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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
• 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)
*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
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:
Relationship & Profitability Potential
(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.3 CRM Activities 1 Creating value for customers & prospects 2 Creating loyal customers Customer Relationship Life Cycle . 2. 3.The CRM cycle can be briefly described as follows: 1. 4. 5. Learning from customers and prospects.
Order Fulfillment • Complete Process Order Interaction Center Internet Customer Self-Service Service Management Claims Management Field Service -.Mobile Service Field Service -. and Service Profiling • • Collaborative Management Content 4. Customer Service Life Cycle • • • • • • • 3. and Financials Management • Fulfillment Visibility and Order Tracking Customer Engagement . Product. Customer Engagement • 2. Billing. 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.loop customer interactions through all phases of the customer relation life cycle including: 1.CRM facilitates closed.Dispatch Integration Services of Marketplace • • Real-Time Availability Checks Contract.
Provides sales tracking and sales forecasting.Enables planning. includes shopping basket functions • E-Selling -. audience definition. forecasts. 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 -.Delivers online systems that allow users to configure products online and compare prices across different catalogs and marketplaces. including content development. and communications • Telemarketing and Lead Generation -. including one-to-one marketing. sales portfolio. and sales budget.Provides solution for selling products and services via the Internet. contract completion. and reports on product and pricing trends • Internet Pricing and Configuration -. market segmentation. payment. . at any time.Manages inbound and outbound calls. search. catalog browsing.• Marketing Planning and Campaign Management -. integrates sales information from back-office systems and product information from online catalogs • Field Sales -. lead qualification. and implementation of sales strategy. and monitoring of campaign progress by using integrated analytical CRM functionality • Opportunity Management -. monitors sales pipeline. and customer support • Telesales -. covers all phases of sales cycle. call list management.Enables complete marketing campaigns. facilitates planning and maintenance of sales activities.Facilitates customer segmentation. identify key decision makers.Delivers key customer and prospect information to sales personnel at any place.Organizes daily workloads and customer contact information for display in calendar application. helps plan sales approaches. organizing. handles high call volumes. facilitates coordination of budgets. and estimate potential-to-buy and potential closing dates • Sales Activity and Contact Management -. provides efficient user interface. order placement.
manufacturing. and calls. Billing.Enables allocation of resources in real-time at the front-end. customized and "guided" content for customers.Provides information about customer contracts. 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 -. 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 -. and provides activity reports. supports multiple channels for customer communication. includes real-time access to inventory levels. distribution. supports effective • customer self service. and Financials Management -.Provides the ability to track and trace orders at all points along order management. visits. provides unique. provides certified interfaces to leading computer telephony integration (CTI) solutions • Internet Customer Self-Service -. and lead-time requirements across the entire supply chain.Offers customers and prospects access to information and customer service functions via Internet. enables visibility into product and service delivery dates • Contract. monitor.Provides inbound and outbound call processing. and enhance all customer contact. production capacity. and service processes.such as appointments. and activity management to track. integrates industry-leading eFrontOffice call center applications from Nortel Networks Clarify. includes case-logic system featuring advanced decision support for problem determination and resolution . including telephony and Web. e-mail management. creates quotations and takes orders.Enables real-time tracking of order fulfillment. proactively notifies customers of changes that affect delivery • Real-time Availability Checks -. integrates back-office functions • Fulfillment Visibility and Order Tracking -. billing status. and accounts.
Enables rapid allocation of service engineers and materials to meet incoming service requests • Integration of Marketplace Services -. monitors day-to-day operations. includes support for mobile and wireless devices • Field Service . billing. checks customer warranties when services are performed.Delivers and tracks customer and account information for field service personnel.• Service Management -. scheduling. integrates information from materials management. cost accounting. calculates services charges. helps decision makers with strategic management issues • • Claims Management -.(Dispatch) -. and accounts receivable. integrates contract management. facilitates simple and complex services.(Mobile Service) -.Facilitates handling of entire claims process Field Service . and dispatching functionality through tight integration with fulfillment systems. supports involvement of external service providers. provides service planning and forecasting. supports services carried out at customer site or in-house repair center (depot).Meets varied demands of service management business. handles customer installations.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: .
These include: - . a number of key marketing concepts can also be used to see where CRM has developed: • • • Satisfying Needs. all set up to develop relationships with customers.Looking back at a snapshot history of marketing. direct mail campaigns and early telemarketing (such as publishing) • 1980’s – where Niche marketing made millionaires of those who were best at it. The explosion of telemarketing and call centers. Such direct interaction led to relational bonding between the producer and the consumer. In recent years however. several factors have contributed to the rapid development and evolution of CRM. • 1990’s – Relationship Marketing. we can see the following clear developments and progression over the last four decades: • 1960’s – the era of Mass Marketing. 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. In addition to this. 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. 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. • 1970’s – saw the beginning of segmentation. Similarly artisans often developed customized produce for each customer. The recognition of the true value of retention and the use of Lifetime Value as a business case.
Emerging real time. Other programs such as JIT and MRP also made use of interdependent relationships between suppliers and customers. and General Motors. 7. it minimizes the role of the middlemen. 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. in many industries such as airlines. 5. When companies embraced TQM it became necessary to involve customers and suppliers in implementing the program at all levels of the value chain. Advances in information technology. Another force driving the adoption of CRM has been the total quality movement. 4. interactive channels including e-mail. . ATMs and call centre that must be synchronized with customer’s non-electronic activities. IBM. banks insurance. Ford. In the current era of hyper competition. Toyota. marketers are forced to be more concerned with customer retention and customer loyalty. This needed close working relationships with the customers. software or household appliances and even consumables. For example. requiring flexibility and rapid adoption to technologies. Also nowadays consumers expect a high degree of personalization. 2. the de-intermediation process is fast changing the nature of marketing and consequently making relationship marketing more popular. 3. The growth in service economy. Databases and direct marketing tools give them the means to individualize their marketing efforts. Xerox. 6. Since services are typically produced and delivered at the same institution. The speed of business change.1. Customer expectations are changing almost on a daily basis. Newly Empowered customers who choose how to communicate with the companies across various available channels. As a result product quality and cost are no longer significant competitive advantages. networking and manufacturing technology have helped companies to quickly match competition. Thus several companies such as Motorola. etc formed partnering relations with suppliers and customers to practice TQM.
CRM Process Framework . selecting parties (or customer partners) for appropriate CRM programs and developing programs (or relational activity schemes) for relationship engagement with the customer. 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. three important decision areas relate to defining the purpose (or objectives) of engaging in CRM.CRM Formation Process In the formation process.
