Preview

Effective Customer Relationship Management - Customer Loyalty Program

Best Essays
Open Document
Open Document
4623 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Effective Customer Relationship Management - Customer Loyalty Program
The Hong Kong Polytechnic University School of Hotel and Tourism Management HTM3129 Lodging Management Lecturer & Tutor: Dr. Deniz KUCUKUSTA

Group Project Title: Effective Customer Relationship Management—Customer Loyalty Program

Class Group: Thursday, SEM004 16:30—17:30 Group Member: Leung Mei Wun, May (10626919D) Ngan Ho Shan, Iris (10571756D) Poon Wing Lam, Yvonne (10627025D) Wan Wing Tung, Yuki (10542306D) Wu Kit Wing Ophelia (10504166D)

Date of submission: Total no. of words:

2nd December, 2010 3,491 words

1

Content Introduction & Background Objectives Importance of Effective Customer Relationship Management Why Hilton? Criteria of Effective Customer Relationship Program Case Study—Hilton Hotels    About HHonours Points & Rewards MyWay Specials P.13-14 P.15-16 P.17-18 P.19-21 P.3 P.3 P.4 P.5 P.6-7 P.8-12

Analysis & Evaluation Recommendations References Appendix

2

Introduction & Background Customer Relationship Management (CRM) is defined as the process of attracting, remaining and keeping partnership with a specific group of customers so as to provide value to the company and the customers (Parvatiyar, Sheth, 2001). It has become more and more important among enterprises in the past decade. Although hotels were not the early adopters of CRM, they have recognized the significance of having CRM and have been using a customer-focus strategy in order to develop a lasting relationship with their customers (Songini, 2001). CRM can help understand the preferences and encourage customers to keep their relationship with the business in a continuous manner (Parvatiyar, Sheth, 2001). It would then help improve product and service development. (Bannan, 2001) Customer loyalty programme is one of the strategies in CRM (Uncles, Dowling, Hammond, 2003). The most current loyalty programmes started in 1980s which was originated from the frequent fliers programmes developed by American Airlines. Many airlines as well as firms in hospitality


References: Appendix Meeting - Check progress of each part - Discuss & Modify details Meeting - Report Finished - Final check of the whole report Meeting - Presentation Rehearsal Meeting - Presentation Rehearsal Final Amendments of Report after Presentation All All All All 21
Continue Reading
View Writing Issues

You May Also Find These Documents Helpful

  • Better Essays

    Salesforce.com CRM Application
    • 1186 Words
    • 4 Pages

    Salesforce.com CRM Application

    In any business venture, customers form the most important part of business success. Consequently, organizations’ relationship with the customers is crucial for the growth and sustainability of the business. Therefore in this paper to be discuss why it is important for any organization to implement customer relations management (CRM) to generate relations within their own business and with their customers.…

    • 1186 Words
    • 4 Pages
    Better Essays
    Read More
  • Better Essays

    The American Dream: Everyone Can Be Successful through Hard Work
    • 1133 Words
    • 5 Pages

    The American Dream: Everyone Can Be Successful through Hard Work

    Class 2, Department of Hospitality Management, Beijing International Studies University, Chaoyang District, Beijing, P.R, China…

    • 1133 Words
    • 5 Pages
    Better Essays
    Read More
  • Best Essays

    Computerisation Strategy Proposal for the New Tvu/Lsht Training Hotel (2009)
    • 2455 Words
    • 10 Pages

    Computerisation Strategy Proposal for the New Tvu/Lsht Training Hotel (2009)

    15. Wood, R. C. & Brotherton, B. (2008). The SAGE Handbook of Hospitality Management. SAGE Publications Ltd.…

    • 2455 Words
    • 10 Pages
    Best Essays
    Read More
  • Powerful Essays

    How Hilton Hotels Builds a Relationship with Its Customers
    • 1936 Words
    • 8 Pages

    How Hilton Hotels Builds a Relationship with Its Customers

    Hilton Hotels is one of the leading international premium hotels in the world. The company was founded by Conrad Hilton (Hilton Hotels, n.d.). It offers full-services hotels and resorts to customers in many major cities around the world. Through different kinds of customer service programmes, it attempts to develop a good relationship with the targeted market. It also attempts to use the ‘Hilton Honors’ which is customer loyalty programme to retain existing customers (Hilton Hotels, n.d.). The programme does not only enable Hilton Hotels to assess quality premium services from the hotel and its affiliated firms, but also helps them to experience the feeling of privilege.…

