CRM IN HOTEL INDUSTRY

WELCOMGROUP MAURYA SHERATON

Customer Service is now more fashionably called Customer Relation Management. ITC Maurya Sheraton has been following an unstructured form of CRM with a narrow focus of serving the customer well and in a most efficient manner. The concept of Customer Relationship

Management has a broader focus of not only serving the customer but also creating the customer and retaining him for measurable and substantial returns. CRM is a vast subject where the concept of one to one marketing is supported by Database Marketing.

MAURYA SHERATON DEFINES CRM AS Customer Relationship Management is a process of managing customer relations in an organized way. They aim at managing each moment of truth that is experienced by the customer.

According to Mr Hariharan there are various contact points where the hotel comes in direct contact with the customer which are known as Touch points in the CRM language. These touch points are considered important as there is direct interaction with the customer and they provide valuable input to the hotel. The input provided by the customer has to be captured in such a way that it becomes information and can be used by various processes within the hotel. This can be done with the help of technology and the aim is that whenever there is a customer interface with any of

FIELD PROJECT

CRM IN HOTEL INDUSTRY

those processes they are able to use that information in servicing the guest in a most efficient manner.

CRM PROCESS AT MAURYA SHERATON HAS BEEN DIVIDED IN TWO STEPS

1. 2.

Identification of all Customer Relationship management vehicles Integration vehicles of these Customer Relationship management

Vehicles are the points from where the customers can be managed from DATA CAPTURE VEHICLES Maurya Sheraton has identified 5 such vehicles (from marketing point of view) which are also the touch points for the hotel in the process of managing its Customer Relationship. These vehicles are:

1. 2. 3. 4. 5. 1.

Field selling Loyalty Programmes Distribution Points Web Call Center FIELD SELLING When a sales group or a marketing executive of the hotel makes a sales call to a corporate then it is called field selling. Field Selling includes Prospecting which means searching and seeking for new

FIELD PROJECT

CRM IN HOTEL INDUSTRY

customers.

Current Accounts are one of the best sources to

uncover new business that is within these current accounts, as they harbor many sources of untapped business potential. They also provide Leads and referrals. Leads are potential customers with whom no contact has yet been made and learning of potential customers from current customers is called referral. Field selling is considered the most important vehicle for the CRM function as the initiative is on the part of the hotel to contact the prospective guest. Since the representative of the hotel meets the customer personally, he is able to strike a chord instantly and has a fair chance of representing the hotel. The difference between the customer and consumer is apparent at this stage as, the person who uses the hotel is a consumer (guest) and the person who helps him make this choice is the customer (link), this link, in most cases, is the administration personnel who is responsible for making reservations. So with the help of field selling the executive is able to make a direct contact with the link, the admn person and is able to take the feedback on a continuous basis and helps to customize the offering. The main objective of this is to maintain one to one contact with the customer on a regular basis and also to maintain reasonable visibility so that whenever there is a requirement the hotel is the most obvious alternative for the customer to consider.

FIELD PROJECT

CRM IN HOTEL INDUSTRY

2. LOYALTY PROGRAMS 2nd vehicle for CRM identified by Maurya Sheraton is the loyalty programs. These programs are designed to reward the loyal guests of the hotel. Every time a guest check in the hotel his every touch point or interface with the hotel. Every time he spends on a service provided by the hotel.(use of Room, Restaurant, laundry,

Telephones etc.). The transaction is recorded at each individual point and is added to the final bill presented to the guest at the end of the stay. There are certain points attached to the number of

rupees spent by the guest. Therefore higher the amount of the bill the higher will be the number of points attained by the guest. These points are credited to the account of each guest with the help of technology. These are called loyalty points. There accounts having the loyalty points are unique to every guest. Therefore whenever after the first time that guest check into the hotels the guest history also affects the loyalty points. The higher the number of points. The mole loyal is the guest. The points can be redeemed by the guest for either free stays at the hotel or free gifts as listed by the hotel or free meals depending upon the number of points accumulated. The objective of having a loyalty programme is not only to make the guest feel rewarded for his stay but also by

providing a choice to the guest to reduce them at the hotel they essentially Gross self the other services which would be used paid by the guest in case he redeemed (for example) his points for a flee

