Marketing Strategies for Customer Retention in Hospitality Industry

This report examines customer retention strategies within the hospitality industry, using The Langham London as a case study. It explores the application of the marketing mix, analyzes the characteristics and effectiveness of relationship marketing programs, and proposes strategies for developing loyalty programs, including a hypothetical scenario for a new hotel named "Versova." The report delves into the importance of customer service, reward programs, and building customer loyalty to drive profitability and long-term success. The analysis covers various aspects, from product and pricing strategies to promotion, people, process, and physical evidence, providing a comprehensive overview of marketing and customer retention techniques within the hospitality sector. It highlights the significance of adapting to market needs and providing superior customer experiences.

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
Analyse the characteristic of organisation's relationship marketing programme and explain its
success or failure as a customer retention...................................................................................3
Propose strategies for development of loyalty programme in own business..............................5
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................7

INTRODUCTION
Customer retention refers to the effective marketing process in terms of engaging existing
customers in terms of prominently purchasing the effective process of products and services. For
effectively retention of customer tends to undertake the prominent tactics from the last
relationship with consumers in terms of becoming more loyal for the brand. In terms of running
business more effectively and smoothly, leads to develop prominent strategies and policies
which is useful in developing long term relationship in market area and customers as well in
terms of making loyal branding (Kanten and Darma, 2017). For this, effective marketing is
considered as the significant factor which is useful for company regarding its strategy by which
it leads to attract lot of customers and also tend to develop effective adequacy. The prominent
report is based on The The Langham London which is committed towards the high quality
services which is offered to their guests and also some unique and experienced moments in terms
of getting effective enjoyment. Moreover, the loyalty programme which is offered by hotel is for
the premium services like Takethelead membership rewards and other reward programme. Along
with this, report tends to cover prominent marketing mix, features of effective relationship with
marketing programmes and various strategies which is useful in developing effective loyalty
programme.
MAIN BODY
The use of marketing mix in marketing strategies
Marketing mix is prominently considered as the effective set for the actions and strategies
which is useful for business in terms of promoting the prominent goods and services. It is
undertaken as the effective tool that leads to pursue several tools and techniques of marketing
objectives and vision regarding the better proficiency to target market. In regard of this, it tends
to develop more valuable products which is offered on the grounds of segment of target, cost of
production, market ability to pay and effective supply and demand management on the grounds
of indirect and direct elements (Ateke, 2016). For this, prominent marketing mix is for The
Langham London is mentioned as underneath: Product: The Langham London is the five star hotel and tends to offer several prominent
services in terms of making environment more sophisticated including services like, Wi-
Fi, best rooms, clubbing, dinning, wellness, events, residences and so on. Currently, hotel
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offer prominent premium services to its potential customers which is the effective
membership rewards in which they give special invitation and online enrolment to their
members in terms of earning rewards for effective meetings and events (Frye and et. al.,
2020). Price: The Langham London tends to offer quality room services in terms of undertaking
the size and facilities. In terms of this, hotel tends to categorise its offerings in terms of
various levels room per night with luxury facilities has price of USD 50,000 or above
which undertake food and beverages and spa voucher. Furthermore, the price for deluxe
room is around USD 30,000-49,999 and normal room starts with USD 6,500-39,999.
