Customer Experience Management in the Hospitality Industry

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COSMINTU+ -UNIT 2 -MANAGING CUSTOMER EXPERIENCE
(COPY2) {ICN} [MERIT]

Executive Summary
It has been considered important for service sector organisations to understand the needs of
customers in order to meet the needs to run the business successfully in the market. Managers
of Tower Hotel has been found to understand that it is important to accept the changes in
services of hotel with time to run the business for long time. Few factors that have been found
driving and influencing customer engagement of target customers of service industry are high
customer service, effective management of customers’ relationship, taking care of customers’
needs and use of effective price. The hotel has been found to invest a large amount of its
business in managing website so that customers are interested to see the changing service of
the hotel and customers’ engagement can be improved. The software’s such as SuiteCRM and
Zoho CRM have been found helpful in managing relationship with customers. Few strategies of
customers’ service in the organization have been found as training for employees, measuring
satisfaction of customers through feedbacks, focusing on culture and procuring personalised
service to meet the needs of guests.

Table of Contents
Introduction....................................................................................................................................4
LO1: Expectations and needs of the market segments of service industry...................................4
P1: Importance and value of understanding customers’ needs, preference and wants for
hospitality industry......................................................................................................................4
P2: Factors driving and influencing customer engagement of target customers of service
industry.......................................................................................................................................5
M1: Determining on boarding strategies with the help of factors of customer engagement......6
D1: Evaluation of customers’ needs, preference and wants with the help of factors of.............6
LO2: Map for customer experience for optimizing touch points of customers and creating
business opportunities...................................................................................................................7
P3: Map for customer experience for service sector..................................................................7
P4: Creating opportunities through the touch points of customers’ experience.......................11
M2: Map of customer experience to examine activities of customers; touch points for creating
business opportunities.............................................................................................................13
D2: Optimization of touch points to influence customers for improving customers’’ experience
.................................................................................................................................................13
LO3: Impacts of the digital technology to manage customer relationship...................................14
P5: Way to employ digital technology to manage customers’ relationship..............................14
M3: Use of digital technology to attract and retain customers in the organization...................14
D3: Critical evaluation of benefits and drawback of CRM system for service sector to attract
and retain customers...............................................................................................................15
LO4: Effective management of customer experience to maximize the engagement of customers
.....................................................................................................................................................15
P6: Strategies of customers service in the organisation..........................................................15
P7: Creating and developing customer experience to meet customers’ needs for standard
business...................................................................................................................................17
M4: Application of customers’ service strategies to improve customers’ experience..............17

D4: Evaluation of the delivery of strategies for customers’ service and communication to
improve customers’’ experience..............................................................................................17
Conclusion...................................................................................................................................18
Reference list...............................................................................................................................19

Introduction
Hospitality industry is growing rapidly day by day. The major factor behind the growth of service
or hospitality industry is the service provided to customers. In this study, management of
customers’ experience is going to b discussed. The Tower Hotel has been selected in order to
understand the customers’ experience and engagement in the organisation. The Tower is
among the best hotel of London. The hotel provides 800 bedrooms along with sumptuous suits
and accessible rooms. Iconic world heritage site can be seen from the window of the hotel.
Importance and value of understanding customers’ needs for a service sector are going to be
discussed here along with factors affecting customers’ engagement. Application of digital
technology in managing relationship with customers is going to be discussed here. Strategies of
The Tower of customers’ service are going to be discussed here to improve customers’
experience and engagement so that customers can be retained with the hotel.
Recommendation is also going to be discussed here to deliver effective service to customers
and managing communication with the customers.
LO1: Expectations and needs of the market segments of service industry
P1: Importance and value of understanding customers’ needs, preference and
wants for hospitality industry
It is important for service sector organisations to understand the needs of customers in order to
meet the needs to run the business successfully in the market. In the modern era, needs of
customers keep changing with time so if organisations needs to search the market to
understand the needs and preference of customers (Neuhofer et al. 2015). Service sectors
organisations dealing with accommodation, foods and beverages need to keep improving their
services in order to attract customers and retain them with them. The Tower Hotel of London
provides effective service, accommodation and foods to customers in order to run its business
for long time in the market. An organisation needs to understand the reason to buy its
products or services by customers. In accordance to Nucciarelli et al. (2017), it is important
to have unique service or products to meet customers’ needs and get competitive advantage.
Managers of The Tower understand that it is important to accept the changes in services of
hotel with time to run the business for long time. Keeping the same kind of service for long time
in a hotel can be difficult to meet the needs of customers and provide them satisfaction and
effective experience. Targeting a group is also important so that need of customers can be
understood. It has been in The Tower that people under 35 uses to come in the hotel more than
others. It helps the hotel manager to improve the services as per the needs of people under 35.