FIELD PROJECT

CRM IN HOTEL INDUSTRY

stay he would spend on the

supporting services like laundry

Telephones, restaurants etc and the revenue generated from these could be earned by the hotel. Therefore instead of numbers of revenue they actually gain the revenue as well as certain the

customers for life with the help of the loyalty. The loyalty Program is called welcome avail which is for the consumer. They have another loyalty programme for the link. The administration personnel which is called welcome link motivated to provide more business to the hotel. Therefore the more the number of bookings the links gives to the hotel the more number of points are credited to his account which are again redeemable at the hotel either by way of free stay or gifts. This is seen as an important way to keep the source of business motivated towards a long term relationship. 3. DISTRIBUTION POINTS/ CENTRAL RESERVATION SYSTEMS A customer can simply make a call at the reservation centre to make a booking with the hotel. It sounds simple but it could get complex in case he does not receive the expected or the desired response. Therefore Maurya Sheraton sees this distribution point as an

opportunity to establish CRM as the respondents at the reservation centre could turn a prospective customer into a sale or could let go off the opportunity to do so by not being point enough or not giving out there information as desired by the guest. The

information regarding all guest reservations is managed through computer software, therefore when a customer make calls to query FIELD PROJECT

CRM IN HOTEL INDUSTRY

about a reservation all his hotel usage history pops up in the system which gives a chance to the executive at the reservations to instantly recognized the customer and address him by his name. This moment of truth which is experienced by the customer with a feeling of recognition to the customer who feels well service at the first touch point itself. The input or instruction received from the customer at the stage are recorded in the reservation system for further reference by the hotel operations. Therefore the wheel

does not get reinvented every time a standard instruction is to be followed. This leads to removal of an irritant and that ultimately leads to a satisfied customer willing to return. 4. WORLD WIDE WEB The world wide web is part of the internet it is a computerized, interactive, multimedia system to import and/ or access information world wide. It issued for both person and business purposes. But Mauryas focus is on the business side of using the web. In

hospitality there are several avenues that one can take up to set up web site to share information and could not business with a

potential customer. Since the web gives a convenience and allows the access to information at any time it is considered as one of the vehicles for CRM. Though Maurya, recognizes the potential of this system and is in the process evolving a filling automated system where the reservations can be made by the customers on time and also the confirmation is received back on a real time basis. Presently they have information postal which only allows the FIELD PROJECT

CRM IN HOTEL INDUSTRY

customer to request a reservation which has to be checked manually by the hotel reservations and then only the confirmations are given. This is a touch point of customer relationship because a speedy and accurate response could win you a customer. And since it is on an individual basis. It is more personalized and preferences when

customized because the customer puts in his

requesting a booking. Therefore once it is entered in to the hotels data base the customer does not have to repeat his preference as they are automatically suggested by the reservation form on the net.

5.

CALL CENTRE Maurya has a Call center dedicated to servicing the loyalty programme members. Here the customers can call in and find out about any information related to their membership. Whether query relates to accumulation or redemption of points it can be accessed through these centre. This facility has been out sourced by Maurya and is out by the premises of the hotel. This has been done to service the quest in a most personalized and efficient manner. Call centers can now even be accessed in e-mail. As it is the most cost effective and time effective way of accessing information. Call

centers are seen as CRM touch point because they usually provide solution to a problem that is being faced by a customer. Therefore the intangibles of listening, understanding and providing a solution to a problem at the right time adds to the process of retaining the customer There is a rapport which is built between the customer FIELD PROJECT

CRM IN HOTEL INDUSTRY

and

the

respondent which goes a long way in future

correspondence with the center.

FIELD PROJECT

CRM IN HOTEL INDUSTRY

The

second step in the CRM process is to integrate the information

which is received through these touch points. From a marketing point of view it is important to get the desired input back from these touch points in such a way that all the bits and pieces picked up by different touch points can be organized and used as valuable information by various other touch point to offer the right product to the right customer and that too at the right time. All this is done by creating a data base.

Database marketing

is a technology driven tool used to teach out to

identified customers in the market place. It is precision making, a one- toone sales approach to in individual customers and clients.

Database Marketing applies the concept of market segmentation, yet instead of forgetting a particular group of customers database marketing reaches out to customers individually. The names addresses and buying habits of individuals customers are called from databases. Now new

generations of faster, more powerful computers are enabling marketers to zero in on even smaller niches of the population, ultimately aiming for

the smallest consumer segment of all that is the individual.

Building a Database Database marketing in the hospitality ind. Began to / building a guest history of database feel regular clientele. This Dbase curtails basic

information which as name, addressing purpose of times, preferred method of payment, room type preference, nickname and so forth . Thus FIELD PROJECT

CRM IN HOTEL INDUSTRY

when a customer checks information such as this is on file and readily accessible for the guest service agent to register in an efficient and

personalized manner. Prior to this regular guests were repeatedly asked the same questions over and over again each time they checked into the hotel.

From seasons and Ritz carton are renowned for their extensive guest history databases. They include details as a preference for feathered or non feathered pillows, breakfast menu item preferences, and preference lines for make-up calls. For frequent travelers training of some one know and care about your personal preferences, your likes and dislikes, in an asset. This type of service enhances guest satisfaction and encourages repeat customer patronage.