This gives your sales organization the flexibility to project forecasts for multiple periods. Through a CRM integrated solution. or sales group. global visibility of their company revenue forecast. Sales reps can review and monitor the health of their sales pipeline through graphical views. facilitating team selling that will lead to closing more deals. For an account. sales reps can access and share account and contact management information throughout the enterprise. sales manager.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. forecasted. sales status. a pipeline analysis is available real time by sales channel. Sales reps can also define a forecasting window on a "rolling" schedule for any number of pre-defined periods. It also allows sales reps to effectively target their selling efforts to focus on high-value deals and meet revenue targets. Field Sales Online provides up-to-the minute pipeline and forecasting information to an account manager. Field Sales Online's multi-currency consolidation of divisional forecasts provides sales executives with a higher. • Improve Global Forecast and Pipeline Management Improve information access. sales rep. or territory manager. forecasting and pipeline management to improve your organization's ability to close deals. Sales reps can also generate sales forecasts in units as well as currency. and retain historical information for trend and win/loss analysis. upside or lost pipeline opportunities by depicting their sales information through this fully interactive interface. . faster. freeze forecasting periods. Sales reps can easily manage and view any combination of won. and sales stage.
Account. . contact. Field Sales Online's Web architecture enables global deployment and upgrade to remote users as well as easy customization. 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. Users can access summary information for their customers. sales reps have the ability to download complete territory information to their laptops for better account management while on the road. Through mobile functionality. opportunities. This reduces costs and extends the mobility of sales one step further with the introduction of application support for mobile hand-held devices. thus increasing the chances for a successful sale.• Improve Win Probability Improve the focus of your sales efforts with better information to close deals. the information is uploaded and is available throughout the organization. export the information to their preferred spreadsheet or drill-down to the lowest level of detail. • 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. completely disconnected from the corporate network. and compensation by a single click of the mouse. and opportunity information can be accessed and updated throughout the sales cycle. Next time the sales rep connects to the network. Global -line view of their entire sales pipeline-across business units and products. Sales reps also have access to competitive information collected from deals lost through pipeline management features. activity. Field Sales Online reduces implementation time as well as promotes sustained use of the application by the sales force. reducing the cost of deploying sales automation solutions within your organization. With this view. Dynamic menus and tabs facilitate navigation and eliminate the need for user training.
product line. or sales managers to create reports related to the sales people who are assigned to them within the salesperson hierarchy. Managers can then analyze background. sales rep. and tools used by their top performers to replicate successful profiles within the sales organization to maximize its efficiency and performance. or partner sales rep. Effective tracking and reporting options provide verification to the sales force that they are receiving appropriate compensation. In addition. 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. the breakdown of their commission by deal. you can allow users to create reports for only their commission and performance data. sales managers and executives can identify their top and bottom performers. letting you define the information users can access. sales group. Sales Compensation offers flexible reporting access. . Sales reps can forecast their future compensation and commissions based on their current pipeline and focus their selling time on the most valuable opportunities. sales reps can "blind-rank" themselves at anytime to measure their performance against a group of peers. For example. adjustments and transactions. Sales applications enable sales reps to view their compensation summary. and period. In addition. Reduce the steps involved in tracking and quoting customer data with integration of sales capabilities across your enterprise.• Increase Sales Rep Productivity. so they can track their own performance. training. Opportunities and pipeline are tracked at each stage of the sales funnel by channel.
a call center. In addition to supporting traditional marketing and demand creation channels such as direct mail and tele-business.loop Marketing Improve marketing management and programs with a comprehensive marketing system that supports planning. to tailor messages and campaigns with better accuracy for highly focused. . This level of detail enables marketers to reduce costs while increasing the effectiveness of their marketing efforts. Designed specifically for marketing professionals. and purchase frequency. execution. 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. the application automatically collects campaign results and tracks campaign effectiveness across different sales channels. campaign management. and even individual customer results. • Better Information for Better Management Implement highly focused. payment preference. individualized marketing campaigns. targeted campaigns with better returns on your marketing investments. Marketing Applications automates the entire marketing process from demand creation to revenue recognition. • Expand Marketing Channels Through Utilize the power of the Internet to increase your marketing reach and effectiveness. many vendors are enhancing the integrated closed-loop marketing application through relationships with several strategic third-party vendors. by market segments. marketers will be able to profile customers based on any number of criteria including sales cycle. Internet support and analysis.The objectives for Marketing Applications offered by a CRM suite are as follows • Closed. or the Web. This integration enables marketers to tap into the wealth of data collected through every customer "touch" with their company whether through field sales.
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. Its comprehensive resource management capabilities enable organizations route the calls to the right agent to reduce call resolution time. specifically through the Web. Many of the features that increase profitability also streamline and improve organization’s service delivery. . Service application enables organizations to reduce costs by providing a comprehensive closed loop support and service information management system. 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. organizations can track total customer contact history to increase customer knowledge and reduce redundancies and resolution time. Further. Marketing applications will help companies capitalize on this rapidly expanding opportunity to reach a larger audience with their marketing campaigns.The combination of these applications will expand the automation of the marketing planning and execution process over multiple deployment channels and sales models. or improve customer service by routing a support call to the agent trained in supporting a particular product. resource usage and the billing system. reduced costs. Its enterprise wide customer management ability enables you to reduce billing time with built-in integration between contracts. 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. with interfaces to customer care. warranties. • Service Improves Service Delivery Create an efficient and effective service business using integrated enterprise-wide information available in other Front Office and ERP applications. By leveraging the Web as a channel. Fast parts rotation enables reduced inventory levels and therefore.
. and directly with Field Representatives. so that they are well informed and can also accurately inform customers of service issues. The built-in self-learning knowledge base enables companies to leverage employee knowledge and achieve skills transfer. maximizing the likelihood of additional product purchases. Organizations can achieve a full 360-degree view of their customer. Service Applications by enabling both improved product service. Service applications also track all product defect information. This translates into better response to customer's needs. As products become commoditized. • Service Helps organizations Differentiate their Product Distinguish business by offering service as a differentiator using multiple channel communications with customers. service and customer information management across your organization to improve customer satisfaction and loyalty. offering customers flexibility in interacting with the company. This integrated customer contact capability ensures that the organization’s customers receive consistent service and information. thus reduce his need to turn to one of the competitors for new products or services. Service Applications enables organization’s customers to communicate with the company though many different venues.• Service Helps organizations to Delight Customers Provide enhanced customer care. help organization’s provide their customers with a positive experience in dealing with the company. and customer care. an ability to extend proactive customer management programs as well as have the information at your disposal to better understand the customer. which enables organizations to proactively manage customer issues. With an end-to-end Customer Care and Service Solution. full enterprise wide view of customer information. increasing employee retention and reducing customer churn. call centers. the next purchase decision customers make is increasingly based on either the quality of service or the perceived care they receive from the company. web. Additionally.
