Conceptual framework of CRM in hotels

Type :

Term papers

Pages :

19 pages

Format :

.doc

Published date :

04/08/2009

Category :

Business & market

Sub category :

Management

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Summary :

Abstract
Origin of customer related management (CRM)
A framework on the customer relationship management
Status of customer relationship management in India
1. The five strategies for practicing relationship marketing
Organising Customer Relationship Management.
Trends
1. Consumer
2. Products
3. Technology
Use of technology in CRM
1. Sales force automation
2. Customer service helpdesk
3. Call centers
4. Systems integration
Personalising customer interaction
1. Customer communities
2. Personalization
Developing customer insight
1. Customer database
The past, present and future of CRM
The hospitality industry
1. The hospitality industry and CRM
How other industries can profit from the CRM experience of the hospitality industry
Conclusion

Abstract

Until recent years, relationship management has been largely ignored by most industries outside the service sector. Classical marketing theory and practice has focused on customer acquisition rather than customer retention. However, due to the intrinsic nature of the service industry, customer relationships are critical to ensure customer loyalty. This is especially true of the hospitality industry, where relationships create more value for the customer than factors like price and product features, and therefore enhances the lifetime value of the customer to the organization. The leading hotel brands have always made the effort to go beyond customer satisfaction and ensure value through relationships rather than transactions, resulting in high levels of customer delight and subsequently, loyalty.

Traditionally, strategies for growth in revenue, branding, positioning and profitability have all been developed with the primary objective of increasing market share through a focus on customer acquisition rather than the consolidation of existing customer relationships. There has also been a belief among most organizations that since their organizations are not in direct contact with the eventual consumer, the customer relationship is not directly relevant to increasing market share; the equity and positioning of the brand will lead to greater market share.

While this approach has its merits, there is a realization today that customer retention is more profitable than customer acquisition.

It is also being increasingly recognized that loyal customers buy more often and more per transaction, pay premiums more willingly and are more likely to recommend the product or service to others.

These findings recognize the philosophy of the service industry, in particular, the hospitality industry, which has traditionally followed the principles of customer relationship management.