Ritz-Carlton Case Study

Topics: Customer relationship management, Customer service, Customer Pages: 3 (950 words) Published: January 31, 2009
Ritz-Carlton Case Study

The two different types of (CRM) Customer Relationship Management are operational and analytical CRM. “Operational CRM supports traditional transactional processing for day-to-day front-office operations or systems that deal directly with the customers. Analytical CRM supports back-office operations and strategic analysis and includes all systems that do not deal directly with the customers. According to our text book the primary difference between operational CRM and analytical CRM is the direct interaction between the organization and its customers.” The Ritz-Carlton has a Customer Loyalty Anticipation Satisfaction System (CLASS). “The system stores guest preferences, and alerts the front desk clerks when guest has stayed at another Ritz-Carlton and their likes and dislikes.” The data information for the CLASS system is analytical CRM, but by giving access to all front desk clerks company wide it moves forward to help with operational CRM. By knowing who the customer is when they arrive and knowing what they like and dislike it makes the customer feel important and wanted. Another way they use operational CRM is by allowing every staff member to have $2,000 to resolve a guest’s problem without management approval. Not only does that help your customer, but it also helps the relationship between managers and employees. By putting together all the six steps of customer service that is how the Ritz-Carlton became a world-class customer-service business.

It is hard to pin point which of the six steps of customer service is the most important for a business, but I believe that it all starts with having the right staff “Step number One: Make customer service an elite club.” If the people you are hiring are not willing to give 110%, 24 hours- 7 days a week to your customers then your customers will not have the best experience.

If you were to sell a book on CRM Strategy I would say you should rank the Ritz-Carlton’s six...
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