they can also maximize the logistics and costs within their expanding service business with integrated sales and spare parts forecasting. Service Applications provides companies to turn support service into a high return profit center. Further. they can tailor Service Contracts individually. as well as tailoring the service offering to specifically address any customer’s needs.• Service Applications Grows Company’s "Share of Customer Wallet" Service Applications help to leverage expanded business opportunities extending beyond company’s service needs. The Companies can also anticipate their customer needs and proactively build and sell new support and service offerings. by customer. . enabling new revenue streams with customized service. by product or by business. 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.
one-to-one marketing. and. 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 . These take different forms depending on whether they are meant for end-consumers. partnering programs. or business-to-business customers. distributor consumers. Table 1 presents various types of CRM programs developed for different types of customers.CRM Programs A careful review of literature and observation of corporate practices suggest that there are three types of CRM programs: continuity marketing.
here marketers appoint customer teams to husband the company resources according to individual customer needs. 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. By using online information and databases on individual customer interactions. .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. individual marketing has been in place of quite sometime. In the context of business-to-business markets. In the mass markets. Information on individual customers is utilized to develop frequency marketing. two types of partnering programs are most common: co-branding and affinity partnering. marketers aim to fulfill the unique needs of each massmarket customer. One-to-one Marketing Meeting and satisfying each customer’s need uniquely and individually. 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. and after marketing programs in order to develop relationship with high-yielding customers. interactive marketing. 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.
CRM and Related Concepts Knowledge Management (KM) with focus on CRM As Peter Drucker defined “Information is data endowed with relevance and purpose”. partners. figures. but it’s a complex exercise. A straightway technique is to create a data warehouse. etc. which is invariably not possible. Front office could be more productive if they could utilize customer knowledge. To effectively implement a CRM solution it is very important to identify real knowledge about different types of customers (Viz. It is possible to generate explicit knowledge from tacit knowledge. . so too does knowledge. like legacy systems. existing data warehouses. 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. portals. external marketing research agencies and cultivating the knowledge where it resides. Marketing. websites. could be mined out of this data warehouse. KM implementation is the key to CRM. surveys. Most valued customers. Metrics. ROI. benchmarking are some of the common technique of KM system evaluation. Retaining tacit knowledge (derived from experiences. Most grow able customers. data and documents) means retaining the individual. customers. It’s a proven fact that 80% of organization revenues come form 20% of its customers. Balance Scorecard method. Just as more tangible corporate assets like computer systems have a finite shell life. thereafter information which is required to effectively implement principles of CRM. suppliers. below zero customers) from plethora of internal and external data. it must be available at the right time to be able to act upon it. Knowledge Management (KM) is about embracing a diversity of knowledge resources. sales after-sales people would be knowledge workers.
web solutions. which can facilitate tacit knowledge exchange. CRM aims to provide organizational effectiveness by reducing sales cycle and selling cost. Hence for tacit knowledge exchange text mining is very useful and important. ERP and CRM Like ERP. like search engines.e. The key to successful customer KM is personalization. Microsoft solution. profitability. The choice of Customer Knowledge Management (CKM) architecture should have a layered approach. albeit in front-office areas such as marketing. etc. how to extract the knowledge that is pertinent to the user and translate it into a format that is easily understood. resources and operational applications to make organizations more efficient in achieving these goals.The key ingredient of this exchange is face-to-face sharing of knowledge or virtual environmental tools like Lotus Notes. While CRM applications provide the framework for embodying. Existing systems should be seamlessly linked with the proposed layer. i. ERP provides the backbone. Whereas ERP implementation can result in improved organizational efficiency. promoting and executing best practices in customer facing activities. sales. identifying markets and channels for expansion. customer service. There are ways to do text mining. and customer support. and retention. text analysis tools. and improving customer value. CRM solutions focus on automating and improving business processes. The choice for CKM system could be Web (Enterprise information portal) or a packaged solution such as Lotus Notes. . satisfaction.
These solutions integrate the voice switch of automated telephone systems (e. more innovative channels of interacting with customers are emerging as a result of new technology. predictive dialing. and it has sufficient depth to understand the customer and accurately anticipate their behavioral patterns in future. Customer data strategy should focus on processes to manage customer acquisition. sales force management.g.Technological Tools for CRM Tools • Customer database A good customer information system should consist of a regular flow of information. auto display of relevant customer data. Call Center helps in automating the operations of inbound and outbound calls generated between company and its customer. An ERP helps in automating business functions of production. . The customer database helps the company to plan. ERP is back office automation solution. telecom and hospitality. finance. pre-sale and post-sale services and complaint handling by providing an integrated view of the customer. retention. marketing and product knowledge. systematic collection of information that is properly evaluated and compared against different points in time. installation. where as CRM automates the relationship with customer covering contact and opportunity management. and monitor customer contact. Today. inventory. order fulfillment and human resource giving an integrated view of business. customer order processing and fulfillment. These systems are useful in high volume segments like banking. implement. 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. Companies are increasingly adding data from a variety of sources to their databases. etc. and development. delivery. Customer relationships are increasingly sustained by information systems. such as global telephone based calls centers and the Internet. EPABX) with an agent host software allowing for automating call routing to agents. sales forecasting. • Systems Integration While CRM solutions are front office automation solutions. self service Interactive Voice Response systems.
which can direct all customer queries and issues through appropriate channels to the right place for speedy resolution. Data mining helps in the process of understanding a customer by providing the necessary information and facilitates informed decision-making. Therefore. 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. 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. . CRM and ERP are complementary. 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. Collaborative CRM involves the facilitation of collaborative services (such as e-mail) to facilitate interactions between customer and employees. 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.
dislikes. Individual level information consisting of: → Customer personal details such as name. address. sex. etc → The customer group /segment to which the individual belongs → History of present and past behavior → Likes. marital status.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. income. . etc) • • The firm’s best customers and the segment they belong to. habits and preferences → Events coming up in their personal life etc.Operational CRM Analytical CRM Collaborative CRM Customer Fig. education. preferences. education. habits and tastes of each segment. family details. products they buy.
