Improving Customer Experience: A Ritz Hotel Analysis Report

This report provides a comprehensive analysis of customer experience management within the context of the Ritz Hotel London. It begins with an introduction to customer service and experience management, emphasizing the importance of meeting and exceeding customer expectations. The report identifies the challenges faced by the Ritz Hotel in meeting the diverse needs of its target customer groups, including age, sex, culture, and income. It explores various factors influencing customer engagement, such as purchasing power, group influences, personal preferences, the economic situation, and marketing strategies. The report also examines the optimization of customer touchpoints, utilizing customer experience maps to improve customer satisfaction, sales processes, and advocacy. It outlines a plan to effectively utilize touchpoints like websites and mobile applications. The analysis includes an evaluation of customer satisfaction and provides recommendations for improvement, ultimately aiming to enhance customer loyalty and brand perception. The report references several academic sources to support its findings and recommendations.

MANAGING
CUSTOMER
EXPERIENCE

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Customer service is considered as most essential part of hospitality industry. Customer
experience management refers to the process of designing and reacting to the interactions with
customers for meeting and expecting customers expectations which results in increasing
customer satisfaction, advocacy and loyalty(Goodman, 2019). It is a type of strategy which
requires change of process and accomplishing many technologies.
Case
Over a past few decade hospitality businesses have improved their customer services to
give amazing experience to consumers. These firms are continuously trying to meet expectation
of guest. Demands of customers are too high hence it is very important for Ritz Hotel to improve
its customer service strategies so that it can meet expectation of guests and can make them
satisfied towards the brand (Lemon and Verhoef, 2016)..
Problem
Now a days it is realised that Ritz hotel London is unable to meet needs of different target
group consumers. It is essential to understand need, wants and also preferences of the customer
which are targeted or target customers. Right now our company is unable to deal with this issue.
Now we all need to work to improve services for consumers.
MAIN BODY
Broad range of different target customer groups’ needs and expectations in terms of
customer engagement for a service sector organization
Each customer is important for Ritz hotel London, it is very important for us to solve the
problems faced by each customer according to his or her taste and preferences, first of all the
manager have to understand to the problem and then find the cause of it and then solve
it(Peppers and Rogers, 2016).
Our target customers are of different age, sex, culture, communities, income, occupation
and different country. Each customer have their own needs and wants, so the manager have to
understand first what the customer want or what is the problem faced by the customer in the
hotel. Sometime it is a challenging task to understand the needs and wants of the customers.
What the customer need and want should come at the first place and what the hotel want should
come at second place. To understand the problem the manager should be well versed in advance
by research. The manager can do analysis based on the research and then make available those
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products in the hotel. Requirement of different age group can be, for the youngster it can be more
playful activities in the hotel such as party, music, dance etc. due to which the customer is
always entertained and never get bored in the hotel and it will create a impact on the hotel in the
form of good memories which will bring the customer again. For the old customers the need can
be for relaxed and recreational activities which can be yoga activities, Steaming and spa
activities, massage activities, and relaxing in the swimming pool etc. If it is concerned with the
customers related with different sex for example male needs can be more playful activities and
female needs can be more beauty related products, also different communities can have their
own needs for example in Christmas the customer expects some extra form the hotel which can
be celebrating the Christmas in the hotel, decorating the rooms making the theme of Christmas in
the rooms etc.(Lemon and Verhoef, 2016).
Cause
The major which has been realised by me is that If the customer is facing any problem, or
the customer is not getting what is want by the customer, which can be higher prices, booking
problems, extra facility need by the customers (especially old customers), taste of the food and
quality of the food issue etc. The manager have to understand the problem, for example the
problem faced by the Ritz hotel London is charging higher prices from the customer then the
manager have to react on it, because the manager have understood the problem now then the
manager will find the causes behind it which is higher cost of the room of the hotel, like cleaning
cost, Air conditioner cost, repair and maintenance cost etc. Now after understanding the cause
for the problem the manager will react on it finding appropriate solutions for the problem which
are arrangement of the rooms which less costly or converting a room into a hostel room having
many beds in the room(Homburg, Jozić and Kuehnl, 2017).
There are many reasons behind dissatisfaction among consumers in hotel. The factors
that influences customers of target groups of Ritz hotel.
