Section I Conceptual Framework for CRM

What is Customer Relationship management? Customer relationship management is creating a team relationship among sales, marketing, and customer support activities within an organization. Another narrow, yet relevant, viewpoint is to consider CRM only as customer retention in which a variety of after marketing tactics is used for customer bonding or staying in touch after the sale is made. Shani and Chalasani define relationship marketing as “an integrated effort to identify, maintain, and build up a network with individual consumers and to continuously strengthen the network for mutual benefit of both sides, through interactive, individualized and value-added contacts over a period of time”. The core theme of all CRM and relationship marketing perspectives is its focus on cooperative and collaborative relationships between the firm and its customers, and/or other marketing actors. CRM is based on the premise that, by having a better understanding of the customers’ needs and desires we can keep them longer and sell more to them. Growth Strategies International (GSI) performed a statistical analysis of Customer satisfaction data encompassing the findings of over 20,000 customer surveys conducted in 40 countries by Info quest. The conclusions of the study were: • A Totally Satisfied Customer contributes 2.6 times more revenue to a company as a Somewhat Satisfied Customer. • A Totally Satisfied Customer contributes 17 times as much revenue as a Somewhat Dissatisfied Customer. • A Totally Dissatisfied customer decreases revenue at a rate equal to 1.8 times what a Totally Satisfied Customer contributes to a business. • By reducing customer defection (by as little as 5%) will result in increase in profits by 25% to 85% depending from industry to industry.

An important facet of CRM is “customer selectivity”. As several research studies have shown not all customers are equally profitable (Infact in some cases 80% of the sales come through 20% of the customers). The company must therefore be selective and tailor its program and marketing efforts by segmenting and selecting appropriate customers for individual marketing programs. In some cases, it could even lead to “ outsourcing of some customers” so that a company better utilize its resources on those customers it can serve better and create mutual value. However, the objective of a company is not to really prune its customer base but to identify appropriate customer programs and methods that would be profitable and create value for the firm and the customer. Hence, CRM is defined as: Customer Relationship management is a comprehensive strategy and process of acquiring, retaining and partnering with selective customers to create superior value for the company and the customer. As is implicit in the above definition, the purpose of CRM is to improve marketing productivity. Marketing productivity is achieved by increasing marketing efficiency and by enhancing marketing effectiveness. In CRM, marketing efficiency is achieved because cooperative and collaborative processes help in reducing transaction costs and overall development costs for the company. Two important processes for CRM include proactive customer business development and building partnering relationship with most important customers. These lead to superior value creation. The basic concept is that the customer is not someone outside the organization, he is a part of the organization.

Key CRM principles
Differentiate Customers: All customers are not equal; recognize and reward best customers disproportionately. Understanding each customer becomes particularly important. And the same customers’ reaction to a cellular company operator may be quite different as compared to a car dealer. Besides for the same product or the service not all customers can be treated alike and CRM needs to differentiate between a high value customer and a low value customer. What CRM needs to understand while differentiating customers is? - Sensitivities, Tastes, Preferences and Personalities - Lifestyle and age - Culture Background and education - Physical and psychological characteristics • Differentiating Offerings

→ Low value customer requiring high value customer offerings → Low value customer with potential to become high value in near future → High value customer requiring high value service → High value customer requiring low value service
High value customers who require a high level of service are maintained without expanding the costly offering to the entire customer population

High Low value customers who Require high levels of service Must either purchase the higher level of service or become our competitors low value/high cost customers

Service Requirement
Low Low

Customer Value

High

• Keeping Existing Customers Fig. 1 Customer value – Service Matrix

Grading customers from very satisfied to very disappoint should help the organization in improving its customer satisfaction levels and scores. As the satisfaction level for each customer improve so shall the customer retention with the organization. • Maximizing Life time value Exploit up-selling and cross-selling potential. By identifying life stage and life event trigger points by customer, marketers can maximize share of purchase potential. Thus the single adults shall require a new car stereo and as he grows into a married couple his needs grow into appliances. • Increase Loyalty Loyal customers are more profitable. Any company will like its mind share status to improve from being a suspect to being an advocate. Company has to invest in terms of its product and service offerings to its customers. It has to innovate and meet the very needs of its clients/ customers so that they remain as advocates on the loyalty curve. Referral sales invariably are low cost high margin sales. (Fig 2. Categorizing Customers)

High

*You have No Choice But To

Handle Them Very Carefully. Will Consume Energy # Think Of Innovative Ways of Getting them On Your Side, But The ‘Cost Of Acquisition’ Must Be Controlled

*Cultivate Relationship.

Spend Energy. Go Out Of Your Way. #Think Of Strategies TO Move Them Away From Competition. Will Consume Disproportionately High Energy.

Strategic Importance To Your Business Plan

*Existing Customers #Potential Customers

*Very cautious decision needed. Re*Focus On Short Term Profitability. examine business Plan & Strategy. Spend Minimum Energy To Meet Your Evaluate That Your Loss (i.e. Your Objectives. competitor’s gain) Doesn’t become nightmare for you. #Don’t Pursue. Use Opportunity As It Comes. #Needs In-depth strategic review as Short Term Acquisition Shouldn’t Affect acquisition alone and dissatisfaction later Long Term Image. could be more harmful

Summarizing CRM activities:

Low

Low

High

Relationship & Profitability Potential

3 CRM Activities 1 Creating value for customers & prospects 2 Creating loyal customers Customer Relationship Life Cycle . (having in depth knowledge of Creating value for customers and prospects Creating loyalty Acquiring new customers Creating profits Learning from customers & prospects Acquiring new customers 5 3 4 customer) Creating Profits Fig. 5. 2. 4. 3. Learning from customers and prospects.The CRM cycle can be briefly described as follows: 1.

Billing. and Service Profiling • • Collaborative Management Content 4.Dispatch Integration Services of Marketplace • • Real-Time Availability Checks Contract.loop customer interactions through all phases of the customer relation life cycle including: 1. and Financials Management • Fulfillment Visibility and Order Tracking Customer Engagement .CRM facilitates closed. Order Fulfillment • Complete Process Order Interaction Center Internet Customer Self-Service Service Management Claims Management Field Service -. Customer Engagement • 2.Mobile Service Field Service -. Business Transaction and • • Marketing Planning Order Acquisition Internet Configuration Pricing and Campaign Management • Telemarketing Generation and Lead • • • • E-Selling Telesales Field Sales Profitability Analysis One Step Buying and Selling • • Opportunity Management Sales Activity and Contact Management • Customer Segmentation. Product. Customer Service Life Cycle • • • • • • • 3.

payment.Enables complete marketing campaigns.Enables planning.Manages inbound and outbound calls. call list management. handles high call volumes. and estimate potential-to-buy and potential closing dates • Sales Activity and Contact Management -. integrates sales information from back-office systems and product information from online catalogs • Field Sales -. and sales budget.Provides sales tracking and sales forecasting. facilitates coordination of budgets. at any time. and reports on product and pricing trends • Internet Pricing and Configuration -. organizing.Provides solution for selling products and services via the Internet.Delivers online systems that allow users to configure products online and compare prices across different catalogs and marketplaces. contract completion. catalog browsing. provides efficient user interface.Organizes daily workloads and customer contact information for display in calendar application. provides links to Business Intelligence reporting capabilities Business Transaction In the business transaction phase of the relationship life cycle Customer Relationship Management supports the following key functional areas: • Order Acquisition -. forecasts. identify key decision makers. and communications • Telemarketing and Lead Generation -. includes shopping basket functions • E-Selling -. audience definition. and implementation of sales strategy. lead qualification. covers all phases of sales cycle. monitors sales pipeline.• Marketing Planning and Campaign Management -. and customer support • Telesales -. sales portfolio. including one-to-one marketing. market segmentation.Delivers key customer and prospect information to sales personnel at any place. helps plan sales approaches.Facilitates customer segmentation. . facilitates planning and maintenance of sales activities. order placement. and monitoring of campaign progress by using integrated analytical CRM functionality • Opportunity Management -. search. including content development.

and Financials Management -. e-mail management. proactively notifies customers of changes that affect delivery • Real-time Availability Checks -. creates quotations and takes orders. allows sharing of information with customers via the Internet Customer Service In the customer service phase of the relationship life cycle Customer Relationship Management supports the following key functional areas: • Interaction Center -.Enables allocation of resources in real-time at the front-end. and accounts. integrates industry-leading eFrontOffice call center applications from Nortel Networks Clarify. monitor. production capacity. distribution. includes real-time access to inventory levels. including telephony and Web. and enhance all customer contact. billing status. supports effective • customer self service. includes case-logic system featuring advanced decision support for problem determination and resolution .Provides information about customer contracts. includes support for mobile and wireless devices Order Fulfillment In the order fulfillment phase of the relationship life cycle Customer Relationship Management supports the following key functional areas: • Complete Order Life Cycle Process -.such as appointments. enables visibility into product and service delivery dates • Contract. provides unique. and provides activity reports.Provides inbound and outbound call processing.Enables real-time tracking of order fulfillment. and activity management to track.Provides the ability to track and trace orders at all points along order management. and service processes.Offers customers and prospects access to information and customer service functions via Internet. and calls. manufacturing. customized and "guided" content for customers. supports multiple channels for customer communication. and lead-time requirements across the entire supply chain. provides certified interfaces to leading computer telephony integration (CTI) solutions • Internet Customer Self-Service -. visits. integrates back-office functions • Fulfillment Visibility and Order Tracking -. Billing.

handles customer installations. integrates contract management. checks customer warranties when services are performed. helps decision makers with strategic management issues • • Claims Management -.(Dispatch) -. scheduling.Delivers and tracks customer and account information for field service personnel. integrates information from materials management. and accounts receivable.Provides access to a broad range of applications and services hosted on virtual marketplace Figure 4 Customer Life Cycle Management Business Transaction Customer Retention and referrals for new customers Customer Engagement Order Fulfillment Customer Service The Emergence of CRM Practice The Past: .Meets varied demands of service management business. monitors day-to-day operations. includes support for mobile and wireless devices • Field Service . supports services carried out at customer site or in-house repair center (depot). cost accounting.(Mobile Service) -.Facilitates handling of entire claims process Field Service . supports involvement of external service providers. and dispatching functionality through tight integration with fulfillment systems.Enables rapid allocation of service engineers and materials to meet incoming service requests • Integration of Marketplace Services -.• Service Management -. facilitates simple and complex services. provides service planning and forecasting. billing. calculates services charges.

