Service Concept / brand experience Service for loyal customers Concept / brand experience for loyal customers Traditional ...
CRM-7-18  © Guest Relationship Management Step 1 The Nature of  G uest Relationships Concepts & Briefing “ Organization me...
CRM-7-18  © Guest Relationship Management 83% of  Dutch HSMAI professionals  who participated in a CRM survey (2006)  beli...
CRM-7-18  © Guest Relationship Management <ul><li>CRM Quiz Question 1 </li></ul><ul><li>To build successful relationships ...
<ul><li>CRM Quiz Question 2   </li></ul><ul><li>Which of the following programs makes staff spend </li></ul><ul><li>qualit...
CRM-7-18  © Guest Relationship Management No ! Hotels don’t apply the meaningful relationship mechanisms check-in “have a ...
CRM-7-18  © Guest Relationship Management A relationship is a (often implicit) need  of many guests 90% wishes to  talk fr...
CRM-7-18  © Guest Relationship Management CRM-7-18 hotel dialogue (example) check-in “ first time in our city ? ” breakfas...
CRM-7-18  © Guest Relationship Management <ul><li>Service, Experience & Relationship </li></ul><ul><ul><li>competing  for ...
CRM-7-18  © Guest Relationship Management Great value & commitment requires the right mix for each guest No surprise … con...
CRM-7-18  © Guest Relationship Management 93% of HSMAI professionals believe that CRM is  a top3  operational competency  ...
mission impossible ?
CRM-7-18  © Guest Relationship Management <ul><li>The  Managerial Relationship Challenge </li></ul><ul><ul><li>100 rooms =...
CRM-7-18  © Guest Relationship Management 6. Relational content 5. Guest  profiling 4. Dynamic VIP system (relationship ac...
CRM-7-18  © Guest Relationship Management Team Name Relationship team Content team IT team Privacy team Change team Perfor...
CRM-7-18  © Guest Relationship Management <ul><li>For step 1 we have prepared 6 ‘ simple ’  questions for you ... </li></u...
CRM-7-18  © Guest Relationship Management Reflection assignment 1.1 Give your idea about CRM and apply the Peelen scan Obj...
CRM-7-18  © Guest Relationship Management Reflection assignment 1.2 Give examples of the current situation in your organiz...
CRM-7-18  © Guest Relationship Management Reflection assignment 1.3 Key question : is the Eden Hotel giving all (individua...
CRM-7-18  © Guest Relationship Management Reflection assignment 1.4 Which guest information would you like to have prior t...
CRM-7-18  © Guest Relationship Management Reflection assignment 1.5 Give examples or topics and subjects that you would li...
CRM-7-18  © Guest Relationship Management Reflection assignment 1.6 Scan the CRM 7-18 whitepaper under user document  and ...
CRM-7-18  © Guest Relationship Management Step 2 Relationship management  performance and “ style ” Briefing
CRM-7-18  © Guest Relationship Management Paradox : what comes first ? QUALITY  ? RELATIONSHIP  ?
CRM-7-18  © Guest Relationship Management Moving to a 1-to-1 focus Service program Sales & after sales program Service+ pr...
CRM-7-18  © Guest Relationship Management Moving to a 1-to-1 focus Service program Sales & after sales program Service+ pr...
CRM-7-18  © Guest Relationship Management Moving to a 1-to-1 focus Service program Sales & after sales program Service+ pr...
CRM-7-18  © Guest Relationship Management Moving to a 1-to-1 focus Service program Sales & after sales program Service+ pr...
CRM-7-18  © Guest Relationship Management Moving to a 1-to-1 focus Service program Sales & after sales program Service+ pr...
CRM-7-18  © Guest Relationship Management How good is your Eden Hotel at CRM ? <ul><li>new balanced score card  </li></ul>...
CRM-7-18  © Guest Relationship Management Financial & Business objectives of CRM “  serving 1-to-1  is easier than serving...
CRM-7-18  © Guest Relationship Management Financial & Business objectives of CRM on individual guest level <ul><li>attract...
CRM-7-18  © Guest Relationship Management How good is your Eden Hotel at CRM ? Change in  Learning  Perspective Change in ...
CRM-7-18  © Guest Relationship Management How good is your Eden Hotel at CRM ? Change in  Organisational  Objectives Chang...
CRM-7-18  © Guest Relationship Management <ul><li>Is a zero-dialogue situation the optimized situation ? </li></ul><ul><li...
CRM-7-18  © Guest Relationship Management “  maybe the objectives don’t look new, the goals and targets do ! ” feedback on...
CRM-7-18  © Guest Relationship Management <ul><li>Also new in CRM-7-18 </li></ul><ul><li>relational  objectives per staff ...
CRM-7-18  © Guest Relationship Management
CRM-7-18  © Guest Relationship Management <ul><li>Questions to you </li></ul><ul><li>how will your objectives be translate...
CRM-7-18  © Guest Relationship Management <ul><li>For step 2 we have again prepared 6 ‘ simple ’  questions for you ... </...
CRM-7-18  © Guest Relationship Management Reflection assignment 2.1 &quot;Which initiatives and programs are currently in ...
