Impact of COVID-19 on Organisational Customer Acquisition and Retention

This study analyzes the impact of COVID-19 on customer acquisition and retention in the hospitality industry, focusing on Holiday Inn London. It explores the strategies for improving customer retention after the pandemic. The research aims to provide insights into the performance of the hotel and its customer retention strategies.

Research Methods

Table of Contents
INTRODUCTION...........................................................................................................................1
Research aim.............................................................................................................................1
Research objectives.....................................................................................................................1
Research questions......................................................................................................................2
Rationale of research...................................................................................................................2
Scope of the research..................................................................................................................2
Time Frame......................................................................................................................................3
LITERATURE REVIEW................................................................................................................4
Impact of COVID-19 19 on hospitality organisation.................................................................4
Ways for retaining customers during the Covid 19....................................................................4
The strategies for improving customer retention after COVID-19 19........................................5
METHODOLOGY..........................................................................................................................5
ETHICAL ISSUES..........................................................................................................................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

Research Title.
Impact of COVID-19 on organisational customer acquisition and retention. Case study,
Holiday Inn London.
INTRODUCTION
As the whole world is grappling with the consequences of the Corona Virus 2019 (COVID-
19) pandemic, the impact on every industry and sector is unprecedent in the 21st century. There
has been a scaled down and closure of most business activities including disruption of supply
chains, delay or cancellation of projects, travel restrictions on customers and work force, change
in working modes, reduction in sources of incomes and cash flows.
Therefore, it has become imperative for hospitality business organisations to align activities
to meet COVID regulations as well seeking to attract and retain customers to keep the business
operational and buoyant. Amid the national restrictions on movement, customers still want
services offered by hospitality organisations but either choosing inbound and outbound but with
reduced risk of viral infections. Thus, organisations need to make strive to acquire and retaining
customers, deliver satisfaction whilst obeying national COVID-19 guidelines for the health
welfare of the customers.
The purpose of this study is to analyse the impact of COVID 19 on Holiday Inn Hotel’s
customer acquisition and retention. Holiday Inn London, the case study, is a famous hotel that
operates all over the world and focuses on sustaining and grow in the marketplace, but the
COVID-19 pandemic has disrupted its services and limited it customers.
Research aim
To examine and assess the impact of COVID-19 on organisational performance in terms of
customer retention using Holiday Inn, High Street, London Kensington, as case study.
Research objectives
 To identify the impact of COVID-19 on customers of the Hotel.
 Identify the customer acquisition strategies of the Hotel prior and during COVID-19
pandemic.
 Identify the customer retention strategies of the Hotel prior and during COVID-19
pandemic.
 To explore strategies for improving customer retention after COVID-19 19.
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Research questions
 What is the impact on Covid 19 on hospitality organisation?
 What are the customer acquisition and retention strategies of Holiday Inn prior to Covid
pandemic measures?
 What are the strategies for improving customer retention after Covid 19?
Rationale of research
The project seeks to assess the impact of COVID 19 on organisational customer
acquisition and retention strategies. Thus, one of the reasons for the study is to provide vast
relevant information about customer acquisition and retention approaches as customers are key
stakeholders on which the operations of every business depends. In fact, every hospitality
business is confronted with the problem customer's retention during this Covid-19 pandemic.
Hotels struggling to acquiring and retaining customers during the pandemic (Mollenkopf,
Ozanne and Stolze, 2020). The researcher is keen at resolving the problem of retaining customers
within Holiday Inn by exploring suitable strategies and measures of customer acquisition and
retention. It will it make appropriate and informed strategic decision on customer acquisition and
retention amid COVID-19 period
Scope of the research
This study is a qualitative analysis to explore and assess the impact of COVID 19 on the
performance of the Holiday Inn London in terms of customer's retention strategies. The research
will collect data about customer acquisition and retention strategies by the Hotel and hotel sector
wide prior, and during COVID-19 pandemic period. The will help the researcher find out the
strategies that will be beneficial in managing organisational customer acquisition and retention
during and post COVID-19 pandemic.
