Marketing and Customer Retention Strategies: A Hospitality Report

This report delves into customer retention strategies within the hospitality industry, using the Standard London Hotel as a case study. It explores the application of the marketing mix (product, place, price, promotion, people, process, and physical evidence) in the context of the hotel's operati...Read More

Marketing and Customer
Retention in the Hospitality
Industry

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
The use of marketing mix in marketing strategies......................................................................1
Characteristics of Platinum Standard London relationship marketing program.........................3
Strategies for development..........................................................................................................4
CONCLUSION ...............................................................................................................................5
REFERENCES ...............................................................................................................................6

INTRODUCTION
The customer retention in marketing is defined as a procedure which is associated with
higher engagement of customers which enables them to buy or use product or services offered by
some particular organisation (Frye and et. al., 2020). Under this various strategies are used by
business in order to develop long term relationship with their customers along with making
prominent market position as well which helps the businesses to encourage loyal branding.
Besides this marketing is regarded as a significant aspect which is utilised by the organisation
with the major purpose of attracting customers and to grab their loyalty and brand adherence in
sufficient manner. This report is associated with major concepts of customer retention in
hospitality industry in the background of Standard London Hotel which is a luxurious hotel
group situated in London, UK. This report includes marketing mix and strategies used by the
hotel management in order to react out to their marketing objectives.
MAIN BODY
The use of marketing mix in marketing strategies
The marketing mix is defined as sum of actions and strategies which can be used by
businesses for promoting their product or services in order to attain competitive advantage in
marketplace. This is regarded as an adequate tool which is used for attaining marketing
objectives and vision of the organisation so that target market can be aimed. This aspect is
helpful in rendering high value to products and services which depends on cost of production,
market abilities, management of supply chain and etc. The marketing mix in the context of
Standard London Hotel is elaborated as under: Product: Standard London Hotel is a hotel group which us offering sophisticated staying
facilities to their customers and along with this they are providing additional services
such as WI-FI services, bar services to their guests. The hotel is providing lavish room
services in which finished beds and TV are included. Along with this the hotel is
providing luxurious room facilities which are laced with iPod docks with grand area fopr
sitting facilities (Suh and Alhaery, 2016). Place: Standard London Hotel is providing sophisticated staying facilities to their
customers and the hotel is association of six boutique hotels at six places. Easy
management and operations are being processed by the hotel in various places within
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national periphery. These hotels are majorly expanded in beaches side in order to enhance
market prominence and brand recognition. Price: Standard London Hotel is offering services in services at standard pricing so as
enhance their customer base. Standard London Hotel has divided their customer on the
basis of sensitivity and price sensitive customers are provided with price skimming
strategy and which they are focused on grabbing variety of customers. Standard London
Hotel is majorly recognised as sophistication and ease and comfort to their guests.
Standard London Hotel is a mediocre ranged hotel in which services are shaped in such a
way that the same can be used by every class of people (Frye, W.D. and et. al., 2020). Promotion: Standard London Hotel is associated with prominent brand identity in which
they are offering privileged benefits to their loyal customers. This is helping the company
to enhance their working horizon and due to this higher benefits are rendered to
customers by undertaking required modification. Loyalty programme run by Standard
London Hotel is named as Platinum Standard London by which benefits are given to their
customer and the same are being promoted through social media marketing. Similarly as
hospitality industry is a customer driven industry so mouth to mouth publicity is the
another promotional tool which is being trusted by Standard London Hotel. People: Standard London Hotel is trying to provide remarkable experience to their guests
in terms of quality services. The hotel is conducting regular meetings and training
sessions to their employees so that they can render remarkable experience to their clients.
