Marketing and Customer Retention in the Hospitality Industry
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AI Summary
This report discusses the importance of customer retention in the hospitality industry, with a focus on the marketing strategies and loyalty programs of Clarion hotel. It explores the relationship between marketing mix and marketing strategies, and analyzes the success and failure of the organization's relationship marketing program. The report also provides strategies for improving loyalty programs for a new hotel called Diamond.
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Marketing and Customer
Retention in the Hospitality
Industry
Retention in the Hospitality
Industry
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Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Adoption of marketing mix and it's relation with marketing strategies......................................3
Analyse the characteristic of organisation's relationship marketing programme and explain its
success or failure as a customer retention...................................................................................5
Strategies for improvement in loyalty programme for own business.........................................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Adoption of marketing mix and it's relation with marketing strategies......................................3
Analyse the characteristic of organisation's relationship marketing programme and explain its
success or failure as a customer retention...................................................................................5
Strategies for improvement in loyalty programme for own business.........................................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9
INTRODUCTION
The term customer retention is explicated as an effective marketing process that work
with motive of engaging more individuals, tourist or guest by offering effective services and
products. An effective retention programme is developed by hospitality or other organisation
through delivering prominent facts, tactics and strategy from analysing the last relations with
customer’s. To operate a business with smooth and effective manner management formulate
prominent strategies that are useful for developing better customer relation. This report is written
from perspective of Clarion hotel that is a well-known for their luxury hospitality services
(Alhakimi and Ghaleb, 2019). Moreover, this report highlights on customer loyalty programme
that is offered by hotel for offering high quality services. Report will also focus on perspective of
marketing mix, methods of effective customer relationship programmes that relate with
marketing in order to develop better loyalty programme.
MAIN BODY
Adoption of marketing mix and it's relation with marketing strategies
The term marketing mix is considered as an important set of action, tactics and strategies
that are beneficial for management and it is used to promote products and services of
organisation at a broad level. This is also used for formulating effective methods that are used for
accomplishing company goals and objectives in a stipulated time period. In context of Clarion
hotel management formulate more valuable products that are offered to a target market.
Production cost, ability for marketing pay, supply and demand within market is implemented by
management through use of direct and in-direct elements. Marketing mix of Clarion hotel is
discussed as below: Product- Clarion hotel is recognised as one of the best hospitality organisation which
offer best and effective services to formulate a positive environment among the hotel. So
effective room services, Wi-Fi, hygienic restaurant and healthy food etc. are some
characteristic of hotel services and it is used to attract more number of guest by offering
good quality of services (Chen, Chiu and Chang, 2017). Moreover, hotel offer prominent
services to their customer’s as it help to formulate effective membership awards to invite
members on constant basis.
The term customer retention is explicated as an effective marketing process that work
with motive of engaging more individuals, tourist or guest by offering effective services and
products. An effective retention programme is developed by hospitality or other organisation
through delivering prominent facts, tactics and strategy from analysing the last relations with
customer’s. To operate a business with smooth and effective manner management formulate
prominent strategies that are useful for developing better customer relation. This report is written
from perspective of Clarion hotel that is a well-known for their luxury hospitality services
(Alhakimi and Ghaleb, 2019). Moreover, this report highlights on customer loyalty programme
that is offered by hotel for offering high quality services. Report will also focus on perspective of
marketing mix, methods of effective customer relationship programmes that relate with
marketing in order to develop better loyalty programme.
MAIN BODY
Adoption of marketing mix and it's relation with marketing strategies
The term marketing mix is considered as an important set of action, tactics and strategies
that are beneficial for management and it is used to promote products and services of
organisation at a broad level. This is also used for formulating effective methods that are used for
accomplishing company goals and objectives in a stipulated time period. In context of Clarion
hotel management formulate more valuable products that are offered to a target market.