There are generally five factors which influences customer engagement of different target
customer group within a service sector organisation such as Ritz hotel London, which a manager
must consider and make changes accordingly, which are as follows:
Purchasing Power of the customer
The manager have to understand what is the purchasing power of the customers, some
customers wish to buy the expensive and quality products and some are willing to do
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expenditure very less but their demand is very high, some wants to spend less and want also less
facility due to their few time stay in the hotel.
Solution
Hence we all need to understadn what is the purchasing power of the customer and then
have to design product accordingly. For example designing high quality room having premium
facility for the premium customers (Jain, Aagja and Bagdare, 2017). If Ritz hotel London
designs effective products then it would help in attracting new consumers towards the brand.
Cause
Influences of the group is cause of influencing need of consumers. The group influences
is very importance and it makes happen in creating a trend in the market. If the customers are
willing to have momos as a fast food in the hotel then the manager must add this item in the
menu(Hwang and Seo, 2016). A group can be family members, friends, neighbours, relatives etc.
It can also be some customers liking to have more spicy food and some like to have less spicy
food. So in this way it influences the engagement of the different target customer group.
Preferences which are personal is another cause of this issue. The manager also have to decide in
advance what a customer can demand in the future and must make ready the product in advance,
In the Ritz hotel London, the customer is permanent and also choose the hotel Ritz for having its
annual general meeting in the hotel but the customer have the personal need of his own then the
hotel manager must make arrangement in advance for the personal need for the customer, as the
manager knows that the customer is genuine and gives a regular income by having annual
general meeting.
Solution
Hence hotel should make continuous interaction with consumers, so that their needs can
be analysed timely and hotel can serve them accordingly. Social media is the best way through
which hotel can make communication with customers time to time (Goodman, 2019).
Cause
The condition of the economy of the country. A positive economy is must give positive
result to the Ritz hotel London. This make the customers give high confidence to spend more in
the hotel and generally most of the customers are having good income and are ready to spend a
good amount in the hotel (Goodman, 2019).
Solution
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So the manager must focus on quality of the product in that situation and spend more
money towards the cost of the room and cost of the hotel and make the Ritz hotel more and more
quality efficient.
Cause
Marketing influences is the most important factor which plays very crucial role in
influencing the customers' engagement. Marketing makes aware the customers about the
availability of the product to the customers, what are the extra benefits The Ritz hotel is giving to
the customers, how it can be beneficial for the customers and how the hotel is better form others.
Solution
So the manager must do marketing at the best level possible by using various platforms
such as social media, radio, advertisements etc (Gopalakrishna, Malthouse and Lawrence, 2017).
Optimisation of customer touch point and its impact on behaviour of consumers
Customer Experience map refers to a tool that is more linear in which specific
touchpoints mapping is being done where a customer interacts with a brand for the purpose of
purchasing.
Transition
It acknowledges the multitude if the channels in which customer interacts with a brand
throughout the journey of buying in a much comprehensive way. Ritz Hotel can use this tool for
higher customer satisfaction, improvement of sales process, decreasing customer turnover and
better advocacy from the current consumers (Homburg, Jozić and Kuehnl, 2017).
There are several ways through which a customer experience map can be created. For
enhancing a customer relationship map some steps are to be undertaken by The Ritz Hotel.
Firstly, the hotel has to make sure that the research is being done thoroughly as the data of the
research will be used for informing that the map is not based on guesswork. Secondly, They have
to define several behavioural stages from the perspective of customer. It is important that it is
organised by the stages which reflects the major goals that customers are trying to achieve ,
rather than organising them by self perspective of Hotel. The data which is being collected from
interviews of customers should be utilized and Hotel must try to achieve the perspective of
customers (Hwang and Seo, 2016).
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Capturing the customer satisfaction is another aspect in forming customer experience
map. The experience map must detail more specific considerations and goals which customers
might have. These may include several aspects such as ensuring from customers that they are
paying fair prices and seeking reassurance that the services provided were the value for money.
Every touchpoint must be detailed so that customer experience can be determined. With the help
of Customer experience plan, customer pain points are to be determined so that Hotel can
overcome such issues which are faced by customers. Further, experience map includes
consideration of what other details can be added to this for improving the map. Last aspect for
customer experience map consist outlining the opportunities for improvements. It is important
for Ritz Hotel that the map is being filled out and the opportunities and pain points for the
improvement of the organisation are being determined and being implemented(How to Create an
Effective Customer Journey Map, 2019).
