CRM

The Fundamentals of
Customer Relationship
Management in a
Hospitality Setting

Part 5:
CRM and Customer
Experience
 RECAP: CRM
• Part 1: CRM and CRM Systems
• Part 2: Hotel Guest Journeys and Booking
Patterns
• Part 3: Implementing CRM
• Part 4: Technology in Hospitality
• We have looked at Customer Relationships and how to grow and
manage them through implementation of CRM principles and systems

• We have covered some tips on improving on customer service

• But how does this ACTUALLY affect Customer Experience?

Customer Service
vs
Customer Experience
 Customer Service vs Customer Experience

• When a SERVICE is performed, the customer has an EXPERIENCE

• The Customer Experience begins at the moment of first contact

(probably online or through word of mouth) through to the end of
contact (e.g. unsubscribing from emails)

• In hospitality, there are MANY service points along this journey, and
each one plays a role in Customer Experience

• Each service could be experienced differently by different guest 

completely different customer experience
 Customer Service vs Customer Experience
• In hospitality, traditionally the product = amenities + customer service

• More and more, hotels are expected to deliver better EXPERIENCES, in

order to have competitive edge

• Today, the product = the complete experience

• You want the experience to be positive for the (large) majority of guests,
so you need it to be uniform

• Therefore, we have PLANNED customer experiences = a system

consisting of a set of planned services, delivered in a predetermined
way
 Customer Service vs Customer Experience
• We can see from the very wide variety of customer experiences in the
industry, that very different levels of service delivery exists

• Some service outlets plan their experiences to the extent that they
become “branded experiences”

• In hotels we needn’t go that far, but the experience can be planned and
managed to a degree
 Planning & Managing Customer Experiences
• CORE CONCEPTS in customer experience management

• TOUCHPOINTS
• Any real or virtual contact point where a customer experiences a
company’s services
• E.g. website, call center, trade shows, emails, advertising,
everything in-house

• Experience management = striving to keep customer’s experience at a

touchpoint consistent with their experience at others
 Planning & Managing Customer Experiences
• E.g If Marketing runs an email campaign including a special offer, all
other departments should be informed

• MOMENTS OF TRUTH are points of interaction with the customer

that lead that customer to having an opinion or impression of the
company

• i.e. They occur during interactive touchpoints

• These are integral to the overall customer experience

• Can have very long-lasting effects, good or bad – customers tend to

have expectations of how they should experience moments of truth
 Planning & Managing Customer Experiences
• ENGAGEMENT is the rational response to these moments and the
total experience

• Companies who aim to design and manage customer experiences

should be focused on creating positive engagement

• This includes ensuring that the experience as a whole doesn’t “go

stale” – this does not drive repeat business
 UNDERSTANDING the Customer Experience
• To IMPROVE it, we need to UNDERSTAND it

• Experience Mapping

• Focus groups
• Telephonic interviews
• Face-to-face interviews
• Sample of customers
• Detail their experiences
• What is the desired exp.?
• GAP between the two above
• = potential improvement
 UNDERSTANDING the Customer Experience
•  Improvement strategies

• Typically include improvements to people and processes

•  Customer experience maps

• Very useful in
PROCESS mapping

• Includes back-
office processes,
supplier
relationships, etc.

• Used to ID
duplicate or
redundant
processes, points of
improvement, and
where services can
be managed or
standardised
 Customer Experience and the role of CRM
• Hospitality = strategic CRM = Customer-centric

• Customer experience is KEY and should be guided towards

improvement and consistency

• Several differentiated (yet managed) customer experiences can co-exist

• BUT this requires careful segmentation early on in the sequence of

touchpoints and moments of truth

• Easy to misallocate, CRM is very helpful here

 Customer Experience and the role of CRM
• Operational CRM allows for better customer experience by allowing
• Guests to be recognized
• Their needs to be better understood prior to arrival
• Requests to be better fulfilled
• More relevant and timely communications

• Operational CRM can have a negative impact on customer experience:

• Is very process-focused, and can lead to implementation of certain
automation of processes (e.g. interactive voice response calls)
• Customer response to this is NOT always positive, especially
amongst more conservative customer base
 Customer Experience and the role of CRM
• Analytical CRM also allows for better, more timely
communications, better insights into potential near-future
booking trends, etc.

• Analytical can negatively impact customer experience if it is

implemented in a “strip-mining” manner, with guests being
seen as commodities. This approach causes company to lose
focus on fulfilling customer needs and growing relationships.
Customers are to be seen as “renewable resources” and
should therefore be nurtured
 Customer Experience and the role of CRM
• We therefore see that there exists the risk that customer
experience can be negatively impacted by CRM
implementation

• We can help circumvent this by INCLUDING customers in

the CRM planning, and the response must be very carefully
monitored after implementation

• CRM should be considered as useful in positively

augmenting the customer experiencing it, not as the sole
cause or reason for it
 Onwards: Hospitality Post-Covid
• WE CAN PRESUME that customer experience will be more important
than EVER

• Experiences over things

• Won’t be business as usual
• New resourcefulness, and willingness to accommodate new types of requests,
may be necessary
• Humanity and genuine concern will be NB

• Digital components

• May need to redo certain initial CRM implementation steps, such as

focus groups in mapping customer experience, process maps, research
into Operational CRM technologies and processes, etc.
EVEN Hotels
EVEN Hotels offer wellness-minded business and leisure travellers the opportunity to maintain
their routine while on the road. Every aspect of an EVEN Hotel is centred around health and
wellness, using four focus points — Keep Active, Rest Easy, Eat Well and Accomplish More.