For Maurya Field setting, loyally programs reservation systems, web & call centers, are major source of database development Maurya has 30,000 members in its databases. They regard these management of their

database as an asset because it enables a superior customer understanding.

Using the Database

Product and service improvement is just one result of tapping into a database. Developing special promotions and employing direct mail to

promote these campaigns is another major use of database marketing. For FIELD PROJECT

CRM IN HOTEL INDUSTRY

example, a sales team hand completed a review of the upcoming 26 Jam Weekend . This review revealed that bookings date were some what

below forecast and that a special promotion may be in order to spent the business. The sales team then enveloped special promotion packing to encourage bookings for this weekend. They searched their welcome break holiday package database and scratched it to identify and segment the customers who tend to (i) book on long weekends (2) book on a short

term basis and also (3) respond to promotional campaigns. The direct mailing was used as a principal means to reach out to these customers. Activities like these are today referred to as detabase marketing. It is

aggressive selling to the potential customers who drove particular needs and w ants that match or fit the needs of the noted. Therefore out of the Database of 30,000 members only a few but almost some customers were contacted by direct mailing which resulted in sizeable sale during otherwise lean weekend at Mughal Sheraton Agra. the

DATABASE MINING Database mining is the process by which you distill your target customers groups. Out of the massive data files typically found in hospitality

operations. In other words there are systematic ways to distill through a database of a multitude of databases to get the information for which one is reaching. As quoted in the previous example.

Some hotels out source this task to companies that specialize in this field best do it internally. It enables users to easily integrate co/ property FIELD PROJECT

CRM IN HOTEL INDUSTRY

management, reservations and point of sale systems, automatically extracting operating data from legacy databases for use in the marketing database. The systems analysis tools allow users to profile their most profitable customers analyze their buying habits, and develop & assess. The performance of targeted marketing campaigns. advantage The biggest

of database mining is that it help to focus the efforts and

available resources into one direction which is most profitable and outbase mining helps to eliminate the non-profitable customers and hence reduces the costs and enhances the profits. The profits enhanced one not only in monetary terms but also in terms of customer loyalty and long term retention. Companies in hospitality that are adopting the database are seeing increased customer

marketing approach to enhance sales

satisfaction which further results in increase revenues. From the point of view of the internal customers a new profession is emerging in the hospitality Industry to get and keep a customer. The profession is

technology-based, it is sophisticated and is called database marketing.

How does customer relationship management percolates room to the internal customer.

The first step in CRM to the internal customer is to create awareness among them towards the concept, advantage and disadvantages of the function. Then equip them by training them in their own requisite functions & scope of CRM within that function. At Maurya they are trained to train more about the guest and this company so that when he talks the guest FIELD PROJECT

CRM IN HOTEL INDUSTRY

he can strike a conversation that is of some interest to the guest. That may not be necessarily related to his stay at the hotel but these informal

conversations with the guest can help build an excellent rapport of the guest which will lead the guest to know the employee by the name. In

future interactions it is possible that the guest may only wish to most of his work done through that employees. This is also a form of customized and personalized selling within the hotel Maurya does not have a separate

training for CRM. Any time when they have a special promotional scheme for a particular property, the marketing team (who has formulated the promotional scheme) puts together the details of the scheme clearly marks out what is the customer expecting from the property and also if these are some special arrangements to be made for it. This team briefs the

General manager of the property about the customer expectation. The General manager then decides the path of trickling down of that information, who should know & how much to know. In Maurya Sheraton they use a phrase to explain this percolation which is Nice to know and needs to know which essentially means that it is nice to know for all employees of a particular property about the running of the promotional scheme at their property but not all need to know about every aspect of the scheme as it may not be relevant to their scope of work but they do need to know the timer points of the scheme relating to their scope of work.

FIELD PROJECT

CRM IN HOTEL INDUSTRY

THE OBEROI HISTORY Customer Relationship Management Function has been prevalent in the hotel industry since the inception of the concept of boarding and lodging. The oberoi has enjoyed a superior position regarding its core product offering and supporting services. It has an excellent brand value which it consistently reinforced by delivering exceptional services.

The oberoi over the years has acquired an outstanding brand value which would help sell the hotel solely on its name. Oberois has a very loyal patronage from its guests, which has ensured a high market share in the high-end segment of the market, which they cater to. Oberois has thus been charging a premium for the value that its guests derive from its services.

Till about four years back The oberoi did not have any competition and sales and marketing team did not have to sweat it out to acquire and attract potential clients. Today is a changed scenario. Because of globalization India has seen the entry of International hotel chains, there has been a lot a lot of pressure on the sales and marketing team to perform. Oberoi has seen its market share eroding due to price wars and cost cutting amongst the five star hotels. The loyal guests of The oberoi have started switching due to similar international standards of services available at cheaper rates. The oberoi thus has to work harder to sell its services since the product has become generic in nature.

