Investigating CRM's Impact on Customer Loyalty: Marriott Hotel Study

This research project investigates the impact of Customer Relationship Management (CRM) on customer loyalty, using Marriott Hotel as a case study. The project begins with an introduction to CRM and its importance, setting the aims and objectives to analyze the effects of CRM on customer loyalty, assessing the impact of CRM on increasing customer loyalty and analyzing the effects of customer retention programs. The methodology includes a descriptive research design, qualitative research type, and thematic analysis of both primary and secondary data, including questionnaires and online resources. The research examines the concept of CRM and its relation to customer loyalty, the impact of CRM on increasing customer loyalty and the effects of customer retention programs. The project highlights the significance of CRM in the hospitality industry, emphasizing its role in understanding customer needs, improving satisfaction, and fostering loyalty. The research uses the descriptive research design and qualitative research type. The project concludes with recommendations for further consideration.

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Research Project

Table of Contents
TASK 1............................................................................................................................................3
Title..............................................................................................................................................3
Background..................................................................................................................................3
Aims.............................................................................................................................................3
Design/Methodology...................................................................................................................3
Plan for implementation..............................................................................................................4
Conclusion...................................................................................................................................5
TASK 2............................................................................................................................................5
2.1 Matching resources efficiently..............................................................................................5
2.2 Undertaking proposed research investigation........................................................................7
2.3 Record and collate relevant data............................................................................................8
TASK 3..........................................................................................................................................12
3.1 Using appropriate research evaluation techniques..............................................................12
3.2 Interpreting and analyzing the results..................................................................................12
3.3 Recommends and areas for further consideration...............................................................13
TASK 4..........................................................................................................................................13
In PPT........................................................................................................................................13
REFERENCES..............................................................................................................................14

TASK 1
Title
“Investing how customer relationship management can be used to improve customer loyalty”
Background
Customer relationship management (CRM) is the methodology that supports an
enterprise in identifying needs and desires of the service users and fulfills those in an organized
manner. Information about preference and desires of the users make them differed from other
companies. It helps in reducing the operational cost and increasing retention rate of their
consumers (Rahman and Singh, 2015). It is a great tool that allows firms in understanding
customers, maintain them, attract new buyers, increase profitability and decreasing management
cost of the organization. Many of the corporation those which are having potential , they want to
expand their business globally. But before taking any action they have to interact with the users
of particular country and have to understand their necessity. It is possible with the help of CRM
programs. It is essential for the organizations to understand the relationship between CRM and
customer loyalty (Smith, 2016). By this way they will be able to sustain in the corporate market
for longer duration. It gives benefit to the firms and encourages repeat buying of consumers.
Aims
“To analyze the effects of customer relationship management can be used in order to improve
customer loyalty”- a case reference to Marriott hotel.
Objectives-
 Concept of CRM and customer loyalty
 To assess the impact of CRM on increasing customer loyalty
 To analyze the effects of customer retention program upon customer loyalty
Design/Methodology
Following is the research methodology that will be used in regard to carry out the
proposed study-
 Research design- It involves the study that helps in overcoming the specific problems
related to study. There are different types of research design such as descriptive,
experimental and correlation (Research design. 2014). Here, descriptive research design
will be implemented in regard to investigate customer relationship management and thus
improving customer loyalty within Marriott.

 Research type- It helps in identifying the varied ways of carrying out study and thus
assists scholars to make crucial decisions so that best results can be attained. There are
different types of research types such as qualitative and quantitative. Here, it will use
qualitative research so that outcomes can be attained (Jensen, 2013).
 Data analysis- Here, scholar aims to collect data from varied sources and thus interpret
the same effectively. In this type of study researcher will use thematic analysis so that
identifying CRM helps in improving customer loyalty (Friedman, 2014).
 Data collection- It assesses that the way through which information will be collected.
There are two types of methods i.e. primary and secondary sources. Here, both the types
will be used to collect data (Secondary Research – Advantages. 2014). Researcher will
use primary sources in the form of preparing questionnaire and collect primary data.
While, secondary sources will be used in order review the online sources, internet,
websites etc.
 Sample and sampling- Here, the sample is considered as the part of population who are
selected for carrying out the study. In order to carry the study, the 20 employees of
Marriott hotel will be selected as sample size (Billingham, Whitehead and Julious, 2013).
While, random sampling technique will be selected in order to investigate CRM could be
used in order to improve customer loyalty.
Plan for implementation
Actions 1st
Month
2nd
Month
3rd
Month
4th
Month
5th
Month
6th
Mon
th
Analyzing the topic
Assessing background of
research
Framing research aims and
objective
Carrying literature review
Research methodology
Collecting primary data