Maintaining such an immersive customer

experience starts with hotel staff, who are
knowledgeable about health and wellness,
and quick with recommendations for local
running routes. Hotel general managers are
referred to as ‘chief wellness officers’ and
take it upon themselves to arrange and lead
group runs for guests unfamiliar with the
city in which they’re staying.

Hotel staff set the tone for the facilities in

general, which create a healthy living
paradise. Each room comes with exercise
guides and workout zones with various
pieces of fitness gear 
Review
 CRM DEFINITION

CRM is the core business strategy that integrates

internal processes and functions, and external
networks, to create and deliver value to
targeted customers at a profit.
It is grounded on high quality customer related
data and enabled by information technology.
 CRM Parts

OPERATIONAL ANALYTICAL COLLABORATIVE

NB: These different parts fit together in one system

i.e. A company does not choose only one

Each part allows us to GENERATE INFORMATION

OPERATIONAL CRM: Processes
• = “FRONTLINE CRM”
• Information gathered during day to day processes, such as PMS / HOS, etc.
• Automation and improvement of these processes where possible
• Should be dynamic – utilizing technology to improve daily business processes (e.g.
transaction processes, data collection, etc.).
• Leads to a steady flow of incoming information  Better communication with
customers
• Examples: A system that logs customer communications, enquiries, reservation
fulfilment; automates digital marketing strategies (based on sequences and cookies).
Processes that
can form part
of Operational
CRM
ANALYTICAL CRM: Information Analysis
• = “BOTTOM-UP CRM”
• Builds on Operational CRM  analyses obtained information  determine new/improved
strategies and tactical decisions.
• Practical examples:
• Looking at respective guest histories to understand behaviour upon arrival and departure
• Feedback in terms of guest requests can be analysed and used to adjust/fine-tune marketing
strategies

• Used to better predict customer satisfaction  customer loyalty and reviews

COLLABORATIVE CRM: People
• = “TOP-DOWN CRM”
• Collaborative CRM often
• Inter-organizational sharing of customer information gathered refers to different
from beyond business boundaries businesses collaborating,
• Information comes from OUTSIDE the business benefitting from mutually
useful information
• Sources: face-to-face meetings, conferences, emails, social media.
• In hospitality, also refers
• Used to:
to the different
• Improve business processes
• Adjust communications and marketing strategies
departments
• Cohesiveness within the business collaborating
CRM Parts

1
4 Customer

2 3
STRATEGIC
CRM
= -centric
Approach

The
= Hospitality
Industry!
Benefits of CRM:
• Increase in CUSTOMER ACQUISITION, at a LOWER COST
• Improves CUSTOMER SATISFACTION
• Higher CUSTOMER RETENTION and LOYALTY
• Improves CUSTOMER LIFETIME VALUE  Increase in OVERALL REVENUE

Some “in between the lines” benefits:

• Greatly improved business processes & information flow
• Better interdepartmental communication
• Increased company cohesiveness & even staff morale
• Improved employee satisfaction
The Journey: it’s a long one!
1. Guest A completes one part of the journey BEFORE visiting a hotel
◦ This is the BOOKING CYCLE
◦ Is a “self-led” journey, guided in part by the hotel

2. Guest A visits a hotel

◦ The activities that occur before, during and after the stay is the EXPERIENTIAL
JOURNEY

3. The LIFETIME JOURNEY

◦ Guest A may only stay at a hotel once = shorter lifetime journey with this particular hotel
◦ Guest A may have really enjoyed their stay, and is a frequent traveler = longer lifetime
journey
 CR Time to Shine
• CRM System: KNOW who is coming, and
when!
• Returning guests: CHECK their guest
history, use it to your advantage
• New guest – ascertain whether business
or leisure – welcome them accordingly
• Take careful note of guest’s home
country, and be aware of any cultural
and/or religious factors
• Be especially aware of any guests with
disabilities, have trained staff available
• If any “upsells” were selected or enquired
about prior to arrival, cover this with the
guest upon arrival
The Importance of CRM during a guest’s stay