Production cost, ability for marketing pay, supply and demand within market is implemented by
management through use of direct and in-direct elements. Marketing mix of Clarion hotel is
discussed as below: Product- Clarion hotel is recognised as one of the best hospitality organisation which
offer best and effective services to formulate a positive environment among the hotel. So
effective room services, Wi-Fi, hygienic restaurant and healthy food etc. are some
characteristic of hotel services and it is used to attract more number of guest by offering
good quality of services (Chen, Chiu and Chang, 2017). Moreover, hotel offer prominent
services to their customer’s as it help to formulate effective membership awards to invite
members on constant basis.
Price: From the perspective of clarion hotel, management offer high quality room
services with analysis of their size and facility. Price aspect depend on different factors
such as type of room, additional services etc. Therefore, price factor relates with offering
of room on day and night basis. The average cost of Clarion hotel rooms sis $ 15000 and
above for luxury room. This also include restaurant services, spa and gym facility to
increase the time period of individual for stay in hotel. In last, average room services cost
start from $6,000 that offer a room to guest including Wi-Fi and breakfast services
(Hosseini and Bideh, 2014). Place- Clarion hotel operate and manage their hotel within in Sweden, Europe and other
geographical areas and this is recognise for it's best tradition services. Along with this
members of the Clarion hotel perform their operations in a significant manner that leads
to manager all task and action in an organised manner. Identify of opportunity is an
important perspective for organisation that aids management to generate loyalty
programmes in order to retain and attract customer for longer period. In the context of
Clarion management develop long term programmes to attract more customers. Promotion- From the perspective of hotel there are different task performed by
management and this is used to generate long term decision by managing and considering
the decisions that promote and advertise company services at a broad level. Clarion hotel
offer luxury services and it consider as supreme advantage aspect. There are different
task performed by management and it is used to expand work perspective according to
premium life-style. Modifications leads management in improving horizon aspects like,
social media trend is an appropriate method for promoting Clarion hotel services at a
broad level. People- Human workforce is one of the most important asset for hospitality organisation
because it offer customised services to guest which enhance the satisfaction level of
customers (Loots and Grobler, 2014). Moreover, in order to improve marketing and sale
services clarion hotel recruit potential and capable individuals for performing
organisational work in a systematic manner. By generating effective coordination among
individuals or workforce management of clarion hotel develop a competitive-edge in
market that is beneficial for attracting more number of customer’s.
services with analysis of their size and facility. Price aspect depend on different factors
such as type of room, additional services etc. Therefore, price factor relates with offering
of room on day and night basis. The average cost of Clarion hotel rooms sis $ 15000 and
above for luxury room. This also include restaurant services, spa and gym facility to
increase the time period of individual for stay in hotel. In last, average room services cost
start from $6,000 that offer a room to guest including Wi-Fi and breakfast services
(Hosseini and Bideh, 2014). Place- Clarion hotel operate and manage their hotel within in Sweden, Europe and other
geographical areas and this is recognise for it's best tradition services. Along with this
members of the Clarion hotel perform their operations in a significant manner that leads
to manager all task and action in an organised manner. Identify of opportunity is an
important perspective for organisation that aids management to generate loyalty
programmes in order to retain and attract customer for longer period. In the context of
Clarion management develop long term programmes to attract more customers. Promotion- From the perspective of hotel there are different task performed by
management and this is used to generate long term decision by managing and considering
the decisions that promote and advertise company services at a broad level. Clarion hotel
offer luxury services and it consider as supreme advantage aspect. There are different
task performed by management and it is used to expand work perspective according to
premium life-style. Modifications leads management in improving horizon aspects like,
social media trend is an appropriate method for promoting Clarion hotel services at a
broad level. People- Human workforce is one of the most important asset for hospitality organisation
because it offer customised services to guest which enhance the satisfaction level of
customers (Loots and Grobler, 2014). Moreover, in order to improve marketing and sale
services clarion hotel recruit potential and capable individuals for performing
organisational work in a systematic manner. By generating effective coordination among
individuals or workforce management of clarion hotel develop a competitive-edge in
market that is beneficial for attracting more number of customer’s.
