oberoi hotel

CRM IN HOTEL INDUSTRY

WELCOMGROUP MAURYA SHERATON

Customer Service is now more fashionably called Customer Relation

Management. ITC Maurya Sheraton has been following an unstructured

form of CRM with a narrow focus of serving the customer well and in a

most efficient manner. The concept of Customer Relationship

Management has a broader focus of not only serving the customer but also

creating the customer and retaining him for measurable and substantial

returns. CRM is a vast subject where the concept of one to one marketing

is supported by Database Marketing.

MAURYA SHERATON DEFINES CRM AS

“Customer Relationship Management is a process of managing customer

relations in an organized way”. They aim at managing “each moment of

truth” that is experienced by the customer.

According to Mr Hariharan there are various contact points where the hotel

comes in direct contact with the customer which are known as ‘Touch

points’ in the CRM language. These touch points are considered important

as there is direct interaction with the customer and they provide valuable

input to the hotel. The input provided by the customer has to be captured

in such a way that it becomes information and can be used by various

processes within the hotel. This can be done with the help of technology

and the aim is that whenever there is a customer interface with any of

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those processes they are able to use that information in servicing the guest

in a most efficient manner.

CRM PROCESS AT MAURYA SHERATON HAS BEEN DIVIDED IN TWO

STEPS

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 from

DATA CAPTURE VEHICLES

Maurya Sheraton has identified 5 such vehicles (from marketing point of

view) which are also the touch points for the hotel in the process of

managing its Customer Relationship. These vehicles are:

1. Field selling

2. Loyalty Programmes

3. Distribution Points

4. Web

5. Call Center

1. 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 new

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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.

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2. 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 flee

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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 query

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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 the

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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 customer

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and the respondent which goes a long way in future

correspondence with the center.

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The second step in the CRM process is to integrate the information

which is received through these touch points. From a marketing point of

view it is important to get the desired input back from these touch points in

such a way that all the bits and pieces picked up by different touch points

can be organized and used as valuable information by various other touch

point to offer the right product to the right customer and that too at the right

time. All this is done by creating a data base.

Database marketing is a technology driven tool used to teach out to

identified 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, yet

instead of forgetting a particular group of customers database marketing

reaches out to customers individually. The names addresses and buying

habits of individuals customers are called from databases. Now new

generations of faster, more powerful computers are enabling marketers to

zero in on even smaller niches of the population, ultimately aiming for

the smallest consumer segment of all that is the individual.

Building a Database

Database marketing in the hospitality ind. Began to / building a guest

history of database feel regular clientele. This Dbase curtails basic

information which as name, addressing purpose of times, preferred

method of payment, room type preference, nickname and so forth . Thus

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when a customer checks information such as this is on file and readily

accessible for the guest service agent to register in an efficient and

personalized manner. Prior to this regular guests were repeatedly asked

the same questions over and over again each time they checked into the

hotel.

From seasons and Ritz carton are renowned for their extensive guest

history databases. They include details as a preference for feathered or

non feathered pillows, breakfast menu item preferences, and preference

lines for make-up calls. For frequent travelers training of some one know

and care about your personal preferences, your likes and dislikes, in an

asset. This type of service enhances guest satisfaction and encourages

repeat customer patronage.

For Maurya Field setting, loyally programs reservation systems, web & call

centers, are major source of database development Maurya has 30,000

members in its databases. They regard these management of their

database as an asset because it enables a superior customer

understanding.

Using the Database

Product and service improvement is just one result of tapping into a

database. Developing special promotions and employing direct mail to

promote these campaigns is another major use of database marketing. For

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example, a sales team hand completed a review of the upcoming 26 Jam

Weekend . This review revealed that bookings date were some what

below forecast and that a special promotion may be in order to spent the

business. The sales team then enveloped special promotion packing to

encourage bookings for this weekend. They searched their welcome break

holiday package database and scratched it to identify and segment the

customers who tend to (i) book on long weekends (2) book on a short

term basis and also (3) respond to promotional campaigns. The direct

mailing was used as a principal means to reach out to these customers.

