This document discusses the components of the Gartner CRM model that Dale Hotels should follow to develop strong relationships with clients. It also explores the implementation process and the benefits of effective customer relationship management.
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Gartner CRM model & dale hotels
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Table of Contents INTRODUCTION...........................................................................................................................2 TASK 1............................................................................................................................................2 1. Identifying as well as discussing the several components ofGartner CRM model which a daleenterprise required to follow for developing strong relationship with client....................2 TASK 2............................................................................................................................................8 2. Exploring the way to implement Gartner CRM model..........................................................8 CONCLUSION..............................................................................................................................10 REFERENCES..............................................................................................................................11 1
INTRODUCTION In present scenario, organisationdealing in tourism and hospitality required to develop its focus on identifying the need of customer and fulfil their demand. Tourism and hospitality sectors is all about delivering suitable services to people those who seeks support at an unknown place. As this activity or strategy will support business entity in increasing sales and profitability. It will also assist firm in gaining customer loyalty and developing strong relationship with client. Customer relationship management is considered to be as effective approach which is adopted by manager within an enterprise for managingorganisation communication or interaction with clients. Management team in a firm can utilise customer history in order to support company in improving business relationship with customer. Objective of customer relationship management is to assist business entity in retaining existing client and attracting more new customer by delivering good quality of product at reasonable price. It is also recognised as a strategy which is developed by manager in an enterprise with an intention to achieve objective of customer satisfaction. The purpose of the project is to identify the several componentsof theGartner CRM model which adaleenterprise required to follow for developing strong relationship with client. TASK 1 1. Identifying as well as discussing the several components ofGartner CRM model which a daleenterprise required to follow for developing strong relationship with client. Customer relationship management is considered to be difficult procedure or activity which require establishment of vision , certain objectives andeffective leadership todrive organisationtowardsachievementof targetthatiscustomersatisfaction.Italsorequires specialised attention towards identification of needs as well as demand of consumer in the market and recognition of appropriate techniques or strategies to fulfil the same. The customer relationship management model was developed by Gartner that in 2002 after the analysation of fact that many business or companies isstruggling to measure the benefits,because many are difficult to prove, such as a correlation between sales force automation and rise in sales revenue. OnthebasisofAnalysisGartnerhasdevelopedaframeworkforcustomerrelationship management which consists of eight buildingblocks. This structured was designed byGartner for assisting companies in seeing bigger picture, establishment of vision, formulation of plans , 2
policies or strategies and implementation of the same in order to help firm in achieving desired objectives.Gartner has defined customer relationship as a strategy which is required to be followed bydalehotel (Mendoza, Marius, Perez & Griman,2014)As this strategy or plan will assist firm in increasing sales, revenue and profitability. According to the Gartner customer relationshipmanagementisabusinessstrategywhichresultsinincreaseinrevenue, optimisation of firm profitability and high level of client satisfaction which is generatedby organizingaround customer segments. It will also support business entity in providing high level of satisfaction to client by Organizingaroundcustomersegments,Fosteringbehaviourthatsatisfiescustomersand executingcustomer-centricprocesses.Themanagerinorganisationneedtodevelop understanding that strategy for customer relationship management should be developed at enterprise level. As this will help business entity in identifying the factor or challenges which may create the barrier in developing the plan or strategy to provide satisfaction to customer and developing healthy relationship with them. This framework can be utilised by manager indale company as the ground or basis for getting information about the actual position of the organisation in the market and support management team in creation of suitable strategies for helping company in improving business performance. It will also aid management team in recognising the factor that might have adverse effect on customer services. Manager in order to ensure that several events are integrated and directed towards the achievement of specific target which is customer satisfaction. Gartner has developed such a model, which is known asthe Eight Building Blocks of customer relationship management. Each and every building block offers some kind of benefit. All these eight building blocks are important for effective customer relationship management. The effectiveness of this framework is that , it has focus onthe need to create and maintainingbalance between the requirements of the business as well as of consumer. It allows organisation to maintain balance between value to s stakeholders or shareholders as well as to customers. As all these people are important, they help company in increasing profitability,generatingrevenue,achievingsuccessandfosteringgrowth(Szeghegyi& Langanke,2014) 3