CRM-7-18  © Guest Relationship Management Reflection assignment 2.2 What does your hotel really expect from  CRM 7-18   Ob...
CRM-7-18  © Guest Relationship Management Reflection assignment 2.3 Comment the HSMAI-NHTV that is already filled in by 20...
CRM-7-18  © Guest Relationship Management Reflection assignment 2.4 Set the operational objectives   Objective To set the ...
CRM-7-18  © Guest Relationship Management Reflection assignment 2.5 Set the business objectives   . Objective To set the o...
CRM-7-18  © Guest Relationship Management Reflection assignment 2.6 Set the objectives that we want a guest to achieve   O...
CRM-7-18  © Guest Relationship Management Step 4 Segmenting  the guest database Briefing
CRM-7-18  © Guest Relationship Management Segments are based on different needs e.g. business/leisure Target groups are ba...
Hilton Honours Diamond&Gold Hilton Honours Silver Hilton Honours Blue Non-member business travelers Convention & resort tr...
Hi, my name is Fred.  I am nr 78 on your RFM-ranking of best guests. How accurate is your forecast of my future spendings ...
CRM-7-18  © Guest Relationship Management <ul><li>e.g.  </li></ul><ul><li>best clients (loyal guests) </li></ul><ul><li>ce...
CRM-7-18  © Guest Relationship Management The CRM Reflex interactive non-interactive low potential spending   high potenti...
CRM-7-18  © Guest Relationship Management Quote of the Day  “ A  relationship  is not so much an emotion  as it is  a deal...
CRM-7-18  © Guest Relationship Management
CRM-7-18  © Guest Relationship Management
CRM-7-18  © Guest Relationship Management “ If a guest took all the trouble to go through your VIP classes why should he t...
CRM-7-18  © Guest Relationship Management <ul><li>For step 4 we have again prepared 6 ‘ simple ’  questions for you ... </...
CRM-7-18  © Guest Relationship Management <ul><li>Reflection assignment 4.1 </li></ul><ul><li>Based on the number of visit...
CRM-7-18  © Guest Relationship Management Reflection assignment 4.2 Captain’s table dilemma : which other guest profile cr...
CRM-7-18  © Guest Relationship Management Reflection assignment 4.3 What about the VIP status of complaining guests or gue...
CRM-7-18  © Guest Relationship Management Reflection assignment 4.4 How do you see the relationship with each  VIP class (...
CRM-7-18  © Guest Relationship Management Reflection assignment 4.5 Looking back on the 3 types of program objectives set ...
CRM-7-18  © Guest Relationship Management Reflection assignment 4.6 Find out for the hotel how many guests will probably b...
CRM-7-18  © Guest Relationship Management Step 4 Segmenting  the guest database GOOD LUCK
CRM-7-18  © Guest Relationship Management Step 5 Guest profiling Briefing
Do your guests like  newsletters  ? <ul><li>Some do, some don’t </li></ul><ul><li>Maybe your new guests should get a diffe...
<ul><li>identification </li></ul><ul><li>client profile </li></ul><ul><li>user profile </li></ul><ul><li>buyer profile  </...
The CRM Cycle  (Nyland Consulting Group) CRM-7-18  © Guest Relationship Management Through analysis and interaction you le...
“  while the guest moves thru VIP classes we have a unique opportunity to get to know him better and thus gain an unbridge...
<ul><li>When do we want to know what profile info?  Who finds it out how? </li></ul><ul><li>how, how often and when it nee...
Integrating all information on 1 guest or client ?! <ul><li>reservations system </li></ul><ul><li>management information s...
Limits to CRM <ul><li>government  </li></ul><ul><ul><li>data registration and processing laws (national, European) ; natur...
<ul><li>force people to put a stamp on each e-mail they send; make communication a scarce commodity </li></ul><ul><li>redu...
CRM-7-18  © Guest Relationship Management Step 5 Guest profiling Good luck
CRM-7-18  © Guest Relationship Management Step 6 Relationship content and relationship program Briefing
CRM-7-18  © Guest Relationship Management Step 6 articles
Dialogue,  direct marketing or looped campaign management ?  Let’s learn from mail order companies … <ul><li>who?  </li></...
<ul><li>…  when selecting guests for particular actions/programs  </li></ul><ul><li>always take into consideration  </li><...
Thousand things to tell to  your guests (if interested) (content), 1-to-1 or thru club membership <ul><li>benefits, discou...
<ul><li>Or send your VIP guests  insider news  like  </li></ul><ul><ul><li>guest  testimonials </li></ul></ul><ul><ul><li>...
What do your customers consider as  interesting news  ? Vicinity Scope or Size Importance Culturally close Familiar contex...
<ul><li>Does your hotel intend to test… </li></ul><ul><li>no-purpose  communication ? </li></ul><ul><li>communicating  imp...
producing (mass) customization <ul><ul><li>change product visibly (“ partnership ”)  </li></ul></ul><ul><ul><li>change pro...
<ul><li>service rates vary as function of </li></ul><ul><ul><li>packaging  and presentation </li></ul></ul><ul><ul><li>cus...
The  customized value proposition “ CRM is about making  guests  jealous  of your best clients ” CRM-7-18  © Guest Relatio...
