HNC/HND Hospitality: Customer Experience Analysis Report

This report examines customer experience management within the hospitality industry, using the Ritz Carlton as a case study. It begins with an introduction to customer experience, emphasizing the importance of understanding customer needs, wants, and preferences within a target market. The report explores various methods of customer profiling, including affinity, demographic, psychological, and cluster coding, to provide insights into customer behavior. It also delves into the drivers of customer engagement, such as providing real-time benefits, leveraging social media, simplifying customer experiences, and utilizing data effectively. Furthermore, the report outlines strategies for onboarding diverse customers and documents the customer journey and touchpoints within the Ritz Carlton experience. The conclusion summarizes the key findings and implications for enhancing customer satisfaction and loyalty. The report is based on a Higher National Certificate/Diploma in Hospitality Management assignment.

Managing The Customer
Experience

Table of Contents
INTRODUCTION...........................................................................................................................1
1. Value And Importance Of Understanding The Needs; Wants And Preference Of A
Customer Group..........................................................................................................................1
2.) Different Ways Of Profiling A Customer..............................................................................3
3.) Drivers Of Customer Engagement.........................................................................................4
4.) Different strategies which are applied for on boarding diverse customers............................5
Customer Experience Map...............................................................................................................7
1.) Documenting The Customers Journey...................................................................................7
2.) Touch Points..........................................................................................................................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Customer Experience can be defined as such an experience which is gained or earned by
a customer from the products or services that a customer has purchased for personal use.
Branded products of a company are good in providing satisfaction to the customer, provided, the
purchased product should fulfils the needs and demands of that customer in every aspect (Lemon
and Verhoef, 2016). Here, the selected organisation is Ritz Carlton. The organisation is
providing every facility or service to its customers with the motive of gaining the best customer
experience, in the hotel industry. The project report will lay its focus on the values and needs and
importance of the targeted customer group in this service sector industry (Homburg, Jozić and
Kuehnl, 2017). Exploring of different factors that drive and influence the different targeted
customer group within a service sector organisation.
1. Value And Importance Of Understanding The Needs; Wants And Preference Of A Customer
Group
A target Market in the service industry plays a very crucial role. Target Marketing helps
in reduction of costs along with optimum utilisation of the resources in the best way. Due to the
reduction in the costs the revenue of the company increases. Ritz Carlton is a luxury hotel and it
is currently working on the targeting its customer group (Chheda, Duncan and Roggenhofer,
2017). Now, target marketing refers to such a strategy, in which a company breaks a major part
of the market in to very smaller segments, and it helps a firm in concentrating on a specific group
of customers within that audience. Segmentation refers to a situation in which an organisation
divides its market into a segment of customers which is completely based on their unique
features and also on serving its customers (Chheda, Duncan and Roggenhofer, 2017).
The segmentation of the market is based ion some features and they are:-
 Demographics:- These are such factors that are based on the age; gender; education;
marital status of a person etc.
 Psycho graphics:- It includes- values; beliefs; interest; personality and lifestyle of a
customer.
 Business Industry:- Only corporates are included in it.
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 Geographic Area:- It mainly includes- neighbourhood; area code; city; region and
country etc.
Mostly, the brands do the segmentation of their products by getting more specific about
their products (Bolton, and et.al., 2018). Ritz Carlton, mainly focuses on that group of customers
who is more likely to get the benefit and will enjoy the products and services provided by the
hotel. The Target Marketing plays a very crucial role by the score of it's a part of holistic
marketing Strategy. It impacts the social media; advertising; branding; customer experience as
well as business operations. With the help of target marketing, following functions can be
performed very smoothly (Bolton, and et.al., 2018).
 Speaking directly to a defined audience:- When the target consumer group is fixed its
very easy for the organisation to speak directly or to interact more deeply with the
targeted customers. Ritz Carlton, is having a large and varied market of customer group.
By the score of the target market of the customers is different, so only with the help of
few slogans, the organisation can get in touch with their customers on a personal level
(Schallehn and et.al., 2018).
 Attracts and Converts High Quality Leads:- When, the organisation are having a direct
link or relation with the targeted customers, then, in such case, the chances of attracting
right number of people is very easy. Following the right marketing strategy will more
effectively reach to those people that are more likely to get connected with the
organisation. Ritz Carlton is following the same strategy in marketing (Vos and et.al.,
2018).
