Digital Technology's Role in Enhancing Hilton's Customer Experience

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This report provides a comprehensive analysis of how Hilton Hotels utilizes digital technology to enhance customer experience. It begins with an introduction to digital technology and its impact on the service sector, specifically focusing on Hilton's operations. The report examines the application of digital technologies such as Internet of Things (IoT), Artificial Intelligence (AI), and chatbots in managing customer interactions, including a detailed look at CRM systems like SaaS and ONQ. It evaluates the effectiveness of these technologies, highlighting their advantages and disadvantages. Furthermore, the report illustrates Hilton's customer service strategies, including digitalization and personalization, and demonstrates how these strategies create and develop customer experiences. The analysis includes a review of the application of customer service strategies and an evaluation of the delivery of customer service strategy and communication. The report concludes with a summary of the key findings and recommendations for improving customer experience through digital technology within the context of a food event planned by Hilton and its partner restaurant Hazev.
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DIGITAL
TECHNOLOGY
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Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P5. Examination of how digital technology is employed in managing customer experience 1
M3. Evaluation of how digital technologies are employed in managing customer experiences 3
D3. Critical Evaluation of advantages and disadvantages of CRM systems used in Hilton. .4
TASK 2............................................................................................................................................6
P6. Illustration of Customer Service Strategies in Hilton......................................................6
P7. Demonstration of how customer service strategies create and develop customer
experiences.............................................................................................................................7
M4. Reviewing the application of customer service strategies..............................................8
D4. Evaluation of delivery of customer service strategy and communication.......................9
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................11
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INTRODUCTION
Digital Technology is one of the highest implemented attribute within procedures and
processes of an organisation which refers to a combination of several electronic systems, tools
and mobile phones that are associated with storing, generating as well as processing data. Within
several industries, particularly service sectors, there has been an effective and visible usage of
these technologies within different processes (Joshi, 2018). Hence, in this context, the report
below is based on Hilton Hotel, which is one of the most recognised and effective hotel chains in
the United Kingdom. The report appropriately covers an appropriate and effective approach of
the company towards digital technologies in context of development and execution of a food
event. The assignment includes a detailed investigation of impact of digital technology in terms
of customer relationship management. Furthermore, the report also discusses application of
effective customer experience management within Hilton to maximise the engagement of
customers in a prominent manner.
TASK 1
P5. Examination of how digital technology is employed in managing customer experience
Customer Relationship Management refers to an enhanced and effective process that
companies use in context of enhancing the relationship of the firm with customers that would
allow the firm to experience an effective advantage within the marketplace, along with
appropriate sustainability (Gibson and Parkman, 2018).
Customer Relationship Management Systems or (CRM) are the technologies adopted by
an organisation in context of managing the firm's interaction with customers which requires
utilisation of their data to analyse the same and ensure improvisation with how the firm deals
with these individuals. This also contributes in profitability and streamlining the processes of the
company which are required to highlight the scope of improvement.
In terms of Hilton, the firm has branches all over the world as well as a strong customer
base globally, and hence, it requires a strong and effective customer relationship management so
that it could help them enhancing their business performances due to a regular interaction and
management with customer and their information respectively. Hence, in this context, CRM
Systems help the firm in managing its operations in relation to customers in quite a well manner.
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The firm, with its partner restaurant Hazev is planning an appropriate food event for
students and staff, which requires enhanced customer experience to ensure success of the event.
In this relation, Digital technology is very well applied within Hilton as part of its online
and offline operations. For instance, the firm uses this technology right from accepting bookings
of customers and till acquiring valuable feedbacks from these individuals. Furthermore, this
works in a very closed circle, as digital technology is again used by the firm to provide
personalised services to these customers. This could be reflected by the fact that portals would be
created by the firm to ensure prominent stakeholders could be communicated to provide them
personalised services..