Activities like these are today referred to as detabase marketing. It is

aggressive selling to the potential customers who drove particular needs

and w ants that match or “fit” the needs of the noted. Therefore out of the

Database of 30,000 members only a few but almost some customers were

contacted by direct mailing which resulted in sizeable sale during the

otherwise lean weekend at Mughal Sheraton Agra.

DATABASE MINING

Database mining is the process by which you distill your target customers

groups. Out of the massive data files typically found in hospitality

operations. In other words there are systematic ways to distill through a

database of a multitude of databases to get the information for which one

is reaching. As quoted in the previous example.

Some hotels out source this task to companies that specialize in this field

best do it internally. It enables users to easily integrate co/ property

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management, reservations and point of sale systems, automatically

extracting operating data from legacy databases for use in the marketing

database. The systems analysis tools allow users to profile their most

profitable customers analyze their buying habits, and develop & assess.

The performance of targeted marketing campaigns. The biggest

advantage of database mining is that it help to focus the efforts and

available resources into one direction which is most profitable and outbase

mining helps to eliminate the non-profitable customers and hence reduces

the costs and enhances the profits. The profits enhanced one not only in

monetary terms but also in terms of customer loyalty and long term

retention. Companies in hospitality that are adopting the database

marketing approach to enhance sales are seeing increased customer

satisfaction which further results in increase revenues. From the point of

view of the internal customers a new profession is emerging in the

hospitality Industry to get and keep a customer. The profession is

technology-based, it is sophisticated and is called database marketing.

How does customer relationship management percolates room to the

internal customer.

The first step in CRM to the internal customer is to create awareness

among them towards the concept, advantage and disadvantages of the

function. Then equip them by training them in their own requisite functions

& scope of CRM within that function. At Maurya they are trained to train

more about the guest and this company so that when he talks the guest

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he can strike a conversation that is of some interest to the guest. That may

not be necessarily related to his stay at the hotel but these informal

conversations with the guest can help build an excellent rapport of the

guest which will lead the guest to know the employee by the name. In

future interactions it is possible that the guest may only wish to most of his

work done through that employees. This is also a form of customized and

personalized selling within the hotel Maurya does not have a separate

training for CRM. Any time when they have a special promotional scheme

for a particular property, the marketing team (who has formulated the

promotional scheme) puts together the details of the scheme clearly marks

out what is the customer expecting from the property and also if these are

some special arrangements to be made for it. This team briefs the

General manager of the property about the customer expectation. The

General manager then decides the path of trickling down of that

information, who should know & how much to know. In Maurya Sheraton

they use a phrase to explain this percolation which is “Nice to know and

needs to know” which essentially means that it is nice to know for all

employees of a particular property about the running of the promotional

scheme at their property but not all need to know about every aspect of the

scheme as it may not be relevant to their scope of work but they do need to

know the timer points of the scheme relating to their scope of work.

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THE OBEROI – HISTORY

Customer Relationship Management Function has been prevalent in the

hotel industry since the inception of the concept of boarding and lodging.

The oberoi has enjoyed a superior position regarding its core product

offering and supporting services. It has an excellent brand value which it

consistently reinforced by delivering exceptional services.

The oberoi over the years has acquired an outstanding brand value which

would help sell the hotel solely on its name. Oberoi’s has a very loyal

patronage from its guests, which has ensured a high market share in the

high-end segment of the market, which they cater to. Oberoi’s has thus

been charging a premium for the value that its guests derive from its

services.

Till about four years back The oberoi did not have any competition and

sales and marketing team did not have to sweat it out to acquire and attract

potential clients. Today is a changed scenario. Because of globalization

India has seen the entry of International hotel chains, there has been a lot

a lot of pressure on the sales and marketing team to perform. Oberoi has

seen its market share eroding due to price wars and cost cutting amongst

the five star hotels. The loyal guests of The oberoi have started switching

due to similar international standards of services available at cheaper

rates. The oberoi thus has to work harder to sell its services since the

product has become generic in nature.