Pick your channels  / touchpoint <ul><li>reception; housekeeping; FB; business center; concierge  </li></ul><ul><li>web-si...
<ul><li>personal meeting 100 euro (relationship accounting !) </li></ul><ul><li>telephone call 10 euro </li></ul><ul><li>m...
Action i 1 (info, question, personal contact) Action i 2A   (info, question, personal contact) Action i 2B   (info, questi...
clients  needing to be contacted database with qualified content DAILY MATCH OR  2. pragmatic CRM-7-18  © Guest Relationsh...
Hotel services Guest wishes & needs Zone of profit & comfort Grow satisfaction & loyalty Consolidate & grow sales Strategi...
<ul><li>formalization </li></ul><ul><li>power </li></ul><ul><li>orientation   (task versus social) </li></ul><ul><li>commi...
CRM-7-18  © Guest Relationship Management Step 6 Relationship content and relationship program Good luck !
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3[1]. 6 Steps 36 Exercises

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Step 1-6 on CRM-7-18 method

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3[1]. 6 Steps 36 Exercises

  1. 1. Service Concept / brand experience Service for loyal customers Concept / brand experience for loyal customers Traditional CRM focus Meaningful dialogue Meaningful dialogue with loyal customers CRM-7-18 focus service loyalty + personal loyalty +++ brand loyalty ++
  2. 2. CRM-7-18 © Guest Relationship Management Step 1 The Nature of G uest Relationships Concepts & Briefing “ Organization members should think and feel about relationships in the same way”
  3. 3. CRM-7-18 © Guest Relationship Management 83% of Dutch HSMAI professionals who participated in a CRM survey (2006) believe that the personal bond with a guest outperforms any brand or concept relationship…
  4. 4. CRM-7-18 © Guest Relationship Management <ul><li>CRM Quiz Question 1 </li></ul><ul><li>To build successful relationships with a guest you primarily need </li></ul><ul><li>A computer system that supports personalized service ? </li></ul><ul><li>A reward program ? </li></ul><ul><li>A value fit ? </li></ul><ul><li>Time ? </li></ul>
  5. 5. <ul><li>CRM Quiz Question 2 </li></ul><ul><li>Which of the following programs makes staff spend </li></ul><ul><li>quality (read : relationship) time on their guests ? </li></ul><ul><ul><li>quality program (SOPs) ? </li></ul></ul><ul><ul><li>loyalty program (frequent traveler card) ? </li></ul></ul><ul><ul><li>corporate sales (account management) ? </li></ul></ul>CRM-7-18 © Guest Relationship Management ? Yet … they all claim to be in the relationship business ! ???
  6. 6. CRM-7-18 © Guest Relationship Management No ! Hotels don’t apply the meaningful relationship mechanisms check-in “have a nice stay” breakfast “room number?” check-out “minibar?”
  7. 7. CRM-7-18 © Guest Relationship Management A relationship is a (often implicit) need of many guests 90% wishes to talk friendly to a manager of those 50% have suggestions for improvement of those 30% wish to commit into “more”
  8. 8. CRM-7-18 © Guest Relationship Management CRM-7-18 hotel dialogue (example) check-in “ first time in our city ? ” breakfast “ any suggestions for improvement for next time ? ” check-out “ when will we have the pleasure of seeing you again ”
  9. 9. CRM-7-18 © Guest Relationship Management <ul><li>Service, Experience & Relationship </li></ul><ul><ul><li>competing for resources and strategic priority </li></ul></ul><ul><ul><li>complementing in impact and efficiency </li></ul></ul>
  10. 10. CRM-7-18 © Guest Relationship Management Great value & commitment requires the right mix for each guest No surprise … convivial qualities Big surprise … conceptual qualities Surprise now and then … contextual qualities
  11. 11. CRM-7-18 © Guest Relationship Management 93% of HSMAI professionals believe that CRM is a top3 operational competency to be developed
  12. 12. mission impossible ?
