015).
TASK 2
a)Effectiveness of loyalty scheme to gain information about customers
Loyalty schemes are effective enough to gather information about potential buyers, their
needs and demands (Taylor and et.al, 2017). Compensation is the best loyalty scheme that can
support Hilton hotel in gathering information about clients.
Schmidt, Möhring and Keller, (2017) stated that offering discounts cards is the great
loyalty scheme that can assist in attracting more people and making strong connection with them.
Cited firm offers them attracting discounts coupons that can be utilized by clients in future as
well. This scheme helps in gathering necessary information about person and their requirements.
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These information can be gained by filling application form by the users. Company always fill
the application form by clients in which they give detail about age, income, needs, test etc. By
this way cited firm can collect all detail about the buyers (Chen, Jin and Wu, 2015).
b) Information gained informs marketing and customer service policy
As far as company has gathered all the details about the customer, their needs and desires
then company may provide them loyalty cards. This is useful in marketing and customer service
approach. Through these details company may get to know, who are the main target buyers, what
is their demand, what is their economic capability and accordingly company may design its
marketing strategy and can offer them services accordingly (Faullant and et.al, 2017).
Hilton hotel treats its staff members as assets of the firm, and they adopt customer-centric
approach to market its products. Earlier most of the firm were using traditional approach of
marketing which were not giving that much result as what was expectation of the cited firm. But
later on Hilton has adopted customer-centric approach that has supported in developing strong
relationship with them and making them loyal towards the brand (Dawson, and et.al, 2017). By
this way company has become able to make marketing strategies and improving its customer
service policy.
By adopting these strategies company may satisfy its consumers and can retain them in
the brand for longer duration. This can support in increasing sales volume for the firm and
sustaining in the market for longer duration (Anand, Khan and Shukla, 2013).
TASK 3: Article 3 - A Case Study of Customer Relationship Management
There are different type of strategies that are applied by the business to make sure that
they are able to attract customers. In order to be effective, it is important the firm to understand
the requirements and deliver them services accordingly (Yadav and Singh, 2014). To carry out
the study in effective manner, Shangri-La Hotel, Malaysia is taken in to consideration. This is a
hotel that was founded in the year 1971 and focus on delivering their customers with high quality
services. There are different type of strategies that are applied by the business to make sure that
strong relationship can be maintained with the customers. Cited firm has over 95 hotels and
resorts and about 48000 rooms around the globe.
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Review of CRM in the organisation
There are different type of strategies that are applied by the firm so that they can attract
more and more customers. As per the type of strategies that are applied by the business that is
Shangri-La Hotel, Malaysia, below given are the strategies:
Software: Cited firm has a system that is helpful enough to record all the information
about the customers. In this context, it includes the time in which they logged in and they their
departure time, etc. (Mohammed, Rashid and Tahir, 2014). This is a type of service that enables
to make sure that customers get to know about the type of services that are delivered by the
business. Further, the management have all the personal information about the customers. It
includes their preference for food, contact number, address, etc. This way, management aims at
developing strong relationship with their services.
Application: Shangri-La Hotel, Malaysia have formed their own application that is
helpful for the customers to book the tickets and to check for the rooms that are available. When
services users are able to get proper information in which it includes price that will be incurred
and the services that will be provided during their stay (Abdul, Basri and Shaharuddin, 2013).
Apart from this, customers do not need to have key for the room. The type of lock system that
are used by the firm enables to open the room with the help application.
Promotional strategies: Positive perception with the mind is formed with the type of
services that are delivered by the firm is of high quality. Social media can be determined to be
the effective source that are used by the firm so that they are able to understand the requirement
of customers and deliver them services accordingly. This is done so that strong relationship can
be developed with the service users. Further, it required to have proper analysis made for the
requirement of the customers. This way, they tend to develop positive perception within the mind
of service users (Azam and Rahman, 2014). When there are strong relationship maintained, then
it becomes helpful for the management to develop positive perception within the mind of
customers. There are firms that deliver their customers with similar set of products and services.
To be different from other, it becomes easy for the business with the help of social media. Cited
firm make offers and those are posted on social sites and these are helpful to know the perception
that are carried out by the customers.
Emails: In the system that are many email address that are recorded and these are helpful
to have interaction with customers and to update the services users about the type of offers that
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are delivered by the business. In this context, the service users have the advantage of blocking
the mails as well when they feel it is of no use (Rahimi, 2014). In order to avoid this type of
conditions, cited firm understands the preference of customers and take up appropriate steps so
that they are able to attract customers for the services that are delivered to them.
Proposed improvements to CRM processes
There are different areas in which improvement need to be made, when these are
considered, then it becomes favourable enough to develop strong relationship with service users.
Below given are the points that can be followed in order to make improvement in the CRM
process:
Training to all employees: Employees are the face of organization as they have direct
interaction with customers. They are the one who present the products and services to customers.
It is important that they have proper understanding of the type of roles and responsibilities that
has to be played by them. When they are not able to perform with their full efficiency and fail in
understanding the requirement of customers, then it forms negative impact over the services
(Vaeztehrani, Modarres and Aref, 2015). Further, there are different type of issues that are faced
within the hospitality sector and that is high employee turnover rate. When the rate of
performance from the side of employees is not effective then customers will shift to other firms
that deliver similar type of products and services. Further, there are other set of issues that are
faced by employees like lack of understanding for the roles and responsibilities, lack of
motivation, lack of training, etc. In such condition, it is important to makes sure that appropriate
steps are taken in which workers are provided with training (Ways to Improve Your Company's
CRM System. 2015). This is highly effective to develop the skills and capabilities in effective
manner.