 Differentiate from the competitor brands:- Following the right marketing segmentation
and branding strategy will help the organisation to make a different place in the market
and also building up the value and name of products and services in the mind of
customers in such a way that, the customers get loyal towards the organisation. Not only
this, by following such strategy, the organisation can set a benchmark in front of its
competitors like:- Star wood Hotels And Resorts And Hyatt (Mahrous and Hassan, 2017).
 Stay Focused:- After reaping the benefits of target marketing and segmentation the
organisation should try to remain stable on such type of strategy instead of keeping it
aside. Along with this, the target marketing allows the organisation to get more specific
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about the services that are to be offered to the customers and also in respect of marketing
strategies; initiatives and direction so that, the Ritz Carlton can become a brand from an
ordinary hotel (Blázquez, 2014). This strategy helps in clarification of the vision and also
in getting everyone in the organisation to think on the same page. Here, a focused
approach only helps an organisation to make full and optimum use of its resources; time
and budget to effectively perform in the service industry.
 Improved Products And Services:- Organisation should always focus on the improvement
of its services in the best way. Ritz Carlton is having the best knowledge of the hotel
industry and the market i.e. it should, focus on the adoption of new technology.
2.) Different Ways Of Profiling A Customer
A better understanding of the customers helps in providing, better service and identity to
the target customers of Ritz Carlton. If an organisation gets fail in identifying its target group,
then, it becomes quite difficult for an organisation to promote its services (Demirci-Orel and
Kara, 2015). So, Ritz Carlton is creating the portfolio of its customers in the following way:-
 Affinity Profiling:- It helps in identifying and studying the buying behaviour and habits
of people in order to determine the types of products/services a customer requires. If a
customer needs any sort of complimentary/frees services from the hotel then, through the
market study, the staff members or the hotel management can try to provide the customer
those services. The hotel management can also by conducting research survey in the
respect of various types of details of the consumer can identify the type of
products/service a consumer is demanding (Stein and Ramaseshan, 2016).
 Demographic Profiling:- This type of profile is made by the hotel and service industry to
understand the type of services or products that best suits on a consumer. With the help of
such type of profile, the people of hospitality industry gets an idea in respect of income
group of the customer and also in the respect of type of enjoyment, that customer would
like to prefer irrespective of whether the customer is married or single (Vos and et.al.,
2018). This type of profile also emphasize on the age group of customers according to
which the services the hotel industry is bound to provide. Helpful in marketing to know
the primary age of the common customers that are loyal towards taking service from the
Ritz Carlton.
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 Psychological Profiling:- This is the type of motivation, that can be used to tell a lot
about a person by every minutely understanding and observing the psychological
motivations of the potential customers. Every customer wants that, the organisation or the
enterprise from which any products' or services are being purchased for satisfying the
needs and wants. Then, in such a case the organisation should also understand the needs
of that potential customer (Bolton and et.al., 2018). Its very crucial that, an organisation
should observe the number of groups that are present in the market. The number of
groups that are present in the market are as follows:- Unconflicted; Spendthrifts;
Tightwads.
 Cluster Coding:- It refers to a situation in which the class and the social activities are very
closely linked with each other. A person who is having a very good salary and works for
a MNC might be interested in the formal clothes. Such type of persons stay in hotels for a
very short time. It doesn't matter that, in what type of business you are involved, but,
having a better understanding of the customer needs can help an organisation in swerving
its target customer groups in a better way (Stein and Ramaseshan, 2016). Ritz Carlton is
performing the same functions with the motive of getting a stability in the service
industry.
The needs, wants and the expectations are the basic part of marketing and to make efforts
for satisfying them are the key responsibilities of a marketing manager. The marketing personnel
of the Ritz Carlton, is playing the main role in identifying and observing the mindset of customer
and then, offering them the desired products and services. Needs are not only physical but are
also social. It is something that is never finished in the mindset of a consumer. After the
fulfilment of the first need, the consumer will start asking for the second. Wants, These are
completely different from the needs (Vos and et.al., 2018). These are not at all permanent and
keeps on changing on a regular basis. With the passage of time, wants of people also changes as
per their comfort and the place of living. It is that element, which is not essential for a human
being to survive in this world. But, it is somehow, quite true that the needs are also connected
with the wants of people. Want is just a product which is desired by a customer, it is completely
opposite of need (Mahrous and Hassan, 2017). Expectations, are something that a customer
expects from someone. Basic difference between, an expectation and want is that, if a consumer
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is willing and able to buy a product or wanted to take any service from the organisation, then, it
would be its expectation.
