Customer Loyalty Programs: A Case Study of Bed & Breakfast Restaurant

This report analyzes marketing and customer retention strategies within the hospitality industry, focusing on a Bed and Breakfast restaurant case study. It demonstrates the application of the marketing mix (7Ps) and examines the characteristics of relationship marketing for implementing a success...Read More

Marketing and Customer
Retention in Hospitality
Industry

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Demonstrating marketing mix on the context of hospitality industry of Bed and Breakfast
restaurant.....................................................................................................................................1
Analysing characteristic of relationship marketing for implementing successful loyalty
program.......................................................................................................................................3
Propose strategies of loyalty program of business in hospitality industry..................................4
CONCLUSION................................................................................................................................5
References:.......................................................................................................................................6

INTRODUCTION
To have a long run success in the organisation adopting right marketing strategy is very
crucial which also helps in attracting customers, developing recognition and trust. The hospitality
marketing defines in the terms of business customer needs and their satisfaction. In hospitality
marketing for promoting products and services marketing strategies are developed. The
hospitality industry is wide term in service industry which involves accommodation, lodging,
food and drink, theme park, travel and tourism (Bastos, R and et.al., 2018). The hospitality
industry focuses on creating and positive customer experience is maintained whereas marketing
is important in ensuring success of industry. The report is based on case study of opening Bed
and Breakfast restaurant in London. The report covers marketing mix and characteristics of
marketing relationship is analysed for implementing successful loyalty programme. Further,
strategies are developed for loyalty program in hospitality industry.
MAIN BODY
Demonstrating marketing mix on the context of hospitality industry of Bed and Breakfast
restaurant.
The marketing mix is used for indicating various marketing variables for targeting
customers and market segment. It is a tactic using 7Ps in the context of Bed and Breakfast
Restaurant.
 Product- This defines as mixture of goods and services which is offered to target market
of customers. The products is referred in terms of quality, design , variety, services which
helps in developing profitable customer relationship wit them. The Bed and Breakfast
Restaurant will offer food and beverages products such as salads, sandwiches,
hamburgers, desserts & shakes etc. in accordance to the customer needs so that they can
be attracted through better service and core customer value (Chan, T.M and et.al., 2018).
 Price- It is related to cost paid by customer for product. The price is linked with the real
product and value is perceived. In context to Bed and Breakfast Restaurant while setting
price for product other price needs to be considered such as seasonal discounts,
competitor price, supply costs. To give an product luxury appearance the prices can be set
high vice-versa price can be lower for consumers so that they can have try on product of
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Bed and Breakfast Restaurant. The pricing strategy helps in maximising profit margin
and sales volume.
 Place- This is relate4de to location where the product will be offered and customer can
access them. The more attractive place helps in attracting more customers. The product of
Bed and Breakfast Restaurant can be placed to different kiosks, mobile apps, on websites.
The customer ease is crucial as it helps in influencing sales and revenue is generated. The
Bed and Breakfast Restaurant will provides its services and products in London and after
having great success it expand its restaurant at new locations.
 Promotion- The promotion of goods is to reveal consumers why they should have and
needs to pay certain price. It is a t6actic used for communicating with customers. In
context to Bed and Breakfast Restaurant for promoting products various promotional
techniques can be used such as advertising, social medial marketing, publicity, public
relations, direct marketing etc. For having large base discount coupons can be offered on
certain products (Fatima, R and et.al., 2020).
 People- The employees re the important aspect for the organisation as they offer valuable
services to customers and have daily interaction directly with them. In the Bed and
Breakfast Restaurant there is need of skilled and talented employees for providing
customer service, delivering people which leads improve in brand image nad overall
quality. The employees can takes feedback from customers regarding their experience on
product and service.
 Process- This is referred as anything which have impact on organisation like how
employees handle product or service and delivering to consumers. The process in Bed
and Breakfast Restaurant will state order in which employees will perform tasks,
measuring and tracking performance, solving customer queries. In restaurant there are
several process such as management will have look on system of food delivering. The
process of maintaining and recording bills.
