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  1. 1. CRM IN HOTEL INDUSTRYWELCOMGROUP MAURYA SHERATONCustomer Service is now more fashionably called Customer RelationManagement. ITC Maurya Sheraton has been following an unstructuredform of CRM with a narrow focus of serving the customer well and in amost efficient manner. The concept of Customer RelationshipManagement has a broader focus of not only serving the customer but alsocreating the customer and retaining him for measurable and substantialreturns. CRM is a vast subject where the concept of one to one marketingis supported by Database Marketing.MAURYA SHERATON DEFINES CRM AS“Customer Relationship Management is a process of managing customerrelations in an organized way”. They aim at managing “each moment oftruth” that is experienced by the customer.According to Mr Hariharan there are various contact points where the hotelcomes in direct contact with the customer which are known as ‘Touchpoints’ in the CRM language. These touch points are considered importantas there is direct interaction with the customer and they provide valuableinput to the hotel. The input provided by the customer has to be capturedin such a way that it becomes information and can be used by variousprocesses within the hotel. This can be done with the help of technologyand the aim is that whenever there is a customer interface with any ofFIELD PROJECT
  2. 2. CRM IN HOTEL INDUSTRYthose processes they are able to use that information in servicing the guestin a most efficient manner.CRM PROCESS AT MAURYA SHERATON HAS BEEN DIVIDED IN TWOSTEPS 1. Identification of all Customer Relationship management ‘vehicles’ 2. Integration of these Customer Relationship management ‘vehicles’Vehicles are the points from where the customers can be managed fromDATA CAPTURE VEHICLESMaurya Sheraton has identified 5 such vehicles (from marketing point ofview) which are also the touch points for the hotel in the process ofmanaging its Customer Relationship. These vehicles are: 1. Field selling 2. Loyalty Programmes 3. Distribution Points 4. Web 5. Call Center1. 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 newFIELD PROJECT
  3. 3. 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
  4. 4. CRM IN HOTEL INDUSTRY2. 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 fleeFIELD PROJECT
  5. 5. 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 queryFIELD PROJECT
  6. 6. 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 Maurya’s 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 theFIELD PROJECT
  7. 7. 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 customized because the customer puts in his preferences when requesting a booking. Therefore once it is entered in to the hotel’s 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 customerFIELD PROJECT
  8. 8. CRM IN HOTEL INDUSTRY and the respondent which goes a long way in future correspondence with the center.FIELD PROJECT
  9. 9. CRM IN HOTEL INDUSTRYThe second step in the CRM process is to integrate the informationwhich is received through these touch points. From a marketing point ofview it is important to get the desired input back from these touch points insuch a way that all the bits and pieces picked up by different touch pointscan be organized and used as valuable information by various other touchpoint to offer the right product to the right customer and that too at the righttime. All this is done by creating a data base.Database marketing is a technology driven tool used to teach out toidentified customers in the market place. It is precision making, a one- to-one sales approach to in individual customers and clients.Database Marketing applies the concept of market segmentation, yetinstead of forgetting a particular group of customers database marketingreaches out to customers individually. The names addresses and buyinghabits of individuals customers are called from databases. Now newgenerations of faster, more powerful computers are enabling marketers tozero in on even smaller niches of the population, ultimately aiming forthe smallest consumer segment of all that is the individual.Building a DatabaseDatabase marketing in the hospitality ind. Began to / building a guesthistory of database feel regular clientele. This Dbase curtails basicinformation which as name, addressing purpose of times, preferredmethod of payment, room type preference, nickname and so forth . ThusFIELD PROJECT