• 1970’s – saw the beginning of segmentation. Such direct interaction led to relational bonding between the producer and the consumer.Looking back at a snapshot history of marketing. It was only after industrial era’s mass production society and the advent of the middlemen that there were less frequent interactions between producers and the consumers leading to transactions oriented marketing. a number of key marketing concepts can also be used to see where CRM has developed: • • • Satisfying Needs. The production and consumption factions got separated leading to marketing functions being performed by the middle men and middlemen are in general oriented towards the economic aspects of buying since the largest cost is often the cost of goods sold. when Gibbs SR toothpaste began the first marketing of this kind with its black and white campaign. several factors have contributed to the rapid development and evolution of CRM. In recent years however. These include: - . all set up to develop relationships with customers. The recognition of the true value of retention and the use of Lifetime Value as a business case. Customer Orientation The organization needs to be arranged so that all functions contribute Profit must be the consequence of delighting customers (Kotler) Developing customer relationship has historical antecedents going back into the pre industrial era. Similarly artisans often developed customized produce for each customer. • 1990’s – Relationship Marketing. The explosion of telemarketing and call centers. direct mail campaigns and early telemarketing (such as publishing) • 1980’s – where Niche marketing made millionaires of those who were best at it. In addition to this. we can see the following clear developments and progression over the last four decades: • 1960’s – the era of Mass Marketing.

The growth in service economy. The growing de-intermediation process in many industries due to the advent of sophisticated computer and telecommunication technologies that allow producers to directly interact with end-customers. Thus several companies such as Motorola. 2. requiring flexibility and rapid adoption to technologies. Newly Empowered customers who choose how to communicate with the companies across various available channels. Ford. Toyota. the de-intermediation process is fast changing the nature of marketing and consequently making relationship marketing more popular. and General Motors. in many industries such as airlines. networking and manufacturing technology have helped companies to quickly match competition. In the current era of hyper competition. 7. Other programs such as JIT and MRP also made use of interdependent relationships between suppliers and customers. The speed of business change. interactive channels including e-mail. As a result product quality and cost are no longer significant competitive advantages. For example. software or household appliances and even consumables. 6. banks insurance. ATMs and call centre that must be synchronized with customer’s non-electronic activities. it minimizes the role of the middlemen. Customer expectations are changing almost on a daily basis. Xerox. marketers are forced to be more concerned with customer retention and customer loyalty.1. 3. This needed close working relationships with the customers. 5. Emerging real time. Advances in information technology. Databases and direct marketing tools give them the means to individualize their marketing efforts. When companies embraced TQM it became necessary to involve customers and suppliers in implementing the program at all levels of the value chain. . 4. Also nowadays consumers expect a high degree of personalization. IBM. Since services are typically produced and delivered at the same institution. Another force driving the adoption of CRM has been the total quality movement. etc formed partnering relations with suppliers and customers to practice TQM.

selecting parties (or customer partners) for appropriate CRM programs and developing programs (or relational activity schemes) for relationship engagement with the customer.CRM Formation Process In the formation process. three important decision areas relate to defining the purpose (or objectives) of engaging in CRM. CRM Process Framework . Team Structure Purpose   Increase Effectiveness Planning Process Improve Efficiency Role Specification Relationship Performance  Strategic  Financial  Marketing → Retentio n → Satisfac tion Planning Process Process Alignment Programs    Account Management Retention Marketing Co-op Agreements Monitoring Process Communication Employee Motivation Employee Training Partners   Criteria Process Evolution • Enhancement • Improvement Fig 5.

Sales reps can review and monitor the health of their sales pipeline through graphical views. Field Sales Online provides up-to-the minute pipeline and forecasting information to an account manager. . faster. upside or lost pipeline opportunities by depicting their sales information through this fully interactive interface. Sales reps can easily manage and view any combination of won. forecasted. facilitating team selling that will lead to closing more deals. and retain historical information for trend and win/loss analysis. forecasting and pipeline management to improve your organization's ability to close deals. This gives your sales organization the flexibility to project forecasts for multiple periods. For an account. freeze forecasting periods. • Improve Global Forecast and Pipeline Management Improve information access.Business Objectives From CRM The following are some of the strategic objectives offered by the Sales Applications in the CRM suite: • Increased Revenue Focus your sales force on increasing your company’s revenues through better Information and better incentives to drive top line growth. Through a CRM integrated solution. a pipeline analysis is available real time by sales channel. or sales group. Sales reps can also define a forecasting window on a "rolling" schedule for any number of pre-defined periods. sales status. sales reps can access and share account and contact management information throughout the enterprise. Sales reps can also generate sales forecasts in units as well as currency. global visibility of their company revenue forecast. It also allows sales reps to effectively target their selling efforts to focus on high-value deals and meet revenue targets. Field Sales Online's multi-currency consolidation of divisional forecasts provides sales executives with a higher. sales rep. sales manager. and sales stage. or territory manager.

reducing the cost of deploying sales automation solutions within your organization. sales reps have the ability to download complete territory information to their laptops for better account management while on the road. activity. This reduces costs and extends the mobility of sales one step further with the introduction of application support for mobile hand-held devices. contact. Field Sales Online's Web architecture enables global deployment and upgrade to remote users as well as easy customization. thus increasing the chances for a successful sale. the information is uploaded and is available throughout the organization. Next time the sales rep connects to the network.• Improve Win Probability Improve the focus of your sales efforts with better information to close deals. Account. Dynamic menus and tabs facilitate navigation and eliminate the need for user training. Through mobile functionality. opportunities. completely disconnected from the corporate network. • Reduce Cost of Sales New technologies can lower the cost of deploying sales automation solutions and at the same time improve the effectiveness of your sales efforts. With this view. sales organizations can better qualify leads and assign organizations have a top their top sales reps to the top accounts that have the highest win probability. Global -line view of their entire sales pipeline-across business units and products. and opportunity information can be accessed and updated throughout the sales cycle. Field Sales Online reduces implementation time as well as promotes sustained use of the application by the sales force. . Users can access summary information for their customers. export the information to their preferred spreadsheet or drill-down to the lowest level of detail. and compensation by a single click of the mouse. Sales reps also have access to competitive information collected from deals lost through pipeline management features.

letting you define the information users can access. sales rep. adjustments and transactions. Reduce the steps involved in tracking and quoting customer data with integration of sales capabilities across your enterprise. or partner sales rep. Field Sales Online provides sales managers with an efficient tool to monitor sales force performance. • Promote Sales Representation Retention Empower your sales force to proactively track and monitor their performance and compensation levels to better incentive them to achieve goals and be successful within their positions and for your company. sales group. In addition. Effective tracking and reporting options provide verification to the sales force that they are receiving appropriate compensation. and tools used by their top performers to replicate successful profiles within the sales organization to maximize its efficiency and performance. Sales applications enable sales reps to view their compensation summary. sales reps can "blind-rank" themselves at anytime to measure their performance against a group of peers. Managers can then analyze background. sales managers and executives can identify their top and bottom performers. or sales managers to create reports related to the sales people who are assigned to them within the salesperson hierarchy. you can allow users to create reports for only their commission and performance data. Sales Compensation offers flexible reporting access. Opportunities and pipeline are tracked at each stage of the sales funnel by channel. the breakdown of their commission by deal. For example. so they can track their own performance. In addition. . and period. product line. Sales reps can forecast their future compensation and commissions based on their current pipeline and focus their selling time on the most valuable opportunities. training.• Increase Sales Rep Productivity.

and even individual customer results. Marketing Applications automates the entire marketing process from demand creation to revenue recognition. execution. individualized marketing campaigns. campaign management. a call center. Designed specifically for marketing professionals. . This level of detail enables marketers to reduce costs while increasing the effectiveness of their marketing efforts. targeted campaigns with better returns on your marketing investments. In addition to supporting traditional marketing and demand creation channels such as direct mail and tele-business. by market segments.loop Marketing Improve marketing management and programs with a comprehensive marketing system that supports planning. Internet support and analysis. the application automatically collects campaign results and tracks campaign effectiveness across different sales channels. or the Web. payment preference. This integration enables marketers to tap into the wealth of data collected through every customer "touch" with their company whether through field sales. marketers will be able to profile customers based on any number of criteria including sales cycle. • Expand Marketing Channels Through Utilize the power of the Internet to increase your marketing reach and effectiveness.The objectives for Marketing Applications offered by a CRM suite are as follows • Closed. to tailor messages and campaigns with better accuracy for highly focused. and purchase frequency. • Better Information for Better Management Implement highly focused. Without a dependence on simple demographics. Marketing applications are tightly integrated with the other applications of the CRM suite as well as the ERP applications. many vendors are enhancing the integrated closed-loop marketing application through relationships with several strategic third-party vendors.

Service Applications provides complete support for the aftermarket service cycle enabling companies to improve response times by sending the right engineer to a field service call. or improve customer service by routing a support call to the agent trained in supporting a particular product. Many of the features that increase profitability also streamline and improve organization’s service delivery. Fast parts rotation enables reduced inventory levels and therefore. • Service Improves Service Delivery Create an efficient and effective service business using integrated enterprise-wide information available in other Front Office and ERP applications. The objectives for Service Applications offered by a CRM suite are as follows • Service Increases Profitability Create a profit center out of your service organization using operational and customer information to reduce costs and generate more revenues. . By leveraging the Web as a channel. Marketing applications will help companies capitalize on this rapidly expanding opportunity to reach a larger audience with their marketing campaigns. Its enterprise wide customer management ability enables you to reduce billing time with built-in integration between contracts. Its comprehensive resource management capabilities enable organizations route the calls to the right agent to reduce call resolution time. with interfaces to customer care. warranties. specifically through the Web. resource usage and the billing system. The Customer Care features of Service Applications also provide the customer management information to allow agents to respond to a variety of customer inquiries during one call without transferring the customer from person to person.The combination of these applications will expand the automation of the marketing planning and execution process over multiple deployment channels and sales models. organizations can track total customer contact history to increase customer knowledge and reduce redundancies and resolution time. Service application enables organizations to reduce costs by providing a comprehensive closed loop support and service information management system. reduced costs. Further.

This integrated customer contact capability ensures that the organization’s customers receive consistent service and information. As products become commoditized. Service Applications enables organization’s customers to communicate with the company though many different venues. maximizing the likelihood of additional product purchases. • Service Helps organizations Differentiate their Product Distinguish business by offering service as a differentiator using multiple channel communications with customers. web. This translates into better response to customer's needs. so that they are well informed and can also accurately inform customers of service issues. increasing employee retention and reducing customer churn. service and customer information management across your organization to improve customer satisfaction and loyalty. . help organization’s provide their customers with a positive experience in dealing with the company. and customer care. thus reduce his need to turn to one of the competitors for new products or services. an ability to extend proactive customer management programs as well as have the information at your disposal to better understand the customer. call centers. Service Applications by enabling both improved product service.• Service Helps organizations to Delight Customers Provide enhanced customer care. the next purchase decision customers make is increasingly based on either the quality of service or the perceived care they receive from the company. Service applications also track all product defect information. offering customers flexibility in interacting with the company. full enterprise wide view of customer information. and directly with Field Representatives. Additionally. The built-in self-learning knowledge base enables companies to leverage employee knowledge and achieve skills transfer. Organizations can achieve a full 360-degree view of their customer. With an end-to-end Customer Care and Service Solution. which enables organizations to proactively manage customer issues.