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According to the oberoi the terms Customer Relationship Management and

Relationship Marketing are used interchangeably therefore they do not

have a separate CRM department as the outlining functions of the CRM

process 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 the

most prudent way to keep track their changing expectations and

appropriately influencing it. The obeori has ensured the above by the

various ‘end user’ and ‘Booker’ programs such as:

TOP – THE OBEROI PLUS

This is an end user program with an enrollment fee of Rs 575 only. It is

beneficial for guests who use the services of the hotel. Each time a guest

spends he accumulates points which can be redeemed for any services of

the hotel. By enrolling and rewarding customers with the help of this

program the hotel ensures that a greater bonding towards Long term

customer retention. They have also tied up with the airlines for

interchangeable redemption of points.

CONNECTIONS – BOOKERS’ PROGRAM

Bookers are an important link in materializing an actual sale therefore they

need to be kept motivated to push the hotel when the reservations are

made by a corporate account. Each time a booker gives as reservation to

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the hotel he gets credit points for that and which can be redeemed for gifts

or any hotel services.

FOOD FESTIVALS

The Obeori conducts various food festivals at its Restaurants. Regularly

and sends invites to its more profitable Clients.

TIE-UPS

The oberoi invites top clients like CEO, Managing Directors and key

decision makers to social evenings specially arranged to further enhance

the Customer relationship management functions. The most recent on was

‘Johny Walker night’.

QUESTIONNAIRE ANALYSIS

EMPLOYEE SATISFACTION

The interviews with the employees revealed that the importance that they

give to tangible and intangible benefits in terms of compensation for their

services is very high and Oberoi does a good job at keeping them satisfied

in this regard.

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EMPLOYER COMMITMENT

The top management is totally committed towards achieving Satisfaction of

its internal and external customer. However due to excessive hierarchy

there is a greater gap between the top management commitment and

internal customer satisfaction.

EMPOWERMENT

Due to greater levels of hierarchy front line employees feel that they have

little authority to take decisions on their own. Empowerment is am

important feature in internal and external customer satisfaction.

RECRUITMENT

The oberoi has excellent recruitment and induction process. OCLD –

Oberoi Center for Learning and Development is an asprational school post

graduate learning in hotel management across India. Thus Oberoi every

year receive competent personnel from OCLD and sends them through a

rigorous induction and “FAM TRIP” – familiarization trip across the various

Oberoi Properties.

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Management Commitment

For many firms it takes years for the entire organization to begin, to

demonstrate a customer focus. It is difficult for employees to stay

committed to customer focus when the chief executive and the manger

themselves are not dedicated to customer needs.

What kind of message do managers send workers if they Tout ”customer

need recognition” as critical to providing good customer service, yet don’t

even know the names of their employees. On the other hand think of the

tone the mangers could set in an organization by making it a point to

warmly greet all employee by name. Management should set the pace by

demonstrating how to deliver internal and external customer satisfaction.

Internal customer is the employee who receives and uses the output from

another person or area. Treating this relationship with the same respect

and attention given the external customer relationship is the focus of the

internal customer concept.

Customer Expectations

Expectations are what people think is likely to occur in the future.

Customers compare their perceptions of the new experience with previous

experiences, feelings or other information gathered from a variety of

sources.

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Many companies like politicians, are unable to live up to strong claims.

Known as lip-service, or overstating capabilities and delivering less then

promised, these exaggerated claims can undermine the credibility & efforts

of persons and organisations that, in reality, are providing superior

products and services. The perception of superior performance can be

eroded when preceded by exaggerated promises. Over zealous claims not

only disappoint customers but result is big losses for companies whose

programs don’t deliver. Insupportable claims can be more damaging than

claiming 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 should

know how their products, services, promotions, personnel, facilities and

reputation affect customers. They should know what their customers weigh

this information. This process - how expectations are created and formed

in to standards by which an organisations performance is measured - can

be a valuable planning tool for management.