FIELD PROJECT

CRM IN HOTEL INDUSTRY

According to the oberoi the terms Customer Relationship Management and Relationship Marketing are used interchangeably therefore they do not have a separate CRM department as the outlining functions of the CRM process are integrated in the Sales and Marketing operation.

They use a variety of after sales tactics for customer bonding and loyalty. Co-operative and collaborative relationships with customers seem to be the most prudent way to keep track their changing expectations and appropriately influencing it. The obeori has ensured the above by the

various end user and Booker programs such as:

TOP THE OBEROI PLUS This is an end user program with an enrollment fee of Rs 575 only. It is beneficial for guests who use the services of the hotel. Each time a guest spends he accumulates points which can be redeemed for any services of the hotel. By enrolling and rewarding customers with the help of this

program the hotel ensures that a greater bonding towards Long term customer retention. They have also tied up with the airlines for

interchangeable redemption of points.

CONNECTIONS BOOKERS PROGRAM Bookers are an important link in materializing an actual sale therefore they need to be kept motivated to push the hotel when the reservations are made by a corporate account. Each time a booker gives as reservation to

FIELD PROJECT

CRM IN HOTEL INDUSTRY

the hotel he gets credit points for that and which can be redeemed for gifts or any hotel services.

FOOD FESTIVALS The Obeori conducts various food festivals at its Restaurants. Regularly and sends invites to its more profitable Clients.

TIE-UPS The oberoi invites top clients like CEO, Managing Directors and key decision makers to social evenings specially arranged to further enhance the Customer relationship management functions. The most recent on was Johny Walker night.

QUESTIONNAIRE ANALYSIS

EMPLOYEE SATISFACTION The interviews with the employees revealed that the importance that they give to tangible and intangible benefits in terms of compensation for their services is very high and Oberoi does a good job at keeping them satisfied in this regard.

FIELD PROJECT

CRM IN HOTEL INDUSTRY

EMPLOYER COMMITMENT The top management is totally committed towards achieving Satisfaction of its internal and external customer. However due to excessive hierarchy there is a greater gap between the top management commitment and internal customer satisfaction.

EMPOWERMENT Due to greater levels of hierarchy front line employees feel that they have little authority to take decisions on their own. Empowerment is am

important feature in internal and external customer satisfaction.

RECRUITMENT The oberoi has excellent recruitment and induction process. OCLD

Oberoi Center for Learning and Development is an asprational school post graduate learning in hotel management across India. Thus Oberoi every year receive competent personnel from OCLD and sends them through a rigorous induction and FAM TRIP familiarization trip across the various Oberoi Properties.

FIELD PROJECT

CRM IN HOTEL INDUSTRY

Management Commitment

For many firms it takes years for the entire organization to begin, to demonstrate a customer focus. It is difficult for employees to stay

committed to customer focus when the chief executive and the manger themselves are not dedicated to customer needs. What kind of message do managers send workers if they Tout customer need recognition as critical to providing good customer service, yet dont even know the names of their employees. On the other hand think of the tone the mangers could set in an organization by making it a point to warmly greet all employee by name. Management should set the pace by demonstrating how to deliver internal and external customer satisfaction. Internal customer is the employee who receives and uses the output from another person or area. Treating this relationship with the same respect and attention given the external customer relationship is the focus of the internal customer concept.

Customer Expectations

Expectations are what people think is likely to occur in the future. Customers compare their perceptions of the new experience with previous experiences, feelings or other information gathered from a variety of sources.

FIELD PROJECT

CRM IN HOTEL INDUSTRY

Many companies like politicians, are unable to live up to strong claims. Known as lip-service, or overstating capabilities and delivering less then promised, these exaggerated claims can undermine the credibility & efforts of persons and organisations that, in reality, are providing superior products and services. The perception of superior performance can be eroded when preceded by exaggerated promises. Over zealous claims not only disappoint customers but result is big losses for companies whose programs dont deliver. Insupportable claims can be more damaging than claiming nothing at all. Even nonverbal communication, such as, advertising designs, signs, logos, or the appearance of public entrances, can create very specific expectations for a hotels services.

Companies are responsible for the expectations they create they should know how their products, services, promotions, personnel, facilities and reputation affect customers. They should know what their customers weigh this information. This process - how expectations are created and formed in to standards by which an organisations performance is measured - can be a valuable planning tool for management.