Our plan to improve experience of consumers is that, now we are planning to use out all
touchpoints very effectively.
Customer Experience Map
Touch Points Service/product Bookings Post Booking
Suggestions
Recommendation
to others
Website This includes the
description of
services and
products which
are being offered
to the customers
that includes
pricing, types of
services,
amenities and
Policies.
Bookings are
accepted through
website with 25%
of advance
payment.
Most of the
customers have
suggested about
the advance, that
it can be taken
fully and majority
have suggested
that advance to be
reduced up to
10%. Payment
gateway
improvements are
suggested by
Average ratings
for
recommendations
out of 5 were 3.5.
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customers.
Mobile
Application
This includes all
the information
about the
offerings of the
products and
services from
booking to
checkout.
Bookings are
being accepted in
mobile
application which
offers special
discounts to
customers and
advance is
required up to
25%.
Customers are
happy with their
booking
experience and
have appraised
about the quality
and easiness of
bookings in
mobile
application.
Recommendation
ratings on an
average rated to
4.8 out of 5.
Communication
Channels (social
media, email,
chats)
This only
includes limited
information from
which customers
can be attracted,
this consist of
only products
which are offered.
Bookings are not
accepted from
social media
directly, they are
suggested to use
website and
mobile
applications for
bookings.
No such bookings
are being
considered
through
communication
channels.
Recommendation
s were made
through
communication
but no such
ratings were
recorded.
Effective use of touch points of customers throughout the customer experience creating
business opportunities
The crucial interactions where the audience and brand meets can be recognised as
customer touchpoints. This can be occurred in any point of customer experience which includes
evaluation, awareness, purchase and realisation. Hotel Ritz can earn loyalty and improve
effectiveness of its business by focusing on the aspects of touchpoints. They can be recognised as
customer experiences which are with the organisation. Ritz Hotel has used several touch points
for creating customer experience map which includes website, mobile application and
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communication channels such as social media, emails and chats(Gopalakrishna, Malthouse and
Lawrence, 2017).
Website
It is a type of touchpoint which is being used by Hotel Ritz for preparing the customer
experience map through which the Hotel can offer its services through a website. This will help
the consumer to approach the Hotel. This make it easy for the customers to reach the website and
see the offerings of the hotel. This is a easier form from the point of view of customers as they
get information for several hotels and they can compare their services and offerings with other
competitors also and can choose wisely for the hotel they feel most effective and efficient. Hotel
has to consider that the products that are being offered are updated and the pricing of the services
is done correctly so that the administration don't face any issue in future at the time of check-in.
Website is creating a business opportunity for the Hotel by offering its services globally with the
help of a website through which maximum number of people can be approached(Roos and
Bekker, 2018).
Mobile Applications
It plays a major role in offering the services to the target customer as mobile applications
are being used frequently by most of the people and it has made easy for the customers to choose
from a wide range of hotels and select the best service which is being suitable for them. This
creates a business opportunity for the Ritz Hotel by making some unique features offering to
customers with a special discount that attracts the customers and make them use the services of
the company. It is a significant method of marketing too as it offers the services of the hotel to
the customers and creates a new batch of customers for the company that results in creating a
business opportunity(Chauhan and Manhas, 2017).
Communication Channels
It includes various ways through which a company can create a customer experience map
that includes social media, email and chats. It has a major effect on creating business opportunity
through customer experience. Youngsters and people ageing from 24 to 60 are very much
involved in use of social media and emails. Feedbacks in the way of comment section, or sharing
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the experience through social sites which can ultimately advertise the company's products and
hence, creating business opportunity through customer experience(Gruber and et.al., 2015).
CRM systems
Problem
It is essential to use advance digital technologies otherwise hotel get fail to make clear
communication with its guest. Recently it is found that Ritz hotel is using outdated techniques
and it is not applying customer management software due to which it is unable to enhance
interaction with potential buyers (Goodman, 2019).
Transition
This software technology includes collection of correct data or the information involves
reporting, capturing and examining their interaction with the customers and is used for
maintaining right guest profile which helps in understanding their needs, preferences and
expectations by remaining in contact with them.
Cause
Recently company is not using customer relationship management software due to which
it is unable to build healthy relation with its guests (Gopalakrishna, Malthouse and Lawrence,
2017).