  10. 10. CRM IN HOTEL INDUSTRYwhen a customer checks information such as this is on file and readilyaccessible for the guest service agent to register in an efficient andpersonalized manner. Prior to this regular guests were repeatedly askedthe same questions over and over again each time they checked into thehotel.From seasons and Ritz carton are renowned for their extensive guesthistory databases. They include details as a preference for feathered ornon feathered pillows, breakfast menu item preferences, and preferencelines for make-up calls. For frequent travelers training of some one knowand care about your personal preferences, your likes and dislikes, in anasset. This type of service enhances guest satisfaction and encouragesrepeat customer patronage.For Maurya Field setting, loyally programs reservation systems, web & callcenters, are major source of database development Maurya has 30,000members in its databases. They regard these management of theirdatabase as an asset because it enables a superior customerunderstanding.Using the DatabaseProduct and service improvement is just one result of tapping into adatabase. Developing special promotions and employing direct mail topromote these campaigns is another major use of database marketing. ForFIELD PROJECT
  11. 11. CRM IN HOTEL INDUSTRYexample, a sales team hand completed a review of the upcoming 26 JamWeekend . This review revealed that bookings date were some whatbelow forecast and that a special promotion may be in order to spent thebusiness. The sales team then enveloped special promotion packing toencourage bookings for this weekend. They searched their welcome breakholiday package database and scratched it to identify and segment thecustomers who tend to (i) book on long weekends (2) book on a shortterm basis and also (3) respond to promotional campaigns. The directmailing was used as a principal means to reach out to these customers.Activities like these are today referred to as detabase marketing. It isaggressive selling to the potential customers who drove particular needsand w ants that match or “fit” the needs of the noted. Therefore out of theDatabase of 30,000 members only a few but almost some customers werecontacted by direct mailing which resulted in sizeable sale during theotherwise lean weekend at Mughal Sheraton Agra.DATABASE MININGDatabase mining is the process by which you distill your target customersgroups. Out of the massive data files typically found in hospitalityoperations. In other words there are systematic ways to distill through adatabase of a multitude of databases to get the information for which oneis reaching. As quoted in the previous example.Some hotels out source this task to companies that specialize in this fieldbest do it internally. It enables users to easily integrate co/ propertyFIELD PROJECT
  12. 12. CRM IN HOTEL INDUSTRYmanagement, reservations and point of sale systems, automaticallyextracting operating data from legacy databases for use in the marketingdatabase. The systems analysis tools allow users to profile their mostprofitable customers analyze their buying habits, and develop & assess.The performance of targeted marketing campaigns. The biggestadvantage of database mining is that it help to focus the efforts andavailable resources into one direction which is most profitable and outbasemining helps to eliminate the non-profitable customers and hence reducesthe costs and enhances the profits. The profits enhanced one not only inmonetary terms but also in terms of customer loyalty and long termretention. Companies in hospitality that are adopting the databasemarketing approach to enhance sales are seeing increased customersatisfaction which further results in increase revenues. From the point ofview of the internal customers a new profession is emerging in thehospitality Industry to get and keep a customer. The profession istechnology-based, it is sophisticated and is called database marketing.How does customer relationship management percolates room to theinternal customer.The first step in CRM to the internal customer is to create awarenessamong them towards the concept, advantage and disadvantages of thefunction. Then equip them by training them in their own requisite functions& scope of CRM within that function. At Maurya they are trained to trainmore about the guest and this company so that when he talks the guestFIELD PROJECT
  13. 13. CRM IN HOTEL INDUSTRYhe can strike a conversation that is of some interest to the guest. That maynot be necessarily related to his stay at the hotel but these informalconversations with the guest can help build an excellent rapport of theguest which will lead the guest to know the employee by the name. Infuture interactions it is possible that the guest may only wish to most of hiswork done through that employees. This is also a form of customized andpersonalized selling within the hotel Maurya does not have a separatetraining for CRM. Any time when they have a special promotional schemefor a particular property, the marketing team (who has formulated thepromotional scheme) puts together the details of the scheme clearly marksout what is the customer expecting from the property and also if these aresome special arrangements to be made for it. This team briefs theGeneral manager of the property about the customer expectation. TheGeneral manager then decides the path of trickling down of thatinformation, who should know & how much to know. In Maurya Sheratonthey use a phrase to explain this percolation which is “Nice to know andneeds to know” which essentially means that it is nice to know for allemployees of a particular property about the running of the promotionalscheme at their property but not all need to know about every aspect of thescheme as it may not be relevant to their scope of work but they do need toknow the timer points of the scheme relating to their scope of work.FIELD PROJECT