Expectations Model

Company-Controlled +

Uncontrollable

Customers

Expectation Creators

Expectation Creators

Stand

Product Experience FIELD PROJECT

Competitors

Ideal

CRM IN HOTEL INDUSTRY

Short & long term

Preferences

Predicted

Marketing Strategies

Word of mouth

Minimum

Continuum of Expectation Creators First Purchase Repeat Purchase Loyal Customer

Nature and presentation of service

Initial Marketing & Promotions

Dependable Quality, service and pricing

Long term relationship marketing

New Product offering and upgradations

CONTROLLABLE EXPECTATION CREATORS

Short Term Expectation Creator Include :

Nature and Presentation of services.

Advertising and promotions.

Image, decor, ambiance and status.

First impressions of employees and other customers.

Instore merchandising.

Long Term Expectation Creators Include FIELD PROJECT

CRM IN HOTEL INDUSTRY

Consistent delivery and quality of products and services.

Innovation is products and services (changing menu, decor)

Marketing efforts (advertising, promotions)

Pricing Policy Variations (value over tine)

Uncontrollable Expectation Creators

eg : Competitors advertising and pricing practices can effect how customers see your services.

Customers experience with competitor.

Word of mouth information.

A study of hotel guests found that repeat customers (guests who had visited the hotel atleast once before) were less satisfied than 1st tine customers. Explanation may be that they tend to have heightened expectations of familiar products or services.

Customer expectations will is crease - So should your ability to meet and exceed then

Give Customers What they Dont Expect

FIELD PROJECT

CRM IN HOTEL INDUSTRY

Meeting expectations is only the minimum requirement for a successful customer satisfaction strategy. Surpassing expectations is the key to customer satisfaction. Perceptually raising product and service quality, however is not the only way to exceed customer expectations. Although the focus should be on continuos improvement, one way to exceed customer expectations is through surprise - dazzle customers with something out of the blue.

Some innovative hotels have gone beyond providing amenities to impress guests. A marriott Hotel in Miami offers environmentally Green Rooms that include special air and water filtration, water conserving faucet, energy efficient light bulbs and has installed a machine that releases floral and citrus natural plant abstracts in to the lobby. The desired effect of this aromatherapy is to reduce stress.

SERVICE QUALITY

Service quality has been interpreted to include five dimensions : RATTER

Reliability : Dependability and Correctness

Assurance : Knowledge & courtesy of employees

Tangibles : Appearance & physical facilities, equipment and personnel

FIELD PROJECT

CRM IN HOTEL INDUSTRY

Empathy : Providing personnel understanding and customer support.

Responsiveness : Providing prompt service

Responsiveness : Providing prompt service.

To promote consistent superior performance, it is important to assign quality standards to each step of customer service cycle. Quality standards provide direction and motivation for employees.

Room Service Guest Service Cycle

Quality Dimensions

Quality Service Standards

Reliability

Phone answered within 5 rings, 24 hrs a day

Assurance

Phone operator as through Knowledge of menu and prices.

Tangibles

Full description of items and presentation specific delivery tine stated.

Empathy

Customer

name

used.

Prescribed

guest

treatment procedure carried out with sincerely. Order taken in courteous manner

FIELD PROJECT

CRM IN HOTEL INDUSTRY

Responsiveness

Effort to comply with any special requests Prompt service.

Room Service Customer Service Cycle 1. 2. 3. 4. 5. 6. Guest calls room service. Places order. Answers door; talks with server; signs bill. Consumes food and beverage. Sets tray outside door for pickup. Reviews room service charges at check-out.

Hotel Perspective 1.2. 3. 4. 5. Switchboard staff trained for order taking. Staff trained on the job in service techniques; uniforms required. Kitchen staff instructed on consistent preparation of all menu items. Housekeeping coordinated with room service staff for timely pickup or trays. 6. Charges posted on guests hotel bill.

Redesigned Room Service Customer Service Cycle

Customer Perspective

1.

Guest calls room service using speed-dailing preset button.

FIELD PROJECT

CRM IN HOTEL INDUSTRY

2. 3. 4. 5. 6.

Places order. Answers door; talks with server; signs bill. Consumers food and beverage. Sets tray outside door for pickup. Reviews room service charges at checkout.

Hotel Perspective 1. 2. Phone rings in Kitchen. Call answered by staff trained for room service order taking. Kitchen instructed on consistent preparation of all menu items. New standards ensure adequate purchase and preparation of items to prevent stock-out. 3. Staff formally trained in room service delivery techniques; superior uniform presentation, and upkeep, and quick delivery is required. 4. All food delivered at proper temperatures, ensured by proper equipment. 5. Room service staff notes room number and delivery time to ensure prompt tray pickup (timing of hallway sweep). 6. Charges are posted to guests hotel bill, which is immediately accessible through guests TV.

FIELD PROJECT

CRM IN HOTEL INDUSTRY

FIELD PROJECT

CRM IN HOTEL INDUSTRY

Priority Marketing
Priority Marketing focuses on whats important to be customer. What is important to one customer however, may not be as important to another.