 Physical evidence- It refers to tangible regarding product or physical environment in
which service takes place. In the Bed and Breakfast Restaurant physical evidence may
involve product packaging, delivery receipts, layout of physical store, table design, menu
cards, uniforms etc. Through this restaurant can improve its marketing strategies. It also
represent the product quality and customer attraction.
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Analysing characteristic of relationship marketing for implementing successful loyalty
program.
The marketing relationship defines to customer relationship management which focuses
on customer loyalty and long term customer engagement. In the relationship marketing the aim is
to create strong, emotional customer connection to brand for generating leads through free word-
of-mouth promotion and information from customers in context to Bed and Breakfast Restaurant.
The loyalty program are sponsored by retailers, offering rewards & discounts and other special
incentives for attracting & retaining customers. The loyalty program will be BEDBREAK
REWARD in which the customer will get free meal on the purchase of combos of Bed and
Breakfast Restaurant that will be valid for 12 months. The characteristics are as follows-
 Service culture- The people are motivated by offering them best customer service to the
customers which have focus on their satisfaction as it is customer centric approach. It
creates value inside and outside the organisation for others. In context to Bed & Breakfast
this feature of relationship marketing will help in retaining customers which leads to
increase in sales by making them feel good and happy (Shook, W. and Westin, M., 2020).
It also enhances brand loyalty, developing demands of clients and becomes brand
ambassadors. The sales and service employees puts customer needs first while presenting
solutions and providing support. Developing a service culture requires time and
consistency (Sismondo, S., 2017).
 Segmentation- This defines dividing different market segments of market which assist
seller in offering best product ad services in regards to needs, desire, and ability of paying
to customers. In the segmentation group is created with certain similarities and taste &
preferences of consumers which facilitates Bed & Breakfast in improving its loyalty
program. The brand awareness is increased in the marketplace and client service is handle
in informed way.
 Database: It is a practising of leveraging data for delivering more personalized and
effective message to customers. It is an application of marketing program aiming of
acquiring new clients. On the existing customers the availability of huge customers data
makes more valuable in domain of customer marketing. In the context to Bed &
Breakfast customer groups are identified and best loyalty program is provided with high
value customers and occasional buyers in database marketing relationship. This will
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improve overall interaction along with customer service with the brand. The internal and
external sources of customer data is used in database marketing which involves
acquisition data, demographic data. Website and purchase history.
 Trust & Commitment: In the marketing relationship it involves two fundamentals of
trust and commitment which involves formation of bond with customers by fulfilling
their required needs and honouring commitments. The trust is a confidence presented in
both parties and commitment is long term desire for maintaining valued partnership. This
helps business in developing trust and relationship with customers. In context to Bed &
Breakfast it will provide promise at every stage of customer journey so that customer
reach towards restaurant can be increased (Tiwari, A.K and et.al., 2018).
 Recognition & Reward: This is one of the most important method in motivating
employees. The reward system defines an program for motivating & rewarding for the
performance on individual or group levels. The recognition is combined with reward
system providing psychological and financial benefit. The reward and recognition helps
employees to perform better which provides great services and customers becomes loyal
for the business. The loyalty program maintains good relationship and business sales is
enhanced which encourage action and boosts connection with restaurant in context to Bed
& Breakfast.
Propose strategies of loyalty program of business in hospitality industry.
The customer loyalty program are the core tactical mechanisms for altering behaviours of
specific customers which helps in focusing on acquiring new customers. The loyalty marketing
defines to strategy which encourages customers for repeating business with company frequently.
The loyalty marketing helps in focusing bringing back and retaining present & past customers
with initiatives and incentives. To build an effective customer retention and loyalty solutions the
Bed and Breakfast restaurant needs to know various loyalty program strategies.