Additionally. Service enables the company to attract new service market opportunities by servicing third party products with its ability to track competitive products and service repair information. by product or by business. they can tailor Service Contracts individually.• Service Applications Grows Company’s "Share of Customer Wallet" Service Applications help to leverage expanded business opportunities extending beyond company’s service needs. Further. The Companies can also anticipate their customer needs and proactively build and sell new support and service offerings. by customer. . Service Applications provides companies to turn support service into a high return profit center. as well as tailoring the service offering to specifically address any customer’s needs. enabling new revenue streams with customized service. they can also maximize the logistics and costs within their expanding service business with integrated sales and spare parts forecasting.

partnering programs. These take different forms depending on whether they are meant for end-consumers. one-to-one marketing. or business-to-business customers.CRM Programs A careful review of literature and observation of corporate practices suggest that there are three types of CRM programs: continuity marketing. distributor consumers. Customer Types Program Types Continuity Marketing Mass Markets Distributors • • Continuous Replenishment ECR Programs Business Markets • Special Sourcing Arrangements to Busi ness • • • • • • • AfterMarketing Loyalty Programs Cross-Selling Permission Marketing Personalization Affinity Partnering Co-Branding One-to-One Marketing Partnering/ CompanyMarketing • Customer Business Development • • • • • Key Account Global Account Strategic Partnership Co-Design CoDevelopment • • Logistics Partnering Joint Marketing Table 1 CRM Programs . Table 1 presents various types of CRM programs developed for different types of customers. and.

In the mass markets individualized information on customers is now possible at low costs due to the rapid development in the information technology and due to availability of scalable data warehouses and data mining products. Known as Key Account Management Program. Partnering Programs The third type of CRM programs is partnering relationships between customer and marketers to serve end user needs. individual marketing has been in place of quite sometime. Information on individual customers is utilized to develop frequency marketing. By using online information and databases on individual customer interactions. . and after marketing programs in order to develop relationship with high-yielding customers. marketers aim to fulfill the unique needs of each massmarket customer. In the context of business-to-business markets. interactive marketing.Continuity Marketing Programs Take the shape of membership and loyalty card programs where customers are often rewarded for their member and loyalty relationships with the marketers. two types of partnering programs are most common: co-branding and affinity partnering. The basic premise of continuity marketing programs is to retain customers and increase loyalty through long-term special services that has a potential to increase mutual value through learning about each other. In the mass markets. One-to-one Marketing Meeting and satisfying each customer’s need uniquely and individually. here marketers appoint customer teams to husband the company resources according to individual customer needs.

portals. it becomes imperative to design CRM solutions keeping in mind these most valuable customers and to leverage 80% non structured data of about 20% of these most valuable customers. partners. benchmarking are some of the common technique of KM system evaluation. It is possible to generate explicit knowledge from tacit knowledge. but it’s a complex exercise. customers. A straightway technique is to create a data warehouse. Most grow able customers.CRM and Related Concepts Knowledge Management (KM) with focus on CRM As Peter Drucker defined “Information is data endowed with relevance and purpose”. data and documents) means retaining the individual. Balance Scorecard method. Metrics. which is invariably not possible. websites. external marketing research agencies and cultivating the knowledge where it resides. To effectively implement a CRM solution it is very important to identify real knowledge about different types of customers (Viz. below zero customers) from plethora of internal and external data. etc. it must be available at the right time to be able to act upon it. KM implementation is the key to CRM. could be mined out of this data warehouse. Most valued customers. suppliers. like legacy systems. surveys. ROI. thereafter information which is required to effectively implement principles of CRM. so too does knowledge. sales after-sales people would be knowledge workers. existing data warehouses. It’s a proven fact that 80% of organization revenues come form 20% of its customers. Marketing. . Just as more tangible corporate assets like computer systems have a finite shell life. Knowledge Management (KM) is about embracing a diversity of knowledge resources. Retaining tacit knowledge (derived from experiences. figures. Front office could be more productive if they could utilize customer knowledge.

satisfaction. . Microsoft solution. albeit in front-office areas such as marketing. The key to successful customer KM is personalization. Whereas ERP implementation can result in improved organizational efficiency. sales. CRM solutions focus on automating and improving business processes. profitability. customer service. etc. The choice of Customer Knowledge Management (CKM) architecture should have a layered approach. web solutions. how to extract the knowledge that is pertinent to the user and translate it into a format that is easily understood.The key ingredient of this exchange is face-to-face sharing of knowledge or virtual environmental tools like Lotus Notes. CRM aims to provide organizational effectiveness by reducing sales cycle and selling cost. i. The choice for CKM system could be Web (Enterprise information portal) or a packaged solution such as Lotus Notes. ERP and CRM Like ERP. There are ways to do text mining. ERP provides the backbone. text analysis tools. and customer support. and improving customer value. like search engines. and retention. promoting and executing best practices in customer facing activities.e. Hence for tacit knowledge exchange text mining is very useful and important. Existing systems should be seamlessly linked with the proposed layer. resources and operational applications to make organizations more efficient in achieving these goals. While CRM applications provide the framework for embodying. which can facilitate tacit knowledge exchange. identifying markets and channels for expansion.

These systems are useful in high volume segments like banking. Companies are now focusing to offer solutions that leverage the Internet in building comprehensive CRM systems allowing them to handle customer interactions in all forms. Call Center helps in automating the operations of inbound and outbound calls generated between company and its customer. and it has sufficient depth to understand the customer and accurately anticipate their behavioral patterns in future. delivery. marketing and product knowledge.Technological Tools for CRM Tools • Customer database A good customer information system should consist of a regular flow of information. and monitor customer contact. implement. Today.g. Customer relationships are increasingly sustained by information systems. sales forecasting. Customer data strategy should focus on processes to manage customer acquisition. EPABX) with an agent host software allowing for automating call routing to agents. predictive dialing. telecom and hospitality. retention. installation. auto display of relevant customer data. The customer database helps the company to plan. ERP is back office automation solution. inventory. order fulfillment and human resource giving an integrated view of business. . and development. • Systems Integration While CRM solutions are front office automation solutions. An ERP helps in automating business functions of production. customer order processing and fulfillment. These solutions integrate the voice switch of automated telephone systems (e. Companies are increasingly adding data from a variety of sources to their databases. etc. pre-sale and post-sale services and complaint handling by providing an integrated view of the customer. such as global telephone based calls centers and the Internet. systematic collection of information that is properly evaluated and compared against different points in time. where as CRM automates the relationship with customer covering contact and opportunity management. self service Interactive Voice Response systems. more innovative channels of interacting with customers are emerging as a result of new technology. finance. sales force management.

which can direct all customer queries and issues through appropriate channels to the right place for speedy resolution. CRM and ERP are complementary. Fig 7: CRM – A FRAMEWORK Traditional Approach to CRM • Customer Contact by − Telephone − Mail − In Person • Personal Selling • After Sales Service • Complaint Handling • Account Management • Customer care • Customer Satisfaction Web-Enabled & Integration Approach Integration with technology (Web & Internet) • Customer Information System • Customer Database • Electronic Point of Sale • Sales Force Automation • Automation of Customer Support • Call Centers • Systems Integration • Lifetime value of a Customer Data Mining for CRM: Some Relevant issues Data mining is an important enabler for CRM. Therefore. . Data mining helps in the process of understanding a customer by providing the necessary information and facilitates informed decision-making. Collaborative CRM involves the facilitation of collaborative services (such as e-mail) to facilitate interactions between customer and employees. This will help the company in tracking and correcting the product problems reported by customers by feeding this information into the R&D operations via ERP. Operational CRM solutions involve integration of business processes involving customer touch points. All this effort produces rich data that feeds the Analytical CRM technologies. Advances in data storage and processing technologies have made it possible today to store very large amounts of data in what are called data warehouses and then use data mining tools to extract relevant information. This integration of CRM with ERP helps companies to provide faster customer service through an enabled network.It is necessary that the two systems integrate with each other and complement information as well as business workflow.

sex. dislikes. income. education. etc → The customer group /segment to which the individual belongs → History of present and past behavior → Likes. . family details. preferences. education. etc) • • The firm’s best customers and the segment they belong to.8 Interactions between CRM Technologies Information Requirements Of An Effective CRM Solution The employees of a firm employing CRM would require rich information about their firm and customer base including: • Information about the market • Information about the firm • The current segment • Demographic Distribution (by age. marital status. Individual level information consisting of: → Customer personal details such as name. habits and tastes of each segment. habits and preferences → Events coming up in their personal life etc. products they buy. address.Operational CRM Analytical CRM Collaborative CRM Customer Fig.

etc) vary from solution to solution. However typical CRM offerings consist of: Customer Development Service Centre Sale management and support Market Analysis Internet. Internet Sales Call Centres. Oracle Apps or MySap. Tele marketing Product and brand management Field sales. Tele sales. Field Service Internet Customer Service Service Interaction Centre Business Partner Collaboration . who have come up with industry specific solutions. the broad model around which the CRM solutions are built remain the same. While there are some vendors. Typical offerings of the current CRM solutions (such as Siebel.The existing CRM Solutions Delivering the ‘360 view’ requires automation to bring together all the data concerning a customer. Adopting a similar or a look a like solution across industries is what causes major strain in servicing a customer.com. This implies the organisation has to change from: Mass Marketing Product Focus Economies of Scale One way communication Response Time Product Focus Customer Focus Economies of time Interactive Real Time Present CRM Alternatives Present CRM solutions are offered by host of vendors that are to a great extent not industry specific.

. The thrust of eCRM is not what the organisation is “doing on the web” but how fully the organisation ties its on-line channel back to its traditional channels. Why employ eCRM? Companies need to take firm initiatives on the eCRM frontier to • Optimize the value of interactive relationship • Enable the business to extend its personalized reach • Company-ordinate marketing activities across all customer channels. personalized and relevant communications with customer across both electronic and traditional channels. to the customer. or customer touch points. • Leverage customer information for more effective emarketing and ebusiness • Focus the business on improving customer relationship and earning a greater share of each customer’s business through consistent measurement. offers and channel delivery. It utilizes a complete view of the customer to make decisions about messaging. This electronic channel does not replace the sales force. It is simply another extension. It synchronises communication across otherwise disjoint-customer facing systems. or even the fax. albeit a powerful new one. assessment and “actionable” customer strategies. One of these channels is “electronic” – and has been labeled “e-commerce” or “e-business”. respecting individual’s preferences regarding how and whether they wish to communicate with you and it focuses on understanding how the economics of customer relationship affect the business. Within this framework. a number of channels exist for interacting with customers.eCRM What is eCRM? In simplest terms eCRM provides companies with means to conduct interactive. eCRM Vs CRM CRM is essentially a business strategy for acquiring and maintaining the “right” customers over the long term. It adheres to permission-based practices. the call Centre.

Enterprise 3. Empowerment 4.The six “E’s” of eCRM 1. Economics 5. Electronic channels 2. Evaluation 6. The following is a set of technical eCRM capabilities and applications that collectively and ideally comprise a full eCRM solution: • Customer Analytical Software • Data mining software • Campaign Management software • Business Simulation • A real time decision engine . External Information eCRM Architecture The primary inputs to this module are mainly from the eCRM Assessment and strategy alignment modules. During this stage the company will try and develop a Connected Enterprise Architecture (CEA) within the context of the company’s own CRM strategy.