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Time Frame
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LITERATURE REVIEW
The literature review reviews current knowledge, including substantive findings that
provide theoretical analysis to a particular topic which helps draws valid judgement within the
investigation.
Impact of COVID-19 19 on hospitality organisation
According to Amerio and et. al., (2020), COVID-19 is one of the major complex
pandemic situations that and its effects spread across the whole world as it led to a worldwide
crisis with its effects over the hospitality industry. In this relation, there are different factors
including increasing disposable income, new and innovative trends, increase online business,
increased internet penetration along with internet banking. All these factors are driving the
growth of the hospitality organisation. Due to COVID-19, organisation is reduced their
performance, and people are visit hotel due to completely lock-down in the world. It put a
negative impact on the company and its performance and reduce the customer’s base. Along with
this, the situation of COVID-19 reduces the profitability level as organisation fail to reach their
customers due to lack of employee involvement in the working area.
Ways for retaining customers during the Covid 19
According to Kanya, (2020), It is crucial for a business organisation to invite many
customers base to sustain in the market for a longer period. Due to COVID-19, organisation face
various issues that affect their performance in a negative perspective. For attaining success,
company also implement appropriate ways that can be beneficial in retaining their customers
within the company at the time of COVID-19 pandemic situation:
Improve customers’ experience: It is crucial for a business organisation to provide a faster and
easier way to shop for customers. This can be effective in providing them better shopping
experience by providing them with various payment methods to speed up the checkout process
and more aspect to keep them retain.
 Boost social media presence: In the pandemic situation of COVID-19, organisation is
unable to serve customers to face to face so that it is crucial for a company to let them
know that brand is still active to serve. For this, social media is one of an effective way to
communicate with their customers and provide them with all the necessary information
about the products and services that they are offering.
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The strategies for improving customer retention after COVID-19 19
According to Klein (2020), in the increasing competitive era, businesses are widely
concern over attaining higher growth and success; therefore COVID 19 has created an effective
pause over the success of hospitality business and affects the functions and the profitability. Each
small, as well as a large segment of the business, are waiting for the ending of COVID 19 and for
this, there are multiple strategies that are recommended for the businesses to use once the
COVID 19 has ended; thus, the strategies will be effective for the businesses to gain higher
growth and success. The strategies involve Share Business Coronavirus Customer Strategy,
communicate proactively with the customers, represent how the company's product can be used
during the pandemic, share the initiatives taken for the employees, promote gift cards, pay
special attention to the customer's success and so on. Therefore, these are the suitable ways that
could be opted by the businesses after COVID 19 to increasing the retention of the customers.
METHODOLOGY
The research methodology considers certain techniques and methods that provide a specific
framework in which all the data relate to the topic is collected (Verma and Gustafsson, 2020).
This can be effective in improving the possibilities of attaining positive results at the end of the
study. The researcher is responsible for selecting an appropriate method through which they can
easily analysis the topic.
Types of investigation: In the current investigation, qualitative research method will be
appropriate because it helps in collecting and evaluating information within a theoretical
perspective.
Research philosophy: To undertake an investigation, research philosophy help researcher to
enhance their abilities to solve the research problem as it includes belief in which data should be
gathered. It is classified based on two philosophies epistemology (example positivism and
interpretivism stance), Ontology and axiology. The interpretivism research philosophy will be
effective in this study because it is based on the theoretical data that will be acquired from
human perspectives, and beliefs in their natural environments through a case study (Stogner,
Miller and McLean, 2020).
Research approach: This is divided into two categories, inductive and deductive research
approach. In this study the inductive research approach is effective because it is related to
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qualitative research and provide descriptive information. Therefore, this method is effective for
developing theories and concepts that are based on the chosen subject area.