3.) Drivers Of Customer Engagement
The drivers of the customer engagement are as follows:-
 Provide Real- Time Benefits :- The management of the Ritz Carlton can make changes in
their strategy, by launching an app for the customers through which, consumers can take
the benefit of making bookings in the hotel or asking for any service. Through this, the
management can ask the consumers to give any valuable recommendation if they wish to
give so that, the organisation would be able to make the desired changes in improving
either the staff members or the food items (Blázquez, 2014).
 Use of Social Media As An Important Weapon:- The hotel management can take use of
social media as an important weapon with the motive of improving their services and also
in the respect of marketing of services that the hotel is offering to its desired customers.
The management of the hotel staff can also, provide instant service to their clients just on
a single click on the screen of their cell phone and desktops or PC's. Also, by providing
food delivery at home can work as a benchmark for competitors of Ritz Clarton, in the
field of service industry (Buhalis and Amaranggana, 2015).
 Simplifying The Customer Experience:- The hotel management should focus on
providing the simplifying experience to its customers. Hotels can provide, the best
service experience of doing transaction on the ATM's to their customers. The
management of the hotels should make all the efforts on holding a grab on its customers.
By providing the customers' facility in respect of making the payments either through
card swipe or through cash or through cheque (Vos and et.al., 2018).
 Use And Analyse The Data In Forward Thinking Ways:- The organisation should also,
try to conduct a research programme in respect of how many customers are visiting the
hotel every month and also every year. So that, any campaign or any sort of strategy
should be implemented with the motive of bringing more and more consumers to the
hotel and making changes in the services or in the pattern of services that are being
offered to the customer (Demirci-Orel and Kara, 2015).
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 Anticipate And Act On The Customer Needs:- The organisation should act on the needs
of the customers. Potential action is required to be taken on the needs of the customers.
With the help of research only, the hotel management would be able to know about the
services that required by the customers.
4.) Different strategies which are applied for on boarding diverse customers
User on boarding can be defined as the procedure of interacting with client in order to increase
their engagement. Purpose of developing the on boarding procedure is to assist clients in
facilitating their transaction for buying products or services (Bolton and et.al., 2018). Successful
user on boarding often takes place across various channels and can importantly have effect on a
customer long-term interactions with a product or service. The selection of on boarding strategy
is completely based on the nature of goods or services offered by an organization. Before
developing the on boarding procedure, it is very much important for company to develop the
understanding about the customer needs as well as expectations. Providing the good on boarding
experience to customers it is very much important in order to retaining them for long time as
well as to influence them to make frequent purchases of products or services (Bolton and et.al.,
2018).
Being honest : This is considered to be as effective strategy for providing good on boarding
experience to customers. It is very much crucial for company to provide complete as well as
reliable information related top the products or services. Being honest strategy will assist an
enterprise in developing strong relationship with customers.
Solve the customers' problem before they think the problem exists- For better experience of
the customers it has to do at first. Put all the efforts to happy the customers. Don't give them a
chance to think about there is a problem. Behave with them in a good manner and with honestly.
For example if customers is not happy with the segment then it is the responsibility of the
shopkeeper to solve their problem and take his phone number and inform them about that
particular segment (Stein and Ramaseshan, 2016).
Take it personally- It is most important thing to provide the best experiment to the customers.
Service provider have to take care of needs and wants of the customers that exactly what they
want and what they gain from the service or product provider. Always take it personally and
imagine that what is the situation of service provider if they are on their place. It is good to think
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about with dual personality and it can help in the positive manner of the customer as well as
service provider.
Be available when it makes sense for customer- It provides better experience to customer
because a customer only want the good behaviour of the service provider during purchasing the
thing. If a customer calls the service provider and they attempt to the customer than it is very
helpful for the customer and it is really a big thing for attract the customers. It creates friendly
nature of the service provider (Stein and Ramaseshan, 2016).