Enterprises need to start with a clear picture of the basic truths of integration. interfacing and functionality. a set of interfaced application from a single vendor containing more than one technical architecture or more than one logical databasefrequently assembled by the vendor through the process of acquisition or partnership An alternative approach to suites is an interfaced best of breed solution – an approach whereby an enterprise selects from multiple vendors a set of applications that must be interfaced to work together. The challenge of this approach is that. some enterprises select the applications because they best meet the particular needs. which wants to implement CRM solutions can choose from four categories of solutions − − − − Integrated applications suite Interfaced applications bundle Interfaced best of breed solutions Best of cluster Selecting an interfaced best of breed approach for pure functionality or a front office application suite solely for integration limits enterprise choices. The individual applications are not the best in any objective sense. referencing a common logical database with a single schema. Best of cluster is similar to best of breed except that here best is chosen from the cluster and they are interfaced. the applications remain stovepipes. in some cases. one of the selected vendors or a third party integrator. An integrated application suite is a set of application that employs a common architecture. the enterprise fails to complete the necessary interfaces to get the individual applications working together. either by the enterprise. .e. Rather.Categories of CRM solutions Any enterprise. consequently. Some suites are more often interfaced application bundle i.

contact and account management. and expense reporting. compensation. Functional components and channels are described below: Sales applications Common applications include calendar and scheduling. proposal generation and management. field service. problem and solution database. execution. sales forecasting. and analysis. pricing. repair scheduling and dispatching. budgeting and forecasting. advanced technologies and channels. list generation and management. Customer service and support applications. Marketing applications These include web based and traditional marketing campaign planning. incident. service agreements and contracts.Key requirements for CRM solutions Some of the functional and technical requirements for CRM solutions are as listed below: • Business intelligence and analytical capabilities • Unified channels of customer interactions • Support for web based functionality • Centralized repository for customer information • Integrated work flow • Integration with ERP applications Functional Components of CRM solution CRM applications are a convergence of functional components. and service request management. opportunity and pipeline management. territory assignment and management. . defect and order tracking. These include customer care. collateral generation and marketing materials management.

Will it assist the business. Products It is the business providing the products that meet the changing customer trends. especially around CRM. the question is to what level? Trends Many businesses are pushed by the current trend to change their business strategy. This may not always be by using the latest ‘technology’. to be really successful with CRM you must recognize the customer trends that are effecting the business. is it going to grow with the business requirements or is the technology just another ‘trend’? Relationship management should not be an alternative to existing functions/technology. Supermarkets are a perfect profile to look at for viewing ‘product trends’. is the customer data upto it. or is it time to start again? Do you need to review every technology being used or just one area. it could be a logical extension to enhance those in existence.Organising for CRM Assessing Need How do you know your business requires CRM? It is very easy for a business to get caught in the latest ‘customer trap’ when it is being driven by the information technology (IT) market. Every business does require CRM. but the super market is at the minimum watching for the two basic trends in CRM. they constantly add and remove products and they constantly view customer buying profiles and set out the pattern of the store to meet the strongest buying trend. Products need to be reviewed constantly perhaps enhanced or even removed. Technology Ensure that the business is ready to install the new technologies. If a business does not understand a customer profile and the changes that have occurred then it is not possible to provide true customer relationship management. it could be by just reviewing shells at the end of the day. There are basically three trends that effect a business: Consumer The customer is an ever-changing image. though it could radically change some of the operational processes. .

be constantly reviewed and can evolve over time. Whatever the business is. therefore only minimal information is required from that customer. if it has customer it has to ask.Does CRM really matter? Whatever the business activity is all companies have to ask themselves is CRM the real factor for their company to succeed. the ‘pedigree’ of CRM. That however is still a form of CRM. Some customers do not need long-term relationship with their suppliers. . they need to provide exceptional service. Other companies have high quality and high value customers that they need to know information about. does customer relationship management matter? What does it man to them in business terms? At what cost? What is the overall loss if not adhered to? CRM: Yes it does really matter – the strategy needs to last.

(higher cold call to order ratio) Figure 1 illustrates the phenomenon that organisations can drive referral sale line in a manner that can reduce time T1 and with that in figure 1(a) the overall unit selling cost (average of direct sales cost + referral sale cost) can be reduced with higher sales productivity.Financial Framework for CRM There are organisational constraints encountered in execution of CRM programs. (a) Sale Cost Line T1 Fig. Direct selling machinery would have costs that are significantly higher than referral sale – hence the need to invest in customer relationship with an eye on acceleration of referrals so as to bring down costs or increase productivity of sales. 1. Mainly they are as follows: • A mismatch between resource allocated and service levels desired for building customer relationship • Absence of financial business case and ROI for investments in Customer Relationship • Horizontal non alignment of organisations to customers line of sight • Balance to be achieved between maximisation of revenue and customer satisfaction. ‘Torpedo Graph’ . 100% Direct Sale 100% Composite Costs % 50% of overall sale Unit Selling cost Referral Sale Time T1 Time Fig. 1.

while a referral line will be an exponentially increasing trend line with growing subscriber numbers. . Direct sale Sale Unit No. This creates a multiplier effect that quickly overtakes the direct sale numbers.Figure 2 illustrates that with a given investment in direct sale channel the productivity can at best be only slightly increasing line. referrals. Organisation dependency on direct sale can gradually be reduced since they stand to account for reduced numbers in the overall sums. Referral Sale T1 Time Figure 2 Organisational measure of referral propensity can be taken through customer feedback on their willingness to recommend the product to their friend and acquitances.

GE employees can obtain attractive discounts at Taj outlets/hotels. which are quite different in Delhi and Mumbai. 2) Taj Air Caterers & GE Capital Services There is e-mail connectivity between the service provider i. Taj and GE (for canteen and food supply). With another company Taj is involved in cafeteria design and selection of equipment. Taj customer relations responds within a stipulated time frame directly to GE employees and analyses their satisfaction.e. The product is designed to reflect their passengers’ preferences. a loyalty program is being designed where in for purchases snacks and confectionery. Also on cards is a ‘fitness program’ where taj’s experts will share information of food nutrition. Taj Ctareres share a lot of information and can access technology issues with Singapore Airlines. Similarly. exercise. and on different sectors ex-Mumbai. Taj staff gets trained at Singapore Airlines’ catering subsidiary. This has evolved after getting an insight into Singapore Airlines’ customer profile and their needs.CRM in select Services 1) Taj Air Caterers & Singapore Airlines Taj actively participates in product designs and influences service design. TAJ Chefs conduct an annual workshop on Indian Cuisine for Singapore Airlines’ caterers worldwide. etc with GE staff. wherever necessary. 3) Titan Watch Repair Services What did Titan Do? The Titan Signet CRM initiative was undertaken in May 1995 to provide that “extra” touch to its special customers at the exclusive World of Titan stores. SATS. Its mission was to create a sense of belonging of the customer to the store and vice versa by: • Building a special relationship with high life time value Titan customers • Recognizing and rewarding his/her loyalty to Titan • Providing a platform for direct feedback from these valued customers to the company .

Where? It initially started in 6 showrooms in Bangalore. Today the titan Signet has been extended to 102 World of Titan showrooms across 59 cities all over India Behind The Scenes While the program has taken customer bonding one step further in Titan, there are many behind-the-scene activities that ensure that the program is run efficiently, effectively and with the level of enthusiastic participation. These are : • Showroom Personnel are trained not only in the preparation of the program at the showroom but also in the finer details of CRM. • Enrolments in the program are tracked on a monthly basis for each showroom, along with data on purchases made by Signet members who have returned to the showroom to buy again. • Signet operations form a part of the quarterly appraisal for their showrooms, there by ensuring that they earn more marks on their efficient and effective performance. • A grievance redressal system is in place to ensure that out valued customers are responded to within stipulated time frame.

Case Example: Air India
World’s largest DIRECT MARKETING ASSOCIATION recognizes AIR INDIA as first airline to use a unique database-driven CRM approach that set new sales and profit records in the air travel market. On June 5, 2002; at world headquarters in New York, Charles A. Prescott, Vice President of International Development for the United States-based Direct Marketing Association, approved the addition of Air India’s database-driven Direct Marketing program to DMA’s Web site. Entitled “Test of Advanced CRM Approach in India sets new sales records for an Airline” it instantly became one of the most visited parts of the DMA Web site. Why? Because Air India created an intensely personal dialogue with each individual customer in a way no airline ever had in the past. Personal dialogues which created relationships, which produced record gains in Share of Customer, and overall Share of Market as well as revenue and profits. When Abeer Chakravarty and his DM agency colleagues tested Dick Shaver’s unique Database-Loading Research Process (developed in the early 1990’s in the USA) for Indian Airlines in 1998, 58,000 customers answered extremely detailed questions about themselves. Everything from their specific air travel habits, business and personal travel wants and needs, services they expected to get from an airline and services they “would like to receive” from an airline in addition to crucial information about their air travel destinations, frequency and airlines flown as well as all their personal demographics and psychographics. In short, everything airline marketers worldwide had always wanted to know about their customers, but really never thought possible to get. Indian Airlines immediately computerized each customer’s detailed answers in order to begin the Consumer Guided dialogues they had told customers about. Within days, every responder received a personal letter based on what each different customer had told IA. This new ability to write always-relevant, customer-specific letters rapidly expanded, in a few months, to 22 different individualized letter versions.

Airline customers in India loved being treated as individuals in the late 1990’s and early 2,000’a just as much as pharmaceutical and telephone customers in the United States had loved being treated that way in the early and mid-1990’s. Not only did Database-Loading Research put them in total control of their personal information and hence their privacy… it also insured they would never again be bothered by irrelevant contacts while, at the same time, they would never miss out on any offers that fit their specific interests which they really did want to know about. In each country and each different market… health care and long distance communication in the States, air travel in India … after their initial surprise at being listened to and then responded to based on what each one of them had said, customer satisfaction soared to historic highs. New highs in satisfaction that produced multi-year, multi-billion dollar industry records in customer retention and acquisition for Marion Merrell Dow and MCI in the USA and multi-year, multi-billion rupee gains for Indian Airlines across it’s proportionately smaller market in India. All of which reflects the simple fact that this new CRM approach, called Consumer Guided Marketing, can produce unprecedented gains in any market and any country in the world, because the gains it generates are rooted in human nature: due to Quantum Leaps in customer trust and satisfaction. A new level of trust and satisfaction evidenced in the tens of thousands of unsolicited letters from customers that essentially said, “I’ve been filling out questionnaires for years, but nothing ever happened! But you actually read what I said and then wrote me back based on what I told you. I love it!”