Consider the varying demand placed on a hotel : An airline stewardess may find the 24 hour room-service extremely valuable, a retired couple may need dietary menu options, a tour wholesaler may favor low prices, . and a young female executive considers a security a priority. . . Hotels should break down their services and ask customers what is important to them. This approach can field very valuable insight about changing customer preferences.

Identifying groups of customers who have similar preferences or even similar tastes (such as sharing common perceptions of quality or states), hotels can target promotions to capitalize on known characteristics and individualize the presentation. . . . It is important that hotels involve their guests and stay in touch with customer perceptions of current services.

Customers Feedback Method

Surveys

FIELD PROJECT

CRM IN HOTEL INDUSTRY

Monthly guest surveys

Monthly club surveys (of frequent visitors)

room comment cards.

Toll free guest assistance centre (GAC)

Mail, Phone, in-person, computer questionnaire.

Other Approaches

Suggestion boxes

Employee feedback

Management observation and interaction with customers

Mistery customers

Sales data

FIELD PROJECT

CRM IN HOTEL INDUSTRY

Employee Management - finding the Best Solutions

In many organizations, management treats employees as unvalued and unintelligent. The employees in turn convey the identical massage to the customer. Although organizations realise this connection, the lingering effects of changing owners, obsolete management styles, and outmoded employee programmes have restricted attempts to increase worker productivity.

The best solutions to increase / employee productivity are

Increasing employee loyalty

Improving productivity

Redesigning recruitment

Committed employees (Employee Assistance Programmes EAP)

Motivation

Empowerment

Training & Development

Teamwork

FIELD PROJECT

CRM IN HOTEL INDUSTRY

Employee Compensation

1)

Increasing Employee Loyalty

Employee loyalty

is a precious commodity. Beyond the costs of

bringing a new employee on board and up to speed, service business demand a continuity of service by defend on employees knowing the customer, knowing the new technology etc. this requires time . Changing faces that customers and employees have to get need to can be more than inconvenient.

This principal reason workers leave jobs is that they lack incentive to stay. Their needs are not being met, they are not recognized sufficiently and often have little opportunity for a career path.

Firm should realize that there is no way to create a competitive advantage other than through people. Firms are discovering slowly that highly motivated and skilled employees are the key to long-term profitability.

Common High

Problem Turnovers

Goals Loyalty

Best Solutions Quality recruitment meaningful orientation &

FIELD PROJECT

On going training

CRM IN HOTEL INDUSTRY

and development.

Realistic Career opportunities (career patting)

Work programmes.

life

Long incentives

term &

reward systems. Low Productivity Quality Employee Involvement Teams TQM programmes.

Motivation, empowerment, through enfranchisement, and pay for

performance. _

FIELD PROJECT

CRM IN HOTEL INDUSTRY

Common Problems Inefficient knowledge

Goals

Best Solutions

Professional &

Training education

&

Personal Development Cross Training

Broadbanding. Recruitment : Review the selection process in your company for its

ability to detect customer oriented candidates.

Ritz Cartton Hotels uses an effective selection process to find Ladies and gentlemen. This is called Character trait recruiting.

Any employee who feels welcome and important will make the customer feel welcome & important.

Commited Employees

Career patting is growing in popularity, not only as an effective recruiting and development tool, because employees will not stay without long term opportunities.

EAPs - Such as family life, dependent cases and child care programme.

Marriott changed the name of its programme to work-life to attract a wider range of employees.

FIELD PROJECT

CRM IN HOTEL INDUSTRY

Motivating Dissatisfied Customers

Job enrichment tries to deal with unsatisfied workers by increasing the depth of job with more autonomy and responsibility.

Vertical job loading - the principle is that as work becomes more challenging, the employees motivation and enthusiasm also increase.

Empowerment

Empowerment is based on truest between superior and subordinate because it gives additional power and authority to employees.

At Hyatt Regency, Chicago, every employee carries a card that says Empowerment : / am free to take care of the guest, and management will support me.

At Ritz Carttor Hotels, employees are empowered to more heaven and earth to satisfy guests. They may spend up to $ 2000 per guest and be reimbursed, to accomplish this.

Compensation Compensation systems should promote the following messages to employees :

Customers pay our salaries We are rewarded for doing a better job

FIELD PROJECT

CRM IN HOTEL INDUSTRY

We are encourage to Europe our job skills

Our income is maximize through constant improvement of customer satisfaction

For many companies, broadbanding is the hotest thing in compensation. In this approach, companies reduce their number of salary levels and lump their employees into salary bands. Workers are paid different amounts (within their band) according to a larger number of measureable accomplishments. With this type of variable pay, workers can be moved around more and individual skills can be compensated.