Tele sales. Internet Sales Call Centres.The existing CRM Solutions Delivering the ‘360 view’ requires automation to bring together all the data concerning a customer. 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. While there are some vendors. Tele marketing Product and brand management Field sales. Adopting a similar or a look a like solution across industries is what causes major strain in servicing a customer. who have come up with industry specific solutions.com. Typical offerings of the current CRM solutions (such as Siebel. Field Service Internet Customer Service Service Interaction Centre Business Partner Collaboration . However typical CRM offerings consist of: Customer Development Service Centre Sale management and support Market Analysis Internet. etc) vary from solution to solution. the broad model around which the CRM solutions are built remain the same. Oracle Apps or MySap.
personalized and relevant communications with customer across both electronic and 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. assessment and “actionable” customer strategies. 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. . or even the fax. It synchronises communication across otherwise disjoint-customer facing systems. a number of channels exist for interacting with customers. It is simply another extension. to the customer. albeit a powerful new one. 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. or customer touch points. the call Centre. One of these channels is “electronic” – and has been labeled “e-commerce” or “e-business”. It adheres to permission-based practices.eCRM What is eCRM? In simplest terms eCRM provides companies with means to conduct interactive. This electronic channel does not replace the sales force. • 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. It utilizes a complete view of the customer to make decisions about messaging. Within this framework. eCRM Vs CRM CRM is essentially a business strategy for acquiring and maintaining the “right” customers over the long term. offers and channel delivery.
Enterprise 3. Electronic channels 2. During this stage the company will try and develop a Connected Enterprise Architecture (CEA) within the context of the company’s own CRM strategy. Empowerment 4. External Information eCRM Architecture The primary inputs to this module are mainly from the eCRM Assessment and strategy alignment modules. Economics 5. Evaluation 6.The six “E’s” of eCRM 1. 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 .
one of the selected vendors or a third party integrator. The challenge of this approach is that. in some cases.Categories of CRM solutions Any enterprise. either by the enterprise.e. referencing a common logical database with a single schema. the applications remain stovepipes. . interfacing and functionality. An integrated application suite is a set of application that employs a common architecture. Rather. Some suites are more often interfaced application bundle i. The individual applications are not the best in any objective sense. Best of cluster is similar to best of breed except that here best is chosen from the cluster and they are interfaced. consequently. some enterprises select the applications because they best meet the particular needs. 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. 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 enterprise fails to complete the necessary interfaces to get the individual applications working together. Enterprises need to start with a clear picture of the basic truths of integration.
problem and solution database. sales forecasting. and service request management. Customer service and support applications. These include customer care. contact and account management. list generation and management. execution. proposal generation and management. collateral generation and marketing materials management. and analysis. field service. budgeting and forecasting. service agreements and contracts. defect and order tracking. incident. repair scheduling and dispatching. compensation. territory assignment and management. Functional components and channels are described below: Sales applications Common applications include calendar and scheduling. pricing. .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. Marketing applications These include web based and traditional marketing campaign planning. and expense reporting. opportunity and pipeline management. advanced technologies and channels.
Supermarkets are a perfect profile to look at for viewing ‘product trends’. Products need to be reviewed constantly perhaps enhanced or even removed. is the customer data upto it. Technology Ensure that the business is ready to install the new technologies.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. it could be a logical extension to enhance those in existence. This may not always be by using the latest ‘technology’. . 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. to be really successful with CRM you must recognize the customer trends that are effecting the business. 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. 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. Every business does require CRM. 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. or is it time to start again? Do you need to review every technology being used or just one area. though it could radically change some of the operational processes. 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. but the super market is at the minimum watching for the two basic trends in CRM.
. 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. they need to provide exceptional service. be constantly reviewed and can evolve over time. Whatever the business is. 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. therefore only minimal information is required from that customer. That however is still a form of CRM. Other companies have high quality and high value customers that they need to know information about. Some customers do not need long-term relationship with their suppliers. the ‘pedigree’ of CRM.
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’ . 1. (a) Sale Cost Line T1 Fig.Financial Framework for CRM There are organisational constraints encountered in execution of CRM programs. (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. 1. 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. 100% Direct Sale 100% Composite Costs % 50% of overall sale Unit Selling cost Referral Sale Time T1 Time Fig.
Direct sale Sale Unit No. .Figure 2 illustrates that with a given investment in direct sale channel the productivity can at best be only slightly increasing line. referrals. This creates a multiplier effect that quickly overtakes the direct sale numbers. 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. while a referral line will be an exponentially increasing trend line with growing subscriber numbers.
Similarly. etc with GE staff. Also on cards is a ‘fitness program’ where taj’s experts will share information of food nutrition. 2) Taj Air Caterers & GE Capital Services There is e-mail connectivity between the service provider i. The product is designed to reflect their passengers’ preferences. which are quite different in Delhi and Mumbai.e. 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. wherever necessary. Taj and GE (for canteen and food supply). Taj Ctareres share a lot of information and can access technology issues with Singapore Airlines. TAJ Chefs conduct an annual workshop on Indian Cuisine for Singapore Airlines’ caterers worldwide. exercise. This has evolved after getting an insight into Singapore Airlines’ customer profile and their needs. SATS.CRM in select Services 1) Taj Air Caterers & Singapore Airlines Taj actively participates in product designs and influences service design. and on different sectors ex-Mumbai. GE employees can obtain attractive discounts at Taj outlets/hotels. a loyalty program is being designed where in for purchases snacks and confectionery. 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 . 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. Taj staff gets trained at Singapore Airlines’ catering subsidiary.
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
The moment a guest checks in. 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. the IT initiatives of hotel chains in India have matured. The hotel has deployed a check-in system on each floor depending on the guest’s profile. And since it focuses on preferences. which explains why every chain is taking the help of technology to improve efficiency. the hotel immediately knows of his preferences and serves him accordingly. Taj Group of Hotels. requests and problems of different customers. every major hotel chain in India is investing in comprehensive systems that store complete profiles of their customers. Says Pradeep Khetwal. systems manager.” CRM While IT initiatives like centralised management and automating daily operations are important. 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. We too recognise this and have deployed customer information systems (CIS) to service the customer in a better way. Today. Services like providing wireless Internet access to guests will only increase in the future. Says Prakash Shukla. senior vice president. and are being increasingly fine-tuned to serve the needs of the customer. CIS creates guest-centric processes that are essential for CRM.” The same CIS can be accessed through any of the group’s properties. At present. Two. the key part of retaining a customer is critical to the hospitality industry. CRM is also being adopted in a big way by almost all the big hotel chains in India. it is a boon to the hotel management. “Every hotel has a major chunk of its revenue coming from its regular clientele. waiting to fill in details of their preferences. “Most hospitality chains now realise that technology in the hospitality industry is critical to improve the operational efficiency of a hotel. This has solved the problem of long queues of customers at the counter. Take a look at Le Royal Meridien. he fills a form indicating his various preferences. the group can monitor the performance of each member hotel and summarise the sales performance of the whole group. . If he is a regular client. technology.group wants to announce a special scheme for all its member hotels. and CIO. Le Royal Meridien (Mumbai).