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Process- The respective hotel is known for their high-quality services because they offer
high-value among their products. This also refers individual offer high-quality products
to their guest as it tends to formulate better reflection among organisation. It refers luxury
aspects are an important perspective which represent management as a caring team that
make or generate better capital as by completing all work according to decided location
and procedure (Mahmoud, Hinson and Adika, 2018). This results Clarion earn high
return from the outputs of company operation and function. Example- to organise small
party in hotel at weekend for improving company returns.
Physical Evidence- according to this element, the people of clarion hotel attract more
number of customer by generating and demonstrating hotel with attractive features. For
generating an effective base of guest. Customer loyalty programme is an important
perspective as it tends the hotel staff to offer premium services in order to generate
loyalty programme for individuals. Moreover, with use of bar, conference room and
laundry management complete their task with high-quality.
Analyse the characteristic of organisation's relationship marketing programme and explain its
success or failure as a customer retention
According to this section, management tend to undertake relationship marketing as a
perspective that generate loyalty programmes for individuals by providing significant services to
customer’s for attracting them towards organisation services. Customer retention is an important
perspective and it tend to generate effective response from the consumer towards company
services. With the programme of organisation relationship management develop better sales
transactions because prominent strategy leads the Clarion hotel staff generate effective relations
which generate effective relations with all stakeholders specifically customer’s are more
benefited with marketing context (Palto, Fraser and Lebcir, 2018). Moreover, marketing context
and programme involve different individuals that tends to understand all perspective related with
customers. This also tends hotel to complete work as per decided benchmark of services and as
per this trend management consider features that complete task according to needs and wants of
customer.
The Clarion hotel, is one of the largest hotel among London which follow legacy and
trends related with market and hospitality sector. Reward programme tends and attract
customer's from all over the globe. Along with this scheme to offer reward points is a latest trend
high-value among their products. This also refers individual offer high-quality products
to their guest as it tends to formulate better reflection among organisation. It refers luxury
aspects are an important perspective which represent management as a caring team that
make or generate better capital as by completing all work according to decided location
and procedure (Mahmoud, Hinson and Adika, 2018). This results Clarion earn high
return from the outputs of company operation and function. Example- to organise small
party in hotel at weekend for improving company returns.
Physical Evidence- according to this element, the people of clarion hotel attract more
number of customer by generating and demonstrating hotel with attractive features. For
generating an effective base of guest. Customer loyalty programme is an important
perspective as it tends the hotel staff to offer premium services in order to generate
loyalty programme for individuals. Moreover, with use of bar, conference room and
laundry management complete their task with high-quality.
Analyse the characteristic of organisation's relationship marketing programme and explain its
success or failure as a customer retention
According to this section, management tend to undertake relationship marketing as a
perspective that generate loyalty programmes for individuals by providing significant services to
customer’s for attracting them towards organisation services. Customer retention is an important
perspective and it tend to generate effective response from the consumer towards company
services. With the programme of organisation relationship management develop better sales
transactions because prominent strategy leads the Clarion hotel staff generate effective relations
which generate effective relations with all stakeholders specifically customer’s are more
benefited with marketing context (Palto, Fraser and Lebcir, 2018). Moreover, marketing context
and programme involve different individuals that tends to understand all perspective related with
customers. This also tends hotel to complete work as per decided benchmark of services and as
per this trend management consider features that complete task according to needs and wants of
customer.
The Clarion hotel, is one of the largest hotel among London which follow legacy and
trends related with market and hospitality sector. Reward programme tends and attract
customer's from all over the globe. Along with this scheme to offer reward points is a latest trend
which is adopted by all individuals. According to reward scheme guest obtain points by
organisation which are redeem by them in future purchase of service and products. Clarion hotel
generate and organise events for attracting families and it is also beneficial to develop positive
environment at workplace (Suh and Alhaery, 2016). Further, reward programme, organising of
events and company action leads customer's to develop long term memory in order to retain them
for longer period. Moreover, customer's are also delighted because fulfilment of their demand or
need some service that are offered by respective hotel is mention as below:
Hotel offer services that are high in value because it is used to complete all work with
premium facility. This is also used by management to attract customer's from target
market.
