Digital Technology in Managing Customer Experience at Hilton
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This report explores how digital technology is employed in managing customer experience at Hilton Hotel. It discusses the use of Internet of Things, artificial intelligence, and chatbots in enhancing customer experiences. It also evaluates the advantages and disadvantages of CRM systems used in Hilton.
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DIGITAL TECHNOLOGY
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Table of Contents INTRODUCTION...........................................................................................................................1 TASK 1............................................................................................................................................1 P5. Examination of how digital technology is employed in managing customer experience1 M3. Evaluation of how digital technologies are employed in managing customer experiences3 D3. Critical Evaluation of advantages and disadvantages of CRM systems used in Hilton. .4 TASK 2............................................................................................................................................6 P6. Illustration of Customer Service Strategies in Hilton......................................................6 P7.Demonstrationofhowcustomerservicestrategiescreateanddevelopcustomer experiences.............................................................................................................................7 M4. Reviewing the application of customer service strategies..............................................8 D4. Evaluation of delivery of customer service strategy and communication.......................9 CONCLUSION................................................................................................................................9 REFERENCES..............................................................................................................................11
INTRODUCTION Digital Technology is one of the highest implemented attribute within procedures and processes of an organisation which refers to a combination of several electronic systems, tools and mobile phones that are associated with storing, generating as well as processing data. Within several industries, particularly service sectors, there has been an effective and visible usage of these technologies within different processes(Joshi, 2018). Hence, in this context, the report below is based on Hilton Hotel, which is one of the most recognised and effective hotel chains in the United Kingdom.The report appropriately covers an appropriate and effective approach of the company towards digital technologies in context of development and execution of a food event. The assignment includes a detailed investigation of impact of digital technology in terms of customer relationship management. Furthermore, the report also discusses application of effective customer experience management within Hilton to maximise the engagement of customers in a prominent manner. TASK 1 P5. Examination of how digital technology is employed in managing customer experience Customer Relationship Management refers to an enhanced and effective process that companies use in context of enhancing the relationship of the firm with customers that would allowthefirmtoexperienceaneffectiveadvantagewithinthemarketplace,alongwith appropriate sustainability(Gibson and Parkman, 2018). Customer Relationship Management Systems or (CRM) are the technologies adopted by an organisation in context of managing the firm's interaction with customers which requires utilisation of their data to analyse the same and ensure improvisation with how the firm deals with these individuals. This also contributes in profitability and streamlining the processes of the company which are required to highlight the scope of improvement. In terms of Hilton, the firm has branches all over the world as well as a strong customer base globally, and hence, it requires a strong and effective customer relationship management so that it could help them enhancing their business performances due to a regular interaction and management with customer and their information respectively. Hence, in this context, CRM Systems help the firm in managing its operations in relation to customers in quite a well manner. 1
The firm, with its partner restaurant Hazev is planning an appropriate food event for students and staff, which requires enhanced customer experience to ensure success of the event. In this relation, Digital technology is very well applied within Hilton as part of its online and offline operations. For instance, the firm uses this technology right from accepting bookings of customers and till acquiring valuable feedbacks from these individuals. Furthermore, this works in a very closed circle, as digital technology is again used by the firm to provide personalised services to these customers.This could be reflected by the fact that portals would be created by the firm to ensure prominent stakeholders could be communicated to provide them personalised services.. Therefore, there are several ways through which digital technology is employed within Hilton in relation to managing the customer experience within the food event. Some of these ways are mentioned below: Internet of things (IoT): This is associated with each and everyday devices within the organisation that have in- built internet capabilities, hence, enabling the firm in receiving as well as sending information within and outside the company. Furthermore, it provides a better management and ease at work for managers, employees and staff members as this is one of the most effective support provided to individuals within the company, For Hilton, it is adopting IoT within its overall systems, for instance, quite recently, the firm worked on a project by the name Connected Room, which is an effective concept where the controls of the whole room would perhaps be accomplished through smartphones of the customers (Hilton and Marriott Turn to the Internet of Things to Transform the Hotel Room Experience,2019). Hence, IoT is hence used quite effectively within the company with respect to enhancing the control systems and functioning of the rooms, which quite certainly would be contributing towards the experiences of customers.This would further be reflected within the food event as individuals who would be attending the event from outside the location could ensure higher experience through staying in such rooms. Artificial Intelligence and Chatbots: Another aspect which showcases employment of digital technology within UK is the implementation Chatbots and Artificial Intelligence. Companies in the industry are using these within their systems and processes to ensure provision of smart responses to the customers. In relation with Hilton, the firm adopts AI and Chatbots by a new project in collaboration with IBM 2