Case Study: Hospitality industry
The hotel industry is fast adopting the latest technologies in a big way, thanks to increasing competition. Chitra Padmanabhan observes that technology acts as a key differentiator to retain international clientele0 Badly bruised by the September 11 attacks and the ongoing slowdown, the hospitality industry in India is increasingly taking the help of technology to not only cut costs but also lure customers. Today, guests in most five star hotels can access the Internet through their laptops at the poolside or in conference rooms, with equal ease, thanks to wireless LAN (WLAN). Innovations like these that seem like technological marvels today will be commonplace tomorrow, as almost all leading hospitality chains will provide wireless connectivity. Goingback In days gone by it was said that in order to succeed, all a hotel needed was a scenic location and good cuisine. But in today’s competitive environment, a mistake as trivial as not taking down a customer’s order can prove disastrous. As the hospitality industry started looking for ways to improve efficiencies, efforts and investments in the field of information technology intensified. One of the first deployments of IT began at the front desk when receptionists began checking the name of the customer and then allotted a room to him. Big hotels also started putting in place accounting systems and back office software to improve processes. As hotel chains started expanding their operations across the country, it was necessary to monitor their assets. This gave rise to the need for a Property Management System which enabled hospitality groups to track their assets across different regions. During the same period, hospitality chains also saw the need for a centralised system. This phase saw different hotels of a chain being networked and connected to a central server. The Taj Group of Hotels, for instance, has implemented a WAN called TajNet, connecting the group’s 55 properties in India, Nepal and Sri Lanka. A centralised system has tremendous benefits. One, there are greater economies of scale, especially when the

and CIO. . the hotel immediately knows of his preferences and serves him accordingly. the key part of retaining a customer is critical to the hospitality industry. it is a boon to the hotel management. And since it focuses on preferences.” The same CIS can be accessed through any of the group’s properties. “Most hospitality chains now realise that technology in the hospitality industry is critical to improve the operational efficiency of a hotel. The industry has moved from the traditional transaction-based processes such as check-in and reservations to features that are built and designed specifically for the customer. Taj Group of Hotels. This has solved the problem of long queues of customers at the counter. Today. the IT initiatives of hotel chains in India have matured. The moment a guest checks in.group wants to announce a special scheme for all its member hotels. systems manager. every major hotel chain in India is investing in comprehensive systems that store complete profiles of their customers. CRM is also being adopted in a big way by almost all the big hotel chains in India. Services like providing wireless Internet access to guests will only increase in the future. “Every hotel has a major chunk of its revenue coming from its regular clientele. If he is a regular client. waiting to fill in details of their preferences. he fills a form indicating his various preferences.” CRM While IT initiatives like centralised management and automating daily operations are important. Le Royal Meridien (Mumbai). which explains why every chain is taking the help of technology to improve efficiency. the group can monitor the performance of each member hotel and summarise the sales performance of the whole group. The hotel has deployed a check-in system on each floor depending on the guest’s profile. Two. CIS creates guest-centric processes that are essential for CRM. A CIS enables the hotel to keep a record of the exact profile of the customer and keep a tab on his preferences during his subsequent visits. At present. Says Pradeep Khetwal. and are being increasingly fine-tuned to serve the needs of the customer. senior vice president. We too recognise this and have deployed customer information systems (CIS) to service the customer in a better way. Take a look at Le Royal Meridien. requests and problems of different customers. technology. Says Prakash Shukla.

with knowledge of the customer’s history. for instance. this was done manually with no clear understanding of a customer’s preferences. Some hotels have even given their regular customers unique IDs to enable them to check their loyalty points on the Web itself.The same database is used to offer loyalty programmes to the customer.” . wireless technology in big hotels was traditionally confined to the guest room. Major hotels are betting on wireless services as a new lure for business travellers who rely on high-speed Internet connectivity and wireless services to conduct day-to-day business.” says Ashish Kale. hotels started looking at using wireless Internet services throughout the hotel. But now. extensively uses VoIP and video conferencing tools on its internal network to cut communication costs. systems manager. with the help of analytical tools. Wireless-technologies One of the best examples of the use of wireless technologies is the hotel industry. But as this hampered mobility of a business executive. data management systems contained only static information. Renaissance Mumbai Hotel and Convention Centre. which was used only to enhance efficiency of the hotel staff. the business centre or conference rooms. In the traditional method. J W Marriott Hotel (Mumbai). and it was impossible to access the Net in any of the restaurants and near the poolside. we can provide consistent service quality. But today.” In addition. CRM and software tools for front line staff have enhanced successful one-to-one relationships. Most hotels today offer a customer different schemes based on his profile. Says Zahid Memon. systems manager. “Initially. most hotels have also embraced newer technologies with gusto. Adds Khetwal of Le Royal Meridien. The Taj group. a hotel can service a customer more efficiently. “Most hotels know their customer preferences because relevant data can now be procured from the systems as and when needed. “Wireless technologies deployed in selected areas of the restaurant hampered mobility. Earlier.

One has to realise that as customers change their preferences and the way they want to interact. a hotel which understands a customer’s needs and fulfils it satisfactorily with the help of technology would obviously be a preferred one. which serve the purpose of tracking a person anywhere in the hotel premises. which makes customers reluctant to reveal their credit card details on the Web. Shukla puts forward a very valid point: “As in any industry. Going forward.” Another significant use of this technology is seen in wireless-equipped handheld phones called digitally enhanced cordless phones. EDP executive of Orchid. we too have to change with them. and is all set to launch this in Mumbai. In addition to this. it will be a long time before customers accept this. and almost no bookings take place through the Web.” The-way-forward Wireless communications and mobile computing technologies are changing the way hotels manage information. Going forward. But just like other industries. “Proper security systems are a must to avoid fraud in non face-to-face transactions. websites of most hotels serve only as information outlets. One obvious reason is security. all of them are not beneficial to the end-customer. Online-reservation-system In the dot-com phase. hotel chains could increase the number of value added services without major investments in IT budgets. hotels too have been disappointed. one has to realise that though different technologies are available. Says Shailesh Bhagwat. strategic decision making coupled with an ability to access information. hotels were attracted to the Web and were expecting major revenues to come from online reservations. . This phone is especially useful for mobile staff who can attend to a complaint immediately.The Taj Group has already introduced wireless Internet access for its customers at Taj Coromandel in Chennai. analysing it and distributing it would be the key to increasing productivity and reducing costs. Though most hotel chains offer customers a secure way of transmitting data. Today.

India is likely to emerge as a significant player in this segment. Tata Telecom.Planet M. The CRM enabled companies include Modi Xerox. . With the easing of infrastructure constraints. TVS Electronics. founded with the purpose of assessing and improving CRM practices. among others.Conclusion Software is to India what oil was to Gulf. HP India. India even has a CRM Foundation in New Delhi. Satyam Infoway. Escotel. both products as well as services. AC Nielsen. Founding members include Tata Telecom. Tata Infotech. catering primarily to the American and European markets are coming up in and around the metros. Carrier Refrigeration. and EpicenterTechnologies among many others. and Motorola India. With is vast talent pool. This trend is likely to increase in the future. Adoption of CRM by Indian companies is at an infancy stage. Tata Teleservices. Global Groupware. . It is therefore no surprise that the Indian companies are jumping into the CRM bandwagon to seize a chunk of the global market. Modi Xerox. Call centres. India is fast becoming an important development base of major CRM companies. Carrierr Airrcon.

Companies implementing CRM should keep in mind that CRM is not Database Management but a whole new way of looking at the business. Finally instead of just launching products companies could well form customer groups who will wok with the company to develop a new product and will be rewarded for the same.Recommendations CRM driven by the employees is most likely to succeed and hence CRM initiates should ideally come from front line employees who are indirectly related to the customers. . CRM concept could be extended with the help of Bluetooth and JINI with CRM enabled devices who recommend self repairs and undertake self maintenance with the help of online technicians. The advent of 3G mobiles and WLL could help the companies keep a track of their customers and offer them not only customized products and solutions but also customized information and customized advertising. A Customer-Centric Quality Circle could be formed in organizations to facilitate this.

the demand for well trained quality personnel too has grown impressively. A number of factors like promotion of tourism and rapid industrial progress have given a boost to hoteliering. the rise in corporate activity (leading to greater number of business trips) as well as the wish to travel on holiday has made the hotel industry a very competitive one. front office operation. With increasing globalization. The recent liberalization of trade and opening up of economy will further lead to revolutionary growth in this sector. With the growth of hotel industry propelled by foreign and domestic tourism and business travel. . accounting.Section II The Hotel Industry :Hotels are amongst the most visible and important aspects of a country's infrastructure. Today. career opportunities in this field are not only limited within the country but there are chains of hotels which operate internationally providing scope of a career abroad. The diversity of experience in hotel management is greater than in any other profession. Hotel industry involves combination of various skills like management. housekeeping. food and beverage service. Hotel industry is a closely linked one to the tourism industry. It is a glamorous profession which has a bright future. sales and marketing.

Hotel concepts 1) Ecotel An ecotel is an exclusive group of inns. However. in cities where the demand for rooms is increasing (resulting in ARRs moving up). the maximum reservations came from business travellers while the least came from airline crews.Industry characteristics Seasonality The premium segment of the hotel industry is largely dependent on foreign tourist inflows. especially international leisure tourist inflows. in the 5-D and 5-star segments states that of the total reservation in 2003-04. Airline crew: This segment provides an assured occupancy for hotels that have contracts with airlines. This segment is highly dependent on the economic scenario of the country. A survey conducted by the Federation of Hotel and Restaurant Association of India (FHRAI). one will find a reduction in the airline crew. Leisure traveller: The business offered by this segment is highly seasonal and tends to increase during the October-March period. the . tourist arrivals from AprilSeptember are lower than from October-March (60 per cent of the annual arrivals). Business traveller: The business offered by this segment is less seasonal and travellers usually stay in premium segment hotels. hotels. Hotels offer this segment a discount of nearly 40-50 per cent. are seasonal in nature. Tourist inflows. All certified hotels have to pass a multi-level inspection by Hospitality Valuation Services (HVS) International. Owing to the summer and monsoon seasons. or resorts that define the concept of environmental responsibility within the hospitality industry. Hence. business travel tends to be less seasonal.

Hence. resorts are usually characterized by higher occupancy rates during weekends. Mumbai targets companies hosting conferences. The hotel has been able to cut down operating expenses as a result of its eco-friendly practices. The Resort. their revenue inflows keep fluctuating. (However. less than 5 per cent have been certified. and employee environmental education and community involvement.international ecotel-accreditation agency. Mumbai was the first to receive the ecotel award. its occupancy levels are generally higher during weekdays than on weekends. Since its establishment in 1994. motels are located along highways connecting important cities. over 1. A hotel receives a five-globe certification only after it meets the 5 criteria and fulfils the norms specified by the agency. In Asia. The Orchid Hotel. seminars and meetings. Usually located at hill stations or seashores. Other ecotels in India include Hotel Rodas in Mumbai and The Uppal's Orchid in Delhi. The significant features distinguishing a motel from a hotel are   adequate parking facilities cottage style accommodation (provided by most motels) . Most resorts located at hill stations. solid waste management. However. as compared with weekdays. summer resorts and winter resorts. water conservation. resorts can be further classified into hill resorts. health resorts. The five criteria are environmental commitment. Among business destinations. have well defined off and peak season periods.) 3) Motels In general. 2) Resorts Resorts cater to the leisure needs of a tourist. Hence. energy efficiency. to date. beach resorts.100 hotels from over 30 countries have applied for the ecotel certification.