  13. 13. CRM-7-18 © Guest Relationship Management <ul><li>The Managerial Relationship Challenge </li></ul><ul><ul><li>100 rooms = </li></ul></ul><ul><ul><li>20.000 guests per year </li></ul></ul><ul><ul><li>20 customer facing staff </li></ul></ul>
  14. 14. CRM-7-18 © Guest Relationship Management 6. Relational content 5. Guest profiling 4. Dynamic VIP system (relationship accounting) 3. CRM team organisation 2. Style & objectives 1-to-1 matching Accountability Content team IT team Privacy team Change team Performance team Strategy team Relationship team
  15. 15. CRM-7-18 © Guest Relationship Management Team Name Relationship team Content team IT team Privacy team Change team Performance team Strategy team Key issue for skeptics We don’t prioritize our guests well We are not refreshing our offer We’ll never get the required info Some guests really won’t like this Our staff has no time or willingness There won’t be added value The program does not fit our need So… So… So… So… So… So… So…
  16. 16. CRM-7-18 © Guest Relationship Management <ul><li>For step 1 we have prepared 6 ‘ simple ’ questions for you ... </li></ul><ul><ul><li>“ I don’t know the solution but from my perspective there are some constraints to the final solution “ … every role answers the same question in a different way ! </li></ul></ul><ul><ul><li>discuss the constraints from the 7 perspectives </li></ul></ul><ul><ul><li>find the solution to the question with the entire group and formulate it in hypothetical terms </li></ul></ul><ul><ul><li>Check the solution with other non-team staff members </li></ul></ul>
  17. 17. CRM-7-18 © Guest Relationship Management Reflection assignment 1.1 Give your idea about CRM and apply the Peelen scan Objective to get an overall view what CRM is about in the current organization
  18. 18. CRM-7-18 © Guest Relationship Management Reflection assignment 1.2 Give examples of the current situation in your organization of CRM, by using real life guest cases from the past and explain your opinion/decision Objective To discover the possibilities of CRM in your own organization, to visualize a possible outcome of the CRM process
  19. 19. CRM-7-18 © Guest Relationship Management Reflection assignment 1.3 Key question : is the Eden Hotel giving all (individual) guests the attention they deserve? Objective Identify relationship gaps
  20. 20. CRM-7-18 © Guest Relationship Management Reflection assignment 1.4 Which guest information would you like to have prior to the arrival of the guest - and that you don`t have today Objective Acquire guest info that facilitates you in building better contacts/dialogues/relationships
  21. 21. CRM-7-18 © Guest Relationship Management Reflection assignment 1.5 Give examples or topics and subjects that you would like to address during your contact moment with loyal guests and NOT with new guests. Objective To gain an insight and explore the ideas of your colleagues what a meaningful dialogues could be about.
  22. 22. CRM-7-18 © Guest Relationship Management Reflection assignment 1.6 Scan the CRM 7-18 whitepaper under user document and give your opinion Objective To formulate an opinion about CRM 7-18.
  23. 23. CRM-7-18 © Guest Relationship Management Step 2 Relationship management performance and “ style ” Briefing
  24. 24. CRM-7-18 © Guest Relationship Management Paradox : what comes first ? QUALITY ? RELATIONSHIP ?
  25. 25. CRM-7-18 © Guest Relationship Management Moving to a 1-to-1 focus Service program Sales & after sales program Service+ program (CRM?) Brand standards Loyalty program (CRM?) Meaningful dialogue
  26. 26. CRM-7-18 © Guest Relationship Management Moving to a 1-to-1 focus Service program Sales & after sales program Service+ program (CRM?) Brand standards Loyalty program (CRM?) Meaningful dialogue Change in Financial Perspective Turnover Cumulated turnover Lifetime value
  27. 27. CRM-7-18 © Guest Relationship Management Moving to a 1-to-1 focus Service program Sales & after sales program Service+ program (CRM?) Brand standards Loyalty program (CRM?) Meaningful dialogue Change in Client Perspective Average satisfaction Individual satisfaction Individual commitment
  28. 28. CRM-7-18 © Guest Relationship Management Moving to a 1-to-1 focus Service program Sales & after sales program Service+ program (CRM?) Brand standards Loyalty program (CRM?) Meaningful dialogue Change in Organisational Perspective Product level Integrated (corporate) Guest level
  29. 29. CRM-7-18 © Guest Relationship Management Moving to a 1-to-1 focus Service program Sales & after sales program Service+ program (CRM?) Brand standards Loyalty program (CRM?) Meaningful dialogue Change in Learning Perspective dispersed shared Systematic/culture
  30. 30. CRM-7-18 © Guest Relationship Management How good is your Eden Hotel at CRM ? <ul><li>new balanced score card </li></ul><ul><li>new objectives, </li></ul><ul><li>new targets </li></ul>Change in Learning Perspective Change in Organisational Perspective Change in Client Perspective Change in Financial Perspective <ul><li>new crm-7-18 tools </li></ul><ul><li>new guest experiments </li></ul><ul><li>new data analysis </li></ul>
  31. 31. CRM-7-18 © Guest Relationship Management Financial & Business objectives of CRM “ serving 1-to-1 is easier than serving blind ” “ it even could be your way of survival ” (rather than location?) <ul><ul><li>cost of customer acquisition </li></ul></ul><ul><ul><li>business volume per client </li></ul></ul><ul><ul><li>service delivery costs ????? </li></ul></ul><ul><ul><li>demand forecasting </li></ul></ul><ul><ul><li>capacity planning </li></ul></ul><ul><ul><li>word-of-mouth </li></ul></ul>