Make it easy and casual- Every customer like easy shopping and best service to the service
provider. It has to think to the service provider to be honest. Honesty is the best policy to attract
someone and if the service provider want to attract the customer then it has to think to them how
to provide the best service to the customer in friendly manner and in the better thing. The
customer only want from the service provider is the best quality thing from the cheap price or it
is not necessary that customer only want the things in the cheap price but it is also helpful for the
customer. They want easy service and best service so it has to understand that what customer
want from them and what they think about the product and service provider. If service provider
gives the best thing to the customer than customer attract toward him and make comfortably with
them (Vos and et.al., 2018).
Customer Experience Map
1.) Documenting The Customers Journey
Customer experience mapping can be defined as a process in respect of exploring how
the potential customer or the new user will feel when they engage with the product or the service
of organisation. It's a sort of research that is prepared by and scrutinizing is done by the
customers in respect of taking the entry in the hotel which lasts up-to the exit from that
organisation. It is a complete step by step process to experience the mapping of services that are
given by the hotel or the organisation to the customers (Bolton and et.al., 2018).
2.) Touch Points
Basis Information Post purchase
Reaction
Payment
Website Here, the consumer
has to write the
After taking the
services from the hotel
It is the case when the,
customer has to face
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information in the
respect of complete
experience, that he had
either by star rating
and where the hotel is
located.
, the cutomer mentions
the experience that he
had over there.
the problem in respect
of making payment to
the hotel against the
services taken.
Mobile App. Whether, hotel is
available on the app or
not. It is the complete
facility in itself that
instead of facing
troubles in respect of
booking the hotels
face to face customer
prefers doing booking
through this.
If the services given
by the hotel on just a
click of mobile are not
good then the reviews
can be here.
Whether payment
through mobile is
possible or not.
CONCLUSION
The report focus on the market segmentation and the customer profiling that is done by
the Ritz Carlton for its customers. Also, on the different ways in which customers can be profiled
;drivers of engagement of customers by the hotels.
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REFERENCES
Books And Journals
Lemon, K. N. and Verhoef, P. C., 2016. Understanding customer experience throughout the
customer journey.Journal of Marketing. 80(6).pp.69-96.
Homburg, C., Jozić, D. and Kuehnl, C., 2017. Customer experience management: toward
implementing an evolving marketing concept. Journal of the Academy of Marketing
Science. 45(3).pp.377-401.
Chheda, S., Duncan, E. and Roggenhofer, S., 2017. Putting customer experience at the heart of
next-generation operating models. Digital McKinsey", March.
Schallehn, H., and et.al., 2018. Customer experience creation for after-use products: A product–
service systems-based review. Journal of Cleaner Production.
Bolton, R. N., and et.al., 2018. Customer experience challenges: bringing together digital,
physical and social realms. Journal of Service Management. 29(5).pp.776-808.
Stein, A. and Ramaseshan, B., 2016. Towards the identification of customer experience touch
point elements.Journal of Retailing and Consumer Services. 30,pp.8-19.
Blázquez, M., 2014. Fashion shopping in multichannel retail: The role of technology in
enhancing the customer experience.International Journal of Electronic
Commerce. 18(4).pp.97-116.
Vos, M. C., and et.al., 2018. Into the light: effects of the presence of cleaning staff on customer
experience. Facilities.
Mahrous, A. A. and Hassan, S. S., 2017. Achieving superior customer experience: An
investigation of multichannel choices in the travel and tourism industry of an emerging
market.Journal of Travel Research. 56(8).pp.1049-1064.
Demirci-Orel, F. and Kara, A., 2015. Assessing the Role of Service Quality of Retail Self-
Checkouts on Customer Satisfaction and Loyalty: Empirical Evidence from an
Emerging Market. In Marketing Dynamism & Sustainability: Things Change, Things
Stay the Same… (pp. 226-226). Springer, Cham.
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Buhalis, D. and Amaranggana, A., 2015. Smart tourism destinations enhancing tourism
experience through personalisation of services. In Information and communication
technologies in tourism 2015 (pp. 377-389). Springer, Cham.
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