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named “Connie”, which is an effective bot which could appropriately reply to human questions in a spontaneous manner (Key Digital Trends in the Hospitality Industry,2019). Hence, in context, the firm is actively engaging into employing digital technologies as Connie would allow customers to experience an effective interaction with help of AI that would contribute in a good aspect.The firm would be using this system within the food event to guide individuals towards the food menu and other essential information about the food event. Furthermore, there are several CRM systems which the organisation employs below as part of digital technology, in context of enhancing customer experiences: SaaS Tools: One of the most prominent CRM tools which the company adopts is Software as a Service or SaaS. It is an effective software that is applicable to the organisation as an effective communications and CRM software. The firm is implementing the same quite effectively, which maintains an effective consideration of demands of customers, their requests and feedbacks to communicate and mould the systems related with the same.In addition to this, this tool is also adopted by an organisation to ensure that a constant and effective communication channel is formulated within the same.This is used by the organisation in context of ensuring constant communication within the teams for the event as well as with the stakeholders. ONQ System: Another appropriate and effective system which is utilised by Hilton in relation to CRM management is ONQ system, which is the firm's proprietary system that maintains effective database for the firm in relation to different activities and processes which requires interaction of customers from the company. The firm has been using the same for years, allows Hilton to manage the customer experience in an effective manner, through focus on a spontaneous and intelligence online infrastructure.This would be an effective basis for the firm to ensure that the food event is as per the previous feedbacks and expectations of the customers. M3. Evaluation of how digital technologies are employed in managing customer experiences As mentioned above, Hilton is quite effective in context of employing the digital technologies to enhance customer experiences. Moreover, evaluation of effectiveness of these technologies are very much required, in context of determining the scope of usefulness of these aspects with the company(Ristova and Maglovski, 2018). 3
For instance, in context of the digital systems for instance, Internet of Things, the intensity of its effectiveness is quite high. The reason for the same is that this system is very much effective in context of giving customer the ease to operate their surroundings. As stated above in the example, the approach towards IoT of the organisation is very much effective in context of providing the controls of the room within smartphones of individuals. Such things retain customers in a very prominent manner as it provides them with effective ease. Moreover, chatbots and AI also contributes in retaining customers as any query of these individuals could be addressed and possibly resolved without human technology. This would provide spontaneous assistance to customers that would be contributing towards their retaining. As for the CRM Systems, both the technologies used by the firm are quite effective when it comes to enhance the convenience within the operations performed by customers, such as booking, transportation, customer service and so forth. Therefore, in terms of evaluation, these systems help Hilton in retaining customers in terms of providing them ease and effectiveness in the operations. D3. Critical Evaluation of advantages and disadvantages of CRM systems used in Hilton Software as a Service (SaaS) SaaS is amethod of serving many applications related with business activities and actions. SaaS possesses many advantages over traditional tools of installing software for businesses which are explained below in context of Hilton: Advantages of SaaS:Easy accessibility:SaaS application makes it easy for businesses to access their operation from anywhere in the world, the only requirements are browser and internet. This application provides ease and comfort to customers of Hilton to gather all information they require irrespective of the place they are at present. It enables potential customers to seek details about the Hilton hotel so that they can make their buying decisions according to their needs. Includes lower cost:The cost involved in this process is very low which is another advantage of SaaS. It is basically subscription based and has no cost of any licenses which automatically reduces its cost(Kansakar, Munir and Shabani, 2019). As known that SaaS is very beneficial but it also has some disadvantages which are as follows: Disadvantages of SaaS: 4
Limited range of applications:SaaS is becoming very popular amongst the organisation and public both still very less applications supportSaaS and provide a hosted platform. Therefore, sometime it becomes difficult for customers to access it and fulfil their requirements. Connectivity requirements:SaaS depends on web delivery which sometimes act as a drawback. If the internet service through which customer is accessing the software is slow or fail all the data is gone and they loses control over the software and data gathered. ONQ System Major advantages of ONQ system which is introduced by Hilton in their operastions and practices are as follows: Advantages of ONQ system of Hilton:Customer service:The level of customer service which Hilton is providing to its customers increase after effective implementation of ONQ system. This best quality services resulted in customer loyalty Hilton gained(Westerman, 2018). Cost:Another advantage of this system is the costs hotel was incurring reduced, everything become organized and systematic which resulted in cost reduction and potential utilisation of resources(Garant, 2017). There are some drawbacks also associated with ONQ system which Hilton is using, which are as follows: Disadvantages of ONQ system of Hilton:Difficulty in keeping track:Management face real problems of keeping all information together about guests. It becomes very hard to keep track of preferences of customers and their needs and also to be updated. Obsolescence of data:Regular changes takes place in market and social environment in marketplace. This leads to disadvantage of ONQ system where data which is stored by management about the experiences and preferences of customers becomes obsolete by time. 5