Expectations Model

Company-Controlled + Uncontrollable Customer’s

Expectation Creators Expectation Creators Stand

Product Experience Competitors Ideal

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Short & long term Preferences Predicted

Marketing Strategies Word of mouth Minimum

Continuum of Expectation Creators
First Purchase Repeat Purchase Loyal Customer

Nature and Initial Dependable Long term New Product
presentation Marketing & Quality, service relationship offering and
of service Promotions and pricing marketing upgradations

CONTROLLABLE EXPECTATION CREATORS

Short 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 Include

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• 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 meet

and exceed then

Give Customers What they Don’t Expect

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Meeting expectations is only the minimum requirement for a successful

customer satisfaction strategy. Surpassing expectations is the key to

customer satisfaction. Perceptually raising product and service quality,

however is not the only way to exceed customer expectations. Although the

focus should be on continuos improvement, one way to exceed customer

expectations is through surprise - dazzle customers with something out of

the blue.

Some innovative hotels have gone beyond providing amenities to impress

guests. A marriott Hotel in Miami offers environmentally ‘Green Rooms’

that include special air and water filtration, water conserving faucet, energy

efficient light bulbs and has installed a machine that releases floral and

citrus natural plant abstracts in to the lobby. The desired effect of this

aromatherapy is to reduce stress.

SERVICE QUALITY

Service quality has been interpreted to include five dimensions : RATTER

Reliability : Dependability and Correctness

Assurance : Knowledge & courtesy of employees

Tangibles : Appearance & physical facilities, equipment and personnel

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Empathy : Providing personnel understanding and customer support.

Responsiveness : Providing prompt service

Responsiveness : Providing prompt service.

To promote consistent superior performance, it is important to assign

quality standards to each step of customer service cycle. Quality standards

provide direction and motivation for employees.

Room Service Guest Service Cycle

Quality Dimensions Quality Service Standards

Reliability : Phone answered within 5 rings, 24 hrs a day

Assurance : 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 manner

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Responsiveness : Effort to comply with any special requests

Prompt service.

Room Service Customer Service Cycle

1. 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 Perspective

1.2. 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 Cycle

Customer Perspective

1. Guest calls room service using speed-dailing preset button.

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2. 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 Perspective

1. 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.

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Priority Marketing

Priority Marketing focuses on what’s important to be customer. What is

important to one customer however, may not be as important to another.

Consider the varying demand placed on a hotel : An airline stewardess

may find the 24 hour room-service extremely valuable, a retired couple

may 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 is

important to them. This approach can field very valuable insight about

changing customer preferences.

Identifying groups of customers who have similar preferences or even

similar tastes (such as sharing common perceptions of quality or states),

hotels can target promotions to capitalize on known characteristics and

individualize the presentation.
.
. .

It is important that hotels involve their guests and stay in touch with

customer perceptions of current services.

Customers Feedback Method

Surveys

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• 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 data

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Employee Management - finding the Best Solutions

In many organizations, management treats employees as unvalued and

unintelligent. The employees in turn convey the identical massage to the

customer. Although organizations realise this connection, the lingering

effects of changing owners, obsolete management styles, and outmoded

employee programmes have restricted attempts to increase worker

productivity.

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

• Teamwork

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• Employee Compensation

1) Increasing Employee Loyalty

Employee loyalty is a precious commodity. Beyond the costs of

bringing a new employee on board and up to speed, service business

demand a continuity of service by defend on employees knowing the

customer, knowing the new technology etc. this requires time . Changing

faces that customers and employees have to get need to can be more than

inconvenient.

This principal reason workers leave jobs is that they lack incentive to stay.

Their needs are not being met, they are not recognized sufficiently and

often have little opportunity for a career path.

Firm should realize that there is no way to create a competitive advantage

other than through people. Firms are discovering slowly that highly

motivated and skilled employees are the key to long-term profitability.

Common Problem Goals Best Solutions

High Turnovers Loyalty • Quality

recruitment &

meaningful

orientation

• On going training

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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.

_

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Common Goals Best Solutions

Problems

Inefficient Professional & Training &

knowledge education
Personal

Development Cross Training

Broadbanding.

Recruitment : Review the selection process in your company for its

ability to detect customer oriented candidates.