The hotel provides foods and beverages as per the taste of people under 35 so that customers’
engagement can be improved in the hotel and they can get effective experience after spending
a time in the hotel. These things help the hotel to run the business effectively in the continuous
changing world. The hotel also provides 800 comfortable rooms along with the access of
internet connectivity and effective iconic site can be seen from the window of the rooms
(thetowerhotellondon.com, 2019). The location of the hotel over the river Thames is also an
attractive part of the hotel to provide effective experience to customers in the hotel. Effective
service, foods, accommodation, location and attraction are the factors that help the manager of
the hotel to meet the needs of customers in order to run the business for long time.
P2: Factors driving and influencing customer engagement of target customers of
service industry
High customer service
Customers’ engagement can be improved if a service organisation provides effective service to
customers (Pansari and Kumar, 2017). It has been seen that customers are attracted toward the
same product or service if they have got satisfaction from the product or service. In case of The
Tower Hotel, a large number of customers are regular. They come to the hotel every year during
tour as they are satisfied with the accommodation, location, foods, beverages and services.
Every time they come the hotel, they see a great change in the service of the hotel with time
and this attracts them to come to the hotel again. In the way, engagement of customers is
increased in the hotel.
HighcustomerserviceEffectivemanagementofcustomers’relationshipTakingcareofcustomers’needsEffectiveprice

Figure 1: Factors driving and influencing customer engagement
(Source: Influenced by Parise et al. 2016)
Effective management of customers’ relationship
As stated by Parise et al. (2016), customers are attracted towards a service sector organisation
if the organisation can manage effective relationship with them. It has been found that manager
of the hotel manage effective relationship with customers so that customers can consider
themselves as an important part of the hotel and visit the hotel during their tour in London. The
hotel manager needs to use digital technology to manage effective relationship with existing
customers. An application can be developed for existing customers of hotel to manage
relationship for improving customers’ engagement.
Taking care of customers’ needs
Customers’ needs are important to consider for improve customers’ engagement in a service
sector organisation. In case of hotel, it is important to take care of customers needs at each and
every moment in order to provide effective service to customers and improve customers’
engagement (Peltola et al. 2015). Manager of The Tower guides staffs of the hotel to take care
of customers’ needs and provide effective satisfaction to customers at the hotel. The hotel is
running its business for long time in London due to its effective customer service.
Effective price
Price is also an important factor for customers. As stated by Sigala (2018), customers want a
product or service at effective price. Customers are ready to pay high amount if they get high
quality of product and service. /In case of service sector, customers want to pay effective price
for service or products. The Tower provides effective foods, beverage, accommodation and
service to customers and takes effective price as per the service. The business of the hotel is
improving day by day due to its effective service at affordable price. Due to this, customers’
engagement in the hotel is also improving.
M1: Determining on boarding strategies with the help of factors of customer
engagement
It is important for a service organisation to understand the needs and demands of customers to
run the business and improve customers’ engagement. The factors responsible for customers’
engagement are high customers’ service, effective management of customer relationship, taking
care of customers’ needs and providing services and products at effective price (Stein and
Ramaseshan, 2016). In case of hotel business, these factors help in improving customers’
engagement and providing effective experience to them. Manager of The Tower provides
effective customers service to them and takes care of their needs at each and every moment.

