Travellers are becoming more price sensitive, less brand loyal and more sophisticated in their hotel choices. The use of a Customer Relationship Management (CRM) system, has becomes a strategic necessity for attracting and increasing guest patronage. For this case-study, a multi-channel CRM system was used to examine its effectiveness on guests’ relations of “X” Hotel in Cyprus. Data was collected from various resources in order to: (1) profile the existing customer and clarify which market segment should be targeted, (2) proceed with an environmental and competitor analysis, (3) process collected data to identify significant patterns of data as they pertain to particular customers or customer groups, (4) understand unique value propositions of the company in relation to guests’ expectations, (5) develop creative marketing communications and assess their return on investment, (6) determine organizational effectiveness to adapt and innovate according to guests’ preference. It was found that an effective CRM strategy incorporates sharing the vision with staff and giving staff more decision-making power. The critical success factor, however, is the optimally use of data to enhance return on investment (ROI), as knowing the customers’ needs can help pinpoint communications more accurately, improving the marketing effectiveness of ROI.

1. Developing Multi-Channel
Customer Relationship
Management Strategy for Hotel
Operation
By
Kefalas Soteris, Ph.D, MSc, MBA,
BSBA

2. Multi-Channel Customer Relationship
Management (CRM) for Hotel
Operation: The business concept of
directly communicating and interacting
with micro markets and stakeholders via
integrated marketing channel
alternatives in an effort to secure a
meaningful response

3. Profile of Tasos L. Kefalas & Sons Ltd
Company Overview
Strengths: Strategic location; strategic alliance and
partnerships; vast experience in the sector
Weaknesses: Dependence on brand name and
image; high operating cost; susceptible to
government policies

4. Profile of Tasos L. Kefalas & Sons Ltd
Company Overview con’t
Threats: Geographic concentration; competition;
economic slowdown in Europe
Opportunities: Global travel and tourism
market; growth in other market segments

5. Customer Analysis
Profiling the Customer
• Demographics
• Mode of transportation to property
• Guest status (new, repeat, corporate)
• Date and method of reservation (tour package,
business or individual)
• The average length of stay and the pattern of
occupancy
• Type of guest (leisure traveller or
businessperson)
• Total folio charges and method of payment (cash
or credit card)

6. Competitor Analysis
• Quality
• Location
• Atmosphere
• Facilities
• Amenities
• Staff

7. DATA MINING AND PROFILING
• Creation of direct mail campaigns
• Seasonal Promotions
• Construction of new segmentation bases
using new models
• Calculation of reserved rooms for
organizational customers
• Calculation of most profitable segments
using new models
• Construction of personalized ads
• Yield management ads

8. Market Segmentation:Creating the
resort’s market niche
Target Marketing:Evaluating each
segment’s attractiveness and selecting
one or more of the market segments

9. New Market Segments Related to
Cyprus Tourism
• Culture Tourism
• Ecotourism
• Health Tourism

10. Positioning: “…the establishment of the
perception of a highly valued, distinctive, and/or
superior product in the minds of target customers”
(Morrit)
Differentiation: “…the approach of developing
a set of unique and meaningful “points” that are
capable of distinguishing your offer from that of
your competitors and that give it differential
advantage” (Lewinson)

11. Creative marketing: getting the right
message to the right customer at a time and
in a way that the individual wants to receive it
• Product is more desirable
• Product is better than competing brands
• Message must be believable

12. Direct Marketing Channels
Internal selling: Employees provide the
type of service and satisfaction that
ensures repeat business
External selling: Websites, direct mail
magazines, newspapers

13. Fulfillment and Service
Service culture:
• Say it and mean it
• Communication
• Managers as helpers
• Restraining bureaucracy

14. Measurement and Assessment
With this knowledge, direct marketers can
better design and launch more effective
direct marketing programs and yield a
higher Return on Investment (ROI)
(Fleming and Foley)

15. Adaption and Innovation
Wellness Concept:
• Provides a clear differentiation from the
competitors
• The consumer us willing to pay higher
price for the same product
• Creates loyalty
• Makes possible the use of more effective
communication measures
• Creates a positive image for the individual
hotel
• Attracts new guests

16. Implementing a Multi-Channel CRM
Strategy
• Share the vision and train with rigor to ensure
data integrity
• Plan on all levels to foster buy-in and get
perspective
• Optimally use data to enhance Return on
Investment (ROI)
• Constantly measure and fine-tune your
strategies