Therefore, there are several ways through which digital technology is employed within
Hilton in relation to managing the customer experience within the food event. Some of these
ways are mentioned below:
Internet of things (IoT):
This is associated with each and everyday devices within the organisation that have in-
built internet capabilities, hence, enabling the firm in receiving as well as sending information
within and outside the company. Furthermore, it provides a better management and ease at work
for managers, employees and staff members as this is one of the most effective support provided
to individuals within the company, For Hilton, it is adopting IoT within its overall systems, for
instance, quite recently, the firm worked on a project by the name Connected Room, which is an
effective concept where the controls of the whole room would perhaps be accomplished through
smartphones of the customers (Hilton and Marriott Turn to the Internet of Things to Transform
the Hotel Room Experience, 2019). Hence, IoT is hence used quite effectively within the
company with respect to enhancing the control systems and functioning of the rooms, which
quite certainly would be contributing towards the experiences of customers. This would further
be reflected within the food event as individuals who would be attending the event from outside
the location could ensure higher experience through staying in such rooms.
Artificial Intelligence and Chatbots:
Another aspect which showcases employment of digital technology within UK is the
implementation Chatbots and Artificial Intelligence. Companies in the industry are using these
within their systems and processes to ensure provision of smart responses to the customers. In
relation with Hilton, the firm adopts AI and Chatbots by a new project in collaboration with IBM
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named “Connie”, which is an effective bot which could appropriately reply to human questions
in a spontaneous manner (Key Digital Trends in the Hospitality Industry, 2019). Hence, in
context, the firm is actively engaging into employing digital technologies as Connie would allow
customers to experience an effective interaction with help of AI that would contribute in a good
aspect. The firm would be using this system within the food event to guide individuals towards
the food menu and other essential information about the food event.
Furthermore, there are several CRM systems which the organisation employs below as
part of digital technology, in context of enhancing customer experiences:
SaaS Tools:
One of the most prominent CRM tools which the company adopts is Software as a
Service or SaaS. It is an effective software that is applicable to the organisation as an effective
communications and CRM software. The firm is implementing the same quite effectively, which
maintains an effective consideration of demands of customers, their requests and feedbacks to
communicate and mould the systems related with the same. In addition to this, this tool is also
adopted by an organisation to ensure that a constant and effective communication channel is
formulated within the same. This is used by the organisation in context of ensuring constant
communication within the teams for the event as well as with the stakeholders.
ONQ System:
Another appropriate and effective system which is utilised by Hilton in relation to CRM
management is ONQ system, which is the firm's proprietary system that maintains effective
database for the firm in relation to different activities and processes which requires interaction of
customers from the company. The firm has been using the same for years, allows Hilton to
manage the customer experience in an effective manner, through focus on a spontaneous and
intelligence online infrastructure. This would be an effective basis for the firm to ensure that the
food event is as per the previous feedbacks and expectations of the customers.
M3. Evaluation of how digital technologies are employed in managing customer experiences
As mentioned above, Hilton is quite effective in context of employing the digital
technologies to enhance customer experiences. Moreover, evaluation of effectiveness of these
technologies are very much required, in context of determining the scope of usefulness of these
aspects with the company (Ristova and Maglovski, 2018).
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For instance, in context of the digital systems for instance, Internet of Things, the
intensity of its effectiveness is quite high. The reason for the same is that this system is very
much effective in context of giving customer the ease to operate their surroundings. As stated
above in the example, the approach towards IoT of the organisation is very much effective in
context of providing the controls of the room within smartphones of individuals. Such things
retain customers in a very prominent manner as it provides them with effective ease.
Moreover, chatbots and AI also contributes in retaining customers as any query of these
individuals could be addressed and possibly resolved without human technology. This would
provide spontaneous assistance to customers that would be contributing towards their retaining.
As for the CRM Systems, both the technologies used by the firm are quite effective when
it comes to enhance the convenience within the operations performed by customers, such as
booking, transportation, customer service and so forth. Therefore, in terms of evaluation, these
systems help Hilton in retaining customers in terms of providing them ease and effectiveness in
the operations.
D3. Critical Evaluation of advantages and disadvantages of CRM systems used in Hilton
Software as a Service (SaaS)
SaaS is a method of serving many applications related with business activities and actions. SaaS
possesses many advantages over traditional tools of installing software for businesses which are
explained below in context of Hilton:
Advantages of SaaS: Easy accessibility: SaaS application makes it easy for businesses to access their operation
from anywhere in the world, the only requirements are browser and internet. This
application provides ease and comfort to customers of Hilton to gather all information
they require irrespective of the place they are at present. It enables potential customers to
seek details about the Hilton hotel so that they can make their buying decisions according
to their needs.
Includes lower cost: The cost involved in this process is very low which is another
advantage of SaaS. It is basically subscription based and has no cost of any licenses
which automatically reduces its cost (Kansakar, Munir and Shabani, 2019).
