Hospitality Marketing Essentials: Understanding Customer Needs and Engagement

This article discusses the importance of understanding customer needs and preferences in the service sector and explores factors that drive customer engagement. It also covers how customer engagement factors determine customer onboarding strategies and evaluates different target customer groups' needs and expectations. Additionally, it analyzes how a restaurant can optimize each customer touchpoint to enhance the customer experience.

Unit 2 Managing the customer
experience

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................4
TASK 1............................................................................................................................................4
Explanation of value and importance of understanding the needs, wants and preferences of the
target customers in service sector................................................................................................4
Explore the different factors that drive and influence customer engagement of different target
customer groups...........................................................................................................................5
Reviewing how customer engagement factors determine customer on boarding strategies for
different target customer groups..................................................................................................6
Evaluate a broad range of different target customer groups needs and expectations in terms of
customer engagement..................................................................................................................7
TASK 2............................................................................................................................................8
customer experience map............................................................................................................8
Discussing how the customer touch points throughout the customer experience create business
opportunities................................................................................................................................9
Analysing how a restaurant can optimize each of the customer points to influence the
behaviour responses and action of its customer to enhance the customer experience..............11
Examining how digital technology is employed in managing the customer experience,
providing specific examples of customer relationship management.........................................12
Evaluating how digital technologies employed in managing the customer experience within
the restaurant are changing CRM systems to effectively acquire and retain customers............13
Advantages and disadvantages of CRM system used in hospitality sector for retaining and
acquisition of customers............................................................................................................13
Customer service strategies.......................................................................................................14
CONCLUSION..............................................................................................................................15
REFERENCES..............................................................................................................................16

INTRODUCTION
Managing customer experience plays a vital role to be successful in the competitive
market. Customer experience management is the systematic process in which organization
understands the needs of customers and make proper plans to improve customer sanctification
level and attract them by offering facilities. In this project the comparison between the two
restaurants in UK The Ninth and Kitchen Table will be made on the basis of the market
environment during Covid-19. In this project the needs and expectations of the market segments
for the service industry has been managed.
MAIN BODY
TASK 1
Explanation of value and importance of understanding the needs, wants and preferences of the
target customers in service sector
The target customer groups are the group of the customers which share similar
demographics that the organization is focusing on. These are buyers which have the interest of
purchasing the product of the organization (Schwepker, 20190. In the service industry the
customer groups are the individuals which visit restaurant for eating the food on the menu. The
customers of the restaurants are as follows,
Monetary value :
This is the value that the business would want to introduce in their food products. This is
also the effective way of understanding the areas which impact the business of the organization
through the management of the operations. The monetary values are towards the quality of
services and products which the restaurants provide to its customers.
Social Value :
The social values mean that the customers always have some expectations with the
restaurant that is the way in which they are able to understand the success of The business and
also manage the organizational operations.
Psychological value:
There are factors related to the psychology which influences the restaurant to bring
innovation to the food products of the company (Chakraborty and et.al., 2022).
The importance of understanding the needs of the customers needs, wants and preferences are,

 It assists the development of the marketing strategies for the service sector. On the basis
of the customer groups the marketing of the restaurants are made. Understanding the
values of the customers helps the business in identifying the customers groups for
growth.
 This is the factor which is considered before planning ways in which the restaurant
wants to develop brand image. This is due to the fact that the customer wants are the best
way of influencing the business about the factor which bring light to what success would
look like.
 When the organization is able to promote customer loyalty that are also able to
understand the ways in which the customers can promote the business of this
organization (Tajeddini and et.al., 2022). In the service industry the focus of the
customers preferences which helps the business to create ways in which they can
promote the growth of the organization.
 Understanding of the customers values and needs are considered to be the factor that
helps the restaurant to make the necessary adjustments to the products and services. This
in return helps the organization to increase its sales and also develop strong brand value.
Explore the different factors that drive and influence customer engagement of different target
customer groups
Personal factors- this types of factors are personal to the customers which can easily
influence their buying behaviour and customer engagement can be impacted by these factors.
During covid-19, people were facing a lot of challenges such as unemployment (Tajeddini and
et.al., 2022).. They were not having enough income to satisfy their needs and wants. Hence,
income has the ability to drive and influence the customer engagement of different target
customer groups from kids to adults to old age people. During pandemic, every restaurant was
facing different challenges and won’t be able to meet their goals in effective manner. When
customers have higher income it gives more opportunity for the customer to spend on The ninth
table restaurant products or services. Whereas on the other side, low income or middle income
group of people spend most of their income on the basic needs such as groceries, clothing and
living, rather than enjoying vacations and dinner time with family in the kitchen table restaurant.
Social factors- nowadays, people are living surrounded by family, groups, friends and
relatives. All of them are responsible in shaping the buying behaviour and engagement of a