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TASK 2 P6. Illustration of Customer Service Strategies in Hilton Customer Service Strategies are required to be adopted by an organisation that in order to enhance the ease, comfort and services that are provided by the company to their customers. In addition to this, a viable strategy within Hilton would allow the firm to attract, maintain and retain the customers within the company(Watkins and et. al., 2018). Furthermore, in this relation, there are several customer service strategies adopted by the firm that are illustrated below: Digitalisation: One of the most prominent strategies which Hilton adopts in context of highlighting the scope of improvement within the organisation is in relation to digitalisation. For instance, the firm has recently used innovative approach within the hotel rooms, where it installed a digital room key service, which is still very much rare within the overall sector. This feature provides access to customers towards their room without having to wait for the keys.Such convenience within the food event would allow the firm and customer to operate in a prominent and effective manner, which is quite effective in providing enhanced services to customers attending the event. In this context, another feature within the organisation is related to mobile application. The hotel chain providesitscustomerswith a prominentand personalised service aspectwhich is associated with a user friendly aspect that is associated with fulfilling customer demand of an easy access to the firm's services.Moreover, the mobile application is also used by the firm to ensure that the event could be promoted within the application and social media platforms. Employee Education: Another strategy which helps the company in improving its customer service is related to educating their employees in context of performing in a better and consistent manner. This strategy is directly associated with the mission of the company, which is to be the most hospitable organisation globally. Moreover, for this purpose, the firm is internally upgrading its cafeterias as well as locker rooms, that would be providing high focus and better performance standards to the employees due to satisfaction(Roelofsen and Minca, 2018). Differentiation: In terms of its customer services, the strategy which is adopted by the company is to ensurethatdifferentservicesareacquiredbythecustomersincomparisonwithother 6
organisations within the country. This strategy is adopted by the firm in its services and customer engagement activities, where the company ensures that each customer is felt valued and feel welcomed all year, as part of its customer initiatives. Such initiatives allow the firm in enhancing the scope of improvement in terms of retaining customers and providing better experiences to the customers.For instance, the food event which the firm is conducting is very much effective and different to engage customers as a range of people such as students and staff are included within the same. P7. Demonstration of how customer service strategies create and develop customer experiences It is required for the organisation's customer service strategies to create as well as develop customer experiences in way which contributes towards meeting needs of customers as well as meeting the required business standards(Murphy and et. al., 2017). In this context, each strategy mentioned above is demonstrated below, based on these two factors: Digitalisation: Each customer requires ease and convenience in context of acquiring the services in a way which provides them both comfort and satisfaction. Moreover, the hospitality industry of the UK is inclined towards developing competence of each organisation when it comes to satisfying these demands of customers. Hence, in this context, the digital key service of Hilton is very much effective when it comes to providing ease and comfort to customers in terms of getting accessto thefeaturesof theirpersonalroom.Moreover,mobileapplicationhelpsthese individuals in booking the services of Hilton in a very prominent and effective manner, along with getting information about events such as the Food Event being executed by the firm. Employee Education: In context of the sector, the requirement of the hospitality industry is related to acquiring individuals that are experienced and educated in order to ensure provision of professional servicestocustomers.Theinternalupgradingfeaturewithintheorganisationisquite contributing in context of enhancing the competence level and professionalism in employees, due to motivating them through enhanced services, such as serving effectively and with more professionalism to customers in the event. Thus, due to this, the industrial standard is very much accomplished by the workforce of Hilton, as well as customer requirements are also addressed due to provision of high quality service to these people, that is a key demand towards any hospitality organisation(Litvin, Goldsmith and Pan, 2018). 7