As known that SaaS is very beneficial but it also has some disadvantages which are as follows:
Disadvantages of SaaS:
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Limited range of applications: SaaS is becoming very popular amongst the organisation
and public both still very less applications support SaaS and provide a hosted platform.
Therefore, sometime it becomes difficult for customers to access it and fulfil their
requirements.
Connectivity requirements: SaaS depends on web delivery which sometimes act as a
drawback. If the internet service through which customer is accessing the software is
slow or fail all the data is gone and they loses control over the software and data
gathered.
ONQ System
Major advantages of ONQ system which is introduced by Hilton in their operastions and
practices are as follows:
Advantages of ONQ system of Hilton: Customer service: The level of customer service which Hilton is providing to its
customers increase after effective implementation of ONQ system. This best quality
services resulted in customer loyalty Hilton gained (Westerman, 2018).
Cost: Another advantage of this system is the costs hotel was incurring reduced,
everything become organized and systematic which resulted in cost reduction and
potential utilisation of resources (Garant, 2017).
There are some drawbacks also associated with ONQ system which Hilton is using, which are as
follows:
Disadvantages of ONQ system of Hilton: Difficulty in keeping track: Management face real problems of keeping all information
together about guests. It becomes very hard to keep track of preferences of customers and
their needs and also to be updated.
Obsolescence of data: Regular changes takes place in market and social environment in
marketplace. This leads to disadvantage of ONQ system where data which is stored by
management about the experiences and preferences of customers becomes obsolete by
time.
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TASK 2
P6. Illustration of Customer Service Strategies in Hilton
Customer Service Strategies are required to be adopted by an organisation that in order to
enhance the ease, comfort and services that are provided by the company to their customers. In
addition to this, a viable strategy within Hilton would allow the firm to attract, maintain and
retain the customers within the company (Watkins and et. al., 2018). Furthermore, in this
relation, there are several customer service strategies adopted by the firm that are illustrated
below:
Digitalisation:
One of the most prominent strategies which Hilton adopts in context of highlighting the
scope of improvement within the organisation is in relation to digitalisation. For instance, the
firm has recently used innovative approach within the hotel rooms, where it installed a digital
room key service, which is still very much rare within the overall sector. This feature provides
access to customers towards their room without having to wait for the keys. Such convenience
within the food event would allow the firm and customer to operate in a prominent and effective
manner, which is quite effective in providing enhanced services to customers attending the event.
In this context, another feature within the organisation is related to mobile application. The hotel
chain provides its customers with a prominent and personalised service aspect which is
associated with a user friendly aspect that is associated with fulfilling customer demand of an
easy access to the firm's services. Moreover, the mobile application is also used by the firm to
ensure that the event could be promoted within the application and social media platforms.
Employee Education:
Another strategy which helps the company in improving its customer service is related to
educating their employees in context of performing in a better and consistent manner. This
strategy is directly associated with the mission of the company, which is to be the most
hospitable organisation globally. Moreover, for this purpose, the firm is internally upgrading its
cafeterias as well as locker rooms, that would be providing high focus and better performance
standards to the employees due to satisfaction (Roelofsen and Minca, 2018).
Differentiation:
In terms of its customer services, the strategy which is adopted by the company is to
ensure that different services are acquired by the customers in comparison with other
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organisations within the country. This strategy is adopted by the firm in its services and customer
engagement activities, where the company ensures that each customer is felt valued and feel
welcomed all year, as part of its customer initiatives. Such initiatives allow the firm in enhancing
the scope of improvement in terms of retaining customers and providing better experiences to the
customers. For instance, the food event which the firm is conducting is very much effective and
different to engage customers as a range of people such as students and staff are included within
the same.
P7. Demonstration of how customer service strategies create and develop customer experiences
It is required for the organisation's customer service strategies to create as well as develop
customer experiences in way which contributes towards meeting needs of customers as well as
meeting the required business standards (Murphy and et. al., 2017). In this context, each strategy
mentioned above is demonstrated below, based on these two factors:
Digitalisation:
Each customer requires ease and convenience in context of acquiring the services in a
way which provides them both comfort and satisfaction. Moreover, the hospitality industry of the
UK is inclined towards developing competence of each organisation when it comes to satisfying
these demands of customers. Hence, in this context, the digital key service of Hilton is very
much effective when it comes to providing ease and comfort to customers in terms of getting
access to the features of their personal room. Moreover, mobile application helps these
individuals in booking the services of Hilton in a very prominent and effective manner, along
with getting information about events such as the Food Event being executed by the firm.