person. For example- when customer meet its family member, and then they provide negative
and positive comment this can influence and drive customer engagement of various types of
target groups. Nowadays, customers are attracted towards effective service provided by
restaurant such as safety and hygiene, great customer interaction and involvement, usage of
technology and fastest servicing or on time service. If the restaurant focus on these factors, then
they can attract customer towards them.
Cultural factors- when a customer comes from a particular community, their behaviour
and purchasing habits is highly influenced by the culture relating to that particular community. It
includes the basic needs of clients, perception and needs. For example- when the customer sees
different culture around them while buying service from the kitchen table restaurant it might be
possible that person is influence by them.
Psychological factors- customer psychology is a major determinant of customer behaviour.
Nowadays, these types of factors are difficult to measure just because of changing demand and
trends of customers (Schwepker, 2019). These factors are powerful enough to influence a
customer decision making process regarding products or service and their purchasing decision.
Nowadays, customers are attracted towards discounts, offers and display, variety and quality of
products. So, if the restaurant is able to provide these facilities then it can drive customer
engagement of different types of customers.
Perception- In hospitality sector, customer perception plays a vital role that can influence
customer engagement and their behaviour. In this process, clients gather important information
about products or service provided by restaurant and decide whether to buy or not. In the current
report, when a client sees promotions and advertisement, reviews and comments on social media
feedback about restaurant food menu, its service and details about customer experience, they will
decide about whether to buy or not (Li and Xu, 2022). Hence, customer perception becomes a
great influence on the buying behaviour and its customer engagement.
Motivation- when a customer is motivated enough from the service or products offered by
restaurant then it will influence the buying behaviour and their engagement level. The reason
behind this include nowadays, customer has many needs such as social and security needs.
Hence these factors have the power to motivate or demotivate the customer to buy services from
particular sector.

Reviewing how customer engagement factors determine customer on boarding strategies for
different target customer groups.
The ultimate goal of hospitality sector is to provide facilities and enhance the customer
experience. customer on boarding strategies is the systematic process used by hotel and
restaurant for welcoming new clients and getting them acquainted with services and products. If
the restaurant provides on time service, address customer questions and concerns they can easily
meet the customer engagement. An effective and attractive on boarding plays a vital role for
restaurant so that it can help them to set the tone for the rest of customer relationship and
increase customer loyalty towards organisation. The kitchen table provides great on boarding
strategies such as understanding needs of customers, welcoming them politely, listening to their
concerns and set customer centric goals.
Evaluate a broad range of different target customer groups needs and expectations in terms of
customer engagement.
To be successful, the restaurant needs to identify the needs and expectations of customers
such as by taking survey, collecting likes and dislikes from feedback and through social media.
Nowadays, people are more concerned about price, quality and convenience level of organisation
(Schwepker, 2019). These factors can easily influence and drive the customer engagement of
different target customer groups. The company is going to target all age groups from kids to
adults to old people having low level income, middle level income. For example- post pandemic,
kids are attracted towards combo offers with some special toy, adults are more health conscious
and old people are more attracted towards gluten and sugar free food meals. If the restaurant is
able to provide these needs, then they can easily enhance customer engagement.

TASK 2
customer experience map

Discussing how the customer touch points throughout the customer experience create business
opportunities
In today’s business world, especially in hospitality sector many businesses are utilizing
digital technology, social media and touch points in order to attract more customers and satisfy
the needs of existing customers. As a result of the pandemic, hotels and restaurant are using new
innovation and technology to meet its goals.
The ninth table restaurant use effective strategies to attract customers and create business
opportunities. A customer touch point means any indirect or direct contact a customer has with a
organisation. It can occur outside and within brand’s control and this may happen during, before
or after the purchase of service or product. For example- if a customer visits ninth table
restaurant for dinner with family. During that time the manager of the restaurant provide them
great customer experience and achieve loyalty of that customer.
Customer experience and business success lives and dies on touchpoints. If the company
maintain customer relationship, then they can easily achieve its customer centric goals (Amoako,
2022). To create business opportunities, the restaurant needs to identify customer touchpoints
throughout the customer experience. customer touchpoints can be done via phone call, on time
deliver, hiring talented and skilled staff member, website.

