Implementing Gartner CRM Model for Dale Hotels: A Comprehensive Report

This report provides a comprehensive analysis of the Gartner CRM model and its practical application within the context of Dale Hotels, a tourism and hospitality enterprise. The report begins by introducing the importance of customer relationship management (CRM) in the hospitality sector, e...Read More

Gartner CRM model & dale hotels

Table of Contents
INTRODUCTION...........................................................................................................................2
TASK 1............................................................................................................................................2
1. Identifying as well as discussing the several components of Gartner CRM model which a
dale enterprise required to follow for developing strong relationship with client....................2
TASK 2............................................................................................................................................8
2. Exploring the way to implement Gartner CRM model..........................................................8
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11
1

INTRODUCTION
In present scenario, organisation dealing in tourism and hospitality required to develop
its focus on identifying the need of customer and fulfil their demand. Tourism and hospitality
sectors is all about delivering suitable services to people those who seeks support at an unknown
place. As this activity or strategy will support business entity in increasing sales and profitability.
It will also assist firm in gaining customer loyalty and developing strong relationship with client.
Customer relationship management is considered to be as effective approach which is adopted by
manager within an enterprise for managing organisation communication or interaction with
clients. Management team in a firm can utilise customer history in order to support company in
improving business relationship with customer. Objective of customer relationship management
is to assist business entity in retaining existing client and attracting more new customer by
delivering good quality of product at reasonable price. It is also recognised as a strategy which is
developed by manager in an enterprise with an intention to achieve objective of customer
satisfaction.
The purpose of the project is to identify the several components of the Gartner CRM
model which a dale enterprise required to follow for developing strong relationship with client.
TASK 1
1. Identifying as well as discussing the several components of Gartner CRM model which a
dale enterprise required to follow for developing strong relationship with client.
Customer relationship management is considered to be difficult procedure or activity
which require establishment of vision , certain objectives and effective leadership to drive
organisation towards achievement of target that is customer satisfaction .It also requires
specialised attention towards identification of needs as well as demand of consumer in the
market and recognition of appropriate techniques or strategies to fulfil the same. The customer
relationship management model was developed by Gartner that in 2002 after the analysation of
fact that many business or companies is struggling to measure the benefits,because many are
difficult to prove, such as a correlation between sales force automation and rise in sales revenue.
On the basis of Analysis Gartner has developed a framework for customer relationship
management which consists of eight building blocks. This structured was designed by Gartner
for assisting companies in seeing bigger picture, establishment of vision, formulation of plans ,
2

policies or strategies and implementation of the same in order to help firm in achieving desired
objectives. Gartner has defined customer relationship as a strategy which is required to be
followed by dale hotel (Mendoza, Marius, Perez & Griman,2014)As this strategy or plan will
assist firm in increasing sales, revenue and profitability. According to the Gartner customer
relationship management is a business strategy which results in increase in revenue,
optimisation of firm profitability and high level of client satisfaction which is generated by
organizing around customer segments.
It will also support business entity in providing high level of satisfaction to client by
Organizing around customer segments, Fostering behaviour that satisfies customers and
executing customer-centric processes. The manager in organisation need to develop
understanding that strategy for customer relationship management should be developed at
enterprise level. As this will help business entity in identifying the factor or challenges which
may create the barrier in developing the plan or strategy to provide satisfaction to customer and
developing healthy relationship with them. This framework can be utilised by manager in dale
company as the ground or basis for getting information about the actual position of the
organisation in the market and support management team in creation of suitable strategies for
helping company in improving business performance. It will also aid management team in
recognising the factor that might have adverse effect on customer services. Manager in order to
ensure that several events are integrated and directed towards the achievement of specific target
which is customer satisfaction. Gartner has developed such a model, which is known as the
Eight Building Blocks of customer relationship management. Each and every building block
offers some kind of benefit. All these eight building blocks are important for effective customer
relationship management. The effectiveness of this framework is that , it has focus on the need to
create and maintaining balance between the requirements of the business as well as of consumer.
It allows organisation to maintain balance between value to s stakeholders or shareholders as
well as to customers. As all these people are important, they help company in increasing
profitability, generating revenue , achieving success and fostering growth (Szeghegyi &
Langanke,2014)
3

