DESINGED BY

Sunil KumarResearch Scholar/ Food Production FacultyInstitute of Hotel and Tourism Management,MAHARSHI DAYANAND UNIVERSITY, ROHTAKHaryana- 124001 INDIA Ph. No. 09996000499email:  skihm86@yahoo.com , balhara86@gmail.com  linkedin:- in.linkedin.com/in/ihmsunilkumarfacebook: www.facebook.com/ihmsunilkumar webpage: chefsunilkumar.tripod.com 

What is CRM

Customer Relationship Management is the establishment, development, maintenance and optimisation of long-term mutually valuable relationships between consumers and organisations.

“Unified View of the Customer”

Unified View of the Customer

CRM

The overall goals are to find, attract, and win new clients,

nurture and retain those the company already has,

entice former clients back into the fold, and reduce the costs of marketing and client

service

Types/variations

• Sales force automation• Marketing• Customer service and support• Appointment / Scheduling Resources• Analytics• Integrated/Collaborative• Social media

Why CRM• Drive staff to an improved service performance level • Reduced marketing costs and lower numbers of complaints• Existing relations become a source of new business contacts• Increased knowledge about the guest is equally important as

the amount of money he spends • Satisfaction surveys don’t really measure satisfaction. They

generally measure the absence of technical or service deficiencies.

• Try to eliminate the middle person or intermediary to• shorten the distribution channel• Average employee turnover often can be higher than the loyal

guest turnover

CRM technology enables• Information about the customer to be stored in

databases• businesses to analyse that data, pull out customer

preferences and make clear their behaviour• easy access to that data across departments that may

be widely geographically dispersed• easy access for customers in terms of online

transactions• speedy personalized communications that enable the

customer to feel valued and special even though in reality they may be just one of hundreds of thousands of customers

Implementation

• Processes• People• Technology

The Hotel Industry - Romancing the Customer

CRM performance areas include • customer service, • frequency/loyalty programs, • customization based on guest profiles, • rewards programs and • community building

Six value-adding or value-recovery strategies to influence loyalty

• financial, saving money on future transactions; • saving time (e.g. by priority check-in); • functional (e.g., check cashing, Web site

available)• experiential (e.g,upgrades or turndown services)• emotional (e.g., customer recognition or more

pleasurable service experience); and • social (e.g., interpersonal link with the hotel).

By Shoemaker and Lewis (1999)

Self-analysis checklist – some questions

• How many customer groups does our institution have and who are they?

• What are the different services we deliver?• How many of our departments have their own systems and work

autonomously? Which departments are they?• Approximately how many different databases exist across our

institution?• Which databases are managed centrally?• Which databases are managed at an individual level?• How do individuals record their communications with clients?• How much resistance to sharing information would we anticipate

within our institution?

Guest Cycle in A hotel

Pre-Arrival

All activities done before the arrival of the guest • Reservations• Room Allotment • Pre-Registration• Room Preparation

Arrival

All activities performed at the time of arrival of the guest also called Check In.

• Welcome & Reception• Registration• Property & room orientation• Baggage delivery

Stay / In-House

All activities performed while the guest is staying in the hotel or is a resident of the hotel. All known as the In-House stage

• Posting charges to bills• Guest Complaint Management

Departure

All activities performed at the time of departure of the guest. All called Check Out

• Settlement of accounts• Future reservations• Fond Farewell

Post –Departure

All activities performed after the guest has left• Guest History Cards• PR & Marketing activities

Exercise

1. Divide into groups and discuss how the information gathered at each stage can be used in the next.

2. Now look at each of these stages, information collected and how departments in a hotel could benefit

Some Ideas/ Best Practices

• Single contact person; best friend in town• Surprise element: do the same or do different?• Last minute and Low price availability• Personal event packages• Colleagues, Family and Network on same conditions• Review last visit in preparation for next visit: create or

avoid suspense• Help (re)design the hotel – myhotel concept• Exclusivity = what others don’t get• Affordability = what other get but at lower cost

What do hotels need to do

• Identify returning guests and need of relationship/ interactivity

• Right staff on right guests• Profile usage and sharing• Extend profile information• Strengthen external partnerships• Better improved planning of guest relationship

moments• Increase of experiences with guest

What do hotels need to do (cont)• Improve internal communication• Improve guest recognition/appreciation• Increase number of guest contacts• Better understanding of business travel

world/habits/etiquette• Provide hotel and chain information• Take over choice from guests• Organize more relationship touchpoints in the hotel• Explain why we need info• Explain why we apply discrimination in pricing

Questions