Standard London Hotel is adopting fair recruitment process so that to include efficient
staffs in their organisation. In this way management of the hotel is managing their
workforce in way effective manner through which advantageous results can be drawn by
them. Employees are regraded as blood of the organisation and in this concept Standard
London Hotel is subsisting their role in such a way that higher contribution of employees
can be undertaken in the success of the organisation (Orantes-Jiménez, Vázquez-Álvarez
and Tejeida-Padilla, 2016). Process: Standard London Hotel is providing online hotel booking facilities to their
customers so as to render support and ease to their customers. Online booking services
are leading the company to minimise work load for front desk which exhibits higher
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efficacy in operations. Online booking services are easy in using by this customer can
book their desired services in error free manner.
 Physical evidence: Standard London Hotel is highly recognised for designs of their
building and renovate designs. Higher hygiene and cleanliness is being maintained by the
hotel in which the are meeting customer expectations and standards as well so as to
sustain and attain prominent position in the market (Rather and Sharma, 2016).
Characteristics of Platinum Standard London relationship marketing program
The relationship marketing is defined as a form of marketing in which direct campaigns
and assistance is being developed in such a way that customer retention can be enhanced. With
the help of relationship marketing higher level of customer satisfaction can be attained besides
than sales as this process is based on managerial strategies and on creating prominent market
relationship. In order to enhance understanding with customer marketing manager of Standard
London Hotel is focused on spreading awareness regarding services offered by them in
marketplace (Sahoo, 2018). There are various characterises of Platinum Standard London loyalty
programme which is elaborated underneath:
Event driving customer messaging: This program is utilised by Standard London for
the major purpose of managing activities those are related with customers. Under this program
points can be earned by customer by using varied services of Standard London Hotel which can
be accumulated by them. On the basis of accumulated points rewards has been given to
customers. Standard London Hotel is managing a very robust portfolio of customer in which they
are putting efforts to enhance customer retention.
Easy reward redemption option: For customers holding loyalty card of Standard
London Hotel named Platinum Standard London easy redemption facilities are provided in
which within a minute accumulated reward points can be redeemed by customers in order to
avail various benefits. On the website of the company real time information is being circulated
which is providing ease and convenience to their customer in booking. These information are
helpful for customers in making buying decisions in effective manner so as to attain marketing
results.
No processing fees along with no blackout dates: Standard London Hotel is not
receiving any sort of processing fees from their customers as loyalty program is totally related
with stay of customers. This feature of Standard London Hotel loyalty programme provides
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additional advantage to their customers which makes them feel valuable. Besides this there is no
restrictions in redemption of points by which brand loyalty can be enhanced in marketplace.
Enhancement in customer relationship management: Platinum Standard London
programme is managing effective relationship with customers by the help of this programme as
this programme is specifically designed for loyal customers and to enhance their overall
engagement. This program is having capability to examine loopholes in service offering of the
business and by this strategies can be altered by the management.
Based on Pareto approach: The management of Standard London Hotel is having
opinion that 80% of the overall revenues are being generated by 20% of people. So the
management is focused on those customers in order to encourage their loyalty and engagement
as well. This principle is assisting the organisation in enhancing customer retention and brand
loyalty in the marketplace. By undertaking this principle Standard London Hotel is focused on a
particular class of people in order to draw prominent positive impact over profitability and
efficacy (Larsson and Broström, 2019).
Standard London Hotel is running a loyalty program named Platinum Standard London
which has gained high success in market as this programme is meeting standard and expectations
of their customer in sufficient manner. With the help of this programme the organisation is trying
to enhance their customer retention and their involvement in services offered by the organisation.
Besides this loyalty programme of Standard London Hotel is adding huge customers to their
overall portfolio by which market competition can be inhaled by them.