Besides this, they also tends to offer various services in their hotel including king size
bed, electric kettle, interconnected rooms, Wi-Fi service and so on. Place: The Langham London tends to offer globally including luxury services and also
well known for its traditional style grand hotels in London. Moreover, its members are
also of London Holdings by which they can easily manage significant operations in terms
of achieving success for the world class portfolio. In regard of this, hotel tends to offer its
services only in London undertaking the various facilities like “Takethelead” loyalty
programme by which they can prominently retain and attract customers in terms of
increasing sales and revenues of hotel (TAKETHELEAD MEMBERSHIP REWARDS,
2020). Promotion: The Langham London tends to get prominent enjoyment in terms of offering
better experience and services considering the supreme advantage in terms of better and
effective accessibility for the premium lifestyle and effective management. It is also
useful regarding the better expansion for working for effective horizon in terms of
covering various benefits and facilities to enhance their sales and profitability. For this,
hotel also tends to make effective modifications undertaking the prominent centres for
effective market attention that are being enhanced. People: The Langham Hotel tends to offer more satisfied and reliable experience to their
customers considering the global market area in which hotel tends to offer effective
combination for the better marketing and sales by improving the prominent competence
for hiring (Amoako and et. al., 2019). For this, managers and leaders of hotel plays an
important role in terms of motivating and encouraging team members that are being
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developed to work collectively in terms of getting dynamic result. For this, hotel tends to
have effective corporation with association of family and also offer data sheet for various
organisations which is helpful for the competitors details and developing financial
contracts. Process: In this, the respective hotel tend to offer effective services and values to their
guests and also tends to reflect prominent classic style with proper luxury (Maier and
Prusty, 2016). Along with this, hotel also tends to represent caring team for the effective
location that tend to undertake capital improvement and advancement regarding the
proper investment that leads to offer effective style and peace at the weekends.
 Physical Evidence: As per this element, if The Langham London want to attract huge
customer base then they need to set prominent backdrop to make their hotel more
attractive that leads to attract people across London. In regard of this, to make it better
hotel tends to offer customer loyalty programme that tends to offer premium services
with perfect blend of lavish style (Mahmoud, Hinson and Adika, 2018). For this,
significant services that are offered by hotel tends to undertake bars, cafe, conference
rooms, event space, laundry, smoking area and so on.
Analyse the characteristic of organisation's relationship marketing programme and explain its
success or failure as a customer retention
This section tends to undertake relationship marketing which is different from the normal
marketing of significant products and services that leads to develop and perform suitable
campaigns in terms of getting effective response for the customer retention. It also tends to
develop effective level of satisfaction rather than sales transactions as the relationship
management is considered as the prominent strategy which is useful in maintaining better
involvement to create effective partnership by undertaking the market context (Hamilton, Rust
and Dev, 2017). Therefore, it is essential for business to increase the market capability that is
helpful for them regarding the customer contract to become more transparent. For this, business
tends to work for making things better in terms of better understanding for various services that
are provided by hotel to its potential customers. In regard of this, it tends to consider significant
features including the significant need and demand for the prominent market area.
The Langham London, is the biggest five star hotel in London that tends to follow the
traditional legacy and also work for achieving prominent reward programmes in terms of getting
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better experience in the hotel and other places across the world. Along with this, The Langham
London also provide family moments and organise events for their guests that leads to attract
customers to spend their vacations with happy and better experience. In regard of this, family
need to be stay stronger for the two nights and more than that which is useful in creating healthy
memory. For this, the customers are delighted for the prominent features undertaking the needs
and demand and the premium services are mentioned as underneath:
 Hotel run its own reward programme named “Takethelead membership reward” that
tends to offer effective membership to its customers. In this, events are organised with
qualified spending the tends to exceed for US$ 6,500 and members tends to choose
prominent earning for the rewards of hotel undertaking luxurious accommodation, fine
dining and so on with effective compliments.
 Hotel tend offer best services at the premium price and for this, they also target potential
customer base.
 Along with this, they also tends to offer complementary services and concerning
activities to their customers in terms of retaining them for longer period of time.
 They also tends to offer services and facilities considering various terms and conditions
in terms of having effective participation considering the effective validity.
 Furthermore, it is important for the hotel to consider and put emphasis on the royal
booking in terms of making effective availability of significant services.
 They also tends to undertake effective cancellation of policy undertaking the significant
restriction and other dates.
 Besides this, they also tends to present valid identification for the check-in and check-out.