Differentiation: Hospitality industry within the UK preaches and promotes innovation and differentiation to ensure acquisition of more customers down the line. Furthermore, customers tend to become lethargic and bored from similar services at each hotel they visit, meaning that they demand more effective and distinct services for the organisation. Thus, in this relation, the initiatives taken by the firm are quite effective as they are based on creative and innovative practices towards retaining customers and providing them a better customer service.For example, the event with digitalised services like Connie would encourage more customers to attend the event as well as organise the same within the organisation. M4. Reviewing the application of customer service strategies In creation of better customer experiences, the application of customer service strategies are mentioned below: Digitalisation: The firm's mobile application as a user interface, along with specific and guided direction which allows customers to book the services of hotels in terms of rooms, dining services, food, amenities on the basis of date as well as time. Furthermore, separate portals are provided by this application where instant communication could be set up by customer service representatives (Benckendorff, Xiang and Sheldon, 2019). As for the room key feature, the smartphones are very much linked by the customers' smartphones, by using the mobile app, through which they can control the locking, lighting ventilation and sound features of their respective rooms. Employee Education: Enhanced focus is provided by the company to improvise the infrastructure of the firm for better working of the employees. Such developments are directed towards enhancing engagement and competence level within the organisation. This allows a better service to customers due to enhanced loyalty and enthusiasm level of employees effectively(Shamim and et. al., 2017). Differentiation: The firm has adopted innovation as a key facility to ensure differentiation within the services. Its R&D department works towards adopting new technologies and better customer engagement techniques that provide the customers with better and more enhanced experiences, 8
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along with enhancing capabilities of the firm in context of differentiating its services from that of competitors. D4. Evaluation of delivery of customer service strategy and communication It is very much necessary for the company to ensure evaluation of the delivery of these customer service strategies and communications, which could allow the firm to satisfy their customers in a prominent manner. In relation to its digitalisation features, the firm is very effective when it comes to engaging customers towards in house facilities. However, one prominent and better way through which it could be improvised is through inclusion of features such as self check-ins and check- outs, that could prominently help the firm in enhancing the experience of customers even more. In context of employee education, a rather better training along with motivation is required to be provided which could further ensure higher professionalism in context of catering the customers. Lastly, differentiation within processes could be improved in context of working on better market research, to find out market gaps within the sector in an effective manner and ensure delivery of services in an enhanced way. Hence, out of all these strategies, digitalisation is the one which is most prominent strategy of the organisation in terms of enhancing the customer engagement experience in a prominent and advanced manner(Hudson and Hudson, 2017). CONCLUSION Hence, it is concluded from the report above that digital technology is one of the key aspects in the current business environment which is required by an organisation to ensure developmentof an opportunitywhenit comesto enhancementof customerexperiences. Examination of employment of digital technology is required in terms of managing customer experience, as there are several appropriate and effective relationship management systems whichmustbeappliedbythecompaniesinordertostrengthenthesameforfurther improvement. In addition to this, illustration of customer service strategies in a specific service sector context is required to appropriately and effectively be analysed and performed in order to improvise the customer service processes and programmes associated with he organisation. Furthermore, demonstration of how customer service strategies create as well as develop 9
customer experiences is crucial to understand that needs of customers are met effectively and required business standards are appropriately and effectively achieved. 10
REFERENCES Books and Journals Benckendorff, P. J., Xiang, Z. and Sheldon, P. J., 2019.Tourism information technology. Cabi. Garant, A., 2017. Social media competitive analysis and text mining: a case study in digital marketing in the hospitality industry. Gibson, P. and Parkman, R., 2018.Cruise operations management: Hospitality perspectives. Routledge. Hudson, S. and Hudson, L., 2017.Marketing for tourism, hospitality & events: a global & digital approach. Sage. Joshi, B. P., 2018. Disruptive Innovation in Hospitality Human Resource.Journal of Tourism and Hospitality Education.8. pp.48-61. Kansakar, P., Munir, A. and Shabani, N., 2019. Technology in the Hospitality Industry: Prospects and Challenges.IEEE Consumer Electronics Magazine. 8(3). pp.60-65. Litvin, S. W., Goldsmith, R. E. and Pan, B., 2018. A retrospective view of electronic word-of- mouth in hospitality and tourism management.International Journal of Contemporary Hospitality Management.30(1). pp.313-325. Murphy, J. and et. al., 2017. 11 Massive Open Online Courses (MOOCs) in hospitality and tourism.Handbook of teaching and learning in tourism, p.154. Ristova, C. and Maglovski, A., 2018. Transforming hospitality in the digital era, factor for competitiveness in the tourist destination. Roelofsen, M. and Minca, C., 2018. The Superhost. Biopolitics, home and community in the Airbnb dream-world of global hospitality.Geoforum.91. pp.170-181. Shamim, S. and et. al., 2017. Examining the feasibilities of Industry 4.0 for the hospitality sector with the lens of management practice.Energies.10(4). p.499. Watkins, M. and et. al., 2018. Digital tourism as a key factor in the development of the economy.Economic Annals-XXI,169. Westerman, G., 2018. Your Company Doesn't Need a Digital Strategy.MIT Sloan Management Review. 59(3). pp.1-5. Online Hilton and Marriott Turn to the Internet of Things to Transform the Hotel Room Experience. 2019. [Online] Available Through: <https://skift.com/2017/11/14/hilton-and-marriott- turn-to-the-internet-of-things-to-transform-the-hotel-room-experience/> KeyDigitalTrendsintheHospitalityIndustry.2019.[Online]AvailableThrough: <https://www.revfine.com/digital-trends-hospitality-industry/> 11