• A satisfied guest might be neutrally pleased with their

experience at your hotel  MAY NOT RETURN
• Next visit to same destination, they could still be
primarily led by CHOICE CRITERIA of price, location
and/or facilities
• We need to connect with them emotionally – BUILD A
RELATIONSHIP – to generate a meaningful experience
that will resonate and hopefully be shared
• They will likely return!
 TIPS for building relationships
• From the very first phone call, always use your first
name, use titles with guests – NO BROADCASTING!
• Personalise your welcome – can build excellent rapport
• At check-in, remember to mention to guests if extra (no
cost) items have been added to their rooms
• Business: extra stationery
• Families: activities/toys
• Honeymooners: champagne
 TIPS for building relationships
• Quiet periods – take the time to circulate
• Don’t be afraid to let guests see rapport with colleagues
• Pay special attention to returning guests, with
personalised added touches – itemsThewith
valuenames
of a
CRM system!
• Check-out is also key in relationship building – use
open-ended questions: instead of “Was everything ok?”,
opt for questions about their onward journey, for e.g.
 TIPS for building relationships

• Big groups – assign a point person (this can be

announced prior to arrival)
• Inform of schedule
• Introduce group leader to concierge
• Group itinerary and special requirements must be known to other staff
assisting

• If possible, offer a selection of travel goodies at check-in

• Provide wifi details as soon as possible
 TIPS for building relationships

• Take the time to become a location “specialist”

• Popular spots
• Child-friendly recommendations
• Operating times, walking distances
• “Name drop”

• Be aware of guests itineraries, and offer extra touches

around activities – e.g. snack bars prior to hikes, etc.
• LISTEN and RESPOND
 Listening and RESPONDING:
• “NO” vs Find a solution – NO is NEVER the answer (negative words)
• “We can’t do that” vs “Please allow me to figure out a solution”
• “We’re sold out” vs “Tonight our hotel is fully committed, may I offer to help you
find nearby accommodations?”
• “Checking out/in?” vs “Good Morning/Afternoon, How may I assist you?”
• “I don’t know” vs “ Please allow me to find out this for you”
• “I don’t work in that department” vs “I’m happy to help you find that right
person to better answer your question”
• “It’s our policy” vs “Let me see how I can help you with this”
• “You can’t do that” vs “Here are some alternative suggestions for you to…”
• “No Problem” vs “It’s my pleasure”
• “It’s not my fault” vs “On behalf of ___ and our hotel, I sincerely apologize….”
 REPUTATION MANAGEMENT
• What NOT to do
• DO NOT fine people for bad reviews!
• DO NOT lose your temper
• DO NOT engage with blackmailers
• DO NOT embarrass the reviewer
• DO NOT insult the reviewer
 REPUTATION MANAGEMENT

• What TO DO
• Should you suspect malicious activity, report it (especially repeat instances)
• Remain diplomatic in all your responses

• Remain calm and consider whether the reviewer is perhaps being fair
• Use this as an opportunity to showcase your professionalism, and “re-
sell” the hotel by focusing on positives
• What TO DO continued:
• Have a policy in place which assist staff in dealing with these occurrences
• Be proactive:
• Ensure that the response to the reviewer has a point of contact at the hotel they
can speak to, that is responsible for the area of concern, and that there is a
procedure in place to rectify the situation. For example, if the reviewer does contact
and there is a valid reason for their complaint, you could offer incentive for the
reviewer to try your business again and see that it is not always this way
• Then investigate the matter internally – this is a MUST! Always find out why this
condition happened in the first place, review and fix the situation at hand, so it
doesn’t create this scenario again
 TMAN
TMAN
support
support

CRM Success Manage

Manage IT
IT Defined
Defined CRM
CRM

Factors structure
structure

Main
strategy
strategy

reasons
for CRM
success
Cultural
Cultural
Skillful
Skillful staff
staff Change
Change

Inter-
Inter-
departmental
departmental
Integration
Integration
 STEPS to implementing CRM:
The 5 Phases

Specify
Develop CRM CRM Project
Needs, Select Implement Evaluate
Strategy Foundations
Partner
 Phase 1: Develop CRM Strategy

1. Situation analysis
2. CRM education
3. CRM vision
4. Set priorities
5. Set goals & objectives
6. ID requirements: process, people, technology
7. Develop the business case
 Phase 2: CRM Project Foundations

1. ID stakeholders
2. Establish governance structures
3. ID change management needs
4. Organisational culture
5. Buy-in
6. ID project management needs
7. ID critical success factors
8. Develop risk management plan
 Phase 3: Specify Needs, Select Partner

1. Process mapping and refinement

2. Data review and gap analysis
3. Initial technology needs specification
and alternate solutions
4. Hosted or on-premises
5. OPTIONAL: Requests for proposals
6. Revised technology specifications
7. Select partner
 Phase 4: Implement

1. Refine project plan with partner

2. Is customization required?
3. Test
4. Phased roll-out: champions first
5. TRAINING – in phases
 Phase 5: Evaluate
1. Risk management should have identified any systems flaws,
“bumps in the road” along the way
2. Revisit Vision, Priorities, Goals and Objective
3. Analyse technology – is it doing what we need?
4. Analyse processes – are they giving us the required data?
5. Analyse people – are they coping? What is the level of buy-in? Is
more training required?