Motel Aaram Athirappally. The emphasis in boutique hotels is on selling guest rooms (where the profit margins are significantly higher than in banquets and meetings) by enticing a guest with its high design and lower rates. Ian Schrager Hotels. Orient-Express. are also boutique hotels. In general. Motel Aaram Erimayur Palakkad and Motel Aaram Palaruvi are some of the motels in India. Zoo Hotels. or purchasing a holiday property outright. for a set period. Myhotel. Bvlgari Hotels. Motel Aaram Kayamkulam. 5) Boutique hotels The typical boutique hotel has less than 100 guest rooms. Hotel Punta Islita. Joie de Vivre Hospitality. W hotels. Floatels are being planned in Goa and West Bengal. boutique hotels are characterised by a high percentage of repeat clientele. The Kimpton Group. Some heritage hotels. there are around 500 boutique hotels worldwide. short duration of stay. Kolkata. Visakhapatnam and Bangalore) are boutique hotels. Scotsman Hotels. Once . like the palace hotels in Rajasthan. and food and beverage is generally outsourced. typically in multiples of one week. one or no boardroom. Sofitel Demeure Hotels and Amanresorts. Park Hyatt. timeshare offers buyers the ability to buy rights of occupancy in a property. Instead of booking a week or two at a resort every year. Reportedly. In India. limited service. Motel Aaram Kannur. Some of the international boutique hotels include Melia-Comfort Boutique Hotels. 4) Floatels A floatel is a floating hotel or a boat operating as a hotel. all the properties of The Park Hotel (Delhi. 6) Timesharing industry The timeshare concept as an innovative way for increasing holiday choice took root in Europe in the 1970s. KTDC's Motel Aaram Kuttippuram.

The Taj Group consists of 54 companies.consumers have purchased their holiday time. associates and . Floating week: This could be any week reserved for the timeshare owner during a certain season of the year. Vacation clubs: Instead of purchasing a timeshare in a certain size of unit at a particular resort. It became a public limited company in 1958. Through its subsidiaries. Indian Hotels Company Limited Indian Hotels Company Ltd (IHCL) was incorporated in 1902 by Jamshedji Tata. Some of the clubs operate on a points system. they can use it. vacation club members purchase the opportunity to use a variety of timeshare accommodations at various resort locations. associate companies and investment companies. to meet consumers' demand for vacation variety and flexibility. The availability of these purchase options varies by resorts. in terms of both revenues and number of rooms. The timeshare industry offers various purchase options. Some of the purchase options include Fixed week: Timeshare units sold for use during a specific week of the year. IHCL is the largest hotel company in India. At present. usually within one developer's chain of resorts. pass it to friends or relatives. hotel licensing companies. or rent it out. including hotel-operating companies.

Taj leisure hotels (with Taj palace hotels. IHCL owns 19 properties with 2. Taj resort hotels. Owing to the summer and monsoon seasons. especially international leisure tourist inflows. The company aims at expanding both in the domestic as well as international market through an ‘asset light strategy'. Taj cultural centre hotels). Of these. . Industry characteristics The premium segment of the hotel industry is largely dependent on foreign tourist inflows. However. tourist arrivals from AprilSeptember are lower than from October-March (60 per cent of the annual arrivals). Taj business hotels (with Taj Residency brands). the company operates 63 properties with 8. IHCL has been structured into four strategic business units — Taj luxury hotels. and Taj corporate. This means that the company will extend coverage. business travel tends to be less seasonal. Tourist inflows.017 rooms in India and abroad. Taj garden retreats.management contracts. Number of hotels owned and managed Table 1 No of hotels No of rooms IHCL Luxury hotels Business hotels Leisure hotels Subsidiaries Associate/Joint venture Management contracts Total number 7 4 8 4 28 12 63 2000 298 567 652 3207 1293 8017 Source: CRIS INFAC Operating performance Occupancy rate (per cent) 2003-04 71 2004-05 76 Average (Rs) 2003-04 4785 room rate RevPARs (Rs) 2003-04 3381 2004-05 4494 2004-05 5946 Indian Hotels Corporation Ltd (IHCL) is the biggest player with a market share of over 17 per cent. are seasonal in nature. however.865 rooms. the investment in assets will be limited and in proportion to their strategic importance and financial return.

in the 5-D and 5-star segments states that of the total reservation in 2003-04. ARRs in the 10 cities increased by 18 per cent in August. in cities where the demand for rooms is increasing (resulting in ARRs moving up). Airline crew: This segment provides an assured occupancy for hotels that have contracts with airlines. Tourist arrivals In August 2005. Hence.Business traveller: The business offered by this segment is less seasonal and travellers usually stay in premium segment hotels. This segment is highly dependent on the economic scenario of the country. Leisure traveller: The business offered by this segment is highly seasonal and tends to increase during the October-March period. the average revPAR (premium segment) in the 10 cities rose by 18 per cent. primarily driven by ARR. the maximum reservations came from business travellers while the least came from airline crews. A survey conducted by the Federation of Hotel and Restaurant Association of India (FHRAI). one will find a reduction in the airline crew. . Hotels offer this segment a discount of nearly 40-50 per cent.

2-star and 3-star hotels. The Department of Tourism has classified hotels into 7 categories: heritage hotels. Heritage hotels include old palaces and havelis. as well as small citiesstar and tourist destinations 4-Middle level businessOffer few facilities and executives and leisurecharge lower than the travelers premium segment.Grand. as well as small citiesstar and tourist destinations 2-Largely targeted domestic tourists atMinimum facilities. Target Rates Foreign business andHighest ARRs due to leisure travellers. Classification by segment Segment Location Category Premium Around 50 per cent of5-D. Charges are lower than that of the budget segment. 5-star these hotels are concentrated in the four metros. 5-star and 4-star hotels while the state governments are responsible for the classification of 1-star. fortsHeritage and residences. Heritage Heritage hotelsHeritage comprise old palaces. 5-star. and easy availability of telephone and LPG connections. seniorhighest levels of business executives andservice quality. which have been converted into hotels. imports. 2-star. 3-star.Segmentation of hotels Various modes of classifying hotels Hotels can be classified on the basis of the size of the rooms and the types of amenities offered. Economy Located in major cities1-star. havelis. Budget Located in major cities3-star. income tax benefits.Classic constructed prior to 1950. converted into hotels largely located in leisure tourist Foregin leisure travelers ARRs are lower than that of hotels in the premium segment . and 1-star. top government officials. Classified hotels are also entitled to benefits such as interest subsidies. 5-star deluxe (5-D). castles. 4-star. The Department of Tourism also reclassifies hotels every 3 years and is responsible for the classification of 5-D.

destinations India and the world market The Indian hotel industry is relatively smaller when compared internationally. 4 & 3 star hotels constitute the remaining. The industry occupancies have hovered around the 55-60% mark for the last few years. During FY03. Mumbai and New Delhi. 32% of rooms comprise of 5 star and 5 star deluxe hotels. While the 3 and 4 star categories have grown at 6% and 8% CAGR respectively during the same period. India's minuscule market share in total world travel and tourism demand — what's lacking High taxes render the Indian market uncompetitive for overseas travellers: In India. Out of this. These taxes account for a significant portion of the total . the cost of travel and hotel facilities is high due to the high taxes levied on ATF (aviation turbine fuel).000 rooms spread across the country. There are over 1. rooms. 60% of the 5 star hotels are situated in 2 major metros i. and F&B. with the exception of FY01 when average occupancies reached around 70%.400 hotels comprising 77. 3-5 star and 5 star deluxe hotels account for 65% of rooms. occupancies slumped to the lowest in the last five years at around 45-50%.e. Room supply in the 5 star segment has grown at a compounded annual growth of 5% over the past decade.

high price of land. culture. Improper maintenance of monuments and other places of tourist interest: Increasing evidence shows that an integrated approach to tourism planning and management is now required to achieve the type of responsible tourism. while a premium segment hotel room is 25-30 per cent dearer. it still needs to go a long way to compete with other countries. Besides. though better than in the past. Non-affordable hotel rooms: Currently a 6-nights. . Lack of awareness and information on India's tourism potential: Although the government is laying emphasis on promoting India as a tourist destination. The availability of hotel rooms is still only a half of the number required to host even a modest target of 5 million visitors. environment and biodiversity of the place being visited. which keeps competition levels high and air fares low. high landing charges. especially leisure travellers. In addition.travel cost and compare unfavourably with the lower taxes levied in competing destinations. not comparable to other countries: International airfare to India is higher than to Malaysia or Thailand since there are more scheduled carriers to these two countries and they also have a large movement of charter operations. which sustains the well being of the land. Air connectivity. Poor infrastructure: Accommodation infrastructure has witnessed the slowest growth. discouraging tourists. 7-days package to India costs around 30 per cent more as compared to other countries in South and South-east Asia. complex building by-laws and absence of single window clearance have been the major disincentives in this sector. fuel taxes and high operational costs have resulted in high airfares in India.

Maids etc. to perform their assigned roles. quality control and customer care. linen supervisors. Food and Beverages Department This department is the hub of the hotel industry and is responsible for all the food that is prepared and served in the hotel. the restaurants etc. front office supervisor. Those serving drinks are bartenders. Food and Beverages. One who cooks food is known as Cook. receptionist. information assistant. preparation and service of food and beverages involving kitchen. Lobby executive. provision of services. Depending on the size of the hotel. Sales and Security. the bars. general managers could have assistant managers to supplement their work. handling correspondence and preparing bills and keeping accounts of the guest services are handled at the front office. making room reservations. Those handling this department are Chief executive house keeper. . Then there is the restaurant hostess who makes the guests comfortable and deal with any complaints by the guests. Front office. House Keeping The work of keeping the hotel. responsible for staff management. Each department has a number of positions that one can opt for. bell captain. one who serves food is Demi Chef de Range or Steward. is the coordinator and administrator. Overall in charge of kitchen is known as Chef de Cuisine. Accounting.the in charge of section is called Chef de Partis and the one who supervises and coordinates the work of Chef de partis is known as Sous-Chef. Front Office It is the centre of all activities. financial control. The main functions performed by the department arepresentation. clean and making it presentable to the guests and ensuring facilities and comfort to them is handled by this department. floor supervisor. the rooms. room attendants. doorman etc. the person in overall charge of dining hall is called Maitre de hotel. Important functions of receiving the guests. House keeping. The department is headed by Front office manager or Executive House-keeper who supervises and co-ordinates the work. Captain in charge of part of dining hall is known as Chef de Range. General Operations General manager who is the main in charge. bar and baker. Then there are Assistant Manager. bell boy.Career options A hotel consists of main departments such as Operations. Engineering/ Maintenance.