  14. 14. CRM IN HOTEL INDUSTRYTHE OBEROI – HISTORYCustomer Relationship Management Function has been prevalent in thehotel industry since the inception of the concept of boarding and lodging.The oberoi has enjoyed a superior position regarding its core productoffering and supporting services. It has an excellent brand value which itconsistently reinforced by delivering exceptional services.The oberoi over the years has acquired an outstanding brand value whichwould help sell the hotel solely on its name. Oberoi’s has a very loyalpatronage from its guests, which has ensured a high market share in thehigh-end segment of the market, which they cater to. Oberoi’s has thusbeen charging a premium for the value that its guests derive from itsservices.Till about four years back The oberoi did not have any competition andsales and marketing team did not have to sweat it out to acquire and attractpotential clients. Today is a changed scenario. Because of globalizationIndia has seen the entry of International hotel chains, there has been a lota lot of pressure on the sales and marketing team to perform. Oberoi hasseen its market share eroding due to price wars and cost cutting amongstthe five star hotels. The loyal guests of The oberoi have started switchingdue to similar international standards of services available at cheaperrates. The oberoi thus has to work harder to sell its services since theproduct has become generic in nature.FIELD PROJECT
  15. 15. CRM IN HOTEL INDUSTRYAccording to the oberoi the terms Customer Relationship Management andRelationship Marketing are used interchangeably therefore they do nothave a separate CRM department as the outlining functions of the CRMprocess 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 themost prudent way to keep track their changing expectations andappropriately influencing it. The obeori has ensured the above by thevarious ‘end user’ and ‘Booker’ programs such as:TOP – THE OBEROI PLUSThis is an end user program with an enrollment fee of Rs 575 only. It isbeneficial for guests who use the services of the hotel. Each time a guestspends he accumulates points which can be redeemed for any services ofthe hotel. By enrolling and rewarding customers with the help of thisprogram the hotel ensures that a greater bonding towards Long termcustomer retention. They have also tied up with the airlines forinterchangeable redemption of points.CONNECTIONS – BOOKERS’ PROGRAMBookers are an important link in materializing an actual sale therefore theyneed to be kept motivated to push the hotel when the reservations aremade by a corporate account. Each time a booker gives as reservation toFIELD PROJECT
  16. 16. CRM IN HOTEL INDUSTRYthe hotel he gets credit points for that and which can be redeemed for giftsor any hotel services.FOOD FESTIVALSThe Obeori conducts various food festivals at its Restaurants. Regularlyand sends invites to its more profitable Clients.TIE-UPSThe oberoi invites top clients like CEO, Managing Directors and keydecision makers to social evenings specially arranged to further enhancethe Customer relationship management functions. The most recent on was‘Johny Walker night’.QUESTIONNAIRE ANALYSISEMPLOYEE SATISFACTIONThe interviews with the employees revealed that the importance that theygive to tangible and intangible benefits in terms of compensation for theirservices is very high and Oberoi does a good job at keeping them satisfiedin this regard.FIELD PROJECT
  17. 17. CRM IN HOTEL INDUSTRYEMPLOYER COMMITMENTThe top management is totally committed towards achieving Satisfaction ofits internal and external customer. However due to excessive hierarchythere is a greater gap between the top management commitment andinternal customer satisfaction.EMPOWERMENTDue to greater levels of hierarchy front line employees feel that they havelittle authority to take decisions on their own. Empowerment is amimportant feature in internal and external customer satisfaction.RECRUITMENTThe oberoi has excellent recruitment and induction process. OCLD –Oberoi Center for Learning and Development is an asprational school postgraduate learning in hotel management across India. Thus Oberoi everyyear receive competent personnel from OCLD and sends them through arigorous induction and “FAM TRIP” – familiarization trip across the variousOberoi Properties.FIELD PROJECT