Therefore, customer retention need to improved for the prominent level of goods and
services that are being offered to the prominent market area on the regular basis. It is also
promoted considering the significant relationship with customers by which prominent trust and
believe can developed for the prominent interrelationship. Along with this, it is also not much
required for The Langham London to develop prominent reviews regarding the services and
products of customers. For this, customers also need to be satisfied regarding the expected
outcome considering the perfection. Moreover, hotel need to review every feedback from its
customers by which they tends offer flexible and easy factor considering the perfection and
suitability (Palto, Fraser and Lebcir, 2018). Besides this, hotel need to induce significant
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innovation on the grounds of acceptance of market as it is the best way to provide suitable
services in comparison to its rivals. Therefore, the marketing strategy which is offered by hotel is
helpful in terms of developing competitive edge.
Propose strategies for development of loyalty programme in own business
Loyalty marketing strategy tends to motivate customers in terms of visiting place again
and again. It tends to undertake prominent strategies by involving incentivize purchase and tends
to develop customer loyalty. Considering my perspective, a new hotel is opened with the name
of “Versova” which is the three star hotel situated in London and to develop effective loyalty
programmes, I need to undertake significant strategies that are mentioned as underneath: Amazing customer service: Effective customer services have big impact on the ability of
brand in terms of keeping their customers significantly. For this, customer services also
tends to hurt the prominent retention efforts instead of helping them. In regard of this,
Versova tends to opt this strategy in terms of making customer loyalty more effective by
developing personal touch and healthy relations with their customers. Along with this,
personal touch is important for developing effective communication with customers by
resolving other issues and problems (Mmutle, 2017). In terms of respective hotel, they
tends to consider Chatbots for the suitable reason in terms of answering all the queries of
customers without any need in terms of waiting for the human representative.
 Reward programs: It tends to describe the premium services that tends to undertake
significant benefits and discounts in terms of covering the new customers that leads to
offer various benefits by motivating customers in terms of effective purchase (Orantes-
Jiménez, Vázquez-Álvarez and Tejeida-Padilla, 2016). In regard of Versova, respectively
offer reward program to its potential customers like scratching cards, points and rewards
systems and so on various prominent actions within the store. Besides this, it also get
succeed only when customers does not face any sort of technical errors and issues at the
time of signing up for the reward program.
CONCLUSION
By undertaking the above discussion, it is identified that customer retention is effective
aspect for company as it is useful in making effective profitability and desired result for the
longer period of time. In regard of this, businesses tends to develop effective and reliable
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sustainability considering the parallel use of marketing that leads to get effective result in terms
of conceptualizing with efficiency and perfection. Considering the prominent marketing mix is
useful in terms of generating the prominent mode of effectiveness. For this, the use of marketing
programme for customer retention is effectively processed with prominent manner.
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REFERENCES
Books and Journals
Amoako, G.K and et. al., 2019. Relationship marketing and customer satisfaction in the
Ghanaian hospitality industry. Journal of Hospitality and Tourism Insights.
Ateke, B.W., 2016. Customer Involvement Management (CIM) As a Correlate of Customer
Retention (CR) in the Hospitality Industry. International Journal of Marketing and
Communication Studies. 1. pp.1-9.
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.
Hamilton, R.W., Rust, R.T. and Dev, C.S., 2017. Which features increase customer
retention?. MIT Sloan Management Review. 58(2). p.79.
Kanten, I.K. and Darma, G.S., 2017. Consumer Behaviour, Marketing Strategy, Customer
Satisfaction, and Business Performance. Jurnal Manajemen Bisnis. 14(2). pp.143-165.
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.
Maier, T.A. and Prusty, S., 2016. Managing customer retention in private clubs using churn
analysis: Some empirical findings. Journal of Hospitality Marketing &
Management. 25(7). pp.797-819.
Mmutle, T., 2017. Customers' perception of service quality and its impact on reputation in the
hospitality industry.
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.
Palto, D., Fraser, P. and Lebcir, M., 2018. An investigation into the relationship between
customer relationship marketing and customer retention: superstore retailing context in
Bangladesh. Journal of Business and Retail Management Research.
Online
TAKETHELEAD MEMBERSHIP REWARDS. 2020. [Online] Available through:
<https://www.langhamhotels.com/en/the-langham/london/events/meetings/rewards-
programme/>./
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