Hotel management run it's reward programme which is related with identify of
opportunity among market. Moreover, with organise of events management consider that
with qualified tend Clarion staff undertake and develop methods which leads to choose
and select rewards as per accommodation services. Room services is an example of
valuable services that are offer by hotel staff.
In the present scenario, there are different trends related with complementary services
and it make various activities to retain in market for longer period.
Their are different facilities and services is considered by organisation that is used to
complete work according to decided terms, rules and regulations. It results management
make participation among workforce to complete all task in an organised manner.
It is important for hospitality organisation to consider about all aspects that make
effective practices and complete work according to analysis of organisation services.
Therefore, customer retention is essential to improve and it leads management to complete all
work according to decided benchmark of products and services. This is also used by
management to improve and promote better and effective relationship with individuals or
customer as it aids management to develop prominent relationship with customer's. Along with
this individual gain satisfaction with underneath of specific outcomes as it lead to complete all
work according to decided location and customer demand (Trenggana and Cahyani, 2019). This
result clarion hotel offer value-added services to customers. Further, hotel review all feedback
that are gained from customers and this also leads management to complete all task that helps to
obtain sustainability in market. On the other side, hospitality organisation induce and adopt
organisation which are redeem by them in future purchase of service and products. Clarion hotel
generate and organise events for attracting families and it is also beneficial to develop positive
environment at workplace (Suh and Alhaery, 2016). Further, reward programme, organising of
events and company action leads customer's to develop long term memory in order to retain them
for longer period. Moreover, customer's are also delighted because fulfilment of their demand or
need some service that are offered by respective hotel is mention as below:
Hotel offer services that are high in value because it is used to complete all work with
premium facility. This is also used by management to attract customer's from target
market.
Hotel management run it's reward programme which is related with identify of
opportunity among market. Moreover, with organise of events management consider that
with qualified tend Clarion staff undertake and develop methods which leads to choose
and select rewards as per accommodation services. Room services is an example of
valuable services that are offer by hotel staff.
In the present scenario, there are different trends related with complementary services
and it make various activities to retain in market for longer period.
Their are different facilities and services is considered by organisation that is used to
complete work according to decided terms, rules and regulations. It results management
make participation among workforce to complete all task in an organised manner.
It is important for hospitality organisation to consider about all aspects that make
effective practices and complete work according to analysis of organisation services.
Therefore, customer retention is essential to improve and it leads management to complete all
work according to decided benchmark of products and services. This is also used by
management to improve and promote better and effective relationship with individuals or
customer as it aids management to develop prominent relationship with customer's. Along with
this individual gain satisfaction with underneath of specific outcomes as it lead to complete all
work according to decided location and customer demand (Trenggana and Cahyani, 2019). This
result clarion hotel offer value-added services to customers. Further, hotel review all feedback
that are gained from customers and this also leads management to complete all task that helps to
obtain sustainability in market. On the other side, hospitality organisation induce and adopt
innovation system for completing all task with motive of retaining in market for longer period. It
refers marketing strategy aids management to gain competitive-edge in market by developing an
effective programme of customer loyalty.
Strategies for improvement in loyalty programme for own business
Loyalty marketing strategy leads an organisation to improve and motivate customer's for
visiting and consuming same services on repetitive basis. This is also used to formulate
prominent strategy through engaging incentivize purchase and tends which develop customer
loyalty programme. In the present scenario, my perspective is to open and establish a new hotel
which is named as “Diamond” and it start as a three star hotel which is established among
London central market because it a hub of tourist market (Trenggana, Mayangsari and Lestari,
2019). Some effective strategies for my hotel is describe as below:
Value-added customer service- With effective customer service an organisation
generate and develop the ability related with brand in context of formulating effective
customer base. The main motive to use value-added services relates is to gain loyalty of
tourist and individuals as it increase customer loyalty by completing all offering that are
high in value as compare to other hospitality organisation. Tangible asset and personal
touch are two factors which add more value in the services of diamond hotel and it
results healthy relationship is developed with customer by interacting with guest on
repetitive basis. Technology is an important aspect and it generate aspects through which
queries of individuals is solved in minimum time-period.