  18. 18. CRM IN HOTEL INDUSTRYManagement CommitmentFor many firms it takes years for the entire organization to begin, todemonstrate a customer focus. It is difficult for employees to staycommitted to customer focus when the chief executive and the mangerthemselves are not dedicated to customer needs.What kind of message do managers send workers if they Tout ”customerneed recognition” as critical to providing good customer service, yet don’teven know the names of their employees. On the other hand think of thetone the mangers could set in an organization by making it a point towarmly greet all employee by name. Management should set the pace bydemonstrating how to deliver internal and external customer satisfaction.Internal customer is the employee who receives and uses the output fromanother person or area. Treating this relationship with the same respectand attention given the external customer relationship is the focus of theinternal customer concept.Customer ExpectationsExpectations are what people think is likely to occur in the future.Customers compare their perceptions of the new experience with previousexperiences, feelings or other information gathered from a variety ofsources.FIELD PROJECT
  19. 19. CRM IN HOTEL INDUSTRYMany companies like politicians, are unable to live up to strong claims.Known as lip-service, or overstating capabilities and delivering less thenpromised, these exaggerated claims can undermine the credibility & effortsof persons and organisations that, in reality, are providing superiorproducts and services. The perception of superior performance can beeroded when preceded by exaggerated promises. Over zealous claims notonly disappoint customers but result is big losses for companies whoseprograms don’t deliver. Insupportable claims can be more damaging thanclaiming 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 hotel’s services.Companies are responsible for the expectations they create they shouldknow how their products, services, promotions, personnel, facilities andreputation affect customers. They should know what their customers weighthis information. This process - how expectations are created and formedin to standards by which an organisations performance is measured - canbe a valuable planning tool for management.Expectations ModelCompany-Controlled + Uncontrollable Customer’sExpectation Creators Expectation Creators StandProduct Experience Competitors IdealFIELD PROJECT
  20. 20. CRM IN HOTEL INDUSTRYShort & long term Preferences PredictedMarketing Strategies Word of mouth MinimumContinuum of Expectation Creators First Purchase Repeat Purchase Loyal CustomerNature and Initial Dependable Long term New Productpresentation Marketing & Quality, service relationship offering and of service Promotions and pricing marketing upgradationsCONTROLLABLE EXPECTATION CREATORSShort 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 IncludeFIELD PROJECT
  21. 21. 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 meetand exceed thenGive Customers What they Don’t ExpectFIELD PROJECT
  22. 22. CRM IN HOTEL INDUSTRYMeeting expectations is only the minimum requirement for a successfulcustomer satisfaction strategy. Surpassing expectations is the key tocustomer satisfaction. Perceptually raising product and service quality,however is not the only way to exceed customer expectations. Although thefocus should be on continuos improvement, one way to exceed customerexpectations is through surprise - dazzle customers with something out ofthe blue.Some innovative hotels have gone beyond providing amenities to impressguests. A marriott Hotel in Miami offers environmentally ‘Green Rooms’that include special air and water filtration, water conserving faucet, energyefficient light bulbs and has installed a machine that releases floral andcitrus natural plant abstracts in to the lobby. The desired effect of thisaromatherapy is to reduce stress. SERVICE QUALITYService quality has been interpreted to include five dimensions : RATTERReliability : Dependability and CorrectnessAssurance : Knowledge & courtesy of employeesTangibles : Appearance & physical facilities, equipment and personnelFIELD PROJECT
  23. 23. CRM IN HOTEL INDUSTRYEmpathy : Providing personnel understanding and customer support.Responsiveness : Providing prompt serviceResponsiveness : Providing prompt service.To promote consistent superior performance, it is important to assignquality standards to each step of customer service cycle. Quality standardsprovide direction and motivation for employees. Room Service Guest Service CycleQuality Dimensions Quality Service StandardsReliability : Phone answered within 5 rings, 24 hrs a dayAssurance : 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 mannerFIELD PROJECT