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One of the significant blockinvolves technology, which evaluate the value of screening Customer relationship management as a business strategy. The eight components of customer relationship management are: Vision-The vision ofdalehotelis to provide high value or return to customers. Another vision of the company is to become most popular and favourite organisation or brand among travellers. Vision indicates the capability of supplier to attract new clients and develop relationship with them. It is required by manager indaleisto create such vision which attracts the customer attention and encourage them to buyproducts or service offered by organisation. The customer relationship vision related should be communicatedand accepted throughout the company and the customer base. As this will help firm in gaining the customer loyalty and seeking client attention. It will support company in promoting the brand. Vision is the factor that support business entity in differentiating itself from competitors and further help firm in gaining competitive advantage. Strategy-Formulation of plan or strategy to increase the value proposition by delivering good quality , appropriate quantity of goods or services to customer at reasonable price. Another strategy is to design attractive customer policy. As this will help firm in increasing customer base and retaining relationship with existing client. Valuable experience to customer-business entity is taking high initiative to deliver Valuable experience to its client by offering them discounts and other additional benefits.Dalehas appointed the specialised, skilled and highly educated team of workers in order to ensure that company is delivering ongoing value to customer value and interacting continuously with client. As this will assist firm in identifying the needs of customers and fulfilling the same. It will also support business entity in achieving the desired position in the market. In hospitality and tourism industry , continuous communication is necessary in order to promote goods and services. Especially in service sector providing valuable experience to customer is important , as this will help company in increasing sales and generating high revenue. Organisational collaboration-It is required by an enterprise to bring change in business structure, organisational culture,working environment as per the demand of situation as requirement by workers. As this activity will assist businessventure in ensuring that all the members within an enterprise are working together in order to desired outcome. It will also help 4
an enterprise in delivering high value to client and providing high level of satisfaction to customer. Procedure:It is required by manager to design the process for managing customer life cycle as well as for providing service to new customer. In other words, it is required by manager in business venture to develop such effective procedure which could cater the needs of existing client without compromising with demands of new customers. Analytical as well as planning procedure should be suchthat it develop knowledge of the customer. These procedures support business entity in reason for poor experiences by customers. It allows business venture to deliver high customer value. Information:It includes gathering the accurate and reliable data or information is very important as it has direct influence on policies , strategies and business plan. Information related to customer gathered, stored,analysed, distributed and applied throughout the company as well as should be communicated to the stakeholders. As this activity or strategy will assist firm in seeking support from employees in implementing the strategy for delivering higher value and greater satisfaction to client. Technology-This factor assist manager in collecting as well as managing information or data related to customer which can be utilised for future planning. Technology that is employed or implemented in organisationshould allow greater customer insight,increased client or consumer approach,ensure effective fundamental interaction, and integration throughout all customer channels. Metrics-It can be utilised by manager indalecompany for identifying the internal as well external factors which might have influence or impact on customer services which is delivered by organisation. The reason behind some company in service sector are not implementing true Customer relationship management is that such firm has failed to develop the understanding about the system or procedures and importance for the same .Customer relationship support manager in dalecompany in making suitable business decision and helped management team in identifying the appropriate path to achieve business goals and objectives (Winer,2001) 5
It is required by manager indaleorganisation to integrate customer relationship management plan with marketing strategy. As this will help management team in providing suitable guidance and direction to operational team. It will support manager inoutlining the way Stakeholder or customer value is to be delivered. Marketing strategies will support firm in accomplishing targets and will aid business venture in improving business performance as well as achieving good position in the market. Combination of marketing strategies with plan of customer relationship plan will provide organisation an opportunity to increase profitability and sale. It will support business venture in gaining customer loyalty. Objectives of customer relationship management is to assistdalecompany in increasing customer base. Before developing the strategy for customer relationship management , it is required by manager indaleorganisation to conduct internal as well as external analysis. As this will help management team in analysing the present position of as well as company performance of organisation in the market. It will also assist marketing manager in identifying the customer perception about the brand or products as services delivered by organisation. This activity will also support management team in recognising the customer expectation and assist firm in meeting the same. At the next step of the procedure, role of manager is to focus on customer segmentation. In the next phase, function of manager