Customer Satisfaction and Customer Loyalty: A Case Study

TITLE: “To find out the customer
retention policy and satisfaction level. A
case study of Hilton Park Lane London.”

ABSTRACT
Present research project is based to study the various policies that can be used by
organisations to retain the employees for long time period. Employees play a crucial
role in success of an organisation so it is essential for every enterprise to keep them
satisfy in order to sustain in market for long run. Further, satisfaction of customers is
another most important element for a business enterprise to achieve success. It is
essential for all organisations working in hospitality sector to offer better and quality
services to its clients to satisfy them.

Table of Contents
ABSTRACT....................................................................................................................................2
CHAPTER 1....................................................................................................................................1
Introduction ...........................................................................................................................1
Background of the organisation .............................................................................................1
Research aim..........................................................................................................................2
Research objectives................................................................................................................2
Rationale.................................................................................................................................2
CHAPTER 2....................................................................................................................................3
The literature review...............................................................................................................3
CHAPTER 3....................................................................................................................................5
Research Methodology....................................................................................................................5
Introduction............................................................................................................................5
Data collection Procedures.....................................................................................................5
Sampling ................................................................................................................................5
CHAPTER 4....................................................................................................................................6
CHAPTER 5....................................................................................................................................7
Recommendation ...................................................................................................................7
Conclusion..............................................................................................................................7
REFERENCES................................................................................................................................8
APPENDIX......................................................................................................................................9
1. Time-frame.........................................................................................................................9
2. Questionnaire....................................................................................................................11

CHAPTER 1
Introduction
Today, competition has become intense both at domestic and international level,
where in order to gain competitive advantage every company seek to gain high
retention of customers for longer period of time (Bowie and et. al., 2016). This would
help in earning high profitability as well as getting a strong position at competitive
marketplace. The present research is going to analyse the customer retention policy for
hotel industry and the level of satisfaction organisations can gain via offering better
quality of products and services. For this purpose, case analysis is done on Hilton Park
Lane London, to identify how respective organisation works on enhancing its customer
satisfaction.
Background of the organisation
Hilton Park Lane London is one of the branch of Hilton Hotel which is situated on
Park Lane in London. It has established in 1963, having 28 storeys including more than
453 rooms. Under UK Business Traveller Magazine, it is known as one of the best hotel
in UK that offers best quality of services to customers (Nankervis and et. al., 2016). Due
to one of the incident which was happened in 2011, that is a fire broke out in the kitchen
of this hotel. According to BBC news, that time more than 1500 guests were evacuated,
but with the help of fire-brigade, the fire was controlled and there were no major injuries
happened (Fire at Hilton Hotel in Mayfair tackled by London crews. 2011). But it had
threatened many travellers and tourists due to which, this hotel failed to gain retention of
them for longer period.
1

Research aim
“To analyse how customer retention policy helps in exceeding the
satisfaction level of customers. A case study of Hilton Park Lane London.”
Research objectives
 To identify factors that impact on customer retention and level of satisfaction
within hotel industry.
 To examine the interrelations between customer retention and customer
satisfaction in hotel industry.
 To develop strategies for effective customer retention policy that can be adopted
by Hilton Park Lane London.
Rationale
To increase research skills and enhance knowledge about policies made by hotel
industries to gain retention of their targeted audience, researchers have chosen the
present topic. For this purpose, they will use both primary and secondary research
techniques to gather relevant information on given topic. Furthermore, recommendation
for developing better policies to gain retention of customers will also be given to chosen
company.
2

CHAPTER 2
The literature review
Factors impact on customer retention within hotel industry –
According to Molly Galetto (2015), customer retention can be defined as a policy
or an action taken by a company to gain loyalty and retain its targeted audience for
longer period of time. In context with hotel industry, business of organisations dealing in
this sector are completely based on retention of their guests for longer period (What is
customer retention?, 2015). For this process, they generally take the concept of
customer loyalty and brand loyalty initiatives to influence guests towards services and
products. Traditionally, organisations in hotel sector focuses on expansion of business
only, but their concern is shifted towards customer retention which would help in earning
a number of benefits (Herjanto et. al., 2017). It includes engagement of customers with
business for long time, increase in productivity and performance of business for
enhancing their level of satisfaction, concern on development of skills and abilities of
staff members and associated people etc. All these process aid to increase reputation
and brand image of organisations.
As per the views of Tag-Eldeen (2018), it has been analysed that there are
various factors that influence customer retention within hotel industry (Do you know the
factors that affect guest experience?, 2018). It includes cleanliness and hygiene, safety
and security measures, data protection, range of accommodation facilities, customer
services, relevant amenities, timely services and more.
Interrelationship between customer retention with customer satisfaction within
hotel industry -
3

According to Urte Bakanovatie (2017), it has been determined that there is a high
correlation between level of satisfaction and retention of customers, within hotel industry
(Customer retention correlation with customer satisfaction in a hotel industry, 2017).
Decision of customers to stay at hotel or purchase its services again in future is highly
correlated with their satisfaction and experience they gained during stay. Therefore,
customer satisfaction is considered as most important factors which lead hotels towards
growth of business and success, by earning customer loyalty (Noone and McGuire,
2016).
Strategies to develop customer retention policy–
According to Angela Stringfello (2014), it has been identified that to develop
customer retention policy it is essential for hotels to identify why it’s guests are leaving
and attract towards other organisations (Customer Retention Strategies: 46 Experts
Reveal Their Top Tactics for How to Retain Customers, 2014). In context with Hilton
Hotel, after identifying the factors that affect negatively on customer satisfactions, it
needs to develop policies in order make improvement in business and faster better
relationship with its clients (Nankervis and et. al., 2016). Furthermore, this hotel needs
to solicit ideas of its loyal customers by taking their feedbacks and suggestions after
purchasing its services, for better improvement.
4