Data collection: It is based on two types, primary and secondary method of data collection.
Under this study, both primary and secondary data will be collected. The primary method will
help them in collecting first-hand data from the selected respondent by online interview and
customer survey questionnaires. The secondary method will be effective in gathering in-depth
analysis from journals, articles, books, and many more to compliment or support the primary
data sources.
Sampling: It is the process of selecting sample size from the target population (Dwivedi And et
al., 2020). It is categorised two techniques, probability, and non-probability sampling. In this
research, a non-probability sampling method will be applied as it is effective in qualitive
research and in selecting small sample size using a convenience sampling method. The intended
sample size will be 15 managers of Holiday Inn are implementing to gather information.
ETHICAL ISSUES
It is important for researcher to undertake each and every research activity in ethical manner
as it provide support in attaining valid and reliable results at the end of the investigation. In
relation to this, there are some ethical principles that researcher must follow while executing
research activities. As, informed consent, confidentiality, respect for respondents, protect their
anonymity, avoid using deceptive practices and many more. All these are the important ethical
principles which is important for investigator to follow in undertaking research activities. This
will directly contribute in improving the chances of making whole research more authentic.
CONCLUSION
The purpose of this study analyses the impact of COVID 19 on Holiday Inn Hotel’s
customer acquisition and retention. The study will provide significant data and information on
the how hospitality customers have been affected by this pandemic. It will also contribute
understanding the customer acquisition and retention strategies of hotel business prior, during
and plans for post pandemic.
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REFERENCES
Books and journals
Papadopoulos, T., Baltas, K. N. and Balta, M. E., 2020. The use of digital technologies by small
and medium enterprises during COVID-19: Implications for theory and
practice. International Journal of Information Management, p.102192.
Carnevale, J. B. and Hatak, I., 2020. Employee adjustment and well-being in the era of COVID-
19: Implications for human resource management. Journal of Business Research.
Mollenkopf, D. A., Ozanne, L. K. and Stolze, H. J., 2020. A transformative supply chain
response to COVID-19. Journal of Service Management.
Amerio, A. and et. al., 2020. COVID-19 Lockdown: Housing Built Environment’s Effects on
Mental Health. International journal of environmental research and public health.
17(16). p.5973.
Verma, S. and Gustafsson, A., 2020. Investigating the emerging COVID-19 research trends in
the field of business and management: A bibliometric analysis approach. Journal of
Business Research. 118. pp.253-261.
Stogner, J., Miller, B.L. and McLean, K., 2020. Police stress, mental health, and resiliency
during the COVID-19 pandemic. American journal of criminal justice. 45(4). pp.718-
730.
Dwivedi, Y. K. And et. al., 2020. Impact of COVID-19 pandemic on information management
research and practice: Transforming education, work and life. International Journal of
Information Management, p.102211.
Online
Kanya, 2020. Ways to Maintain Customer Loyalty During COVID-19. [Online]. Available
through:<https://www.hashmicro.com/blog/maintaining-customer-loyalty-during-covid-
19/>.
Pape, J.P. And McCombridge, K., 2020. Ways companies can stay productive beyond COVID-19
lock-down. [Online]. Available
through:<https://www.weforum.org/agenda/2020/08/covid19-lockdown-business-
productivity-leadership/>.
Klein, DP., 2020. Strong Customer Retention Strategies to Connect with Clients During the
Covid-19 Crisis. [Online]. Available through:< https://macromark.com/blog/11-strong-
customer-retention-strategies-to-connect-with-clients-during-the-covid-19-crisis>.
Moore, K., 2020. What Is Customer Retention + 16 Proven Retention Strategies. [Online].
Available through:< https://www.helpscout.com/blog/customer-retention-strategies-
that-work/>.
Websites
i. https://macromark.com/blog/11-strong-customer-retention-strategies-to-connect-with-
clients-during-the-covid-19-crisis
ii.
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