is to establish customers objectives. In the next phase, it is required by management team in an enterprise to definemetrics for monitoring the implementation of the strategy.In the next stage of the customer relationship management, role of manager is to highlight the strategy or activities that are to be executed for the customization by pricing, communication, product segment, formation of contact,selection of channel,customer service and management segment (Jasmand, Blazevic & de Ruyter, 2012) TRUE customer relationship management Gartner has aligned true customer relationship management withleading levelof CRM maturity. He has defined True customer relationship management as the company initiative or efforts, in which manager has the knowledge aboutways or techniques that can be used by management team for managing customer value and gaining client loyalty. True customer relationship includes establishment of strong vision as well as designing of effective strategies which supportintegration of combined efforts in the field of business collaboration. 6
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The Superior approaches to customer relationship management requireintegration of three important components these are business orientation which has focus on prioritizing customer and their needs. This approach to customers relationship management allows firm to provide satisfaction to client and enables employees more freedom to plan their own action for deliveringhighvaluepropositiontoclient.Customerrelationshipmanagementassist organisation in increasing working efficiency as well as effectiveness. It has also supportdale companyinaccomplishmentofdesiredbusinessgoalsaswellasobjectives.Customer relationship management assisted firm in increasing sales as well as profitability. It has also aids the firm in improving customer services.There arevarious kinds of tools and techniques are used to identify customer needs and their requirements. Primary approach will be includes questioner and survey, so in this company conduct this and gather all information regarding market trends and expectation of client (Lages & Piercy,2012) Analysis It has been analysed that Dale company potential or capability to chart out an average life cycle has allowed the firmto promote additional services. Dale organisation has able to gained popularity among customers , it has only possible through effective customer relationship management. Additional services by such as online checking of menu as well ordering and booking facility has assisted business entity in attracting more number of customer. Welcoming , safe environment andgood quality of services or food has support business venture in developing strong relationship with customer and retain them for long term (Radnor & Johnston, 2013)Research demonstrate that approximately 40 percent clients perceive that it is essential to solve goods or issues themselves and approx 60 percentcustomer expects that organisation website should include a self service application. 7
It has been analysed from research thatthe reason Due to which Firm Dale hotel is investing in improving customer experience is that increase customer retention rate, Improve customer satisfaction and Increase cross cultural selling. Examples of Good practices : Marketing team in Firm Dale hotel conducts market research at regular interval of time in ordertoidentifytheneedanddemandofcustomers.CompanyusesCRMtoolswhich emphasizes on "loyalty" or rewards programs. This strategy or activity assist business entity in determining which customers patronize the same hospitality brand on a regular basis. Those frequent client can accumulate points that can be exchanged for a rewards or incentives in form of discounts on extended stays or future bookings. It has been found from the research that approx. 70 percent of loyal customer failed to result in increased spending. 8 Illustration1: Analysis of facts provided by customer related to the customer relationship management in Firm Dale hotel Sources:Customer Experience Statistics, 2017
TASK 2 2. Exploring the way to implementGartner CRM model The resources required to implement customer relationship management strategy include human resources , technology and procedures. As lack of any of the resource or component may have adverse effect or direct influence on outcome. It furthermay create the barriers in execution of strategy in systematic manner. It is required by human resource management team in dale hotel to make suitable plans in order to engage employees in the process. Right or appropriate technology should be selected considering the objective of activity. As this will support business entity in eliminating barrier in the procedure. It is essential for project leader to ensure that process is in place and account for the people involvement in the process. Before implementing the Customer relationship management strategy , it is required by manager in cited venture to create plan which will act as an outlier or road map for conducting the various activities in order to achieve desired objectives. It includes defining of business objectives, recognising problems, arranging for resources, documentation planning , creation of team,trainingtoemployees,preparingbudget,determiningtimeforeachactivity,and formulating tactics. This activity will support management team in identifying the several internal as well as external variables that might have influence on implementation process. Manager should establish some objectives that will assist management team in identifying the gap. It will further provide the basis on which the actual performance can be measured with standard. Marketing team in an organisation to recognise the current user expectation as well as level of experience. At the next phase, it is required by management team in cited business entity to select product vendor or supplier who will deliver product or services that are required to conduct further procedure. This phase involves the selection of criterion on the basis of which vendor will be selected such as track record of supplier, flexibility, quality of products , knowledge etc. (Sadler,2011) The next phase includes determining of scope which can be done using the data model. It involves designing of procedures such as configuration verses customisation , fields as well as designing of lay outs. 9