  24. 24. CRM IN HOTEL INDUSTRYResponsiveness : Effort to comply with any special requests Prompt service.Room Service Customer Service Cycle1. Guest calls room service.2. Places order.3. Answers door; talks with server; signs bill.4. Consumes food and beverage.5. Sets tray outside door for pickup.6. Reviews room service charges at check-out.Hotel Perspective1.2. Switchboard staff trained for order taking.3. Staff trained on the job in service techniques; uniforms required.4. Kitchen staff instructed on consistent preparation of all menu items.5. Housekeeping coordinated with room service staff for timely pickup or trays.6. Charges posted on guest’s hotel bill.Redesigned Room Service Customer Service CycleCustomer Perspective1. Guest calls room service using speed-dailing preset button.FIELD PROJECT
  25. 25. CRM IN HOTEL INDUSTRY2. Places order.3. Answers door; talks with server; signs bill.4. Consumers food and beverage.5. Sets tray outside door for pickup.6. Reviews room service charges at checkout.Hotel Perspective1. Phone rings in Kitchen.2. 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 guest’s hotel bill, which is immediately accessible through guest’s TV.FIELD PROJECT
  27. 27. CRM IN HOTEL INDUSTRYPriority MarketingPriority Marketing focuses on what’s important to be customer. What isimportant to one customer however, may not be as important to another.Consider the varying demand placed on a hotel : An airline stewardessmay find the 24 hour room-service extremely valuable, a retired couplemay 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 isimportant to them. This approach can field very valuable insight aboutchanging customer preferences.Identifying groups of customers who have similar preferences or evensimilar tastes (such as sharing common perceptions of quality or states),hotels can target promotions to capitalize on known characteristics andindividualize the presentation. .. . It is important that hotels involve their guests and stay in touch withcustomer perceptions of current services.Customers Feedback MethodSurveysFIELD PROJECT
  28. 28. 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 dataFIELD PROJECT
  29. 29. CRM IN HOTEL INDUSTRY Employee Management - finding the Best SolutionsIn many organizations, management treats employees as unvalued andunintelligent. The employees in turn convey the identical massage to thecustomer. Although organizations realise this connection, the lingeringeffects of changing owners, obsolete management styles, and outmodedemployee programmes have restricted attempts to increase workerproductivity.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• TeamworkFIELD PROJECT
  30. 30. CRM IN HOTEL INDUSTRY• Employee Compensation1) Increasing Employee Loyalty Employee loyalty is a precious commodity. Beyond the costs ofbringing a new employee on board and up to speed, service businessdemand a continuity of service by defend on employees knowing thecustomer, knowing the new technology etc. this requires time . Changingfaces that customers and employees have to get need to can be more thaninconvenient.This principal reason workers leave jobs is that they lack incentive to stay.Their needs are not being met, they are not recognized sufficiently andoften have little opportunity for a career path.Firm should realize that there is no way to create a competitive advantageother than through people. Firms are discovering slowly that highlymotivated and skilled employees are the key to long-term profitability.Common Problem Goals Best SolutionsHigh Turnovers Loyalty • Quality recruitment & meaningful orientation • On going trainingFIELD PROJECT
  31. 31. CRM IN HOTEL INDUSTRY and development. • Realistic Career opportunities (career patting) • Work life programmes. • Long term incentives & reward systems.Low Productivity Quality Employee Involvement Teams TQM programmes. Motivation, empowerment, through enfranchisement, and pay for performance._FIELD PROJECT
  32. 32. CRM IN HOTEL INDUSTRYCommon Goals Best SolutionsProblemsInefficient Professional & Training &knowledge education Personal Development Cross Training Broadbanding.Recruitment : Review the selection process in your company for itsability to detect customer oriented candidates.Ritz Cartton Hotels uses an effective selection process to find “Ladies andgentlemen”. This is called “Character trait recruiting.”Any employee who feels welcome and important will make the customerfeel welcome & important.Commited EmployeesCareer patting is growing in popularity, not only as an effective recruitingand development tool, because employees will not stay without long termopportunities.EAPs - Such as family life, dependent cases and child care programme.Marriott changed the name of its programme to ‘work-life to attract a widerrange of employees.FIELD PROJECT