the business centre or conference rooms. J W Marriott Hotel (Mumbai). wireless technology in big hotels was traditionally confined to the guest room.” says Ashish Kale. extensively uses VoIP and video conferencing tools on its internal network to cut communication costs. we can provide consistent service quality. Adds Khetwal of Le Royal Meridien. with the help of analytical tools. “Wireless technologies deployed in selected areas of the restaurant hampered mobility. data management systems contained only static information. Some hotels have even given their regular customers unique IDs to enable them to check their loyalty points on the Web itself. with knowledge of the customer’s history. systems manager. 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. But as this hampered mobility of a business executive. The Taj group.” .” In addition. for instance. But now. “Initially. Says Zahid Memon. In the traditional method. systems manager.The same database is used to offer loyalty programmes to the customer. a hotel can service a customer more efficiently. CRM and software tools for front line staff have enhanced successful one-to-one relationships. Wireless-technologies One of the best examples of the use of wireless technologies is the hotel industry. Earlier. most hotels have also embraced newer technologies with gusto. which was used only to enhance efficiency of the hotel staff. “Most hotels know their customer preferences because relevant data can now be procured from the systems as and when needed. Most hotels today offer a customer different schemes based on his profile. hotels started looking at using wireless Internet services throughout the hotel. this was done manually with no clear understanding of a customer’s preferences. But today. and it was impossible to access the Net in any of the restaurants and near the poolside. Renaissance Mumbai Hotel and Convention Centre.
hotels were attracted to the Web and were expecting major revenues to come from online reservations.” Another significant use of this technology is seen in wireless-equipped handheld phones called digitally enhanced cordless phones. But just like other industries. . Going forward. Shukla puts forward a very valid point: “As in any industry. it will be a long time before customers accept this. Today. strategic decision making coupled with an ability to access information. Though most hotel chains offer customers a secure way of transmitting data. This phone is especially useful for mobile staff who can attend to a complaint immediately. all of them are not beneficial to the end-customer. one has to realise that though different technologies are available.” The-way-forward Wireless communications and mobile computing technologies are changing the way hotels manage information. EDP executive of Orchid. which makes customers reluctant to reveal their credit card details on the Web. a hotel which understands a customer’s needs and fulfils it satisfactorily with the help of technology would obviously be a preferred one. Going forward. we too have to change with them. and almost no bookings take place through the Web. Says Shailesh Bhagwat. and is all set to launch this in Mumbai. websites of most hotels serve only as information outlets.The Taj Group has already introduced wireless Internet access for its customers at Taj Coromandel in Chennai. In addition to this. One has to realise that as customers change their preferences and the way they want to interact. “Proper security systems are a must to avoid fraud in non face-to-face transactions. hotels too have been disappointed. analysing it and distributing it would be the key to increasing productivity and reducing costs. Online-reservation-system In the dot-com phase. hotel chains could increase the number of value added services without major investments in IT budgets. which serve the purpose of tracking a person anywhere in the hotel premises. One obvious reason is security.
India is fast becoming an important development base of major CRM companies. AC Nielsen. Tata Infotech. . Global Groupware. and Motorola India. HP India. Founding members include Tata Telecom. Tata Telecom. Adoption of CRM by Indian companies is at an infancy stage. The CRM enabled companies include Modi Xerox. . Satyam Infoway. TVS Electronics. With is vast talent pool. both products as well as services. Call centres. With the easing of infrastructure constraints. India is likely to emerge as a significant player in this segment. among others. Escotel. Carrierr Airrcon. 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. Carrier Refrigeration. and EpicenterTechnologies among many others.Conclusion Software is to India what oil was to Gulf. founded with the purpose of assessing and improving CRM practices. Tata Teleservices. India even has a CRM Foundation in New Delhi.Planet M. catering primarily to the American and European markets are coming up in and around the metros. This trend is likely to increase in the future.
A Customer-Centric Quality Circle could be formed in organizations to facilitate this. Companies implementing CRM should keep in mind that CRM is not Database Management but a whole new way of looking at the business.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. . 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. 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. 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.
housekeeping. accounting. The recent liberalization of trade and opening up of economy will further lead to revolutionary growth in this sector. 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. It is a glamorous profession which has a bright future. With increasing globalization. . With the growth of hotel industry propelled by foreign and domestic tourism and business travel. 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. 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. front office operation. sales and marketing. food and beverage service.Section II The Hotel Industry :Hotels are amongst the most visible and important aspects of a country's infrastructure. Hotel industry is a closely linked one to the tourism industry. Hotel industry involves combination of various skills like management. Today.
Leisure traveller: The business offered by this segment is highly seasonal and tends to increase during the October-March period. Airline crew: This segment provides an assured occupancy for hotels that have contracts with airlines. Tourist inflows. However. Hotels offer this segment a discount of nearly 40-50 per cent. the . are seasonal in nature. in the 5-D and 5-star segments states that of the total reservation in 2003-04. This segment is highly dependent on the economic scenario of the country. hotels. especially international leisure tourist inflows. or resorts that define the concept of environmental responsibility within the hospitality industry. in cities where the demand for rooms is increasing (resulting in ARRs moving up). A survey conducted by the Federation of Hotel and Restaurant Association of India (FHRAI). Hotel concepts 1) Ecotel An ecotel is an exclusive group of inns. business travel tends to be less seasonal. All certified hotels have to pass a multi-level inspection by Hospitality Valuation Services (HVS) International. one will find a reduction in the airline crew. Business traveller: The business offered by this segment is less seasonal and travellers usually stay in premium segment hotels.Industry characteristics Seasonality The premium segment of the hotel industry is largely dependent on foreign tourist inflows. tourist arrivals from AprilSeptember are lower than from October-March (60 per cent of the annual arrivals). Hence. the maximum reservations came from business travellers while the least came from airline crews. Owing to the summer and monsoon seasons.
water conservation. 2) Resorts Resorts cater to the leisure needs of a tourist. However. The hotel has been able to cut down operating expenses as a result of its eco-friendly practices. summer resorts and winter resorts. beach resorts. The significant features distinguishing a motel from a hotel are adequate parking facilities cottage style accommodation (provided by most motels) . seminars and meetings. In Asia. Hence. its occupancy levels are generally higher during weekdays than on weekends. as compared with weekdays. to date. health resorts. Hence. Mumbai targets companies hosting conferences. over 1. The Resort. The Orchid Hotel. resorts can be further classified into hill resorts. energy efficiency. motels are located along highways connecting important cities. Among business destinations. resorts are usually characterized by higher occupancy rates during weekends. Usually located at hill stations or seashores. and employee environmental education and community involvement. (However.international ecotel-accreditation agency. Other ecotels in India include Hotel Rodas in Mumbai and The Uppal's Orchid in Delhi. The five criteria are environmental commitment.100 hotels from over 30 countries have applied for the ecotel certification. Since its establishment in 1994. have well defined off and peak season periods. A hotel receives a five-globe certification only after it meets the 5 criteria and fulfils the norms specified by the agency. their revenue inflows keep fluctuating. Most resorts located at hill stations. solid waste management.) 3) Motels In general. Mumbai was the first to receive the ecotel award. less than 5 per cent have been certified.