  32. 32. CRM-7-18 © Guest Relationship Management Financial & Business objectives of CRM on individual guest level <ul><li>attract new customers </li></ul><ul><ul><li>word of mouse </li></ul></ul><ul><ul><li>find new clones of your best customers </li></ul></ul><ul><li>make existing profitable customers come more often </li></ul><ul><ul><li>deep-selling (penetration) </li></ul></ul><ul><ul><li>long-selling (life time value) </li></ul></ul><ul><li>make loyal customers spend more </li></ul><ul><ul><li>cross-selling (other services) </li></ul></ul><ul><ul><li>up-selling (same product, higher class) </li></ul></ul>
  33. 33. CRM-7-18 © Guest Relationship Management How good is your Eden Hotel at CRM ? Change in Learning Perspective Change in Organisational Perspective Change in Client Perspective Change in Financial Perspective
  34. 34. CRM-7-18 © Guest Relationship Management How good is your Eden Hotel at CRM ? Change in Organisational Objectives Change in Client Objectives “ optimized quantity and quality of dialogues” “ optimized relationship perception ” Make your choice from the list of operational objectives Make your choice from the list of guest objectives
  35. 35. CRM-7-18 © Guest Relationship Management <ul><li>Is a zero-dialogue situation the optimized situation ? </li></ul><ul><li>At first sight there seems to be </li></ul><ul><ul><li>no need, </li></ul></ul><ul><ul><li>no time, </li></ul></ul><ul><ul><li>no money </li></ul></ul><ul><li>to develop meaningful dialogues . </li></ul><ul><li>Even worse : the ingredients don’t seem to be very new ! </li></ul>
  36. 36. CRM-7-18 © Guest Relationship Management “ maybe the objectives don’t look new, the goals and targets do ! ” feedback on service quality Before : 1,27 % of all guests After : 30 % of all guests example SAMPLING PROFILING
  37. 37. CRM-7-18 © Guest Relationship Management <ul><li>Also new in CRM-7-18 </li></ul><ul><li>relational objectives per staff member </li></ul><ul><li>relational objectives per VIP class </li></ul><ul><li>relational objectives per guest … part of his profile </li></ul><ul><li>relational style : position yourself among professionals ! </li></ul><ul><li>“ you are who you are by the choices/trade offs you make” </li></ul>
  38. 38. CRM-7-18 © Guest Relationship Management
  39. 39. CRM-7-18 © Guest Relationship Management <ul><li>Questions to you </li></ul><ul><li>how will your objectives be translated into measurable targets ? </li></ul><ul><li>for which objectives will you make a zero measurement ? </li></ul>
  40. 40. CRM-7-18 © Guest Relationship Management <ul><li>For step 2 we have again prepared 6 ‘ simple ’ questions for you ... </li></ul><ul><ul><li>“ I don’t know the solution but from my perspective there are some constraints to the final solution “ … every role answers the same question in a different way ! </li></ul></ul><ul><ul><li>discuss with the entire group the constraints from the 7 perspectives </li></ul></ul><ul><ul><li>find the solution to the question with the entire group and formulate it in hypothetical terms </li></ul></ul><ul><ul><li>Check the solution with other non-team staff members / hotel </li></ul></ul>
  41. 41. CRM-7-18 © Guest Relationship Management Reflection assignment 2.1 &quot;Which initiatives and programs are currently in place or will be put in place that will help improve guest relations. How will the success be measured? Which positive implications do you think these will have?&quot; Objective To list all systems and programs that are in place at this moment that can contribute to CRM 7-18 and to set a way that this contribution can be measured
  42. 42. CRM-7-18 © Guest Relationship Management Reflection assignment 2.2 What does your hotel really expect from CRM 7-18 Objective 5-10 sentences that describes your first impression of CRM and the objectives that you expect to be the outcome of the program
  43. 43. CRM-7-18 © Guest Relationship Management Reflection assignment 2.3 Comment the HSMAI-NHTV that is already filled in by 200 hospitality professionals Objective To compare your vision on CRM with the vision of 200 pro’s.
  44. 44. CRM-7-18 © Guest Relationship Management Reflection assignment 2.4 Set the operational objectives Objective To set the objectives that we want to achieve on a operational level by implementing CRM 7-18.
  45. 45. CRM-7-18 © Guest Relationship Management Reflection assignment 2.5 Set the business objectives . Objective To set the objectives that we want to achieve on a business level by implementing CRM 7-18.
  46. 46. CRM-7-18 © Guest Relationship Management Reflection assignment 2.6 Set the objectives that we want a guest to achieve Objective To set the objectives that we want to achieve on a business level by implementing CRM 7-18.
  47. 47. CRM-7-18 © Guest Relationship Management Step 4 Segmenting the guest database Briefing
  48. 48. CRM-7-18 © Guest Relationship Management Segments are based on different needs e.g. business/leisure Target groups are based on communication e.g. viewers of television program VIP levels or classes are based on a categorization of relationships … the right segment, right relation, right attention!
  49. 49. Hilton Honours Diamond&Gold Hilton Honours Silver Hilton Honours Blue Non-member business travelers Convention & resort traveler % of guests % of revenue % of net-profit 1% 2% 6% 25% 66% 6% 5% 7% 21% 61% 28% 18% 10% (6%) 49% net-profit = revenue – real estate – operating costs - advertising How many guests do you want in each category ? How much do you reinvest in each of them ?
  50. 50. Hi, my name is Fred. I am nr 78 on your RFM-ranking of best guests. How accurate is your forecast of my future spendings with you? RFM analysis shows that Fred has a ...% chance of coming back Some guests know your organization better than your staff does ! Fred has a 50% chance of having suggestions for improvement “ relationship classification is NOT a matter of favoritism” Who knows Fred within your organization? Who will be talking to him?