The best way to interact with customer is through website and phone call, regular touch with
customer can create business opportunities for the ninth table restaurant. It is important to
provide detailed information about products offers and discounts via website and phone call. By
doing so, the firm can easily interact with their clients and maintain touchpoints to nail for
business. With the help of this, the restaurant can easily stand out from the competition in the
hospitality industry. With best practice, most of hotels and restaurant are using email marketing
to nurture relationships and attract more customers (Amoako, 2022). The key to build a
relationship between brand and the customer is to make sure customer open emails. By having
this, the restaurant can easily analyse and rate potential subject lines to come up with those that
are most likely to get opened. It is mandatory to enable on site reviews so that people can see
Reponses of other people and their experience. modern customers trust their peers more than
company. The customer relationship plays a vital role for the firm to achieve its customer centric
goals. So if the restaurant provide honest reviews of the service or products they consider
purchasing and they are more likely to purchase from them rather than looking for different
options.

Analysing how a restaurant can optimize each of the customer points to influence the behaviour
responses and action of its customer to enhance the customer experience.
After pandemic, companies are more concerned about changing technology and customer
trends. It time for restaurant to revaluate the way they interact with customers. Before
understanding the concept of customer trends, first the company needs to know about their
experience and try to see the shopping process through their eyes. In customers buying journey,
the restaurant needs to identify touchpoints as it varies from company to company and customer
to customer. nowadays, companies are using types of customer touchpoints which can influence
the behaviour and experience of customer (Amoako, 2022). Through traditional word of mouth
strategy, the hotel can advertise its services, it will encourage customers to share their experience
with family and friends regarding food, accommodation and ambience of restaurant.
With best practice, most of companies are using email marketing to nurture relationships
and attract more customers. The key to build a relationship between brand and the customer is to
make sure customer open emails. In order to do this, the restaurant is engaging subject lines
related to food menu and offers related to it. By having this, the restaurant can easily analyse and
rate potential subject lines to come up with those that are most likely to get opened. It is
mandatory to enable on site reviews so that people can see Reponses of other people and their
experience. modern customers trust their peers more than company. So if the ninth table
restaurant provide honest reviews of the service or products they consider purchasing and they
are more likely to purchase. In order to enhance the level of control given to customer the
restaurant must include reviews section on website page (Hayajneh and et.al., 2022). Along with
this, it is important to disclose availability of product or services. By doing so, the hotel can tell
a customer that a food menu they have ordered is in stock or out of stock after they have already
paid. If the customer won’t be able to know about availability of stock and have to wait for
availability for extra hours, then this will upset and lead to bad relationship between hotel and
customer. Similarly, if the customer know that a product is limited in stock it creates a sense of
urgency in mind of customer, so it can motivate them to take immediate action regarding buying
product and order right away to enjoy rather than waiting for long hours.

Examining how digital technology is employed in managing the customer experience, providing
specific examples of customer relationship management.
In today’s business environment, technology plays a vital role to improve the customer
experience and increase their buying behaviour (Hayajneh and et.al., 2022). With the help of
advanced technology, hotels are attracting more customers as it can easily track the customer
online footprints that can highlight precious insights into what the customer wants, what are their
likes and dislikes, what motivate them and what are the factors that can influence their buying
behaviour. In hospitality sector, companies are using digital customer service as it can help
increase customer satisfaction level and reduce extra workload for staff members and reduce
costs (Li and Xu, 2022). Nowadays, customers are spending more time on social media platform
via internet as they want to be well informed and curious about changing trends in market. In
fact, a good online service and reviews about company can attract more potential customers.
Digital technologies like automation and loT is allowing customer to get what they need and
want exactly. With the help of new technology, the restaurant can easily combine the customer
expectation, experience and improve customer relationship. It allows businesses to innovate new
services and products to gain competitive advantage. With the help of technology, restaurant can
interact with customer to provide them on time services. It allows restaurant to increase the speed
and efficiency of work to interact with customers. By having this method, the ninth table
restaurant is able to provide a more personalised experience and enhance satisfaction level.
Customer relationship management is a technology used by companies to manage
relationships and balancing customer experience by interacting with customers and potential
clients. The major reason behind using CRM is to enhance customer engagement and improve
relationships with business (Ngelyaratan and Soediantono, 2022). By having CRM, the brand
can help stay connected to customers and improve profitability in the competitive world. For
example- if ninth table restaurant send thank you message when a customer visit hotel for
enjoying family dinner time then company can easily maintain customer relationship
management. The restaurant is offering a promo code and discount coupons for birthday
celebration. Sending a discount offers such as buy 1 get 1 free to customer to maintain customer
relation is also customer relationship management example.
Customer relationship is maintained with the support of communication technology in the
hotels and restaurant such as emails, phone calls, social media platform and others sources.