    • 1936 Words
    • 8 Pages
    Powerful Essays
    Read More
  • Good Essays

    Q&A on Loew's Hotel Training Program
    • 366 Words
    • 2 Pages

    Q&A on Loew's Hotel Training Program

    Customers are the most important people for organizations, especially for hotels. Organizations are dependent upon their customers. They are the resource of the success of the business. If hotels do not develop customer loyalty and satisfaction, they could lose their customers. If the hotel wants to be successful, not only the company itself, but also their employees should focus on customers. The goal of the hotel is to provide “Four Diamond AND MORE” serve, which means the hotel and employees should center on the customers’ needs.…

    • 366 Words
    • 2 Pages
    Good Essays
    Read More
  • Good Essays

    Hilton Information System Case Study
    • 718 Words
    • 3 Pages

    Hilton Information System Case Study

    Customer Really Matter (CRM) was initiated by Hilton Group in 2002 in order to increase the level of service by integrating customer’s information and preferences then use it to customize and improve the service that the each customer will receive on their next stays.…

    • 718 Words
    • 3 Pages
    Good Essays
    Read More
  • Better Essays

    Legal and Ethical Considerations of Marketing Essay Example
    • 1707 Words
    • 7 Pages

    Legal and Ethical Considerations of Marketing Essay Example

    In the 1960’s American firms relied on marketing because it became the motivating force and the ‘marketing concept era’ dawned, which is the idea that an organization should strive to satisfy the needs of consumers, while also trying to achieve organization’s goals. Many firms such as General Electric have achieved great success by putting extraordinary efforts on consistently collecting information about customer’s needs, sharing this information freely, and using it to build and create customer value. This is the result of the ‘customer relationship era, in which firms seek continuously to satisfy the high expectations of customers which led to customer relationship management (CRM), the process of identifying prospective buyers, listening to the inner thoughts, and developing favorable long-term perceptions of the organization and its offerings, hoping the buyers will choose them in the marketplace.…

    • 1707 Words
    • 7 Pages
    Better Essays
    Read More
  • Powerful Essays

    Harrah's Entertainment - Study
    • 1329 Words
    • 6 Pages

    Harrah's Entertainment - Study

    1) Discuss the factors that drove Harrah’s customer relationship strategy. Harrah’s had decided to make customer loyalty as their core competency since they believed they could become the industry leader based on this skill. The initial focus was to trace the customers who were showing little loyalty to Harrah’s and visiting their competitors, and try converting them to regular customers. For this, Customer Relationship Management (CRM) tools were implemented across all Harrah’s properties. CRM at Harrah’s consisted of two elements – Database Marketing (DBM) and Total Gold program. The Total Gold program motivated customers to consolidate their play, and the data collected through the program allowed Harrah’s to execute direct marketing strategies that increased the efficiency and effectiveness of their marketing dollars. This program was designed to facilitate and encourage the cross-market visitation patterns of Harrah’s customers. The Total program was intended to capture the lost business to its competitors by making it easier for Harrah’s customers to earn and redeem rewards. Harrah’s ability to accurately predict play enabled them to build relationships with customers based on their future worth, rather than on their past behavior. They also adapted to proactive marketing, which was opportunity-based customer segmentation. Harrah’s quantitative approach also made it possible to conduct marketing experiments and track customers over time. This helped Harrah’s discover the right marketing instruments, for the right behavior modification, for the right customer. Harrah’s developed a customer centric approach to direct marketing. There were three key phases to a customer relationship. These phases focused on establishing good relationship with customers, develop new relations with…

    • 1329 Words
    • 6 Pages
    Powerful Essays
    Read More
  • Good Essays

    Mismanagement of Customer Loyalty
    • 6004 Words
    • 25 Pages

    Mismanagement of Customer Loyalty

    THE BEST CUSTOMERS, we're told, are loyal ones. They cost less to serve, they're usually willing to pay more than other customers, and they often act as word-of-mouth marketers for your company. Win loyalty, therefore, and profits will follow as night follows day. Certainly that's what CRM software vendors--and the armies of consultants who help install their systems--are claiming. And it seems that many business executives agree. Corporate expenditures on loyalty initiatives are booming: The top 16 retailers in Europe, for example, collectively spent more than $1 billion in 2000. Indeed, for the last ten years, the gospel of customer loyalty has been repeated so often and so loudly that it seems almost crazy to challenge it.…