  51. 51. CRM-7-18 © Guest Relationship Management <ul><li>e.g. </li></ul><ul><li>best clients (loyal guests) </li></ul><ul><li>celebrities </li></ul><ul><li>guests with high expectations (handicapped, wedding anniversary…) </li></ul><ul><li>new enthusiast guests </li></ul><ul><li>randomly selected guests (no discrimination) </li></ul><ul><li>chinese guests </li></ul><ul><li>complaining guests </li></ul>important customer or valuable customer ? “ the captain’s table dilemma ” who is important = a matter of strategy who is valuable = a matter of scoring
  52. 52. CRM-7-18 © Guest Relationship Management The CRM Reflex interactive non-interactive low potential spending high potential spending existing client new client Satisfied ? less satisfied ?
  53. 53. CRM-7-18 © Guest Relationship Management Quote of the Day “ A relationship is not so much an emotion as it is a deal It’s about what you need to do in return for the guest who abandons choice , choice of hotel and later maye even choice of services ”
  54. 54. CRM-7-18 © Guest Relationship Management
  55. 55. CRM-7-18 © Guest Relationship Management
  56. 56. CRM-7-18 © Guest Relationship Management “ If a guest took all the trouble to go through your VIP classes why should he take the risk of changing to another hotel ?”
  57. 57. CRM-7-18 © Guest Relationship Management <ul><li>For step 4 we have again prepared 6 ‘ simple ’ questions for you ... </li></ul><ul><ul><li>“ I don’t know the solution but from my perspective there are some constraints to the final solution “ … every role answers the same question in a different way ! </li></ul></ul><ul><ul><li>discuss with the entire group the constraints from the 7 perspectives </li></ul></ul><ul><ul><li>find the solution to the question with the entire group and formulate it in hypothetical terms </li></ul></ul><ul><ul><li>Check the solution with other staff members / hotel </li></ul></ul>
  58. 58. CRM-7-18 © Guest Relationship Management <ul><li>Reflection assignment 4.1 </li></ul><ul><li>Based on the number of visits in the past (Frequency) define 5 VIP classes; </li></ul><ul><li>Determine which score on Recency (days since last visit) makes a guest jump into a higher or lower VIP class; </li></ul><ul><li>Determine which score on Monetary (average spending per visit) makes a guest jump into a higher or lower VIP class </li></ul><ul><li>Objective </li></ul><ul><li>Create the basic VIP levels </li></ul>
  59. 59. CRM-7-18 © Guest Relationship Management Reflection assignment 4.2 Captain’s table dilemma : which other guest profile criteria determine whether a guest is more important than another? Which guest gets an upgrade in his VIP level because of his profile? Objective To include strategic and marketing segmentation criteria in the VIP ranking system
  60. 60. CRM-7-18 © Guest Relationship Management Reflection assignment 4.3 What about the VIP status of complaining guests or guests with a lower than average guest satisfaction level ? And what about the guest who just show to be more interactive and interested in a relationship? And those who don’t ? Objective Linking the VIP system to the complaint handling or recovery system
  61. 61. CRM-7-18 © Guest Relationship Management Reflection assignment 4.4 How do you see the relationship with each VIP class (tip:create a VIP mood board)? Who does it (see step 3)? how much time should be invested per guest? when should relationship moments take place? Which typical benefits/incentives should be given? Objective Create an outline for the loyalty / benefit program : inform, surprise, reward, activate !
  62. 62. CRM-7-18 © Guest Relationship Management Reflection assignment 4.5 Looking back on the 3 types of program objectives set in step 2 which ones are of particular importance for each VIP class and which targets should be achieved for these objectives in each particular class? Objective De-averaging the general objectives of step 2
  63. 63. CRM-7-18 © Guest Relationship Management Reflection assignment 4.6 Find out for the hotel how many guests will probably be in each VIP class (estimations are enough for now). Determine total time and budget per VIP class and per guest in each class. Is this enough to achieve the objectives and targets set in 4.5 ? Objective Assign time and money to each VIP class
  64. 64. CRM-7-18 © Guest Relationship Management Step 4 Segmenting the guest database GOOD LUCK
  65. 65. CRM-7-18 © Guest Relationship Management Step 5 Guest profiling Briefing
  66. 66. Do your guests like newsletters ? <ul><li>Some do, some don’t </li></ul><ul><li>Maybe your new guests should get a different one than your existing guests... </li></ul>CRM-7-18 © Guest Relationship Management
  67. 67. <ul><li>identification </li></ul><ul><li>client profile </li></ul><ul><li>user profile </li></ul><ul><li>buyer profile </li></ul><ul><li>personal profile </li></ul><ul><ul><li>communication profile [static] </li></ul></ul><ul><li>consumer profile </li></ul><ul><li>events </li></ul><ul><li>relationship profile </li></ul><ul><ul><li>communication profile [dynamic] </li></ul></ul>CRM-7-18 © Guest Relationship Management Guest Profile