Hospitality industry is the fastest growing industry in the world, it requires effective
communication skills to interact with customer (Li and Xu, 2022). Businesses are improving
customer service by using communication technology. To respond customer queries in the hotel
industry the owners are using big data analytics and internet of things to help business improve
the customer experience journey.
Evaluating how digital technologies employed in managing the customer experience within the
restaurant are changing CRM systems to effectively acquire and retain customers.
As mentioned above digital technologies plays an important role in improving customer
experience and managing the needs of customers within the restaurant. Customer relationship
management help to track previous purchases and buying behaviour of customers (Kumar and
Reinartz, 2018). With the help of the detailed information the restaurant can offer them more
discount and quality service to manage customer experience. another role of CRM is to retain
customers; customer retention is also a critical part in the modern business sector especially in
hotel industry. Because in this industry customer have varieties of options available in food
menu, great accommodation, beverage options at affordable price. Changing CRM systems and
changing technology trends can influence the buying behaviour of customer which can impact
the business operations (Ngelyaratan and Soediantono, 2022). With the help of CRM systems,
the restaurant can easily reach customers directly with personalized content and provide better
customer experience by being able to instantly offer the latest information on the services or
products.. Hence, it is said that improved targeting in the hotel industry helps drive more
conversions.
Advantages and disadvantages of CRM system used in hospitality sector for retaining and
acquisition of customers.
Advantages- with the help of CRM system, the restaurant will be able to provide customer
experience in a better way as well as it will support company to quickly answer questions raise
by clients related to food menu, pricing, quality and other facilities (Kumar and Reinartz, 2018).
With the help of CRM system companies can easily manage their delivery time so that they
never have to keep their customers waiting for long hours. The ninth restaurant can maintain a
customer communication calendar, start education program to attract customer and retain them,
build trust and relationship with customer by offer them unique service or products.

Disadvantages- customer relationship management is the great way of making the most of
business assets. However, issues in implementing a CRM can cause major difficulties and
challenges for companies. One of the greatest challenges to CRM implementation is cost, it
requires proper planning and dozens of software to manage pricing plans that will help to acquire
and retain customers in hotel industry. Another drawbacks includes, poor communication- to
attract more customer and retain them CRM work needs a good communicator who can deliver
information to customers (Ngelyaratan and Soediantono, 2022). All the relevant people in
business must know what information the firm need and how to use it for retaining and acquiring
customers. Make sure to communicate effectively with team members and customers to run
business smoothly.
In addition to this, it is important to have effective leadership skills to manage customer
relationship, because weak leadership could cause problems for any implementation plan related
to CRM.
Customer service strategies
Customer service is the key to successful business especially in hospitality industry. It is
important to treat every guest with respect and welcome them with politeness. So, staff members
should be properly trained and well dresses to improve service quality at restaurant. Providing
staff training and development sessions on weekly basis to show them what should be their
priority in terms of customer service. It is important to provide personalized customer services
and create positive environment for people so that they can enjoy their time with family and
friendly. Use updated technology to measure the customer service performance and improve
their experience. one of the best way to improve the customer satisfaction is to provide and offer
them freebies and complimentary services along with special discounts and benefits. For
example- the ninth table restaurant provide special discount on festive season and offer other
benefits. By doing so the customer experience can be developed and meets the wants of clients
by following all the required business standards (Britton and et.al., 2022). During and after
pandemic hotel have to maintain health and safety measure to protect customers so they have
increase the usage of sanitizer and mask.
In order to improve customer experience, it is suggested that by using customer service
strategies the restaurant needs to focus on developing rewards systems for existing and old
customers. Provide them on time delivery and on time service which can encourage them to

purchase from hotel. It is recommended to differentiate hotel service from the competitors such
as provide them unique experience and offer them discounts to capture a greater market share.
When delivering message to customer it is important to be truthful and provide complete
information about offers. It is suggested to encourage feedback which can enhance delivery of
customer service strategies and communication effectively.
CONCLUSION
To conclude, hotel industry needs to understand the needs, preference and wants of target
customer’s groups to provide them quality services and enhance customer experience. By having
customer experience map, the company can create business opportunities and optimize customer
touch points to attract more customer and retain customers. By evaluating the report, it has been
summarized that, to be successful, it is mandatory to use digital technology in customer
relationship management and apply it to maximize customer engagement process. With the
evolving customer experience and changing trends, it is important to use digitalization social
media and touchpoints to attract customers and interact with them on regular basis.

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