Data analysis
Conclusions and
recommendation
Reviewing the whole report
Submitting the report to tutor
Conclusion
From the above discussion it is found that customer relationship management is the
strategy that has become necessary for all organizations. Without building strong relationship
with the consumers firms cannot survive in the corporate market for longer duration. Changing
market conditions and changing demands of buyers has forced the firms to adopt CRM strategy
in the workplace so that it can identify the needs of consumers and can provide them services
accordingly. With the help of this Marriott hotel can make its guests loyal towards the brand and
can expand its business globally. Research has also discussed about the retention program and its
impact on the consumers loyalty. From the discussion it can be concluded that rewards system,
excellent services are some strategies that can assist in retaining the guests in the firm for longer
period.
TASK 2
2.1 Matching resources efficiently
Concept of CRM and customer loyalty
According to Aliabad, Eslami and Honari, 2016 customer relationship management is the
tool or strategy of managing potential consumers of the firm (Aliabad, Eslami and Honari, 2016).
With the help of CRM companies can improve their satisfaction level and can enhance
profitability of the corporation. The concept is not limited just to make connection with the
potential buyers, it emphases more on building strong relationship with the buyers so that they be
loyal towards the brand for longer period. As per the view of Latimer, 2014 the prime objective
of using customer relationship strategy is to make connection with the users, identify their needs
and provide them products as per their needs and wants (Latimer, 2014). It can give clear picture
of the customers and entity can modify its products according to their needs. By this way
satisfaction level of workers will get improved that will help in making them loyal towards the
brand.

Gulliver, Joshi and Michell, 2013 has argued that by using the CRM effectively
management of hospitality industry can identify the history, preferences, buying potential of
buyers and can make connection with them (Gulliver, Joshi and Michell, 2013). Previous
records shown that marketing and sales activities increase cost of the organization and
sometimes these activities do not give desired results. But CRM can help categorize them
customers accurately and in less time firms can fulfill the needs of consumers and can gain their
trust. By building strong bonding with service users hospitality industry can gain many more
cross-selling, up-selling and expansion opportunity. Better information about the buyers can
assist in keeping them happy and that would make them loyal towards the brand.
Impact of CRM on increasing customer loyalty
According to Abdullateef and Salleh, 2013 CRM and customer loyalty are inter
connected terms and impact on the overall business performance to great extent. In the modern
era completion is too high and demands of consumers are changing rapidly, In such environment
it is very difficult to make sustain in the market for longer period (Abdullateef and Salleh,
2013). But customer relationship management is the strategy that can help in sustaining in such
complex environment for longer duration and satisfy the needs of consumers. It impacts positive
on the customer loyalty, with the help of this firms can keep track of their changing tests and
preferences and can offer them services as per their demands. By this way consumers will be
loyal towards the brand and they will feel satisfied with the services of the organization. As per
the view of Joseph and Jacob, 2014 customers are the assets of the firm if they are happy then
they will come again and again to experience the services (Joseph and Jacob, 2014). They will
give positive feedback to others about the company. That will promote the organization will
create a unique image in front of consumers.
According to Di Benedetto and Kim, 2016 customer relationship management is the
marketing tool that can create a image but not successfully give all information about the users
(Di Benedetto and Kim, 2016). Needs of buyers can get changed any time so it is very difficult to
provide them services all time as per their demands. That can be used as marketing tool but
impact negative in increasing the loyalty of the guests in the hospitality industry. On other hand
Latimer, 2014 has said that customer relationship management is the effective strategy and
supports to the firms in attracting more consumers. By this way customers feel valuable and they

start liking services of the company that convert them into loyal customers and they give positive
feedback to other as well (Latimer, 2014).
Effect of customer retention program upon customer loyalty
According to Matzler and et.al, 2015 in the competitive environment it is very necessary
to develop strong relationship with the consumers and provide them services of value as per their
needs (Matzler and et.al, 2015). By this way people will be loyal and they will be attached with
the brand for longer time period. Reward system on purchasing is the great strategy of companies
that can help in retaining the buyers. That makes them loyal and happy towards the brand.
Rewards initially push them to buy more and take services again and again and gradually they
become loyal towards the brand.
Yoo and Bai, 2013 .has argued that frequent communication is another retention program
in which firms try to make connection with the consumers so that they can resolve their quarries
immediately (Yoo and Bai, 2013). It impacts positive on the buyers and increase their loyalty
towards the brand. Apart from this loyal consumers give positive feedbacks to other that attract
more users towards the brand. As per the view of Kariuki, 2016 extra ordinary customer service
and after sales service is the program that help in retaining the buyers with the firm for longer
duration. It makes them loyal and enhances their satisfaction level (Kariuki, 2016).
2.2 Undertaking proposed research investigation
Research methodology involves different tools and techniques in regard to carry out the
study and analyze the effectiveness of CRM used in order to improve customer loyalty within
Marriott hotel such as-
 Research design- It helps in assessing the way through which research is being carried
out in order to improve the study. Further it also evaluates the blue print of the study and
helps scholar to conduct the study effectively. In the present study, descriptive research
design is being used that helps in assessing the usefulness of CRM in regard to improve
customer loyalty within Marriott hotel (Research design. 2014). Thus, with the help of
this method it helps researcher to carry out the study in detailed way so that appropriate
conclusion can be made.
 Research type- Such method involves different characteristics of the specific study. Here,
scholar carries out study by adopting two different types of methods such as qualitative
and quantitative. Here, qualitative research type is being used in order to assess the CRM