  68. 68. The CRM Cycle (Nyland Consulting Group) CRM-7-18 © Guest Relationship Management Through analysis and interaction you learn what customers value, what types of service are important to them, how and when they like to interact, what they want to buy , which profitable customers they can refer. D ifferentiati on of service and communications based on the value customers are expected to deliver C ost-effective customiz ation of products, services, channels and media based on the needs of quantitative customer segments I nteraction occur s through sales , customer service , online and in many other areas. These s hould all have easy access to relevant, actionable customer information and be trained how to use customer information to tailor interactions based on both customer needs and customer value . C ustomer perceptions of value are based on a number of factors including price and both the quality and ease of use of products and services The more we learn about customers, the easier it is to pinpoint those customers that are producing the greatest value for the organization as well as the reason why and the way how . Those are the customers and customer segments that we want to clone in our prospecting and acquisition efforts. Maintain interaction; customers change as they move through life stages; be prepared to modify the service and value proposition
  69. 69. “ while the guest moves thru VIP classes we have a unique opportunity to get to know him better and thus gain an unbridgeable advantage over our competitors ” CRM-7-18 © Guest Relationship Management
  70. 70. <ul><li>When do we want to know what profile info? Who finds it out how? </li></ul><ul><li>how, how often and when it needs to be collected and updated, either by </li></ul><ul><ul><li>direct communication : thru surveys (e-mail or in-room) or personal contact </li></ul></ul><ul><ul><li>indirect collection: thru signaling (user behavior observation) or process analysis (e.g. web tracking, reservation facts and figures, invoice details …) </li></ul></ul><ul><li>who of the customer facing staff is in charge of ( accountable for) this process </li></ul>CRM-7-18 © Guest Relationship Management
  71. 71. Integrating all information on 1 guest or client ?! <ul><li>reservations system </li></ul><ul><li>management information system </li></ul><ul><li>call center system </li></ul><ul><li>campaign management system </li></ul><ul><li>content management system </li></ul><ul><li>yield management system </li></ul><ul><li>banquet sales system </li></ul><ul><li>CRM or sales force automation system </li></ul><ul><li>loyalty card or airmiles system </li></ul><ul><li>P.O.S. system </li></ul><ul><li>concierge system </li></ul><ul><li>front-office </li></ul>CRM-7-18 © Guest Relationship Management
  72. 72. Limits to CRM <ul><li>government </li></ul><ul><ul><li>data registration and processing laws (national, European) ; natural persons only ! </li></ul></ul><ul><ul><li>promoting self-education (international) </li></ul></ul><ul><li>pragmatic approach </li></ul><ul><li>(what interest is there to intrude into someone’s privacy ?) </li></ul><ul><ul><li>permission marketing </li></ul></ul><ul><ul><li>reactions x10 (response) ; buyers x25 (conversion) </li></ul></ul><ul><ul><li>profile marketing through info-mediaries, information brokers, life agents, trust agents, VGAs </li></ul></ul>CRM-7-18 © Guest Relationship Management
  73. 73. <ul><li>force people to put a stamp on each e-mail they send; make communication a scarce commodity </li></ul><ul><li>reduce customer’s choice and increase customer’s purchasing parameters </li></ul><ul><li>be more open rather than communicating more; clearly formulate your business values and strategy (increase distance to competitor) </li></ul><ul><li>apply negative profiling (“what is it you don’t like”) </li></ul>How can over-information be avoided ? How many relations can any guest handle ? <ul><li>apply a just-in-time dialogue policy (no newsletters) </li></ul><ul><li>make communications actionable; take in immediiate feedback on communication </li></ul><ul><li>avoid disclaimers </li></ul><ul><li>contribute to a seamless society </li></ul><ul><li>(system interoperability; no double work) </li></ul>CRM-7-18 © Guest Relationship Management
  74. 74. CRM-7-18 © Guest Relationship Management Step 5 Guest profiling Good luck
  75. 75. CRM-7-18 © Guest Relationship Management Step 6 Relationship content and relationship program Briefing
  76. 76. CRM-7-18 © Guest Relationship Management Step 6 articles
  77. 77. Dialogue, direct marketing or looped campaign management ? Let’s learn from mail order companies … <ul><li>who? </li></ul><ul><li>gets what question/action/offer/invitation/info? </li></ul><ul><li>level of personalization ? </li></ul><ul><li>when? </li></ul><ul><li>why ? </li></ul><ul><li>through which communication channel? </li></ul><ul><li>with what possibilities to react? </li></ul><ul><li>payment/credit faciilities </li></ul><ul><li>with what estimated marginal revenue/impact over time </li></ul><ul><li>at what marginal cost … spread over time? </li></ul><ul><li>involving who in your organization how and how long? </li></ul>CRM-7-18 © Guest Relationship Management
  78. 78. <ul><li>… when selecting guests for particular actions/programs </li></ul><ul><li>always take into consideration </li></ul><ul><ul><li>their VIP status , </li></ul></ul><ul><ul><li>their willingness to communicate , </li></ul></ul><ul><ul><li>the responses to previous communications, </li></ul></ul><ul><ul><li>their current status on satisfaction and complaints </li></ul></ul><ul><li>… testing new programs on guest samples is imperative </li></ul>CRM-7-18 © Guest Relationship Management