One of the significant block involves technology, which evaluate the value of screening
Customer relationship management as a business strategy. The eight components of customer
relationship management are:
Vision -The vision of dale hotel is to provide high value or return to customers. Another vision
of the company is to become most popular and favourite organisation or brand among travellers.
Vision indicates the capability of supplier to attract new clients and develop relationship with
them. It is required by manager in dale is to create such vision which attracts the customer
attention and encourage them to buy products or service offered by organisation. The customer
relationship vision related should be communicated and accepted throughout the company and
the customer base. As this will help firm in gaining the customer loyalty and seeking client
attention. It will support company in promoting the brand. Vision is the factor that support
business entity in differentiating itself from competitors and further help firm in gaining
competitive advantage.
Strategy- Formulation of plan or strategy to increase the value proposition by delivering good
quality , appropriate quantity of goods or services to customer at reasonable price. Another
strategy is to design attractive customer policy. As this will help firm in increasing customer base
and retaining relationship with existing client.
Valuable experience to customer-business entity is taking high initiative to deliver Valuable
experience to its client by offering them discounts and other additional benefits. Dale has
appointed the specialised, skilled and highly educated team of workers in order to ensure that
company is delivering ongoing value to customer value and interacting continuously with client.
As this will assist firm in identifying the needs of customers and fulfilling the same. It will also
support business entity in achieving the desired position in the market. In hospitality and tourism
industry , continuous communication is necessary in order to promote goods and services.
Especially in service sector providing valuable experience to customer is important , as this will
help company in increasing sales and generating high revenue.
Organisational collaboration-It is required by an enterprise to bring change in business
structure, organisational culture, working environment as per the demand of situation as
requirement by workers. As this activity will assist business venture in ensuring that all the
members within an enterprise are working together in order to desired outcome. It will also help
4

an enterprise in delivering high value to client and providing high level of satisfaction to
customer.
Procedure: It is required by manager to design the process for managing customer life cycle as
well as for providing service to new customer. In other words, it is required by manager in
business venture to develop such effective procedure which could cater the needs of existing
client without compromising with demands of new customers. Analytical as well as planning
procedure should be such that it develop knowledge of the customer. These procedures support
business entity in reason for poor experiences by customers. It allows business venture to deliver
high customer value.
Information:It includes gathering the accurate and reliable data or information is very important
as it has direct influence on policies , strategies and business plan. Information related to
customer gathered, stored,analysed, distributed and applied throughout the company as well as
should be communicated to the stakeholders. As this activity or strategy will assist firm in
seeking support from employees in implementing the strategy for delivering higher value and
greater satisfaction to client.
Technology-This factor assist manager in collecting as well as managing information or data
related to customer which can be utilised for future planning. Technology that is employed or
implemented in organisation should allow greater customer insight,increased client or consumer
approach, ensure effective fundamental interaction, and integration throughout all customer
channels.
Metrics-It can be utilised by manager in dale company for identifying the internal as well
external factors which might have influence or impact on customer services which is delivered
by organisation.
The reason behind some company in service sector are not implementing true Customer
relationship management is that such firm has failed to develop the understanding about the
system or procedures and importance for the same .Customer relationship support manager in
dale company in making suitable business decision and helped management team in identifying
the appropriate path to achieve business goals and objectives (Winer,2001)
5

It is required by manager in dale organisation to integrate customer relationship
management plan with marketing strategy. As this will help management team in providing
suitable guidance and direction to operational team. It will support manager in outlining the way
Stakeholder or customer value is to be delivered. Marketing strategies will support firm in
accomplishing targets and will aid business venture in improving business performance as well
as achieving good position in the market. Combination of marketing strategies with plan of
customer relationship plan will provide organisation an opportunity to increase profitability and
sale. It will support business venture in gaining customer loyalty. Objectives of customer
relationship management is to assist dale company in increasing customer base.
Before developing the strategy for customer relationship management , it is required by
manager in dale organisation to conduct internal as well as external analysis. As this will help
management team in analysing the present position of as well as company performance of
organisation in the market. It will also assist marketing manager in identifying the customer
perception about the brand or products as services delivered by organisation. This activity will
also support management team in recognising the customer expectation and assist firm in
meeting the same. At the next step of the procedure, role of manager is to focus on customer
segmentation. In the next phase, function of manager is to establish customers objectives. In the
next phase, it is required by management team in an enterprise to define metrics for monitoring
the implementation of the strategy. In the next stage of the customer relationship management,
role of manager is to highlight the strategy or activities that are to be executed for the
customization by pricing, communication, product segment, formation of contact, selection of
channel,customer service and management segment (Jasmand, Blazevic & de Ruyter, 2012)
TRUE customer relationship management
Gartner has aligned true customer relationship management with leading level of CRM
maturity. He has defined True customer relationship management as the company
initiative or efforts, in which manager has the knowledge about ways or techniques that
can be used by management team for managing customer value and gaining client
loyalty. True customer relationship includes establishment of strong vision as well as
designing of effective strategies which support integration of combined efforts in the
field of business collaboration.
6