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Customisation Procedure includes integration as well as customer portal. Workflow includes identifying the complexities,determining the time for receiving as well as delivering orders. The next step includes data migration in which it is required by manager in organisation to maintain existing record and remove unwanted information. At this phase , management team should emphasize on forming contracts as well as conducting and managing activities. In this stage importing of data or collection of information is required to be done. The another stage is Hosting. AdvantagesComments This application is managed by experts, which allows firm in ensuring the implementation of strategy in systematic manner. It is required by manager in an enterprise to enhancetheirknowledgeabouttheuseof application. Manageupgradesanderrorswhichfurther assist management team in minimisation of risk. This system or application require professional management. Reliableness Recovery of data losses to technological errorManagement by expert team. Fastness Safety and securityThis application has both advantages as well as disadvantages in context of security as well as safety. CostIn stallion and management of this application is less costly. Roll-out:In this stage , it is required management team in an enterprise to emphasize on user adoption such as person over management, reducing competitors incentives or profitability by developing unique strategies orminimising the price of goods or services, promoting report writing and making changes in organisation. It is essential for manager in an enterprise to 10
monitor activity at regular interval of time. As customer relationship management will assist in organising several business activities in systematic manner. Management team or leaders are required to create as well as establish consistent set of dashboard or strategies for their team members. As this will help employees in completion of their task on time (Chan & Wan,2013) The last step that is required to be conducted by management team is to measure the resultand compare actual result with that of desired outcome. As this will assist manager in identifyingtheperformancegapanddeterminationofreasonforthesame.Itwillalso management in predicting the need of customer relationship management and importance for the same (Loke, S. P. & at. al.,2011)The firm dales' hotel has adopted the UP selling strategyin which organisation offers the customer with incentives such as discounts , free shipping etc. on the purchase of additional products or services. It helps business entity in increasing revenue. Employees or managerin Dale hotel give personal attention to client. The company delivers high quality and innovateproducts or services in order reduce the competition. It also assists firm in providing good experience to customers. Management team inFirm dale hotel have focus on ensuring that their clients are able to identify appropriate solution to their problems using an assortment of self-service options. The management team in Firm dale hotel has adopted the marketing approach which uses information technology to focus on garnering increased business from high spenders in the short run. Organisation has executed a customer lifetime value strategy. This plan has been developed to increase customer retention. CONCLUSION It has been concluded from the report that Customer relationship management is very important in order to increase customer base and developing strong relationship with client. This is the factor which support firm in achieving business objectives and allows organisation to improve their position in the market. Project has also highlighted the challenges that could be facebybusinessentityinimplementationofstrategyrelatedtocustomerrelationship management system.CRM system was identifiedas a need to align with the overall business strategy of selling services, instead of products. It has been identified from the report that technologyisthefactorwhichplayssignificantroleinplanningaswellassuccessful implementation of customer relationship strategy. Assignment has successfully demonstrated the importance as well as benefits of implementing customer relationship management in business. It 11
has also demonstrated the way customer relationship management delivers high valuer and provides satisfaction to customers. It has been suggested to manager in an enterprise to align marketing strategy with customer relationship plan. As this will support organisation in ensuring desired outcome. REFERENCES Books and Journal: Winer, R. S. (2001) A Framework for Customer Relationship Management, California Management Review. 43. 4. pp. 89-104 12
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Szeghegyi,Á.&Langanke,U-H(2014)InvestigationofthePossibilitiesfor Interdisciplinary Co-Operation by the Use of Knowledge-basedSystems,Acta Polytechnica Hungarica. 4(2). pp. 63-76 Mendoza, L-E., Marius, A., Perez,M., & Griman, A-C. (2014) CriticalSuccess Factors for a Customer Relationship Management Strategy, Information and Software Technology. 49. pp. 913 -945 Jasmand, C., Blazevic, V. & de Ruyter, K., (2012). Generating sales while providing service: A study of customer service representatives' ambidextrous behavior.Journal of Marketing. 76(1). pp.20-37. Lages, C. R. & Piercy, N. F., (2012). Key drivers of frontline employee generation of ideas for customer service improvement.Journal of Service Research.15(2). pp.215-230. Radnor, Z. & Johnston, R., (2013). Lean in UK government: internal efficiency or customer service?.Production Planning & Control.24(10-11). pp.903-915. Sadler, T. W., (2011).Langman's medical embryology. Lippincott Williams & Wilkins. Chan, K. W. & Wan, E. W., (2013), May. How can stressed employees deliver better customer service?Theunderlyingself-regulationdepletionmechanism.AmericanMarketing Association. Loke, S. P. & at. al., (2011). Service quality and customer satisfaction in a telecommunication service provider. InInternational Conference on Financial Management and Economics (Vol. 11, pp. 24-29). Online Customerservice.2017.[Online].AvailableThrough: <https://en.wikipedia.org/wiki/Customer_service>. 13