New or updated technology: There are different type of changes that take place in respect
with technology. It is important to make sure that all the changes that take place are implemented
in effective manner so that high quality can be delivered to service users (Chadha, 2015). In the
system that is used by Shangri-La Hotel, Malaysia contains information about the customers but
it is difficult for the employees to maintain it. In this context, there are many changes that has
taken place in which improved services can be delivered to customers. Management of the firm
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should make sure that they make use of updated or new technology so that they will be able to
deliver high quality services.
Up to date information: In the process of customer relationship management, it is
important for the management to make sure that all the information about the customers should
be up to date. There are condition in which customers are not able to develop strong bond with
the firm when the information that firm is not up to date (Nazir, Khan and Mehmood, 2014). In
this context, it is important management have proper interaction with customers so that they get
to know the personal information about the customers. Further, it is important that proper
research is conducted so that they are able to know the preference of service users. This way,
from the data that is gathered with the help of research or survey can be used in order to make
improvement in the system.
Proposed improvements to the role of staff in promoting good customer relationships
In order to improve the role of staff in promoting good customers relation at Shangri-La
Hotel, there are different type of aspects that need to be considered. When there is proper support
from the side of workers, then it is possible to make implementation of the strategies that are
developed. On the other hand, when support from the side of employees is not positive, then it
affects the business operations in negative manner (Bang, Cho and Kim, 2014). There are many
different type of strategies that are firm need to implement and there are workers who are able to
understand the requirements and take up appropriate steps, then it will be benefited to the firm.
Further , it is identified that all the employees may not be in favour of accepting the changes. In
this condition, it is the responsibility of the management to make sure that they provide proper
information to all the employees so they are able to accept with the changes. Below given are the
proposed improved as role of staff in promoting good customers relationships:
Communication: It is important for the employees with the firm have proper interaction
with each other so that they are able to develop coordination with each other. It requires for the
management to develop proper strategies so that they are able to develop effective interaction
with customers (Banga, Kumar and Goyal, 2013). Further, it is also important to have proper
communication with customers so that they will be develop strong relationship with them.
Moreover, employees need to focus on all the issues that are faced within the business
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operations. When workers have issues within the firm, then it becomes difficult for them to
operate in effective manner. In this context, proper steps need to be taken from the side of
management so that all the problems that are faced by the workers can be identified and proper
steps are taken to over come them.
Understanding customers’ requirements: With time there are many changes that take
place and it is important that appropriate steps are taken so that employees are able to understand
the needs and requirement of customers in effective manner. For this process, it requires to have
skills in which the worker possess listening, time management, decision making, problem
solving, etc. (Rahimi, Rahimi and Gunlu, 2016). When employees are able to understand the
requirement of customers, then it enables to develop positive perception within the mind of
customers and the rate of sales and profitability can be raised. As employees have direct
interaction with customers, they have proper understand of the issues or problems that are faced
by them. In this context, management need to take proper suggestions from the side of
employees so that they are able to take appropriate steps with the help of which the rate of
performance can be improved and service users are satisfied.
A plan for the implementation of improvements
There are different type of steps that can be considered with the help of which
improvements can be implemented in effective manner. In this context, below given are the steps
that are effective enough to make sure that the plan is proper adopted:
Providing information: Different people have diverse set of perception that has to be
carried out. It is important that management provide share the information with employees so
that they present their perception for the same. This enables to make sure that customers can be
attracted effectively or not. Further, there are many type of drawback that can be faced from the
side of plan and when there are proper discussion taken place, then all the barriers can be
identified in effective manner (Yadav and Singh, 2014). Moreover, it also enables to develop
positive perception within the mind of employees for the firm as they develop a thinking that
they are important for the management.
Selecting key people: To implement strategies, it requires to have proper coordination
among the employees so that they are able to adopt the within business. When management
12

identifies key people, then it becomes favourable enough to provide them with roles that has to
be played by them. When people selected are able to understand the goals that has to be attained,
then they are able to put on their full efforts through which the plan can be implemented
(Mohammed, Rashid and Tahir, 2014). There are different type of aspects that has to be
considered by the management and when they are able to perform with their full efficiency, then
it can create negative impact over the plan formed.
Finance: To implement any activities, it required to proper planning of the finance. In
this context, there are different type of sources that re available for the business with the help of
which they can arrange support for finance. On the other hand, when firm is not able to make
planning for the cost that will be incurred, then it becomes difficult for the management to make
sure that they under taken the strategies and adopt them.
Proper monitoring: There are different type of issues or barriers that can be caused at the
time when plan is implemented. In this context, management should monitor the advantages that
firm will get when the plan will be adopted (Abdul, Basri and Shaharuddin, 2013). Monitoring
should be done on weekly basis so that firm can adopt it and implement it in effective manner.
CONCLUSION
From this report, it can be articulated that management need to share their issues of the
problems that are faced by workers. This is highly effective to make sure that all the employees
are able to perform with their full efficiency. Further, motivation can be determined to be an
important aspect that help in raising the willingness and interest of the employees towards the
work they perform. Moreover, management should take suggestions from employees for the type
of issues and problems that are faced by each of the customers. They have direct interaction with
customers and so they know the preference. Management can take up appropriate steps with the
help of which the performance level can be improved.
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