helps in improving customer loyalty within firm (Khan, 2014). Thus, researcher carries
out the study and thus helps in identifying the needs of customers within hotel so that
success can be attained.
 Data collection- It is essential for scholar to undertake effective methods for collecting
data so that best results can be attained. There are different methods of collecting data
such as primary and secondary sources. In order to collect primary data, scholar carries
out questionnaire and involves both open and close ended questions so that responses can
be collected (Kitchin and Tate, 2013). While, carrying out secondary sources, scholar
undertakes the research through adopting different ways such as books, journals, websites
and online articles etc,
 Data analysis- After collecting the data, researcher aims to analyze the responses by
adopting effective analysis methods. Thus, the data is being gathered in regard to
evaluate secondary sources. Thematic analysis is being done in which different themes
are being prepared and thus evaluation of themes has been done so that information can
be obtained regarding CRM in order to improve customer loyalty in Marriott (Mercieca
and Mercieca, 2013).
 Sample and sampling- Further, sample is considered as the way through which researcher
selects a part of population from the whole universe. Thus, in order to carry out the study,
scholar undertakes random sampling method and selects respondents on random basis.
Here, 20 respondents i.e. employees of Marriott hotel have been selected and provide
them questionnaire in order to obtain their responses and thus carry out the study. Thus, it
helps in evaluating the CRM helps in improving customer loyalty within hotel (Jain,
Ashaiya and Jain, 2016).
 Ethical considerations- It assesses that researcher aims to conduct the study in an
effective way so that best information could be collected. Researcher also maintains
confidentiality while collecting the personal information of respondents (Žikić, 2016).
Further, scholar also aims to do proper citation of work and does not copy or paste the
work.
2.3 Record and collate relevant data
QUESTIONNAIRE
Name:

Age:
Gender:
Designation:
1. How long you have been working in Marriott hotel?
 Less than one year
 1-2 years
 3-5 years
 More than five year
2. Do you think customer relationship management is effective in retaining the number of
customers for Marriott hotel?
 Strongly agree
 Agree
 Neither agree nor disagree
 Disagree
 Strongly disagree
3. What is your level of agreement with the view that loyalty of customer is improved with
customer relationship management?
 Strongly agree
 Agree
 Neither agree nor disagree
 Disagree
 Strongly disagree
4. Do you agree with the view that customer relationship management builds strong relationship
among the firm and target audience?
 Yes
 No
5. Kindly suggest the improvements that can be made to customer relationship management
system in order to enhance customer loyalty?
______________________________________________________________________________
______________________________________________________________________________

Theme 1: Customer relationship management is effective in retaining the number of
customers for Marriott hotel
Responses Number of respondent Percentage of responses
Strongly agree 7 35%
Agree 5 25%
Neither agree nor disagree 3 15%
Disagree 4 20%
Strongly disagree 1 5%
Strongly agree
Agree
Neither agree nor disagree
Disagree
Strongly disagree
Theme 2: Loyalty of customer is improved with customer relationship management
Responses Number of respondent Percentage of responses
Strongly agree 4 20%
Agree 8 40%
Neither agree nor disagree 5 25%
Disagree 2 10%

Strongly disagree 1 5%
Strongly agree Agree Neither agree
nor disagree Disagree Strongly
disagree
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
Theme 3: Customer relationship management builds strong relationship among the firm
and target audience
Responses Number of respondent Percentage of responses
Yes 15 75%
No 5 25%

Yes
No
0% 10% 20% 30% 40% 50% 60% 70% 80%
TASK 3
3.1 Using appropriate research evaluation techniques
Investigator aims at adopting varied research evaluation tools in relation to determination
of suitable methods of data collection. Therefore, conducting primary research with the help of
questionnaire is considered as an crucial method in attaining appropriate opinions as well as
views from the sample chosen in analyzing of suitable outcomes.
3.2 Interpreting and analyzing the results
Theme 1: Customer relationship management is effective in retaining the number of
customers for Marriott hotel
From asking the employees of Marriott hotel regarding whether customer relationship
management is effective in retaining the number of customers for Marriott hotel it has been
examined that majority of respondents that 7 strongly agrees with the view. This is due to the
reason that they believe by means of CRM database of customers can be maintained in an
effective manner. Thus they can be approached and made aware regarding the services that are
being offered by the hotel.
Theme 2: Loyalty of customer is improved with customer relationship management
When the employees of Marriott hotel were asked regarding whether, the loyalty is
enhanced by means of customer relationship management or not. It has been examined that
majority of the respondents that is 8 agrees with the view. This is because they feel that when the