CHAPTER 3
Research Methodology
Introduction
According to Tag-Eldeen (2018), research methodology can be defined as a
procedure of gathering information, arranging and analysing the same, to obtain desired
outcomes for completion of objectives successfully.
Data collection Procedures
In order to gather proper information about given topic, data collection procedures
provide a number of methods and processes. It includes primary and secondary
research techniques, where primary information is gathered through online and offline
survey, while secondary information via reviewing past data. Under this process, both
techniques will be used to collect data and conduct investigation in desired manner.
According to Bowie and et. al. (2016), for analysing the information gathered from
secondary and primary information, researchers will use quantitative method, which is
generated by surveys. Here, the information will be represented in the form of statistical
manner, i.e. charts form then further interpretation will be done to obtain result.
Sampling
To address the main aims and objectives on customer retention policy as per
case study of Hilton Park Hotel, both primary and secondary are incorporated in present
research. For this purpose, to collect primary data, sample of 40 respondents are
chosen from the stakeholders of this hotel.
5

CHAPTER 4
(This section will complete later at the final stage of the project)
6

CHAPTER 5
Recommendation
Conclusion
7

REFERENCES
Books and Journals
Bowie, D. and et. al., 2016. Hospitality marketing. Routledge.
Nankervis, A. R. and et. al., 2016. Human resource management: strategy and practice.
Cengage AU.
Herjanto, H., Erickson, E. and Calleja, N .F., 2017. Antecedents of Business Travelers’
Satisfaction. Journal of Hospitality Marketing & Management. 26(3). pp.259-
275.
Tag-Eldeen, A., 2018. The Marketing Dilemma of Co-branding in Egyptian Hotel
Operations: Challenges and Opportunities. JOURNAL OF TOURISM.
RESEARCH, p.19.
Noone, B. M. and McGuire, K. A., 2016. Impact of attitudinal loyalty on the frequent
unmanaged business traveler’s use of price and consumer reviews in hotel
choice. Journal of Revenue and Pricing Management. 15(1). pp.20-36.
Online
Fire at Hilton Hotel in Mayfair tackled by London crews. 2011. [Online] Available
Through:< https://www.bbc.com/news/uk-england-london-13998054>.
What is customer retention?. 2015. [Online] Available Through:<
https://www.ngdata.com/what-is-customer-retention/>.
Customer retention correlation with customer satisfaction in a hotel industry. 2017.
[Online] Available Through:<
https://customerengagementmanagementintourism.wordpress.com/2017/10/02/customer-
retention-correlation-with-customer-satisfaction-in-a-hotel-industry/>.
Do you know the factors that affect guest experience?. 2018. [Online] Available
Through:< https://www.hospitalitynet.org/news/4087829.html >.
Customer Retention Strategies: 46 Experts Reveal Their Top Tactics for How to Retain
Customers. 2014. [Online] Available Through:< https://www.ngdata.com/how-to-
improve-customer-retention/>.
8

APPENDIX
1. Time-frame
ACTIVITES WEE
K 1
WEEK
2
WEEK
3
WEEK
4
WEE
K 5
WEEK
6
WEEK
7
WEE
K 8
WEEK
9
WEEK
1 0
Identifying title of
study
Problem
statement and
select the
company with
tutor
Setting deadlines,
red about Sony
Literature review
Selecting
techniques for
research
Determining
Budget
Data
Interpretation and
analysis
Evaluating results
and findings
Presenting
conclusion and
recommendations
Documenting
9

results
Submission of
report
10

2. Questionnaire
QUESTIONNAIRE
1.) Are you aware with the concept of customer retention in hotel
industry?
Frequency
 Yes 35
 No 5
2.) Do you think that customer retention is correlated with customer
satisfaction?
Frequency
 Yes 28
 No 12
3.) Which factors influence customer retention in hotel industry? Frequency
 Diversification of services 18
 Corporate image 11
 Service quality 11
4.) On which area Hilton Hotel needs to concern while making
customer retention policy?
Frequency
 Ambience and hygiene 14
 Health and Safety environment 11
 Risk Management 15
5.) Do you think that incident happened in Hilton Hotel has adversely
impacted on its customer retention?
Frequency
 Yes 30
 No 10
11

6.) Which strategies aid Hilton Park Hotel in regaining its customer
loyalty?
Frequency
 Investment in CSR activities 14
 Ask for constructive feedback of customers 11
 Improvement in service-quality 15
7.) Do you think that Hilton Park Hotel need to make improvement in
its services to gain customer loyalty?
Frequency
 Yes 32
 No 8
8.) What are the main ways by which Hilton Park Hotel can improve its
service-quality?
Frequency
 Investment in safety and security measures 15
 CRM Management 11
 Increase range of accommodation 14
9.) According to you, making investment in safety and security
measures will help Hilton Park Hotel in increasing customer retention
or not?
Frequency
 Yes 35
 No 5
10.) Give some suggestions to Hilton Park Hotel for developing the
customer retention policy …
12