FIELD PROJECT

CRM IN HOTEL INDUSTRY

THE CUSTOMER LOYALTY LADDER

Advocate STEP THREE

BRAND ADVOCATE (Recommendations to friends)

Client STEP TWO REPEAT PURCHASE

Trial Buyer COMPLAINT STEP ONE

SATISFACTION

TRIAL SWITCH

DISSATISFACTION

FIELD PROJECT

CRM IN HOTEL INDUSTRY

a. Switching Costs Information

b. Perceived Risks

C. Lack of

BARRIERS (to buying your product)

AWARENESS (of your product)

FIELD PROJECT

CRM IN HOTEL INDUSTRY

FREQUENT CUSTOMER BENEFITS

Customers benefit from their own loyalty.

Superior service, improved

efficiency, and better overall value are some of the advantages earned by customers making repeated purchases. When you are a familiar face at a restaurant, employees may greet you by name and give you the preferred table. Contributed patronage has also taught you when to arrive, where to park, and which items to order or stay away from. A comparable

experience is not readily available to others, especially not to a first-time customer. The customer benefits of brand loyalty accumulating and, like a good investment, increase in value over time.

FREQUENT USER PROGRAMMES

In the 1980s, airlines introduced the concept of bonus miles for frequent fliers. This was followed by programs for frequent sleepers (hotels)

The airlines frequent-flier programs have spread to hotel and restaurant chains. Restaurant chains were attracted by the ability of these programs to encourage customers to visit other restaurants. Hotel frequent-stay

programs have not produced the intense brand loyalty that the airlines programs have, partly because travelers base hotel stays on location or service rather than freebies.

FIELD PROJECT

CRM IN HOTEL INDUSTRY

CORPORATE LOYALTY PROGRAMMES

Corporate loyalty programs can maintain their professional level by offering such incentives as secretary awards, executive perks, or Christmas luncheons for an entire department. Even employees can be tied in to the program by offering them incentives to increase customer use of the program.

CUSTOMER RECOGNITION AWARD

As an alternative, companies can use incentives to attract repeat customers without establishing a frequent buyer program. Offering

recognition rewards is a low-cost, low-risk alternative that avoids a longterm investment. Hotels created Club which rewards repeat business with gifts.

DATABASE MARKETING
One of the first steps companies take before they start any major marketing strategy is to build huge lists of loyal buyers who can be regularly tapped for launching promotions and market research.

An excellent application of database technology benefiting the customer is the development of customer history systems. The principle is the same : building a continuous relationship with each customer maintain customer profiles to build valuable stores of information that can be accessed to customize products, services, and marketing efforts. FIELD PROJECT

CRM IN HOTEL INDUSTRY

For hotels, guest history programs capture a range of data and preferences. Guest histories remember room-style preferences, rates paid, amenities, and special requests such as a stationary, high-versus low-floor rooms, and even meal preferences. These are used to create the best possible guest experience.

But guest histories go beyond simply knowing who dislikes feather pillows or who loves California chardonnay. They offer concrete business-building opportunities for boosting individual patronage, which has greater profit potential than group business, by targeting repeat customers or selecting the best candidates for certain promotional efforts. Inter-Continentals Six Continent guest recognition program tracks which guests spend more, eat in fine dining establishments instead of the coffee shop, buy suits, and use concierge, laundry, and valet services. Targeted guests can be invited to arrive a night earlier or encouraged to stay over for a family-weekend package. Other customized benefits such as sending out birthday cards, offering other special amenities to guests or creating a no check-in procedure (pick up keys at a VIP station) can easily be created from these programs.

Relationship Marketing
Frequent customer programs and database marketing efforts contribute to a more comprehensive approach to satisfying customers called relationship marketing. Relationship marketing depends on the goodwill generated by

FIELD PROJECT

CRM IN HOTEL INDUSTRY

frequent-buying programs as well as on the information provided from database marketing efforts, goes beyond simple short term awards and involves all the elements of a firms and services to encourage a personal relationship with each customer. Relationship marketing is knowing the customer and using that information to bond with them. Form the initial personal contact and then serve as the foundation for nurturing this brief encounter into a friendly and accommodation relationship by focusing on personal guest information. In addition to knowing the purchase habits of members (room selection, certain amenity preferences, and so forth), personal information such as spouses name and hobbies are added to a member database (see previous section on database marketing). The company uses this information to tailor special events and products to small segments of the membership. Complaint Handling Few companies, use or pay attention to complaints. Who wants to hear what theyre doing wrong, especially if the criticism is well founded. It is estimated that 90 percent of dissatisfied customers whose problems were not solved will never do business with the retailers that sold them the product nor will they again buy the product that caused the problem. On a personal level me all know what our faults are but get defensive whey theyre re pointed out. Were also aware of weaknesses in our job performance, problems in our organization and imperfections in its products and services. But reacting to criticism is difficult. We tend to respond in a guarded and defensive way, which may avoid squarely FIELD PROJECT