 Data insights for better understanding of existing customer base- The opportunity of
getting data insight on customer benefits in improving customer experience and
satisfaction. This can be done by best practising of loyalty program by offering choice of
services. The loyalty program in financial services provides advantage of insights by
gaining people who may choose award for long term actions (Ji, Y and et.al., 2020). The
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best loyalty program is connected with the owner customer database and managed in
such a manner which can be used for increasing sales and improving customer journey.
 Openness in making rewards program stand out from the crowd- The consumers
have openness that they need service for working with others. The more open system is
beneficial for the present customers. The openness is unavoidable in loyalty program. Ih
context to Bed and Breakfast the reward program allows members for freely exchanging
points. The openness provides better insight on customers so that more choices can be
made by customers (Philips, C.A and et.al., 2017).
 Give Reward & Recognition to customers: A customer will only feel happy and
satisfied if they are committed and kind to the environment. So bed and breakfast needs
to create a value-based recognition ceremony that is best suited to the audience. Give
them an extra discount on a specific offer or meal every time on their visit. It will help
increase customer quota, influence their perception and generate positive growth for the
industry and loyalty program will be enhanced.
 Stay touch in with clients- For the success of the venture this strategy is very important
by which staff are required in restaurant maintaining string and healthy relationship with
the guests and having touch with them consistently. It will help keep loyal customers
informed of new updates regarding menus and offers, products and services, and spend
the time changing customers' attitudes (Sheikholeslami, M and et.al., 2019). In context to
Bed & Breakfast needs to make some effort to provide information about new
advertisements to its audience. Thus, this conditioner makes it an advantage over others
on the market.
 Adopt several channels service system- In order to achieve customer loyalty, bed and
breakfast must use a multi-channel service system. It's one of the best ways to connect
with audience for interaction (Sheikholeslami, M and et.al., 2019). If the company works
more often with the customer, you can have more influence on the customer experience,
and make the company easier to reach.
CONCLUSION
From the above report it is being concluded that best quality of services and goods are
provided by hospitality industry to the customers so that their targets can be achieved. In the
report customer perception is analysed in respect to establishing new restaurant. The analysis
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provides an overview of marketing mix for having competitive edge in market. The loyal
customers are the asset for the company and due to this the organisation gives attention for
developing customer retention and loyalty programs. With this effective strategies for loyalty
program is formulated for survival in the highly competitive market.
References:
Books and Journals
Bastos, R and et.al., 2018. Bounded Engel elements in groups satisfying an identity. Archiv der
Mathematik, 110(4), pp.311-318.
Chan, T.M and et.al., 2018. Social media and the 21st-century scholar: how you can harness
social media to amplify your career. Journal of the American College of
Radiology, 15(1), pp.142-148.
Fatima, R and et.al., 2020, July. Google Scholar vs. Dblp vs. Microsoft Academic Search: An
Indexing Comparison for Software Engineering Literature. In 2020 IEEE 44th Annual
Computers, Software, and Applications Conference (COMPSAC) (pp. 1097-1098). IEEE.
Ji, Y and et.al., 2020. Potential association between COVID-19 mortality and health-care
resource availability. The Lancet Global Health, 8(4), p.e480.
Philips, C.A and et.al., 2017. Healthy donor fecal microbiota transplantation in steroid-ineligible
severe alcoholic hepatitis: a pilot study. Clinical Gastroenterology and
Hepatology, 15(4), pp.600-602.
Sheikholeslami, M and et.al., 2019. Heat transfer simulation of heat storage unit with
nanoparticles and fins through a heat exchanger. International Journal of Heat and Mass
Transfer, 135, pp.470-478.
Sheikholeslami, M and et.al., 2019. Application of nano-refrigerant for boiling heat transfer
enhancement employing an experimental study. International Journal of Heat and Mass
Transfer, 141, pp.974-980.
Shook, W. and Westin, M., 2020. Optimizing an Islandora institutional repository for Google
Scholar.
Sismondo, S., 2017. Post-truth?.
Tiwari, A.K and et.al., 2018. Informational efficiency of Bitcoin—An extension. Economics
Letters, 163, pp.106-109.
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