Ritz Cartton Hotels uses an effective selection process to find “Ladies and

gentlemen”. This is called “Character trait recruiting.”

Any employee who feels welcome and important will make the customer

feel welcome & important.

Commited Employees

Career patting is growing in popularity, not only as an effective recruiting

and development tool, because employees will not stay without long term

opportunities.

EAPs - Such as family life, dependent cases and child care programme.

Marriott changed the name of its programme to ‘work-life to attract a wider

range of employees.

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Motivating Dissatisfied Customers

Job enrichment tries to deal with unsatisfied workers by increasing the

depth of job with more autonomy and responsibility.

“Vertical job loading” - the principle is that as work becomes more

challenging, the employee’s motivation and enthusiasm also increase.

Empowerment

Empowerment is based on truest between superior and subordinate

because 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 will

support me”.

At Ritz Carttor Hotels, employees are empowered “ to more heaven and

earth” to satisfy guests. They may spend up to $ 2000 per guest and be

reimbursed, to accomplish this.

Compensation

Compensation systems should promote the following messages to

employees :

Customers pay our salaries

• We are rewarded for doing a better job

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• We are encourage to Europe our job skills

• Our income is maximize through constant improvement of customer

satisfaction

For many companies, broadbanding is the hotest thing in compensation. In this

approach, companies reduce their number of salary levels and lump their

employees into salary bands. Workers are paid different amounts (within their

band) according to a larger number of measureable accomplishments. With this

type of variable pay, workers can be moved around more and individual skills can

be compensated.

*

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THE CUSTOMER LOYALTY LADDER

Advocate BRAND ADVOCATE

STEP THREE (Recommendations to friends)

Client

STEP TWO REPEAT PURCHASE

Trial Buyer SATISFACTION

COMPLAINT

STEP ONE

TRIAL DISSATISFACTION

SWITCH

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a. Switching Costs b. Perceived Risks C. Lack of

Information

BARRIERS

(to buying your product)

AWARENESS

(of your product)

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FREQUENT CUSTOMER BENEFITS

Customers benefit from their own loyalty. Superior service, improved

efficiency, and better overall value are some of the advantages earned by

customers making repeated purchases. When you are a familiar face at a

restaurant, employees may greet you by name and give you the preferred

table. Contributed patronage has also taught you when to arrive, where to

park, and which items to order or stay away from. A comparable

experience is not readily available to others, especially not to a first-time

customer. The customer benefits of brand loyalty accumulating and, like a

good investment, increase in value over time.

FREQUENT USER PROGRAMMES

In the 1980s, airlines introduced the concept of bonus miles for frequent

fliers. This was followed by programs for frequent sleepers (hotels)

The airlines’ frequent-flier programs have spread to hotel and restaurant

chains. Restaurant chains were attracted by the ability of these programs

to encourage customers to visit other restaurants. Hotel frequent-stay

programs have not produced the intense brand loyalty that the airlines’

programs have, partly because travelers base hotel stays on location or

service rather than freebies.

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CORPORATE LOYALTY PROGRAMMES

Corporate loyalty programs can maintain their professional level by offering

such incentives as secretary awards, executive perks, or Christmas

luncheons for an entire department. Even employees can be tied in to the

program by offering them incentives to increase customer use of the

program.

CUSTOMER RECOGNITION AWARD

As an alternative, companies can use incentives to attract repeat

customers without establishing a frequent buyer program. Offering

recognition rewards is a low-cost, low-risk alternative that avoids a long-

term investment. Hotels created Club which rewards repeat business with

gifts.

DATABASE MARKETING

One of the first steps companies take before they start any major marketing

strategy is to build huge lists of loyal buyers who can be regularly tapped

for launching promotions and market research.

An excellent application of database technology benefiting the customer is

the development of customer history systems. The principle is the same :

building a continuous relationship with each customer maintain customer

profiles to build valuable stores of information that can be accessed to

customize products, services, and marketing efforts.

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For hotels, guest history programs capture a range of data and

preferences. Guest histories remember room-style preferences, rates paid,

amenities, and special requests such as a stationary, high-versus low-floor

rooms, and even meal preferences. These are used to create the best

possible guest experience.