. Professionals like cash. Chief cashier. offering of services to the guests etc. pricing of food and services and so on. Retires Army personnel are preferred by this department. i. Electrical Engineer.Accounting Department This department deals with both cash and credit transactions. Sales & Marketing This department keeps in touch with travel agents and tour operators as well as other potential corporate clients in order to sell hotel facilities. cash clerk/bill clerk are the positions handled in this department. cost and works accountants are given higher positions in the department. Engineering / Maintenance Department Qualified engineers are appointed for the maintenance of the building and various machines involved in the premises. Then there is the Security department which provides security to the guest and their belongings and employs security Officers/ guards for this purpose. Mechanical Engineers. Plumbers. Advertising and Public Relations is also normally handled by this department. They are assisted by necessary staff in the electrical and mechanical departments.e all the financial transactions like purchase of materials. This department also compiles information required for budgeting. carpenters etc are employed by this department.

It’s unique location makes the Taj Lands End an ideal choice for the traveler offering the best of both the worlds – business as well as pleasure. conferencing. Taj Lands End boasts the city’s finest restaurants. this hotel provides the ultimate in modern facilities and convenience. in the heart of the emerging business district of Mumbai. . Mumbai Nestling in Bandra. The hotel is situated 12 kms from the international and 8 kms from the domestic airport. and business centre facilities.Taj Lands End. an elite suburb of Mumbai. Andheri and Worli business districts. Strategically located close to the Bandra-Kurla. banqueting.

. Rooms and Suites Spacious and sophisticated. Rooms are available for formal gatherings. Ft. including three private rooms and an opulent. Poolside and emerald lawns exude a refreshing informality with capacities for between 35-600 persons theatre style and up to 1200 persons for receptions. as well as cocktail parties and other celebrations.000sq. All rooms have inbuilt speakers. Video conferencing and Webcast arrangements can be made on request.Facilities & Services Guests can look forward to distinctive service and quality amenities. pillarless Ballroom. and more. . all guestrooms at Taj Lands End offer luxurious style and comfort. Hotel Business Services include: Binding Broadband Wireless (WiFi)Internet access Mobile phones on hire Multimedia computers Secretarial services Translation / interpretation services Video-conferencing facilities Webcast facility Workstations Hotel Leisure and Other Services include: Baby sitting Meeting Rooms & Banquet Facilities include: Extensive banqueting space spread over 55. Meeting halls are connected by spacious pre-function area perfect for exhibition booths. screens and broadband wireless (Wi-Fi) Internet access. Covered parking space for 550 cars. international exhibitions and conventions.

The Taj Club and Suites. ironing board on request. highly personalised 24-hour butler service and all above guest amenities. pool or the City. Taj Lands End's butler service is available to all guests staying in Luxury Rooms. Taj Club guests can also enjoy complimentary deluxe continental breakfast.Also available is a special non-smoking floor and a Ladies floor. hair dryer. Solo lady travellers will be served by Lady butlers only. Luxury Rooms Luxuriously appointed. Guest amenities and services include complimentary airport transfers. Guests have a choice of rooms that overlook the Arabian Sea. designed to meet the needs of the single lady traveler. highly personalised Butler service. Taj Club also offers guests an exclusive Meeting Room on the Club Floor. spacious rooms offering upgraded bath amenities. The Taj Club Located on higher floors. a bathtub and all the above guest amenities. wireless internet connectivity. laptop size in-room personal safe. minibar. The butlers offer each guest a highly personalised service. complimentary one-way airport transfer. large laptop size inroom-safe. Non-smoking rooms available on request. a complimentary bottle of wine. two-line speaker phone with international direct dial facility and voicemail. private check-in and check-out at the Club desk. complimentary incoming fax. . tea-coffee maker. complimentary tea/coffee throughout the day. 24-hour inroom dining and 24-hour laundry service. daily newspaper. and evening cocktails at The Club Lounge. and round-the-clock. Deluxe Rooms With a luxurious five-fixture bathroom with separate shower cubicle. and designed for today's business traveler. Superior Sea-view Rooms All rooms are elegantly appointed and offer a minibar.

an array of lighting effects and the sleek furniture gives a sense of space and luxury. highly personalized butler services and all the guest amenities of a Luxury room. Suites overlook the pool. highly personalized butler service and all the guest amenities of the Taj Club. dining room. Aesthetic artifacts. and offer panoramic views of the Arabian Sea. Guests in Grand Luxury Suites receive round-the-clock. Grand Luxury Suite Sea-facing suites with panoramic views of the Arabian Sea. an office room. Recreation Guest can take advantage of our recreation activities for irresistible fun and relaxation. kitchenette and a master bedroom. Guests in Executive Suites receive round-the-clock. dining room. a master bedroom. and bedroom with attached dressing area. Each of these suites has a living room. . The plush furnishings and furniture accentuate the contemporary ambience of the master bedroom. The Presidential Suites Located on the 21st floor comprises of a stylish living room. The Study room of the Presidential Suite functions as an ideal office space. Each of these suites has a separate living room.Executive Suites Sea-facing suites with panoramic views of the Arabian Sea. a kitchenette and a bathroom with a Jacuzzi.

At Taj Lands End. all-day eateries to formal. one that explores the nuances of the finest Indian and international cuisines.Fitness and Fun 24-hour Fitness Centre (separate sections for ladies and gentlemen) Bookshop Jogging Track Swimming pool Recreation outside the Hotel Bowling Alley Chembur Golf Club Golf – Royal Palm Golf Club Tennis – Bandra Gym khana Theatre – Rang Sharda Dining From casual. serving traditional and . we offer a distinctive dining experience. fine dining. guests can look forward to a wide selection of delectable dishes and refreshing drinks.

An Ecotel Hotel is Asia's first certified eco-friendly five-star hotel and world's only Ecotel to be certified as ISO 14001. Pure: India’s first international restaurant with a focus on organic ingredients. Masala Bay: This contemporary Indian restaurant offers a selection of traditional Indian favourites in a modern and interactive environment. The Orchid . yet naturally balanced.contemporary favourites. Vista: Scenic views of the sea perfectly complement the refreshing flavours of this trendy. and snacks. mocktails. offers a variety of delicious cocktails. all-day dining restaurant. This 245-room hotel is strategically located adjacent to the domestic airport making it a convenient place for the . offers food that bursting with flavour. the perfect venue for informal meetings. offering panoramic views of the Arabian Sea. Ming Yang: Guests can tantalize their taste buds with authentic Sichuan cuisine at this Chinese restaurant. Atrium Lounge: This inviting lounge.

Around the waterfall. Like The Club Privé. Besides. Or the well-appointed business and conference center to take care of your business needs. The Boulevard provides a unique guaranteed time-bound service aptly called the "Lightening Menu" or the "10 Minute Menu". Everything is designed so as to be unobtrusive. the meal is on the house! Mostly Grills the lovely roof top barbecue restaurant serves modern fusion cuisine.business traveler to stay. on the first level is the Boulevard. which many Mumbai gourmets consider the best Indian restaurant in town. Vindhyas. Here in a very ethnic temple setting you can experience the intriguing flavors of nine Indian peninsular states. an exclusive club floor with a private lounge and butler service. Abutting Vindhyas is Merlin's Bar. and what's . The setting is a very surrealistic Mexican village with a pool by the side and the breathtaking view of the airport runway on the other. is a unique concept showcasing the cuisine and culture of peninsular India. The name itself conjures images of magical concoctions that will help lift your spirits and unwind. Dining The exclusivity of The Orchid is experienced as soon as one enters the atrium that is serenaded by a 70-foot indoor waterfall. the 24-hour coffee shop. If the service is even a minute late. the folk dance performances only go to serve as the perfect accompaniments.

• Deluxe Rooms/Suites Executive Rooms/Suites Club Private Rooms/Suites • Orchid Suites • Presidential Suites • • 'Additional Facilities' Rooftop Swimming Pool A top-of-the-world feeling. • Same day laundry/dry cleaning service. • Complimentary Airport transfers. Choose from 5 different types of rooms to suit your convenience and budget. .overlooking the busy airport and the Mumbai skyline. Facilities 'Rooms' The Orchid accommodations offer the finest in luxury and state-of-the-art technology.00 am. a deli and cake shop. • Fitness Centre Enjoy a brisk work-out at our state-of-the-art fitness centre. to make your online reservation in an instant. • A Travel desk for onward arrangements . At the lobby is The Gourmet Shop.more Merlins is open till 3. giving you ample time to enjoy the magic.

room has got the following highlights : Wall to wall lint free carpeting Writing desk with internet connection Refrigerated minibar Wardrobe Direct dialing local/Intl with voice mail Interactive TV .Rooms Well appointed environment friendly Standard Room with a choice of twin or double beds.ft. This 225 sq. This 250 sq.ft room has the following highlights: Wall to wall lint free carpeting Writing desk with internet connection Refrigerated minibar Wardrobe Direct dialing local/Intl with voice mail Interactive TV A spacious split level room with a cabinet partition differentiating the living area and the bedroom .

a stress relieving massage chair and a walk-in wardrobe. .A spacious 2 room suite with a Living Room & a master bedroom separated by a door The most exotic suite at The Orchid. Stay in Style and enjoy a private Jacuzzi. The Presidential Suite has a spacious Living Room with a dining area & a cozy bedroom.

Section III Comparative Analysis of The Taj Vs The Orchid The Hotel Has Visually Attractive Building Exteriors & Parking Area 12 10 8 No. Of People 6 4 2 0 Strongly Disagree Somewhat Disagree Agree Somewhat Agree Strongly Agree The Taj The Orchid Public Opinion Findings: Both the hotels have an attractive building and are able to draw customer attention. .

o f p e o p le 6 4 2 0 S trongly S om ew hat D is agree D is agree A gree S om ewhat S trongly A gree A gree The Taj The O rc hid P u b lic O p in io n Findings: Both the hotels are well lit and have proper music facilty that are enjoyed by their respective customers. Recommendation: The Orchid can rearrange their interior décor to make accommodation more appealing to the customers T h e h o te l h a s a p p ro p ria te m u s ic a n d illu m in a tio n in k e e p in g w ith th e a tm o s p h e re 12 10 8 No . . o f p e o p le 6 4 2 0 The Taj The O rc hid S trongly S om ewhat Dis agree D is agree A gree S om ewhat S trongly A gree A gree P u b lic O p in io n Findings: The Taj does provide more comfortable accommodation and access to space than the Orchid.T h e h o tel h as visually attractive acco m o d atio n th at is co m fo rtab le an d easy to m o ve aro u n d 14 12 10 8 No .

of people 6 4 2 0 Strongly Somewhat Disagree Disagree Agree Somewhat Strongly Agree Agree The Taj The Orchid Public Opinion Findings: The Orchid seems to have a better variety of food that is enjoyed by its customers as compared to the Taj. The hotel has excellent taste of food 10 8 No. Recommendation: The Taj can take part in various food festivals to enhance its customers preference regarding choice of food. .The hotel has clean and elegant dining equipment 14 12 10 8 No. of people 6 4 2 0 The Taj The Orchid Strongly Somewhat Disagree Disagree Agree Somewhat Strongly Agree Agree Public Opinion Findings: Both hotels provide clean and elegant dining equipment that have impressed their customers.

of pe ople 6 4 2 0 S trongly S om ewhat Disagree Dis agree A gree Som ewhat S trongly A gree A gree The Taj The Orc hid P ublic opinion Findings: Both hotels present their customers with food that is well served and pleasing to the customers eye. of pe ople 4 3 2 1 0 The Taj The Orchid Strongly Som ewhat Disagree Disagree Agree Somewhat Strongly Agree A gree P ublic Opinion Findings: The dining staff of both hotels seem to be efficient in their job.T h e h o tel o ffers excellen t ap p earan ce o f fo o d 10 8 No. The dining staff is friendly 9 8 7 6 5 No. .

