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HILTON CRM CASE STUDY
- 1. Hilton CRM Case Study AnqiWang Yingyuan Deng Yueqi Meng Dongqi Wang Guoliang Li
- 2. ontents 1 2 3 4 Hilton’s Core Business Evaluatethe Performance of Hilton CRM system Performance Review and Advice for Decision Maker Strengthen Hilton CRM
- 3. Part 1 Hilton’sCore Business
- 4. Start with aStory…
- 5. Hilton Hotels The most internationally recognizablename in the lodging industry
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- 7. 1919 Founded by Conrad Hilton 1964 The Hilton Hotels Corporation Isformed, and becomes the first hotel company to be listed on the NYSE 1954 Conrad Hilton buys Statler Hotel, which at the time was the largest real estate deal ever 1969 The first Double-tree hotel opens in Scottsdale, AZ 1984 First Embassy Suites opens in Kansas City, MO Same year first Hampton Inn opens in Memphis, TN 1990 The Hilton Garden Inn brand makes its debut 2005 Hilton Hotels Corporation reacquires Hilton International 2007 Hilton completes merger with the Blackstone Group’s real estate and corporate private equity funds
- 8. Expansion Strategy Hilton’s CoreBusiness Franchising & Alignment with Real Estate owners is the only feasible vehicle for fast growth in the capital-intensive lodging industry
- 9. 4600 Hotels, resortsand timeshare properties Rooms 100 Countries and territories Hilton’s Core Business One of the largest and fastest growing hospitality companies in the world 75800 50000000Members
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- 11. Hilton’s Core Business LUXURY FULLSERVICE FOCUSED SERVICE
- 12. Hilton’s Core Business Service Massage Hospitality Cooperate withlocal tour agency Airport shuttle bus Business center Fitness center Pet friendly Rental Management Audio Visual Equipment Car Rental
- 13. Hilton’s Core Business SW T O Recognizable brand name Diversified Portfolio Low Market Share Weak Management Competitors: Marriot The individuation of consumer choice Downturn in business travel Digitization and use of technology Innovation in Customer Services Dynamic growth in emerging markets The Customers Really Matter
- 14. Part 2 Evaluate thePerformance of Hilton CRM system
- 15. Introduction of HiltonCustomer Really Matter (CRM) Based on Hilton OnQ Consolidate far-flung customer data Produce comprehensive arrival reports
- 16. 100% Internal Source 7Unique Guest Experience Hilton OnQ Competitive Advantage to Competitors
- 17. Hilton OnQ CRM •Focused on Hilton’s four categories of Best Guests • Fostering a closer relationship with best guests throughout their lifecycle • Recognition, Personalization and Customer analytics
- 18. Segment customers Segment subbrands – offer corresponding needs for each group Segment strategies Segmentation – General Introduction
- 19. • Interaction frequency– best show this customer’s potential value and roughly predict future cooperate possibility • Check-in Times – recognize the most likely loyal customers • Online system engagement – easy to promote to • Customer Value – recognize the most profitable customers Segmentation – Customer segmentation Principles
- 20. Less than 1 Million 1.6Million 23 MillionHilton’s four categories of Best Guests ①② &④ ③ Segmentation – Customers ① The 8 million active members of the Hilton Honors program ② 4+: Individuals who stayed 4+ times per year ③ Fast Rez: Individuals who signed up for an online reservation account ④ Local VIPs
- 21. Three main brands: HomewoodSuites - upscale, yet casual, all- suite residential-style hotel brand. - Target Customers: Traveler who want to live in a homelike environment while traveling Hilton Garden Inn - Highly functional and innovative facilities hotel with warm and attached staffs - Target Customers: smart, productive and practical traveler Hampton Inn - casual, comfortable, personalized brand that has sincere connection with every customer. Highly value customer satisfaction. Segmentation – Sub brands
- 22. Segmentation – Strategy RecognitionPersonalization Customer Analytics Supported by technology infrastructure
- 23. Knowing the customer inperson with all the information includes name, recent attainment. Make customers feel being recognized and being welcomed. Customize the customer’s personal needs. Giving them what they really require but not just service in a general level by collecting information both in advance or inner hotel. Personalization Recognition Supporting strategy. Making sure Hilton can quantify the customer data and make quick reactions. Customer Analytics Segmentation – Strategy
- 24. Delivering CRM Promise Recognizeguests at the reservations center Print the Best Guests arrival report every morning The Satisfaction and Loyalty Tracking (SALT) survey Pre-assign guests to rooms and ensure that the rooms were appropriately prepared according to guest preferences
- 25. Evaluate Hilton CRM 99.4%of Hilton Hotel’s Brand Portfolio creates more profits than competitors by 2007 To sum up, Hilton CRM is successful! Hilton Hotels’ Brand Portfolio (September 2007) Hilton CRM ensures the rapid expansion and customer services delivery
- 26. Limitations 1. Information transferaccuracy Hilton has a large scale in franchise, and the customer information was not integrated and easily available. Since the information system is not totally automatic, there will be a challenge to obtain all needed information accurately.