  33. 33. CRM IN HOTEL INDUSTRYMotivating Dissatisfied CustomersJob enrichment tries to deal with unsatisfied workers by increasing thedepth of job with more autonomy and responsibility.“Vertical job loading” - the principle is that as work becomes morechallenging, the employee’s motivation and enthusiasm also increase.EmpowermentEmpowerment is based on truest between superior and subordinatebecause 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 willsupport me”.At Ritz Carttor Hotels, employees are empowered “ to more heaven andearth” to satisfy guests. They may spend up to $ 2000 per guest and bereimbursed, to accomplish this.CompensationCompensation systems should promote the following messages toemployees :Customers pay our salaries• We are rewarded for doing a better jobFIELD PROJECT
  34. 34. CRM IN HOTEL INDUSTRY• We are encourage to Europe our job skills• Our income is maximize through constant improvement of customer satisfactionFor many companies, broadbanding is the hotest thing in compensation. In thisapproach, companies reduce their number of salary levels and lump theiremployees into salary bands. Workers are paid different amounts (within theirband) according to a larger number of measureable accomplishments. With thistype of variable pay, workers can be moved around more and individual skills canbe compensated.*FIELD PROJECT
  36. 36. CRM IN HOTEL INDUSTRY a. Switching Costs b. Perceived Risks C. Lack of Information BARRIERS (to buying your product) AWARENESS (of your product)FIELD PROJECT
  37. 37. CRM IN HOTEL INDUSTRYFREQUENT CUSTOMER BENEFITSCustomers benefit from their own loyalty. Superior service, improvedefficiency, and better overall value are some of the advantages earned bycustomers making repeated purchases. When you are a familiar face at arestaurant, employees may greet you by name and give you the preferredtable. Contributed patronage has also taught you when to arrive, where topark, and which items to order or stay away from. A comparableexperience is not readily available to others, especially not to a first-timecustomer. The customer benefits of brand loyalty accumulating and, like agood investment, increase in value over time.FREQUENT USER PROGRAMMESIn the 1980s, airlines introduced the concept of bonus miles for frequentfliers. This was followed by programs for frequent sleepers (hotels)The airlines’ frequent-flier programs have spread to hotel and restaurantchains. Restaurant chains were attracted by the ability of these programsto encourage customers to visit other restaurants. Hotel frequent-stayprograms have not produced the intense brand loyalty that the airlines’programs have, partly because travelers base hotel stays on location orservice rather than freebies.FIELD PROJECT
  38. 38. CRM IN HOTEL INDUSTRYCORPORATE LOYALTY PROGRAMMESCorporate loyalty programs can maintain their professional level by offeringsuch incentives as secretary awards, executive perks, or Christmasluncheons for an entire department. Even employees can be tied in to theprogram by offering them incentives to increase customer use of theprogram.CUSTOMER RECOGNITION AWARDAs an alternative, companies can use incentives to attract repeatcustomers without establishing a frequent buyer program. Offeringrecognition rewards is a low-cost, low-risk alternative that avoids a long-term investment. Hotels created Club which rewards repeat business withgifts.DATABASE MARKETINGOne of the first steps companies take before they start any major marketingstrategy is to build huge lists of loyal buyers who can be regularly tappedfor launching promotions and market research.An excellent application of database technology benefiting the customer isthe development of customer history systems. The principle is the same :building a continuous relationship with each customer maintain customerprofiles to build valuable stores of information that can be accessed tocustomize products, services, and marketing efforts.FIELD PROJECT
