Customer Relationship Marketing

Topics: Customer relationship management, Hotel, Hotel chains Pages: 5 (1923 words) Published: July 21, 2012
Delivering Customer Value – Customer Relationship Marketing


In the past few decades Customer relationship was none existence with business organization making no effort to build relationships with its customers. But since then strong competition has forced business to form long lasting relationships with its customers, if it needs to stay in business. The term Customer Relationship Marketing first emerged during the 1990’s. It was made possible due to the advancement in IT and the flow of information. IT allowed business to store and retrieve Customer information so thus it lead to the definition information enabled relationship marketing ( Ryals & Payne, 2001). However CRM does have a wide definition but what is important is that CRM is married to advancements in information technology. According to Swift (2000) he explained that CRM is a strategic approach that is concerned with creating improved shareholder value through the development of appropriate relationships with key customers and customer segments. This wide definition allows, to draw a conclusion that CRM is vital for the business if it wants to make high return on its investments.

Question 2 : Customer Relationship Marketing

Hilton Hotels Corporation is one of the leading hotel groups in the world. There CRM project is based on a platform known as OnQ™. This system enhances customer recognition at check in so it enables Hilton to provide an enhanced service based on real-time access to customer preference. How this system works is that when a customer registers for the first time a record is created in the Guest Profile Manager. Then all the details about the customer, like travel details, length of stay, customer information, preference and so on is then shared with the rest of the hotel family. So that when the customer walks into the hotel for the first time all his service is already customized for his preference based on his previous stays and records. The system further goes on to integrate itself with the website allowing customers to make reservation online but at the same time get access to special promotions based on the customers preference and history. This level of information allows Hilton Hotels to provide a very personal service to the customer. For example when a customer walks into one of Hilton’s embassy suites the hotel knows what drink to serve to the customer, what hotel view the customer prefers, what breakfast he likes to eat, what shaving cream he prefers and so on. The hotel further can take its service to its loyal customers by arranging special service like birthday, anniversary celebrations and so on. By integrating so much customization Hilton is able to make sure that its customers stay loyal for a life time. Travelocity is an online travel agency which specializes in providing holiday and travel plans for its huge customer base. Travelocity uses a system developed by SAS to implement its CRM project. Travelocity’s business model is based on complex networking and connectivity. When a customer shows interest in planning a tour or holiday Travelocity first asks the customer to register in its site. After registration the Travelocity provides numerous information to its customer about travel destinations. After the customer picks a destination Travelocity arranges everything from air ticket, to hotel to taxi service. So all the customer has to do is book and pay Travelocity. In order to better improve its service Travelocity conducts numerous customers’ surveys to find out what its customer wants, like what destinations are popular and then uses this information to expand its portfolio of travel plans. Later it then searches its existing customer base at emails customer about new travel destinations and promotions based on the customer preference and customer’s budgets. Travelocity also further takes its CRM by using it to forecast its future sales based on customer patterns, this allows...
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