Employee Education:
In context of the sector, the requirement of the hospitality industry is related to acquiring
individuals that are experienced and educated in order to ensure provision of professional
services to customers. The internal upgrading feature within the organisation is quite
contributing in context of enhancing the competence level and professionalism in employees,
due to motivating them through enhanced services, such as serving effectively and with more
professionalism to customers in the event. Thus, due to this, the industrial standard is very much
accomplished by the workforce of Hilton, as well as customer requirements are also addressed
due to provision of high quality service to these people, that is a key demand towards any
hospitality organisation (Litvin, Goldsmith and Pan, 2018).
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Differentiation:
Hospitality industry within the UK preaches and promotes innovation and differentiation
to ensure acquisition of more customers down the line. Furthermore, customers tend to become
lethargic and bored from similar services at each hotel they visit, meaning that they demand
more effective and distinct services for the organisation. Thus, in this relation, the initiatives
taken by the firm are quite effective as they are based on creative and innovative practices
towards retaining customers and providing them a better customer service. For example, the
event with digitalised services like Connie would encourage more customers to attend the event
as well as organise the same within the organisation.
M4. Reviewing the application of customer service strategies
In creation of better customer experiences, the application of customer service strategies
are mentioned below:
Digitalisation:
The firm's mobile application as a user interface, along with specific and guided direction
which allows customers to book the services of hotels in terms of rooms, dining services, food,
amenities on the basis of date as well as time. Furthermore, separate portals are provided by this
application where instant communication could be set up by customer service representatives
(Benckendorff, Xiang and Sheldon, 2019).
As for the room key feature, the smartphones are very much linked by the customers'
smartphones, by using the mobile app, through which they can control the locking, lighting
ventilation and sound features of their respective rooms.
Employee Education:
Enhanced focus is provided by the company to improvise the infrastructure of the firm
for better working of the employees. Such developments are directed towards enhancing
engagement and competence level within the organisation. This allows a better service to
customers due to enhanced loyalty and enthusiasm level of employees effectively (Shamim and
et. al., 2017).
Differentiation:
The firm has adopted innovation as a key facility to ensure differentiation within the
services. Its R&D department works towards adopting new technologies and better customer
engagement techniques that provide the customers with better and more enhanced experiences,
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along with enhancing capabilities of the firm in context of differentiating its services from that of
competitors.
D4. Evaluation of delivery of customer service strategy and communication
It is very much necessary for the company to ensure evaluation of the delivery of these
customer service strategies and communications, which could allow the firm to satisfy their
customers in a prominent manner.
In relation to its digitalisation features, the firm is very effective when it comes to
engaging customers towards in house facilities. However, one prominent and better way through
which it could be improvised is through inclusion of features such as self check-ins and check-
outs, that could prominently help the firm in enhancing the experience of customers even more.
In context of employee education, a rather better training along with motivation is
required to be provided which could further ensure higher professionalism in context of catering
the customers.
Lastly, differentiation within processes could be improved in context of working on
better market research, to find out market gaps within the sector in an effective manner and
ensure delivery of services in an enhanced way.
Hence, out of all these strategies, digitalisation is the one which is most prominent
strategy of the organisation in terms of enhancing the customer engagement experience in a
prominent and advanced manner (Hudson and Hudson, 2017).
CONCLUSION
Hence, it is concluded from the report above that digital technology is one of the key
aspects in the current business environment which is required by an organisation to ensure
development of an opportunity when it comes to enhancement of customer experiences.
Examination of employment of digital technology is required in terms of managing customer
experience, as there are several appropriate and effective relationship management systems
which must be applied by the companies in order to strengthen the same for further
improvement. In addition to this, illustration of customer service strategies in a specific service
sector context is required to appropriately and effectively be analysed and performed in order to
improvise the customer service processes and programmes associated with he organisation.
Furthermore, demonstration of how customer service strategies create as well as develop
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customer experiences is crucial to understand that needs of customers are met effectively and
required business standards are appropriately and effectively achieved.
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