    • 6004 Words
    • 25 Pages
    Good Essays
    Read More
  • Better Essays

    Developing an Effective Customer Loyalty Program
    • 12147 Words
    • 49 Pages

    Developing an Effective Customer Loyalty Program

    services firms, book retailers, and supermarkets. In the United Kingdom, loyalty programs are popular among gasoline stations, supermarkets, and bookstores. More…

    • 12147 Words
    • 49 Pages
    Better Essays
    Read More
  • Powerful Essays

    Shangri-La Hotel
    • 1022 Words
    • 5 Pages

    Shangri-La Hotel

    Loyalty programs within the hotel industry are ensuring customer satisfaction to its highest level, a complete understanding of customers wants. By being able to meet these wants, customers are been shown the loyalty and commitment a hotel holds for them.…

    • 1022 Words
    • 5 Pages
    Powerful Essays
    Read More
  • Better Essays

    Customer Relationships Management
    • 2160 Words
    • 9 Pages

    Customer Relationships Management

    Customer relationship management (CRM) is a business philosophy and set of strategies, programs, and systems that focuses on identifying and building loyalty with a retailer’s most valued customers (Levy, Weitz 275). A loyal customer is one who is committed to purchasing merchandise and services from a specific retailer, he or she resists the efforts of competitors, and also has an emotional attachment to a retailer. The four steps involved in the formation of a CRM program are collecting customer data, analyzing customer data, developing a CRM program, and implementing the CRM program. Implementing CRM programs can be extremely beneficial in increasing business and creating/maintaining a competitive edge. They also categorize customers into the four categories of the customer pyramid. The lowest level is lead. These customers actually have a negative lifetime value, which means they cost the retailer money. A successful CRM program can identify these customers so the retailer can strategize ways to get them out. The next level is iron. These customers don’t receive much attention because their spending levels, loyalty, and profitability are not substantial. However, if the retailer can identify them as iron, they can strategize ways to make them into the next highest level, gold. These customers are slightly price conscious, but buy a significant amount of merchandise. The goal of the retailer is to utilize their CRM program to turn them into the highest level of the customer pyramid, platinum, which brings the retailer the highest profit. These customers are the best and most loyal. They’re also the least price-sensitive, and they have the highest lifetime value. If retailers utilize CRM programs to their full potential, they can be extremely beneficial. A few retailers that have exceptional CRM programs are The Ritz-Carlton, Neiman Marcus, and The Buckle.…

    • 2160 Words
    • 9 Pages
    Better Essays
    Read More
  • Good Essays

    Marketing
    • 8527 Words
    • 35 Pages

    Marketing

    1. How can companies deliver customer value, satisfaction, and loyalty? 2. What is the lifetime value of a customer, and why is it important to marketers? 3. How can companies cultivate strong customer relationships? 4. What is the role of database marketing in customer relationship management?…

    • 8527 Words
    • 35 Pages
    Good Essays
    Read More
  • Powerful Essays

    Synopsis on Customer Relationship Management
    • 3814 Words
    • 16 Pages

    Synopsis on Customer Relationship Management

    This is to certify that Mr. C. Venkata Naga Sindoor, Reg. No 11AT1E0052 submitted the synopsis report entitled “A Study on Customer Relationship Management with reference to M.S.A. Motors, Kurnool in fulfillment for the award of Master of Business Administration to G. Pullaiah College of Engineering and Technology is a record of bonafide work carried out by him under my guidance and supervision.…

    • 3814 Words
    • 16 Pages
    Powerful Essays
    Read More
  • Powerful Essays

    Crm Research Paper
    • 4983 Words
    • 20 Pages

    Crm Research Paper

    The Arab Palestinian Shopping Centers, Bravo Supermarkets, is a publicly traded subsidiary of The Arab Palestinian Investment Company (APIC). It was founded in 1999, and it aims at enhancing and improving the shopping experience of the Palestinian consumer. It offers a one stop shop for Palestinian customers across Ramallah and some of the West Bank's cities. The supermarket chains are determined to provide high quality products, services, a wide range of diverse products, and affordable prices in a highly comfortable and hygiene setting. It differentiates itself as being the largest supermarket in Palestine in addition to having several specialized departments in the same place, all offering the consumer a comfortable and a valued experience.…

    • 4983 Words
    • 20 Pages
    Powerful Essays
    Read More

Related Topics