Some heritage hotels. Motel Aaram Erimayur Palakkad and Motel Aaram Palaruvi are some of the motels in India. typically in multiples of one week. and food and beverage is generally outsourced. or purchasing a holiday property outright. 4) Floatels A floatel is a floating hotel or a boat operating as a hotel. limited service. Reportedly. there are around 500 boutique hotels worldwide. Hotel Punta Islita. for a set period. Instead of booking a week or two at a resort every year. timeshare offers buyers the ability to buy rights of occupancy in a property. Park Hyatt. In general. are also boutique hotels. KTDC's Motel Aaram Kuttippuram. Sofitel Demeure Hotels and Amanresorts. boutique hotels are characterised by a high percentage of repeat clientele. W hotels. 5) Boutique hotels The typical boutique hotel has less than 100 guest rooms. all the properties of The Park Hotel (Delhi. Joie de Vivre Hospitality. short duration of stay. Orient-Express. one or no boardroom. Myhotel. like the palace hotels in Rajasthan. Floatels are being planned in Goa and West Bengal. In India. Kolkata. Motel Aaram Athirappally. The Kimpton Group. 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. Motel Aaram Kayamkulam. Some of the international boutique hotels include Melia-Comfort Boutique Hotels. Ian Schrager Hotels. Motel Aaram Kannur. Visakhapatnam and Bangalore) are boutique hotels. Once . Bvlgari Hotels. Zoo Hotels. 6) Timesharing industry The timeshare concept as an innovative way for increasing holiday choice took root in Europe in the 1970s. Scotsman Hotels.
vacation club members purchase the opportunity to use a variety of timeshare accommodations at various resort locations. to meet consumers' demand for vacation variety and flexibility. Vacation clubs: Instead of purchasing a timeshare in a certain size of unit at a particular resort. they can use it. The Taj Group consists of 54 companies. Some of the purchase options include Fixed week: Timeshare units sold for use during a specific week of the year. or rent it out. Indian Hotels Company Limited Indian Hotels Company Ltd (IHCL) was incorporated in 1902 by Jamshedji Tata. At present. It became a public limited company in 1958. including hotel-operating companies. associate companies and investment companies. hotel licensing companies. The availability of these purchase options varies by resorts. The timeshare industry offers various purchase options. associates and . usually within one developer's chain of resorts. in terms of both revenues and number of rooms. Some of the clubs operate on a points system. Through its subsidiaries. Floating week: This could be any week reserved for the timeshare owner during a certain season of the year. IHCL is the largest hotel company in India. pass it to friends or relatives.consumers have purchased their holiday time.
management contracts. Tourist inflows. especially international leisure tourist inflows.017 rooms in India and abroad. Taj resort hotels. . 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. Taj cultural centre hotels). however. business travel tends to be less seasonal. and Taj corporate.865 rooms. IHCL owns 19 properties with 2. Of these. Owing to the summer and monsoon seasons. However. This means that the company will extend coverage. Industry characteristics The premium segment of the hotel industry is largely dependent on foreign tourist inflows. the investment in assets will be limited and in proportion to their strategic importance and financial return. IHCL has been structured into four strategic business units — Taj luxury hotels. are seasonal in nature. The company aims at expanding both in the domestic as well as international market through an ‘asset light strategy'. Taj leisure hotels (with Taj palace hotels. 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. Taj garden retreats.
the average revPAR (premium segment) in the 10 cities rose by 18 per cent. primarily driven by ARR. Tourist arrivals In August 2005. in cities where the demand for rooms is increasing (resulting in ARRs moving up). A survey conducted by the Federation of Hotel and Restaurant Association of India (FHRAI).Business traveller: The business offered by this segment is less seasonal and travellers usually stay in premium segment hotels. Leisure traveller: The business offered by this segment is highly seasonal and tends to increase during the October-March period. Airline crew: This segment provides an assured occupancy for hotels that have contracts with airlines. Hotels offer this segment a discount of nearly 40-50 per cent. ARRs in the 10 cities increased by 18 per cent in August. Hence. This segment is highly dependent on the economic scenario of the country. one will find a reduction in the airline crew. in the 5-D and 5-star segments states that of the total reservation in 2003-04. the maximum reservations came from business travellers while the least came from airline crews. .
Heritage hotels include old palaces and havelis. as well as small citiesstar and tourist destinations 2-Largely targeted domestic tourists atMinimum facilities. and easy availability of telephone and LPG connections. which have been converted into hotels. Target Rates Foreign business andHighest ARRs due to leisure travellers. 5-star and 4-star hotels while the state governments are responsible for the classification of 1-star. The Department of Tourism also reclassifies hotels every 3 years and is responsible for the classification of 5-D. seniorhighest levels of business executives andservice quality. havelis. 2-star and 3-star hotels. Charges are lower than that of the budget segment. top government officials. Budget Located in major cities3-star. 4-star. as well as small citiesstar and tourist destinations 4-Middle level businessOffer few facilities and executives and leisurecharge lower than the travelers premium segment. castles.Classic constructed prior to 1950.Grand. fortsHeritage and residences. and 1-star. 5-star. Economy Located in major cities1-star. 3-star. Classified hotels are also entitled to benefits such as interest subsidies. The Department of Tourism has classified hotels into 7 categories: heritage hotels.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. imports. Heritage Heritage hotelsHeritage comprise old palaces. Classification by segment Segment Location Category Premium Around 50 per cent of5-D. 2-star. converted into hotels largely located in leisure tourist Foregin leisure travelers ARRs are lower than that of hotels in the premium segment . income tax benefits. 5-star these hotels are concentrated in the four metros. 5-star deluxe (5-D).