Solution
Through this hotel can target profitable customers by giving them the best experience,
fulfilling their needs and expectations which leads into their satisfaction and the retention and
increase their loyalty towards the hotel. The Ritz Hotel London is using this tool strategy so they
can meet the demands of the guest which help them to create competitive position in the market
meanwhile increasing its profitability and productivity. Throughout the journey, visitors feel
happy, have fun, and also enjoy the whole process if they are in their comfort zone. Before check
out visitors are always asked for their suggestions and reviews so that hotel can upgrade its
services according to the demands of customers and also asked to promote the hotel (Sharma and
Jasrotia, 2016). On other hand use of CRM system can enhance operational cost of business
which will reduce net profit of organisation
Cause
Social media are the networking sites which are highly used by the entire world for
broadcasting, sharing and transmitting information about itself and is the very good platform for
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attracting, and influencing people in a large digit throughout from the different areas towards
hotel. It is the site from where Ritz Hotel London is raising the voice of its followers by allowing
them to review and to give suggestions for different service sectors so that hotel can overcome
the issues faced by its followers so that it can implement the changes for future betterment.
Using social media networking sites, hotel can execute improvement within itself and can
provide better environment which results into good experience for the customers. Unfortunately,
it leads into advocacy and acquisition of the customers i.e., customer recommendations to their
friends and families hence increase the earnings of the hotel (Steinhoff and Palmatier, 2016).
Solution
Ritz hotel must give more detail on its social networking sites, so that consumers can get
to know about its products and services. Furthermore, entity should give immediate response tots
consumers so that they become positive towards brand (Homburg, Jozić and Kuehnl, 2017).
Cause
Websites carries (Yang, Liu and Li, 2015)all the past, present and future details of the
hotel. Ritz Hotel London is using websites for advertisement, for giving an opportunity of
advance bookings, and providing all the data or the information regarding hotel, its prices,
amenities including free Wi-Fi, lodging, parking, laundry, fitness centre, restaurant, bar, air
conditions, fun service, room services, its contact details, hours availability, address, spa
treatment and discount offers, to its customers and also allow them to give ratings, their views
for future betterment.
Solution
Use of technology must be done in effective manner, it will help in engaging people from
the large extent and to meet their expectations by extending its services, giving them the
excellent services and experiences, this results in high satisfaction of the customers meanwhile
creates happy and loyal customers and also give them the positive environment , which influence
them to visit back to the hotel in the future(Yang, Liu and Li, 2015). Ritz Hotel London is using
all the ways to attract, influence people and also trying to remain in contact with them so that
they promote and recommend hotel to their fiends and families and return to hotel.
Delivery of customer service strategies and communication
Problem
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Ritz hotel is unable offer amazing customer services to its consumers which is the major
problem faced by business recently.
Transition
Customer services is the major part of hospitality industry hence firm has to ensure
offering quality services to its potential buyers so that it can gain their attention and can make
them positive towards brand.
Cause
The main reason of poor customer service is that employees have poor knowledge of
products due to which they fail to serve consumers well (Hwang and Seo, 2016).
Solution
Improvement in Product knowledge is the great strategy that may give positive result to
hotel. Under this strategy a proper knowledge of the product is given to the employees to make
them competent and the strategy will help the Ritz hotel by increasing its value in the market and
with an image that the hotel employees are knowledgable persons. Under this the knowledge is
given in the form of training which may be given by the manager himself or any other training
member in the hotel. It is very essential for a hotel like Ritz to give its employees proper training
of the product knowledge(Bjelajac and et.al., 2016). Each and every employee of the Ritz
hotel must be well versed with the product know how. For example if in a hotel an employee is
asked for cappuccino by the customer and he brings latte, and the customer is having accurate
knowledge of the product then it can lead to bad impression towards the Ritz hotel, so the
manager must give the employee a proper product knowledge. Each employee of the Ritz hotel
must have knowledge of all the products which are available in the hotel. If the employee having
a good product knowledge it will impress the customer. This will result in creating a great
customer experience towards the Ritz hotel(Jain, Aagja and Bagdare, 2017).
Cause
Poor knowledge about consumer needs to workers is another reason of poor services in
Ritz hotel.
Solution
Training of customer empathy: This is the training under which the employees learn the
behaviour of the customers and how to react towards the customer in a particular situation. The
situation can be a customer very happy, very sad, angry etc. How to react under the mentioned
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