- 27. 2. Hard tomeasure CRM can be measured but it will be hard to be exact. Unlike quantitative figures, CRM can be measured from both internal and external sides roughly through various channels. Limitations
- 28. Part 3 Performance Reviewand Advice for Decision Maker
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- 30. Occupancy Worldwide Asia/China IHG STARWOODHYATT MARRIOTT HILTON ACCOR 2014 Occupancy Rate of Hotel Industry
- 31. Financial Statistics REV PRFNPR IHG STARWOOD HYATT MARRIOTT HILTON ACCOR 2014 Hotel Industry Financial Statistics
- 32. Net Profit and GrowthRate Net Profit Growth Rate Resources From googuu.net Financial Statistics
- 33. Efficiency Call Center DataNet Revenue per Call Conversion Ratio 2001 $73.09 38% 2002 $77.64 39.1% 2003 $84.39 40.9% 2004 $85.57 41% 2005 $90.30 40.9% 2006 $99.29 41.5% 2007 $102.55 41.4% Source：from the case
- 34. Customer Satisfaction • “Witha score of 78 points out of a possible 100, Hilton took the leadership position…” --ACSI( American Customer Satisfaction Index), 2006.1 As the data shows, Hilton Worldwide led the industry this year with a score of 80, two points ahead of nearest competitor Marriott International (78) “This is the fifth consecutive year Hilton has either held sole ownership or shared the Hotels industry lead, according to ACSI data.“ -- By Forrest Morgeson and A.J. Singh Source：from the case
- 35. Further Investment • CustomerServices Efficiency • Customer Satisfaction • Customer Loyalty • Profit • Competitive Industry
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- 37. 1. Optimize internalmanagement
- 38. 1. Since theinformation system is not totally automatic, there will be a challenge for information transfer accuracy. 2. The program costs a lot in operation: 93 Million Total Cost hardware and infrastructure implementation application development 40 Million 53 Million Solution to strengthen: Optimize the information transfer structure, improve the joint process between automation and manual work, execute it consistently and flawlessly across the network and reduce the management costs as well. Challenges: Recommendation
- 39. 2.Utilize data toto improve Hilton CRM Classic web Browser, Email, links WEB 1.0 Social web Wiki, Blogs, interactive WEB 2.0 Web of Data Any media, any place, any device WEB 3.0
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- 41. Utilize data toimprove cross-channel application for customer service and experience PHYSICAL WEB SOCIAL MEDIA MOBILECALL CENTER
- 42. Social Media U.S hotel brandsincreasingly use social media tools to connect customers
- 43. 1. Attract morenew and potential customers to get involved by social media brand promotion. 2. Keep and increase customer loyalty Collect customers diverse comments to track the performance of current customer service. 3. Improve guest personalized experience by analyzing data. Use data to personalize and provide a list of options within Hilton's capacity. Recommendation BIG DATA
- 44. Recommendation 4. Integrate allthe data resources from different social media channels to help improve individual customer value management. • Integrate customer value more effectively. • Multi-channel provides more options for information acquirement and enlarge customer engagement
- 45. MOBILE AS NECESSITY •A user-friendly mobile site and/or seamlessly integrated mobile brand app are quickly becoming “table stakes” for luxury hotel brands. • 84% of Luxury Hotel brands now offer a mobile- optimized site experience on smartphones (up from 59 percent in 2014). MOBILE APP
- 46. Recommendation 1 • Add “ReadReviews” function to enhance interactions with users and collect customer comments. • Add online videos to optimize customer experience Improve Self-operated app “HHONORS” to satisfy customer needs and improve customer experience. Source: Luxury Hotels 2015 (Digital IQ Index)
- 47. Recommendation 2 Strengthen the cooperationwith online travel mobile apps • Attract more potential customers and create new customers. • Increase more channels to enhance brand influence.
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