rooms.destinations India and the world market The Indian hotel industry is relatively smaller when compared internationally. The industry occupancies have hovered around the 55-60% mark for the last few years. the cost of travel and hotel facilities is high due to the high taxes levied on ATF (aviation turbine fuel).400 hotels comprising 77. 3-5 star and 5 star deluxe hotels account for 65% of rooms. with the exception of FY01 when average occupancies reached around 70%. Out of this. There are over 1. 4 & 3 star hotels constitute the remaining. While the 3 and 4 star categories have grown at 6% and 8% CAGR respectively during the same period. and F&B. 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. These taxes account for a significant portion of the total . occupancies slumped to the lowest in the last five years at around 45-50%.e.000 rooms spread across the country. 32% of rooms comprise of 5 star and 5 star deluxe hotels. 60% of the 5 star hotels are situated in 2 major metros i. Mumbai and New Delhi. Room supply in the 5 star segment has grown at a compounded annual growth of 5% over the past decade. During FY03.
especially leisure travellers. high landing charges. which sustains the well being of the land. which keeps competition levels high and air fares low. Besides. Poor infrastructure: Accommodation infrastructure has witnessed the slowest growth. complex building by-laws and absence of single window clearance have been the major disincentives in this sector. it still needs to go a long way to compete with other countries. . while a premium segment hotel room is 25-30 per cent dearer. fuel taxes and high operational costs have resulted in high airfares in India.travel cost and compare unfavourably with the lower taxes levied in competing destinations. In addition. Air connectivity. culture. environment and biodiversity of the place being visited. 7-days package to India costs around 30 per cent more as compared to other countries in South and South-east Asia. 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. high price of land. Lack of awareness and information on India's tourism potential: Although the government is laying emphasis on promoting India as a tourist destination. though better than in the past. discouraging tourists. The availability of hotel rooms is still only a half of the number required to host even a modest target of 5 million visitors. 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. Non-affordable hotel rooms: Currently a 6-nights.
floor supervisor. bell captain. Important functions of receiving the guests. doorman etc. linen supervisors. Depending on the size of the hotel. House keeping. receptionist. Overall in charge of kitchen is known as Chef de Cuisine. making room reservations.Career options A hotel consists of main departments such as Operations. the restaurants etc. financial control. front office supervisor. clean and making it presentable to the guests and ensuring facilities and comfort to them is handled by this department. provision of services. 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. one who serves food is Demi Chef de Range or Steward. Front office. Front Office It is the centre of all activities. the person in overall charge of dining hall is called Maitre de hotel. One who cooks food is known as Cook. Each department has a number of positions that one can opt for. The department is headed by Front office manager or Executive House-keeper who supervises and co-ordinates the work. preparation and service of food and beverages involving kitchen. responsible for staff management. Those handling this department are Chief executive house keeper. Maids etc. Engineering/ Maintenance. The main functions performed by the department arepresentation. General Operations General manager who is the main in charge. Lobby executive. is the coordinator and administrator. Then there are Assistant Manager. bell boy. House Keeping The work of keeping the hotel. Captain in charge of part of dining hall is known as Chef de Range. handling correspondence and preparing bills and keeping accounts of the guest services are handled at the front office. . bar and baker. Sales and Security. Those serving drinks are bartenders. Accounting. the rooms. Food and Beverages. information assistant. room attendants. Then there is the restaurant hostess who makes the guests comfortable and deal with any complaints by the guests. to perform their assigned roles. general managers could have assistant managers to supplement their work. quality control and customer care.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. the bars.
pricing of food and services and so on. They are assisted by necessary staff in the electrical and mechanical departments. . i. Mechanical Engineers. Then there is the Security department which provides security to the guest and their belongings and employs security Officers/ guards for this purpose. cost and works accountants are given higher positions in the department. Advertising and Public Relations is also normally handled by this department. Retires Army personnel are preferred by this department. carpenters etc are employed by this department. Engineering / Maintenance Department Qualified engineers are appointed for the maintenance of the building and various machines involved in the premises. Electrical Engineer. 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. Chief cashier.Accounting Department This department deals with both cash and credit transactions. Professionals like cash.e all the financial transactions like purchase of materials. cash clerk/bill clerk are the positions handled in this department. Plumbers. offering of services to the guests etc. This department also compiles information required for budgeting.
Taj Lands End. an elite suburb of Mumbai. 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. this hotel provides the ultimate in modern facilities and convenience. banqueting. Taj Lands End boasts the city’s finest restaurants. . The hotel is situated 12 kms from the international and 8 kms from the domestic airport. in the heart of the emerging business district of Mumbai. Mumbai Nestling in Bandra. Strategically located close to the Bandra-Kurla. Andheri and Worli business districts. and business centre facilities.
and more. all guestrooms at Taj Lands End offer luxurious style and comfort. All rooms have inbuilt speakers. Meeting halls are connected by spacious pre-function area perfect for exhibition booths. Rooms and Suites Spacious and sophisticated. screens and broadband wireless (Wi-Fi) Internet access.. Poolside and emerald lawns exude a refreshing informality with capacities for between 35-600 persons theatre style and up to 1200 persons for receptions. including three private rooms and an opulent.000sq. Video conferencing and Webcast arrangements can be made on request. pillarless Ballroom. 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. international exhibitions and conventions. . Covered parking space for 550 cars. Rooms are available for formal gatherings. as well as cocktail parties and other celebrations.Facilities & Services Guests can look forward to distinctive service and quality amenities. Ft.
laptop size in-room personal safe. spacious rooms offering upgraded bath amenities. a complimentary bottle of wine.Also available is a special non-smoking floor and a Ladies floor. The butlers offer each guest a highly personalised service. 24-hour inroom dining and 24-hour laundry service. and designed for today's business traveler. wireless internet connectivity. Superior Sea-view Rooms All rooms are elegantly appointed and offer a minibar. minibar. The Taj Club Located on higher floors. designed to meet the needs of the single lady traveler. Deluxe Rooms With a luxurious five-fixture bathroom with separate shower cubicle. Luxury Rooms Luxuriously appointed. private check-in and check-out at the Club desk. Taj Club also offers guests an exclusive Meeting Room on the Club Floor. complimentary tea/coffee throughout the day. Taj Lands End's butler service is available to all guests staying in Luxury Rooms. and evening cocktails at The Club Lounge. The Taj Club and Suites. pool or the City. a bathtub and all the above guest amenities. two-line speaker phone with international direct dial facility and voicemail. Guest amenities and services include complimentary airport transfers. complimentary one-way airport transfer. highly personalised 24-hour butler service and all above guest amenities. Solo lady travellers will be served by Lady butlers only. ironing board on request. and round-the-clock. large laptop size inroom-safe. Non-smoking rooms available on request. complimentary incoming fax. daily newspaper. Taj Club guests can also enjoy complimentary deluxe continental breakfast. hair dryer. Guests have a choice of rooms that overlook the Arabian Sea. . highly personalised Butler service. tea-coffee maker.