The Superior approaches to customer relationship management require integration
of three important components these are business orientation which has focus on prioritizing
customer and their needs. This approach to customers relationship management allows firm to
provide satisfaction to client and enables employees more freedom to plan their own action for
delivering high value proposition to client. Customer relationship management assist
organisation in increasing working efficiency as well as effectiveness. It has also support dale
company in accomplishment of desired business goals as well as objectives. Customer
relationship management assisted firm in increasing sales as well as profitability. It has also aids
the firm in improving customer services. There are various kinds of tools and techniques are
used to identify customer needs and their requirements. Primary approach will be includes
questioner and survey, so in this company conduct this and gather all information regarding
market trends and expectation of client (Lages & Piercy,2012)
Analysis
It has been analysed that Dale company potential or capability to chart out an average life
cycle has allowed the firm to promote additional services. Dale organisation has able to gained
popularity among customers , it has only possible through effective customer relationship
management. Additional services by such as online checking of menu as well ordering and
booking facility has assisted business entity in attracting more number of customer. Welcoming ,
safe environment and good quality of services or food has support business venture in
developing strong relationship with customer and retain them for long term (Radnor & Johnston,
2013) Research demonstrate that approximately 40 percent clients perceive that it is essential to
solve goods or issues themselves and approx 60 percent customer expects that organisation
website should include a self service application.
7

It has been analysed from research that the reason Due to which Firm Dale hotel is
investing in improving customer experience is that increase customer retention rate, Improve
customer satisfaction and Increase cross cultural selling.
Examples of Good practices :
Marketing team in Firm Dale hotel conducts market research at regular interval of time in
order to identify the need and demand of customers. Company uses CRM tools which
emphasizes on "loyalty" or rewards programs. This strategy or activity assist business entity in
determining which customers patronize the same hospitality brand on a regular basis. Those
frequent client can accumulate points that can be exchanged for a rewards or incentives in form
of discounts on extended stays or future bookings. It has been found from the research that
approx. 70 percent of loyal customer failed to result in increased spending.
8
Illustration 1: Analysis of facts provided by customer related to the customer
relationship management in Firm Dale hotel
Sources:Customer Experience Statistics, 2017

TASK 2
2. Exploring the way to implement Gartner CRM model
The resources required to implement customer relationship management strategy include
human resources , technology and procedures. As lack of any of the resource or component may
have adverse effect or direct influence on outcome. It further may create the barriers in
execution of strategy in systematic manner. It is required by human resource management team
in dale hotel to make suitable plans in order to engage employees in the process. Right or
appropriate technology should be selected considering the objective of activity. As this will
support business entity in eliminating barrier in the procedure. It is essential for project leader to
ensure that process is in place and account for the people involvement in the process.
Before implementing the Customer relationship management strategy , it is required by
manager in cited venture to create plan which will act as an outlier or road map for conducting
the various activities in order to achieve desired objectives. It includes defining of business
objectives, recognising problems, arranging for resources, documentation planning , creation of
team, training to employees, preparing budget, determining time for each activity,and
formulating tactics. This activity will support management team in identifying the several
internal as well as external variables that might have influence on implementation process.
Manager should establish some objectives that will assist management team in identifying the
gap. It will further provide the basis on which the actual performance can be measured with
standard. Marketing team in an organisation to recognise the current user expectation as well as
level of experience. At the next phase, it is required by management team in cited business entity
to select product vendor or supplier who will deliver product or services that are required to
conduct further procedure. This phase involves the selection of criterion on the basis of which
vendor will be selected such as track record of supplier, flexibility, quality of products ,
knowledge etc. (Sadler,2011)
The next phase includes determining of scope which can be done using the data model. It
involves designing of procedures such as configuration verses customisation , fields as well as
designing of lay outs.
9