Strategies for development
In the areas of Central London a new hotel is going to be established named 'Vegetrainian
Spa and resorts'. The hotel is being located at prominent location of London in order to catch eye
of mass population. The hotel is established with major objective of meeting expectations of
their customers and to provide superior quality and hygienic food to their customers. Similarly
this hotel is associated with a loyalty programme named 'Goldtrainian' in which loyalty points
are earned by card holder in lieu of their stay or using other services by the hotel. This
programme is helpful for the organisation in enhancing their sales and customer footfall through
which they can sustain for the longer time in the market along with high prominence. The hotel
is launched with a new concept that room services will be provided through a track which is
made around the hotel and to carry items of room service an internal track will be used. There
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are various strategies which are used by the management of Vegetrainian which are explained as
under:
Adding points as per visits: According to this loyalty program customer may earn
loyalty points after every visit and these customer are treated in special manner by the
organisational management. By accumulation of these points rewards can be given to customer
on the basis of total of their points. In the context of rewards various benefits are given such as
additional day stay, complementary lunch on every stay, birthday month offers and many more
(Mahmoud, Hinson and Adika, 2018).
No restriction of redemption of points: Vegetrainian has not decided minimum value of
loyalty points redemption which enable their customer to redeem their accumulated points as per
their will. After 2 stays points can be redeemed by customers and for every stay 300 points are
given and in order to get a free stay for night an individual is required to collect 2000 points.
This helps Vegetrainian to build more loyal customer in the market along with their retention
which gives the company a higher brand recall value.
Call for customer feedback: Customer feedbacks are one of the major aspect which is
required to be collected by an organisation so as to examine customer engagement and brand
adherence. Feedbacks are collected in order to examine negative points of services so that these
can be improvised as per the requirement of their customers. As Vegetrainian is a newly
established business so they are highly focused on collecting feedbacks and dealing with their
loopholes in business operations and functions (Rahimi and et. al., 2017).
CONCLUSION
From the above report this can be concluded that customer retention is regarded as the
most appropriate aspect within business which helps in attaining profitable outcomes for longer
period. For this business is developing long term sustainability along with using high degree of
perfection and adequateness. Marketing mix is helpful in order to generate profitable results in
which efficiency can be retained in effective manner. In the recent time hospitality industries are
merged with various concepts so that to lead market with optimal size and premium image. In
order to accomplish marketing objectives loyalty programs are initiated and to make more sales
so that customers can be pitched in clear manner. On the other hand by collecting feedbacks
loopholes can be examined by business in order to opt for any improvements.
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REFERENCES
Books and journals
Frye and et. al., 2020. What factors influence Generation Y’s employee retention in the
hospitality industry?: An internal marketing approach. International Journal of
Hospitality Management. 85, p.102352.
Frye, W.D. and et. al., 2020. What factors influence Generation Y’s employee retention in the
hospitality industry?: An internal marketing approach. International Journal of
Hospitality Management. 85. p.102352.
Larsson, A. and Broström, E., 2019. Ensuring customer retention: insurers’ perception of
customer loyalty. Marketing Intelligence & Planning.
Mahmoud, M.A., Hinson, R.E. and Adika, M.K., 2018. The effect of trust, commitment, and
conflict handling on customer retention: the mediating role of customer satisfaction.
Journal of Relationship Marketing. 17(4). pp.257-276.
Orantes-Jiménez, S.D., Vázquez-Álvarez, G. and Tejeida-Padilla, R., 2016, January. Customer
relationship management and hospitality industry. In IMSCI 2016-10th International
Multi-Conference on Society, Cybernetics and Informatics, Proceedings.
Rahimi and et. al., 2017. Customer relationship management research in tourism and hospitality:
a state-of-the-art. Tourism Review.
Rather, R. and Sharma, J., 2016. The role of customer engagement in ensuring sustainable
development in hospitality sector. International Journal of Hospitality & Tourism
Systems. 9(1).
Sahoo, K.C., 2018. The influence of social media marketing on customer satisfaction in
hospitality industry. Journal of Tourism Challenges and Trends. 11(1). pp.31-48.
Suh, E. and Alhaery, M., 2016. Customer retention: Reducing online casino player churn through
the application of predictive modeling. UNLV Gaming Research & Review Journal.
20(2). p.6.
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