The dining staff is alw ays w illing to help you 10 8 No. . The dining staff is knowledgeable and confident 9 8 7 6 5 No. of pe ople 6 4 2 0 Strongly Som ewhat Disagree Disagree Agree Som ewhat S trongly A gree A gree The Taj The Orc hid Public opinion Findings: Both hotels are able to put their customers at ease and serve them effectively. of people 4 3 2 1 0 The Taj The Orchid Strongly Somewhat Disagree Disagree Agree Somewhat Strongly Agree Agree Public opinion Findings: The staff of both the hotels are well aware of their job and its specific function and are confident in providing their service.

Recommendation: The hotels must pay close attention on maximizing their recent functions and events and making them known to their customers . of people 4 3 2 1 0 The Taj The Orchid Strongly Somewhat Disagree Disagree Agree Somewhat Strongly Agree Agree Public opinion Findings: The staff of both the hotels are well groomed and trained to relate to every customers needs. of people 4 3 2 1 0 The Taj The Orchid Strongly Somewhat Disagree Disagree Agree Somewhat Strongly Agree Agree Public opinion Findings: Both Hotels seem to lack in communication between customers. The hotel offers consistent communication through restaurant newsletters or direct mail 8 7 6 5 No.The dining staff understands your specific needs 9 8 7 6 5 No.

Recommendation: The hotel must make sure that it leaves no stone unturned in generating more customer interest through the means of advertisement and print media etc. of pe op le 3 2 1 0 S trongly Dis agree S om ewhat Dis agree A gree S om ewhat A gree S trongly A gree The Taj The Orc hid P ublic o pinion Findings: It seems that customers are not aware of the advertising campaigns and other telemarketing services initiated by the hotels. . Th e hotel is active in providing m ass media advertising and telemarketing service 6 5 4 No.The staff provides information about new events or special promotion programs 5 4 No. of People 3 2 1 0 Strongly Somewhat Disagree Disagree Agree Somewhat Strongly Agree Agree The Taj The Orchid Public opinion Findings: The hotels do have staff members that are able to enlighten the customer about the new events and programs taking place Recommendation: However it would be advisable to conduct employee training programs to keep the staff more up to date on the recent happenings and events.

birthday and anniversary cards) from the hotel 12 10 8 No. . of pe ople 6 4 2 0 The Taj The Orc hid S trongly Som ewhat A gree Disagree Disagree Somewhat S trongly Agree A gree Public opinion Findings: The hotels are unaware of their customers personal details Recommendation: The hotels must keep track of their customer details through the installation of effective information systems.g. Recommendation: The hotels can issue complementary vouchers to certain customers. Also customers should be allowed to avail of special deals and discounts on a timely basis. of people 3 2 1 0 The Taj The Orchid Strongly Somewhat Disagree Disagree Agree Somewhat Strongly Agree Agree Public opinion Findings: The hotels do not carry out enough offers to help proceed customer benefits.I recieve regularly scheduled personal letters (e. This helps in bridging the gap between the hotel and its customers and helps garner customer loyalty I get discounts or special deals that most customers don't get 7 6 5 4 No..

I regu larly receive new info rm atio n abo ut a n ew p rodu ct. o f p e o p le 8 6 4 2 0 Th e Taj Th e O rc h id S tron gly S o m ew ha t A gree D is agree D is a gree S o m e w hat S trongly A g re e A gree P u b lic o p in io n Findings: Both Hotels have great regard for their customers and treat them with care. However The Orchid could pay a little more attention to customer treatment. Recommendations: The hotel can issue periodic news letters and pamphlets to their customers so that they are made aware of the latest happenings. special o ccasio ns an d pro mo tio ns 12 10 8 No. of pe ople 6 4 2 0 The Taj The Orchid S trongly S om ewhat Disagree Dis agree A gree S om ewhat S trongly A gree A gree Public opinion Findings: The customers are not informed about new promotions and special events.I w a s tre a te d a s a s p e c ia l a n d v a lu e d c u s to m e r 16 14 12 10 N o . .

of pe o ple 3 2 1 0 S trongly S om ewhat Dis agree Disagree A gree S om ewhat S trongly A gree A gree The Taj The O rc hid P u blic o pinio n Findings: The Orchid seems to have been successful in establishing a good relationship with its customers as compared to the Taj. I valu e th e c lo se. Recommendations: Staff rotation must be minimized to an extent such that they are aware of who are the regular customers and clients. p erso n al relatio n sh ip I ha ve w ith th e staff 6 5 4 No.I am recognised by certain dining staff 8 7 6 5 No. . of people 4 3 2 1 0 The Taj The Orchid Strongly Somewhat Disagree Disagree Agree Somewhat Strongly Agree Agree Public opinion Findings: The Staff are not able to recognize the customers on certain visits. Recommendations: The Taj can pay more attention to their customers demand and needs and provide them with efficient service that will help create a close bond with their customers.

with The Orchid having a slight edge over the Taj. of people 4 3 2 1 0 The Taj The Orchid Strongly Somewhat Disagree Disagree Agree Somewhat Agree Strongly Agree Public Opinion Findings: The Hotels are relatively at par when it comes to their pricing strategy.The food prices at this hotel are fair 9 8 7 6 5 No. of people 3 2 1 0 The Taj The Orchid Strongly Disagree Somewhat Disagree Agree Somewhat Agree Strongly Agree Public opinion Findings: The customers feel that The Orchid is more affordable as their prices are appropriate for the service provided. . The price charged by this hotel is appropriate 7 6 5 4 No.

of pe ople 3 2 1 0 The Taj The Orchid Strongly Somewhat Disagree Disagree Agree Somewhat Strongly Agree Agree Public opinion Findings: The Orchid has a more rational pricing strategy than The Taj.Recommendations: The Taj could run specials like ‘Happy Hours’ where in the food prices are reduced only for a specific period of time. . The price charged by this hotel is rational 7 6 5 4 No.

The quality of service at this hotel is consistently high 12 10 8 No. of people 6 4 2 0 Strongly Somewhat Disagree Disagree Agree Somewhat Strongly Agree Agree The Taj The Orchid Public opinion Findings: Both hotels are able to meet customer expectations effectively . of people 6 4 2 0 Strongly Somewhat Disagree Disagree Agree Somewhat Strongly Agree Agree The Taj The Orchid Public opinion Findings: Both hotels provide good service quality The service performances at this hotel always meet my expectations 12 10 8 No.

. of people 4 3 2 1 0 The Taj The Orchid Strongly Disagree Somewhat Disagree Agree Somewhat Agree Strongly Agree Public opinion Findings: Customers of both the hotels are confident about the service performance of the hotels The ingredients and quality of food at this hotel are reliable 10 8 No.I am concerned that the service performance will not be worth the money 8 7 6 5 No. of pe ople 6 4 2 0 Strongly Som ewhat Disagree Dis agree Agree Som ewhat Strongly Agree Agree The Taj The Orchid Public opinion Findings: Both hotels are able to gain the customers trust and ensure them that the quality of food served is of the finest standards.

The Taj is able to endure better customer satisfaction Your overall rate of satisfaction with this hotel is very high 7 6 5 4 No. . of people 3 2 1 0 The Taj The Orchid Strongly Somewhat Agree Disagree Disagree Somewhat Strongly Agree Agree Public opinion Findings: Both Hotels are able to satisfy their customers from an overall perception of service provision.Your level of satisfaction with the quality of service is very high 8 7 6 5 No. of people 4 3 2 1 0 The Taj The Orchid Strongly Somewhat Disagree Disagree Agree Somewhat Strongly Agree Agree Public opinion Findings: Though both hotels are able to satisfy their customers.

of people 3 2 1 0 The Taj The Orchid Strongly Somewhat Disagree Disagree Agree Somewhat Agree Strongly Agree Public opinion Findings: The Taj has a higher rating over The Orchid in this aspect.On the basis of overall satisfaction you would rate this hotel compared with other hotels as very high 7 6 5 4 No. .

. of pe ople 3 2 1 0 S trongly Disagree S om ewhat Disagree A gree S om ewhat S trongly A gree A gree The Taj The Orc hid P ublic opinion Findings: The Orchid is not able to connect emotionally with its customers as the Taj.My level of emotional attachm ent to this hotel is high 6 5 4 No. This will help the customer to know how much value they are to the Hotel My relationship with this hotel has a great deal of personal meaning to me 6 5 4 No. Recommendations: The Orchid can maintain customer relations by keeping track of their customers personal details like birthdays etc . of people 3 2 1 0 Strongly Somewhat Disagree Disagree Agree Somewhat Agree Strongly Agree The Taj The Orchid Public opinion Findings: Once again the Orchid is unable to connect personally with their customers.

I have a strong intention to visit this hotel again 8 7 6 5 No. . I am very likely to sw itch to ano ther o ne rath er than patroniz e this h otel 10 8 No. of people 4 3 2 1 0 The Taj The Orchid Strongly Somewhat Disagree Disagree Agree Somewhat Strongly Agree Agree Public Opinion Findings: The Taj is able to attract their customers to visit again more often as compared to the Orchid. of pe ople 6 4 2 0 S trongly S om ewhat Disagree Disagree A gree S om ewhat S trongly A gree A gree The Taj The Orc hid P ublic opinion Findings: The hotels are likely to loose their customers to other competitors.W hen ano ther ho tel ru ns specials. Recommendations: The hotels must provide their regular customers with special deals and discounts such that the customer will not think of patronizing another hotel.

of people 4 3 2 1 0 The Taj The Orchid Strongly Somewhat Disagree Disagree Agree Somewhat Strongly Agree Agree Public opinion Findings: The Orchid is able to make a lasting impression on their customers such that they are drawn to the same hotel for any of their needs. . This may hold true on the fact that the Orchid is more reasonable than the the Taj.I consider this hotel as my first choice compared to other hotels 9 8 7 6 5 No.

I want to tell other people positive things about this hotel 8 7 6 5 No. This could be to the fact that the hotel may be a bit too expensive for their budget. inadequate service quality or for personal reasons known to them. I want to recommend this hotel to my friends and family 7 6 5 4 No. of people 4 3 2 1 0 The Taj The Orchid Strongly Somewhat Disagree Disagree Agree Somewhat Agree Strongly Agree Public opinion Findings: Customers of both the hotels are interested in spreading positive feedback on the hotel to their friends. . of people 3 2 1 0 The Taj The Orchid Strongly Somewhat Disagree Disagree Agree Somewhat Agree Strongly Agree Public opinion Findings: While most customers want to spread positive feedback on the hotel they are a bit reluctant to recommend the same to their family and friends.

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