Customisation Procedure includes integration as well as customer portal. Workflow
includes identifying the complexities,determining the time for receiving as well as delivering
orders.
The next step includes data migration in which it is required by manager in organisation
to maintain existing record and remove unwanted information. At this phase , management team
should emphasize on forming contracts as well as conducting and managing activities. In this
stage importing of data or collection of information is required to be done.
The another stage is Hosting.
Advantages Comments
This application is managed by experts, which
allows firm in ensuring the implementation of
strategy in systematic manner.
It is required by manager in an enterprise to
enhance their knowledge about the use of
application.
Manage upgrades and errors which further
assist management team in minimisation of
risk.
This system or application require professional
management.
Reliableness
Recovery of data losses to technological error Management by expert team.
Fastness
Safety and security This application has both advantages as well as
disadvantages in context of security as well as
safety.
Cost In stallion and management of this application
is less costly.
Roll-out:In this stage , it is required management team in an enterprise to emphasize on user
adoption such as person over management, reducing competitors incentives or profitability by
developing unique strategies or minimising the price of goods or services, promoting report
writing and making changes in organisation. It is essential for manager in an enterprise to
10

monitor activity at regular interval of time. As customer relationship management will assist in
organising several business activities in systematic manner. Management team or leaders are
required to create as well as establish consistent set of dashboard or strategies for their team
members. As this will help employees in completion of their task on time (Chan & Wan,2013)
The last step that is required to be conducted by management team is to measure the
result and compare actual result with that of desired outcome. As this will assist manager in
identifying the performance gap and determination of reason for the same. It will also
management in predicting the need of customer relationship management and importance for the
same (Loke, S. P. & at. al.,2011)The firm dales' hotel has adopted the UP selling strategy in
which organisation offers the customer with incentives such as discounts , free shipping etc. on
the purchase of additional products or services. It helps business entity in increasing revenue.
Employees or manager in Dale hotel give personal attention to client. The company delivers
high quality and innovate products or services in order reduce the competition. It also assists
firm in providing good experience to customers. Management team in Firm dale hotel have
focus on ensuring that their clients are able to identify appropriate solution to their problems
using an assortment of self-service options. The management team in Firm dale hotel has
adopted the marketing approach which uses information technology to focus on garnering
increased business from high spenders in the short run. Organisation has executed a customer
lifetime value strategy. This plan has been developed to increase customer retention.
CONCLUSION
It has been concluded from the report that Customer relationship management is very
important in order to increase customer base and developing strong relationship with client. This
is the factor which support firm in achieving business objectives and allows organisation to
improve their position in the market. Project has also highlighted the challenges that could be
face by business entity in implementation of strategy related to customer relationship
management system. CRM system was identified as a need to align with the overall business
strategy of selling services, instead of products. It has been identified from the report that
technology is the factor which plays significant role in planning as well as successful
implementation of customer relationship strategy. Assignment has successfully demonstrated the
importance as well as benefits of implementing customer relationship management in business. It
11

has also demonstrated the way customer relationship management delivers high valuer and
provides satisfaction to customers.
It has been suggested to manager in an enterprise to align marketing strategy with
customer relationship plan. As this will support organisation in ensuring desired outcome.
REFERENCES
Books and Journal:
Winer, R. S. (2001) A Framework for Customer Relationship Management,
California Management Review. 43. 4. pp. 89-104
12

Szeghegyi, Á. & Langanke, U-H (2014) Investigation of the Possibilities for
Interdisciplinary Co-Operation by the Use of Knowledge-based Systems, Acta
Polytechnica Hungarica. 4(2). pp. 63-76
Mendoza, L-E., Marius, A., Perez,M., & Griman, A-C. (2014) Critical Success Factors for a
Customer Relationship Management Strategy, Information and Software Technology.
49. pp. 913 -945
Jasmand, C., Blazevic, V. & de Ruyter, K., (2012). Generating sales while providing service: A
study of customer service representatives' ambidextrous behavior. Journal of Marketing.
76(1). pp.20-37.
Lages, C. R. & Piercy, N. F., (2012). Key drivers of frontline employee generation of ideas for
customer service improvement. Journal of Service Research. 15(2). pp.215-230.
Radnor, Z. & Johnston, R., (2013). Lean in UK government: internal efficiency or customer
service?. Production Planning & Control. 24(10-11). pp.903-915.
Sadler, T. W., (2011). Langman's medical embryology. Lippincott Williams & Wilkins.
Chan, K. W. & Wan, E. W., (2013), May. How can stressed employees deliver better customer
service? The underlying self-regulation depletion mechanism. American Marketing
Association.
Loke, S. P. & at. al., (2011). Service quality and customer satisfaction in a telecommunication
service provider. In International Conference on Financial Management and Economics
(Vol. 11, pp. 24-29).
Online
Customer service. 2017. [Online]. Available Through:
<https://en.wikipedia.org/wiki/Customer_service>.
13

14