CRM IN HOTEL INDUSTRY

confronting the real problem. Likewise, companies tend to let themselves off the hook too easily : We never could have satisfied that customer. The astonishing news is that those people who do complain and have their problem taken care of tend to be more loyal to the company than the people who were satisfied in the first place. World-Class companies see complaints as opportunities to improve, to impress customers, and to turn complaining customers into loyal ones. Customer Driven Technology You arrive at the hotel, pop your smart card in a doorway slot to introduce yourself, then go straight to your room, assigned earlier by computer. To enter, say your name, and the door automatically opens. You hang up your coat, punch in channel 162 on the TV, and hold a videoconference with colleagues. When the meeting ends, you flip to another channel to shop for a gift, then call home on the videophone to see how the family is faring while you are on the road. This futuristic scene has arrived. Each component of this experience is currently available from at least one of the major U.s. hotel chains. Improved customer technology may be necessary to deliver a redesigned work process with the required level of efficiency. At the Peninsula Hotel in New York, the concierge desk makes use of an airline ticket printer. Guests who need last-minute plane reservations can book flights and pick up their tickets right in the hotel.

FIELD PROJECT

CRM IN HOTEL INDUSTRY

SUMMARY

Using customer, employee, and competitor information, remove barriers to satisfaction by redesigning existing processes.

Employees treat customers similar to the way they, as employees, are treated by management.

Selecting the right employee program can add considerable strength to the design and delivery of your customer processes.

Creating a passionate and motivated workforce starts with a vision for the organisation. Visions should be simple, communicated at every

opportunity, and personally conveyed by top management. Create a human resources vision statement embodying the ideal spirit of your organisation.

Just as products and services may be tailored to individual customer addressed through customized programs and strategies.

Eliminate unnecessary levels of management, create worker teams, and give production and quality responsibilities to employees.

Employee involvement activities are supported by establishing longterm goals and clear objectives and having one person responsible for advancing the program.

FIELD PROJECT

CRM IN HOTEL INDUSTRY

Measure employee and supplier performance by their contribution to customer satisfaction. Pay them according to how effectively they achieve this goal.

The goal of a performance appraisal should be to improve future performance. This includes talking about compensation.

The goal of a development or career review should be to assess the ability and professional growth of an employee. This does not include talking about compensation.

Encourage employees to tackle social issues. Consider offering them a social service leave. Benefits include enhanced community relations, better service to a wider clientele, and improved employee attitudes.

FIELD PROJECT

CRM IN HOTEL INDUSTRY

BIBLIOGRAPHY

World Class Customer Satisfaction By Jonathan D. Barsky Hospitality Sales A Marketing Approach Margaret Shaw and Susan V. Morris Customer Satisfaction is Worthless Customer Loyalty is Priceless Jeffrey Gitomer Customer Driven-Services Management S.Balachandran w.w.w. gartner.com w.w.w. crm guru.com w.w.w.forester.com w.w.w.google.com

FIELD PROJECT

CRM IN HOTEL INDUSTRY

FIELD PROJECT

CRM IN HOTEL INDUSTRY

Field Project

CUSTOMER RELATIONSHIP MANAGEMENT FUNCTION

in

Hotel Industry

FIELD PROJECT

CRM IN HOTEL INDUSTRY

Submitted to :
Dr. J. D. Singh

Submitted by : SHIVANI BERRY SONU GARG

FIELD PROJECT

CRM IN HOTEL INDUSTRY

International Management Institute

New Delhi

FIELD PROJECT

CRM IN HOTEL INDUSTRY

Index Acknowledgement

Introduction CRM-Definition Why CRM ? Customer Satisfaction What does CRM include ? CRM Process Flow, how does it actual work ? CRM Channels and Application CRM Advantages CRM Limitations

Aspects of CRM

Identifying with the Customer

Management Commitment Customer Expectations Service Quality Customer Service Cycle Priority Marketing Employee Management

FIELD PROJECT

CRM IN HOTEL INDUSTRY

Recruitment

Empowerment Compensation

Customer Loyalty Frequent Customer Benefit

Frequent User Programmes Corporate Loyalty Programmes Customer Recognition Award

Database Marketing Relationship Marketing Complaint Handling Customer Driven Technology

Summary

Case Study

Maurya Sheraton Questionnaire Analysis Graphs

FIELD PROJECT

CRM IN HOTEL INDUSTRY

The Oberoi Questionnaire Analysis Graphs

Annexures

Questionnaire

nishant_banerjee@yahoo.com harnoord@abs.amity.edu

harnoordhaliwal@yahoo.com

FIELD PROJECT