But guest histories go beyond simply knowing who dislikes feather pillows

or who loves California chardonnay. They offer concrete business-building

opportunities for boosting individual patronage, which has greater profit

potential than group business, by targeting repeat customers or selecting

the best candidates for certain promotional efforts. Inter-Continental’s “Six

Continent” guest recognition program tracks which guests spend more, eat

in fine dining establishments instead of the coffee shop, buy suits, and use

concierge, laundry, and valet services. Targeted guests can be invited to

arrive a night earlier or encouraged to stay over for a family-weekend

package. Other customized benefits such as sending out birthday cards,

offering other special amenities to guests or creating a no check-in

procedure (pick up keys at a VIP station) can easily be created from these

programs.

Relationship Marketing

Frequent customer programs and database marketing efforts contribute to

a more comprehensive approach to satisfying customers called relationship

marketing. Relationship marketing depends on the goodwill generated by

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frequent-buying programs as well as on the information provided from

database marketing efforts, goes beyond simple short term awards and

involves all the elements of a firm’s and services to encourage a personal

relationship with each customer.

Relationship marketing is “knowing the customer and using that information

to bond with them.”

Form the initial personal contact and then serve as the foundation for

nurturing this brief encounter into a friendly and accommodation

relationship by focusing on personal guest information. In addition to

knowing the purchase habits of members (room selection, certain amenity

preferences, and so forth), personal information such as spouse’s name

and hobbies are added to a member database (see previous section on

database marketing). The company uses this information to tailor special

events and products to small segments of the membership.

Complaint Handling

Few companies, use or pay attention to complaints. Who wants to hear

what they’re doing wrong, especially if the criticism is well founded. It is

estimated that 90 percent of dissatisfied customers whose problems were

not solved will never do business with the retailers that sold them the

product 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 whey

they’re re pointed out. We’re also aware of weaknesses in our job

performance, problems in our organization and imperfections in its

products and services. But reacting to criticism is difficult. We tend to

respond in a guarded and defensive way, which may avoid squarely

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confronting the real problem. Likewise, companies tend to let themselves

off the hook too easily : “We never could have satisfied that customer.

The astonishing news is that those people who do complain and have their

problem taken care of tend to be more loyal to the company than the

people who were satisfied in the first place.

World-Class companies see complaints as opportunities to improve, to

impress customers, and to turn complaining customers into loyal ones.

Customer Driven Technology

You arrive at the hotel, pop your smart card in a doorway slot to introduce

yourself, then go straight to your room, assigned earlier by computer. To

enter, say your name, and the door automatically opens. You hang up your

coat, punch in channel 162 on the TV, and hold a videoconference with

colleagues. When the meeting ends, you flip to another channel to shop for

a gift, then call home on the videophone to see how the family is faring

while you are on the road.

This futuristic scene has arrived. Each component of this experience is

currently available from at least one of the major U.s. hotel chains.

Improved customer technology may be necessary to deliver a redesigned

work process with the required level of efficiency.

At the Peninsula Hotel in New York, the concierge desk makes use of an

airline ticket printer. Guests who need last-minute plane reservations can

book flights and pick up their tickets right in the hotel.

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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.

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• 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.

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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.com

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Field Project

CUSTOMER

RELATIONSHIP

MANAGEMENT

FUNCTION

in

Hotel Industry

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Submitted to :

Dr. J. D. Singh

Submitted by :

SHIVANI BERRY

SONU GARG

FIELD PROJECT


International Management Institute

New Delhi

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Index

Acknowledgement

• 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 Limitations

Aspects of CRM

Identifying with the Customer

 Management Commitment

 Customer Expectations

 Service Quality

 Customer Service Cycle

 Priority Marketing

 Employee Management

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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 Graphs

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 The Oberoi

Questionnaire Analysis Graphs

• Annexures

Questionnaire

nishant_banerjee@yahoo.com

harnoord@abs.amity.edu

harnoordhaliwal@yahoo.com

FIELD PROJECT

oberoi hotel

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