  39. 39. CRM IN HOTEL INDUSTRYFor hotels, guest history programs capture a range of data andpreferences. Guest histories remember room-style preferences, rates paid,amenities, and special requests such as a stationary, high-versus low-floorrooms, and even meal preferences. These are used to create the bestpossible guest experience.But guest histories go beyond simply knowing who dislikes feather pillowsor who loves California chardonnay. They offer concrete business-buildingopportunities for boosting individual patronage, which has greater profitpotential than group business, by targeting repeat customers or selectingthe best candidates for certain promotional efforts. Inter-Continental’s “SixContinent” guest recognition program tracks which guests spend more, eatin fine dining establishments instead of the coffee shop, buy suits, and useconcierge, laundry, and valet services. Targeted guests can be invited toarrive a night earlier or encouraged to stay over for a family-weekendpackage. Other customized benefits such as sending out birthday cards,offering other special amenities to guests or creating a no check-inprocedure (pick up keys at a VIP station) can easily be created from theseprograms.Relationship MarketingFrequent customer programs and database marketing efforts contribute toa more comprehensive approach to satisfying customers called relationshipmarketing. Relationship marketing depends on the goodwill generated byFIELD PROJECT
  40. 40. CRM IN HOTEL INDUSTRYfrequent-buying programs as well as on the information provided fromdatabase marketing efforts, goes beyond simple short term awards andinvolves all the elements of a firm’s and services to encourage a personalrelationship with each customer.Relationship marketing is “knowing the customer and using that informationto bond with them.”Form the initial personal contact and then serve as the foundation fornurturing this brief encounter into a friendly and accommodationrelationship by focusing on personal guest information. In addition toknowing the purchase habits of members (room selection, certain amenitypreferences, and so forth), personal information such as spouse’s nameand hobbies are added to a member database (see previous section ondatabase marketing). The company uses this information to tailor specialevents and products to small segments of the membership.Complaint HandlingFew companies, use or pay attention to complaints. Who wants to hearwhat they’re doing wrong, especially if the criticism is well founded. It isestimated that 90 percent of dissatisfied customers whose problems werenot solved will never do business with the retailers that sold them theproduct 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 wheythey’re re pointed out. We’re also aware of weaknesses in our jobperformance, problems in our organization and imperfections in itsproducts and services. But reacting to criticism is difficult. We tend torespond in a guarded and defensive way, which may avoid squarelyFIELD PROJECT
  41. 41. CRM IN HOTEL INDUSTRYconfronting the real problem. Likewise, companies tend to let themselvesoff the hook too easily : “We never could have satisfied that customer.The astonishing news is that those people who do complain and have theirproblem taken care of tend to be more loyal to the company than thepeople who were satisfied in the first place.World-Class companies see complaints as opportunities to improve, toimpress customers, and to turn complaining customers into loyal ones.Customer Driven TechnologyYou arrive at the hotel, pop your smart card in a doorway slot to introduceyourself, then go straight to your room, assigned earlier by computer. Toenter, say your name, and the door automatically opens. You hang up yourcoat, punch in channel 162 on the TV, and hold a videoconference withcolleagues. When the meeting ends, you flip to another channel to shop fora gift, then call home on the videophone to see how the family is faringwhile you are on the road.This futuristic scene has arrived. Each component of this experience iscurrently available from at least one of the major U.s. hotel chains.Improved customer technology may be necessary to deliver a redesignedwork process with the required level of efficiency.At the Peninsula Hotel in New York, the concierge desk makes use of anairline ticket printer. Guests who need last-minute plane reservations canbook flights and pick up their tickets right in the hotel.FIELD PROJECT
  42. 42. 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 long- term goals and clear objectives and having one person responsible for advancing the program.FIELD PROJECT
  43. 43. 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
  44. 44. 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.comFIELD PROJECT
  47. 47. CRM IN HOTEL INDUSTRY Submitted to :Dr. J. D. Singh Submitted by : SHIVANI BERRY SONU GARGFIELD PROJECT
  48. 48. CRM IN HOTEL INDUSTRYInternational Management Institute New DelhiFIELD PROJECT
  49. 49. CRM IN HOTEL INDUSTRY IndexAcknowledgement• 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 LimitationsAspects of CRM Identifying with the Customer  Management Commitment  Customer Expectations  Service Quality  Customer Service Cycle  Priority Marketing  Employee ManagementFIELD PROJECT
  50. 50. 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 GraphsFIELD PROJECT
  51. 51. CRM IN HOTEL INDUSTRY  The Oberoi Questionnaire Analysis Graphs• AnnexuresQuestionnairenishant_banerjee@yahoo.comharnoord@abs.amity.eduharnoordhaliwal@yahoo.comFIELD PROJECT