The manager uses to manage relationship with customers by sending messages to them about
offers, discounts and changes in hotel service. The hotel manager needs to use software to
manage relationship with customers and application can be developed for managing
relationship with customers for the hotel. The hotel manager needs to do changes in service
and foods as per changing needs of customers to run the business for long time.
D1: Evaluation of customers’ needs, preference and wants with the help of
factors of
Customer engagement
The factors of customers engagement helps in meeting the needs of customers and providing
them effective experience in service organisation (Weill and Woerner, 2015). Customers want to
get effective service at affordable in price in The Tower. The hotel manager takes care of needs
of customers at each and every moment in order to improve customers’ engagement.
Customers get high quality of foods as well as beverages at affordable price in the hotel. The
hotel manager also manages relationship with customers by sending messages about offers,
discounts and changes in the hotel. Software of customer relationship management can be
used by the manager in order to improve customers’ engagement. The manager also needs to
improve its service with time to meet the changing needs of customers.
LO2: Map for customer experience for optimizing touch points of
customers and creating business opportunities
P3: Map for customer experience for service sector
Journey Reaching the
hotel
Checking into
the hotel
Availability of
services
Checking out of
hotel
Goals of
customers
 Search for
the hotel
services
through
mainly
online
medium
 Use of
consultanc
y booths
 To have
check in
either on
basis of
prior
payment
slip or
making
payment
at the
 To have
the
services
enabled in
a proper
tone so as
to eliminate
any sort of
biases
 Making
the
payment
while
checking
out of the
hotel
 Getting
asked for
reviews

for hotel
finding
 Booking
the hotel
through
internet or
offline
service
desk and
asking for
keys
regarding
the
services
given
against
the
payment
Expectatio
ns
 Find the
hotel
without
any issue
and
booking
done
easily
 Easy
check in
with
services
of
luggage’s
to the
respective
rooms
 Better
room
services
 Better food
services
 Listening to
customers
opinions
and
mending
any
sustaining
issue at
earliest
 Availability
of various
options for
payment
 Being
shown a
detailed
breakdow
n of the
total cost
available
during the
stay
 No
addition of
extras
charges
Procedure  Searching
for the
hotel
website
through
internet
 Asking
 Showing
the check
in slip or
the online
booking
slip to the
counter
 Have the
luggage
drop
service to
the room
from front
desk
 Requestin
g for
check out
 Payment
of fare if
left any
through

hotel
agents
through
use of call
 Showing
ID for
validity
 Confirmin
g the
booking
 Accessing
to room
keys with
luggage
services
 Asking for
food
choices
and the
desired
tour plan if
any
 Accessibilit
y to every
amenity
with more
adherence
to quality
either
cash or
online
payment
 Provision
of
feedbacks
to the
hotel
against
the stay
Experience  Time
wastages
in getting
the
appropriat
e site for
booking
 Busy calls
and
sometime
s
unreachab
le
connectio
n to the
hotel
reception
 Difficulties
in
accessing
the
confirmati
on codes
 Poor
online
services
for
confirmati
on of
mobile
applicatio
ns
 Poor
luggage’s
services
 Both
negative
and
positive
experience
s
 Comfortabl
e rooms
and being
clean
 Little delay
in rooms
services
 Better
quality of
food
 Both
negative
and
positive
experienc
es
 Soothing
behaviour
from the
check out
desk
 Non-
availability
of variety
of
payment
options
Touch  Online  Reception  Hotel  Check out

points hotel
websites
 Informatio
n from
friends
and
relatives
 Direct
calling the
hotel
desk
 Customer
service
providers
operational
manageme
nt
desk
handler
 Payment
options
Pain
Points
 Online
searches
consumin
g too
much of
time
 Have to
deal with
extra
services
which are
raising the
hotel bill
high
 Availability
of agent
calling
issue
 No
knowledg
e
regarding
the
booking
confirmati
on
 Difficulty
in
coordinati
ng the
access
codes and
confirmati
on of stay
 Time
wastages
 Dirty and
unclean
rooms
 Very poor
room
services
 Hotel
manager
ignores
their
customers
 No
adherence
to
customer
safety
 No
manageme
nt of food
serving by
quality
 No options
available
for
payment
through
online
medium
 Extra
charges
for having
children
 No proper
reviewing
system
 No
availability
of detailed
breakdow
n of costs
Opportunit  A central  Accuracy  Profession  Multiple

ies
available
system to
find as
well as
request
the hotel
booking
services
 Better and
easy
working
websites
and
hassle
free
calling
of online
registratio
n website
for ease in
check in
al and
trained
operational
department
 Prioritising
customers
on first
choice
 Listening to
customers
and
catering
their need
at earliest
possible
payment
systems
 Better
feedback
systems
 Detailed
invoicing
Table 1: Customer experience map
(Source: created by researcher)
Figure 2: Customer experience map