Motivation programmes- This is used to describe premium and effective services
which is used to improve customer loyalty and other benefits such as discount in order to
increase market share. Motivation is an important aspect which is used to complete all
work with reward programmes. It defines that motivation factor perform an important
role and it leads to complete all task in an effective manner (Wang and Fong, 2016).
Diamond hotel services perform their work by generating results that enhance
perspective related with scratching cards, rewards and point to complete work according
to decided action. Moreover, staff obtain success by completing work with motive of
minimising the challenges that generate issue for organisation.
refers marketing strategy aids management to gain competitive-edge in market by developing an
effective programme of customer loyalty.
Strategies for improvement in loyalty programme for own business
Loyalty marketing strategy leads an organisation to improve and motivate customer's for
visiting and consuming same services on repetitive basis. This is also used to formulate
prominent strategy through engaging incentivize purchase and tends which develop customer
loyalty programme. In the present scenario, my perspective is to open and establish a new hotel
which is named as “Diamond” and it start as a three star hotel which is established among
London central market because it a hub of tourist market (Trenggana, Mayangsari and Lestari,
2019). Some effective strategies for my hotel is describe as below:
Value-added customer service- With effective customer service an organisation
generate and develop the ability related with brand in context of formulating effective
customer base. The main motive to use value-added services relates is to gain loyalty of
tourist and individuals as it increase customer loyalty by completing all offering that are
high in value as compare to other hospitality organisation. Tangible asset and personal
touch are two factors which add more value in the services of diamond hotel and it
results healthy relationship is developed with customer by interacting with guest on
repetitive basis. Technology is an important aspect and it generate aspects through which
queries of individuals is solved in minimum time-period.
Motivation programmes- This is used to describe premium and effective services
which is used to improve customer loyalty and other benefits such as discount in order to
increase market share. Motivation is an important aspect which is used to complete all
work with reward programmes. It defines that motivation factor perform an important
role and it leads to complete all task in an effective manner (Wang and Fong, 2016).
Diamond hotel services perform their work by generating results that enhance
perspective related with scratching cards, rewards and point to complete work according
to decided action. Moreover, staff obtain success by completing work with motive of
minimising the challenges that generate issue for organisation.
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CONCLUSION
With the analyse of above report, it is concluded that customer retention is defined as an
important aspect for organisation because this is beneficial for managing and developing
profitable factor to obtain desired outputs and results. In relation with business trends this is
identified by management that sustainability is an important factor that is used to generate
effective results within terms of efficiency and perfection. Further, with the use of extended
marketing mix management enter into market in an organised manner that leads organisation to
generate effective customer programme to retain them for longer period.
With the analyse of above report, it is concluded that customer retention is defined as an
important aspect for organisation because this is beneficial for managing and developing
profitable factor to obtain desired outputs and results. In relation with business trends this is
identified by management that sustainability is an important factor that is used to generate
effective results within terms of efficiency and perfection. Further, with the use of extended
marketing mix management enter into market in an organised manner that leads organisation to
generate effective customer programme to retain them for longer period.
REFERENCES
Books and Journals
Alhakimi, W. and Ghaleb, A., 2019. The impact of CRM components system on customer
retention in the telecom industry: a case of Y-Telecom in Yemen. Middle East Journal
of Management, 6(4), pp.378-409.
Chen, K.K., Chiu, R.H. and Chang, C.T., 2017. Using beta regression to explore the relationship
between service attributes and likelihood of customer retention for the container
shipping industry. Transportation Research Part E: Logistics and Transportation
Review, 104, pp.1-16.
Hosseini, S.Y. and Bideh, A.Z., 2014. A data mining approach for segmentation-based
importance-performance analysis (SOM–BPNN–IPA): a new framework for developing
customer retention strategies. Service Business, 8(2), pp.295-312.
Loots, H. and Grobler, A.F., 2014. Applying marketing management and communication
management theories to increase client retention in the short-term insurance
industry. Public Relations Review, 40(2), pp.328-337.