  79. 79. Thousand things to tell to your guests (if interested) (content), 1-to-1 or thru club membership <ul><li>benefits, discounts, rewards, incentives, promotions </li></ul><ul><li>services, amenities, packages </li></ul><ul><li>event calender </li></ul><ul><li>word of recognition (free !!!!!!!!!!) </li></ul>CRM-7-18 © Guest Relationship Management
  80. 80. <ul><li>Or send your VIP guests insider news like </li></ul><ul><ul><li>guest testimonials </li></ul></ul><ul><ul><li>remarkable stories that happened in your hotel, </li></ul></ul><ul><ul><li>new staff members or changes in your organisation </li></ul></ul><ul><ul><li>events you organize yourself or in which your hotel participates , possibly with their help(charity?) </li></ul></ul><ul><ul><li>trends in travelling </li></ul></ul><ul><ul><li>insider tips (culinary, travel, tourism, music, interior design, lifestyle...) </li></ul></ul><ul><ul><li>financial or quality performance (compared to benchmarks or competition?) </li></ul></ul>CRM-7-18 © Guest Relationship Management
  81. 81. What do your customers consider as interesting news ? Vicinity Scope or Size Importance Culturally close Familiar context Unambiguous Unexpected character Dramatical value CRM-7-18 © Guest Relationship Management
  82. 82. <ul><li>Does your hotel intend to test… </li></ul><ul><li>no-purpose communication ? </li></ul><ul><li>communicating imperfection ? </li></ul><ul><li>sensitive communication ? </li></ul><ul><li>educational communication ? </li></ul>CRM-7-18 © Guest Relationship Management
  83. 83. producing (mass) customization <ul><ul><li>change product visibly (“ partnership ”) </li></ul></ul><ul><ul><li>change product invisibly (“ transparency ”) </li></ul></ul><ul><ul><li>only change appearance (“ cosmetic surgery ”) </li></ul></ul><ul><ul><li>change product nor appearance (“ adaptive ”, multi-functionality product upon delivery) </li></ul></ul>CRM-7-18 © Guest Relationship Management
  84. 84. <ul><li>service rates vary as function of </li></ul><ul><ul><li>packaging and presentation </li></ul></ul><ul><ul><li>customized service (“premium”), differences in luxury </li></ul></ul><ul><ul><li>way of booking </li></ul></ul><ul><ul><li>way of selling (e.g. dynamic selling : auction / market power : client sets price “take it or leave it” - low switching cost) </li></ul></ul><ul><ul><li>quality of client (life time value, loyalty, RFM) </li></ul></ul><ul><ul><li>availability </li></ul></ul><ul><ul><ul><li>historic demand (booking curve) </li></ul></ul></ul><ul><ul><ul><li>events (exclusivity) </li></ul></ul></ul><ul><ul><ul><li>price elasticity </li></ul></ul></ul>individualized pricing CRM-7-18 © Guest Relationship Management
  85. 85. The customized value proposition “ CRM is about making guests jealous of your best clients ” CRM-7-18 © Guest Relationship Management
  86. 86. Pick your channels / touchpoint <ul><li>reception; housekeeping; FB; business center; concierge </li></ul><ul><li>web-site (login, interactive, cookies, RSS; tracking, web-mining) </li></ul><ul><li>e-/m-commerce (e-campaigns, auto-reply systems) </li></ul><ul><li>mail (folders, promotions, newsletters) </li></ul><ul><li>telephone (call centers, call-back on site, IVR) </li></ul><ul><li>sales management </li></ul><ul><li>advertising (relationship branding : “ this ad is meant for our existing guests ”) </li></ul>CRM-7-18 © Guest Relationship Management
  87. 87. <ul><li>personal meeting 100 euro (relationship accounting !) </li></ul><ul><li>telephone call 10 euro </li></ul><ul><li>mail 2-5 euro </li></ul><ul><li>e-mail 0,05 – 0,10 euro </li></ul>estimated all-inclusive cost per contact CRM-7-18 © Guest Relationship Management
  88. 88. Action i 1 (info, question, personal contact) Action i 2A (info, question, personal contact) Action i 2B (info, question, personal contact) Response QL = A Response QL = B T O + x days T O Time Response Quality Segment i 2 ways of planning the dialogue 1. planned CRM-7-18 © Guest Relationship Management
  89. 89. clients needing to be contacted database with qualified content DAILY MATCH OR 2. pragmatic CRM-7-18 © Guest Relationship Management
  90. 90. Hotel services Guest wishes & needs Zone of profit & comfort Grow satisfaction & loyalty Consolidate & grow sales Strategic Role of the Relationship Officer and the non-core value proposal CRM-7-18 © Guest Relationship Management
  91. 91. <ul><li>formalization </li></ul><ul><li>power </li></ul><ul><li>orientation (task versus social) </li></ul><ul><li>commitment to continue the relationship for structural, calculative, moral or personal reasons ; commitment to re-buy (loyalty) </li></ul>Strategic importance of Content : stimulate relationship dimensions <ul><li>involvement : active or passive (recognition of relationship) </li></ul><ul><li>initiative regarding information, opinion, proposal, agreement </li></ul><ul><li>scope (width & depth of interaction) </li></ul>CRM-7-18 © Guest Relationship Management <ul><li>intimacy (trust, honesty, tolerance, privacy) </li></ul><ul><li>atmosphere (politeness, tension…) </li></ul><ul><li>interaction (co-operation versus competition-third party threat) </li></ul><ul><li>interdependence </li></ul>
  92. 92. CRM-7-18 © Guest Relationship Management Step 6 Relationship content and relationship program Good luck !

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