an array of lighting effects and the sleek furniture gives a sense of space and luxury. highly personalized butler service and all the guest amenities of the Taj Club. Each of these suites has a separate living room. Each of these suites has a living room. Recreation Guest can take advantage of our recreation activities for irresistible fun and relaxation. Grand Luxury Suite Sea-facing suites with panoramic views of the Arabian Sea. and offer panoramic views of the Arabian Sea. dining room. a master bedroom. Aesthetic artifacts. The Presidential Suites Located on the 21st floor comprises of a stylish living room. The plush furnishings and furniture accentuate the contemporary ambience of the master bedroom. Guests in Grand Luxury Suites receive round-the-clock. highly personalized butler services and all the guest amenities of a Luxury room. Suites overlook the pool. Guests in Executive Suites receive round-the-clock. The Study room of the Presidential Suite functions as an ideal office space. . a kitchenette and a bathroom with a Jacuzzi.Executive Suites Sea-facing suites with panoramic views of the Arabian Sea. dining room. and bedroom with attached dressing area. kitchenette and a master bedroom. an office room.
we offer a distinctive dining experience. fine dining. guests can look forward to a wide selection of delectable dishes and refreshing drinks.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. all-day eateries to formal. one that explores the nuances of the finest Indian and international cuisines. serving traditional and . At Taj Lands End.
the perfect venue for informal meetings. yet naturally balanced.contemporary favourites. Pure: India’s first international restaurant with a focus on organic ingredients. all-day dining restaurant. Masala Bay: This contemporary Indian restaurant offers a selection of traditional Indian favourites in a modern and interactive environment. offers food that bursting with flavour. Atrium Lounge: This inviting lounge. and snacks. This 245-room hotel is strategically located adjacent to the domestic airport making it a convenient place for the . Vista: Scenic views of the sea perfectly complement the refreshing flavours of this trendy. mocktails. The Orchid .An Ecotel Hotel is Asia's first certified eco-friendly five-star hotel and world's only Ecotel to be certified as ISO 14001. Ming Yang: Guests can tantalize their taste buds with authentic Sichuan cuisine at this Chinese restaurant. offering panoramic views of the Arabian Sea. offers a variety of delicious cocktails.
on the first level is the Boulevard. is a unique concept showcasing the cuisine and culture of peninsular India. Like The Club Privé. The Boulevard provides a unique guaranteed time-bound service aptly called the "Lightening Menu" or the "10 Minute Menu". the folk dance performances only go to serve as the perfect accompaniments. Or the well-appointed business and conference center to take care of your business needs. Around the waterfall. the meal is on the house! Mostly Grills the lovely roof top barbecue restaurant serves modern fusion cuisine. The name itself conjures images of magical concoctions that will help lift your spirits and unwind. the 24-hour coffee shop. Vindhyas. 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 setting is a very surrealistic Mexican village with a pool by the side and the breathtaking view of the airport runway on the other. Everything is designed so as to be unobtrusive. an exclusive club floor with a private lounge and butler service. Besides. If the service is even a minute late. which many Mumbai gourmets consider the best Indian restaurant in town. Here in a very ethnic temple setting you can experience the intriguing flavors of nine Indian peninsular states.business traveler to stay. and what's . Abutting Vindhyas is Merlin's Bar.
Facilities 'Rooms' The Orchid accommodations offer the finest in luxury and state-of-the-art technology. a deli and cake shop. .00 am. • Complimentary Airport transfers. to make your online reservation in an instant. • Same day laundry/dry cleaning service.overlooking the busy airport and the Mumbai skyline. Choose from 5 different types of rooms to suit your convenience and budget. At the lobby is The Gourmet Shop. • Fitness Centre Enjoy a brisk work-out at our state-of-the-art fitness centre. • 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.more Merlins is open till 3. giving you ample time to enjoy the magic. • A Travel desk for onward arrangements .
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 . This 250 sq.Rooms Well appointed environment friendly Standard Room with a choice of twin or double beds.ft. This 225 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 .
Stay in Style and enjoy a private Jacuzzi. a stress relieving massage chair and a walk-in wardrobe. The Presidential Suite has a spacious Living Room with a dining area & a cozy bedroom. .A spacious 2 room suite with a Living Room & a master bedroom separated by a door The most exotic suite at The Orchid.
.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.
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 . 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. . 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 .
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. 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.The hotel has clean and elegant dining equipment 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. .
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. . The dining staff is friendly 9 8 7 6 5 No.T h e h o tel o ffers excellen t ap p earan ce o f fo o d 10 8 No. 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.
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. The dining staff is knowledgeable and confident 9 8 7 6 5 No. .The dining staff is alw ays w illing to help you 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 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.The dining staff understands your specific needs 9 8 7 6 5 No. The hotel offers consistent communication through restaurant newsletters or direct mail 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: Both Hotels seem to lack in communication between customers.
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. 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 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. 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.
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. birthday and anniversary cards) from the hotel 12 10 8 No.g. 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.. . 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. Recommendation: The hotels can issue complementary vouchers to certain customers.
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. . 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. I regu larly receive new info rm atio n abo ut a n ew p rodu ct.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 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. I valu e th e c lo se. 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.I am recognised by certain dining staff 8 7 6 5 No. Recommendations: Staff rotation must be minimized to an extent such that they are aware of who are the regular customers and clients. 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. p erso n al relatio n sh ip I ha ve w ith th e staff 6 5 4 No.
The food prices at this hotel are fair 9 8 7 6 5 No. The price charged by this hotel is appropriate 7 6 5 4 No. . 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. 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.
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. .
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 .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 provide good service quality The service performances at this hotel always meet my expectations 12 10 8 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. 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. .
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. 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.
On the basis of overall satisfaction you would rate this hotel compared with other hotels as very high 7 6 5 4 No. 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. .
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. 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. Recommendations: The Orchid can maintain customer relations by keeping track of their customers personal details like birthdays etc . . 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.
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.W hen ano ther ho tel ru ns specials. 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. 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 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.
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. 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.
I want to recommend this hotel to my friends and family 7 6 5 4 No. This could be to the fact that the hotel may be a bit too expensive for their budget. 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.I want to tell other people positive things about this hotel 8 7 6 5 No. . inadequate service quality or for personal reasons known to them. 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.
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