Mahmoud, M.A., Hinson, R.E. and Adika, M.K., 2018. The effect of trust, commitment, and
conflict handling on customer retention: the mediating role of customer
satisfaction. Journal of Relationship Marketing, 17(4), pp.257-276.
Palto, D., Fraser, P. and Lebcir, M., 2018. An investigation into the relationship between
customer relationship marketing and customer retention: superstore retailing context in
Bangladesh. Journal of Business and Retail Management Research.
Suh, E. and Alhaery, M., 2016. Customer retention: Reducing online casino player churn through
the application of predictive modeling. UNLV Gaming Research & Review
Journal, 20(2), p.6.
Trenggana, A.F.M. and Cahyani, L., 2019, May. The Influence of Relationship Marketing and
Customer Retention. In 1st International Conference on Economics, Business,
Entrepreneurship, and Finance (ICEBEF 2018). Atlantis Press.
Trenggana, A.F.M., Mayangsari, I.D. and Lestari, O., 2019, October. CONSUMER LOYALTY:
BASED ON RELATIONSHIP MARKETING, CUSTOMER VALUE AND
CUSTOMER RETENTION. In The 1 International Conference on Innovation of Small
Medium-sized Enterprise (ICIS) 2019 (Vol. 1, No. 1, pp. 66-74).
Wang, C.H. and Fong, H.Y., 2016. Integrating fuzzy Kano model with importance-performance
analysis to identify the key determinants of customer retention for airline
services. Journal of Industrial and Production Engineering, 33(7), pp.450-458.
Books and Journals
Alhakimi, W. and Ghaleb, A., 2019. The impact of CRM components system on customer
retention in the telecom industry: a case of Y-Telecom in Yemen. Middle East Journal
of Management, 6(4), pp.378-409.
Chen, K.K., Chiu, R.H. and Chang, C.T., 2017. Using beta regression to explore the relationship
between service attributes and likelihood of customer retention for the container
shipping industry. Transportation Research Part E: Logistics and Transportation
Review, 104, pp.1-16.
Hosseini, S.Y. and Bideh, A.Z., 2014. A data mining approach for segmentation-based
importance-performance analysis (SOM–BPNN–IPA): a new framework for developing
customer retention strategies. Service Business, 8(2), pp.295-312.
Loots, H. and Grobler, A.F., 2014. Applying marketing management and communication
management theories to increase client retention in the short-term insurance
industry. Public Relations Review, 40(2), pp.328-337.
Mahmoud, M.A., Hinson, R.E. and Adika, M.K., 2018. The effect of trust, commitment, and
conflict handling on customer retention: the mediating role of customer
satisfaction. Journal of Relationship Marketing, 17(4), pp.257-276.
Palto, D., Fraser, P. and Lebcir, M., 2018. An investigation into the relationship between
customer relationship marketing and customer retention: superstore retailing context in
Bangladesh. Journal of Business and Retail Management Research.
Suh, E. and Alhaery, M., 2016. Customer retention: Reducing online casino player churn through
the application of predictive modeling. UNLV Gaming Research & Review
Journal, 20(2), p.6.
Trenggana, A.F.M. and Cahyani, L., 2019, May. The Influence of Relationship Marketing and
Customer Retention. In 1st International Conference on Economics, Business,
Entrepreneurship, and Finance (ICEBEF 2018). Atlantis Press.
Trenggana, A.F.M., Mayangsari, I.D. and Lestari, O., 2019, October. CONSUMER LOYALTY:
BASED ON RELATIONSHIP MARKETING, CUSTOMER VALUE AND
CUSTOMER RETENTION. In The 1 International Conference on Innovation of Small
Medium-sized Enterprise (ICIS) 2019 (Vol. 1, No. 1, pp. 66-74).
Wang, C.H. and Fong, H.Y., 2016. Integrating fuzzy Kano model with importance-performance
analysis to identify the key determinants of customer retention for airline
services. Journal of Industrial and Production Engineering, 33(7), pp.450-458.
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