CRM in Hotel 9818949579 35 Balance 110417030541 Phpapp01 PDF

CRM IN HOTEL INDUSTRY
WELCOMGROUP MAURYA SHERATON
Customer Service is now more fashionably called Customer Relation

Management. ITC Maurya Sheraton has been following an unstructured
form of CRM with a narrow focus of serving the customer well and in a
most
efficient
manner.
The
concept
of
Customer
Relationship
Management has a broader focus of not only serving the customer but also
creating the customer and retaining him for measurable and substantial
returns. CRM is a vast subject where the concept of one to one marketing
is supported by Database Marketing.
MAURYA SHERATON DEFINES CRM AS

Customer Relationship Management is a process of managing customer
relations in an organized way. They aim at managing each moment of
truth that is experienced by the customer.
According to Mr Hariharan there are various contact points where the hotel
comes in direct contact with the customer which are known as Touch
points in the CRM language. These touch points are considered important
as there is direct interaction with the customer and they provide valuable
input to the hotel. The input provided by the customer has to be captured
in such a way that it becomes information and can be used by various
processes within the hotel. This can be done with the help of technology
and the aim is that whenever there is a customer interface with any of
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those processes they are able to use that information in servicing the guest
in a most efficient manner.
CRM PROCESS AT MAURYA SHERATON HAS BEEN DIVIDED IN TWO

STEPS
1.
Identification of all Customer Relationship management vehicles
2.
Integration
of
these
Customer
Relationship
management
vehicles
Vehicles are the points from where the customers can be managed from
DATA CAPTURE VEHICLES
Maurya Sheraton has identified 5 such vehicles (from marketing point of
view) which are also the touch points for the hotel in the process of
managing its Customer Relationship. These vehicles are:
1.
1.
Field selling
2.
Loyalty Programmes
3.
Distribution Points
4.
Web
5.
Call Center
FIELD SELLING
When a sales group or a marketing executive of the hotel makes a
sales call to a corporate then it is called field selling. Field Selling
includes Prospecting which means searching and seeking for new
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customers.
Current Accounts are one of the best sources to
uncover new business that is within these current accounts, as they

harbor many sources of untapped business potential. They also
provide Leads and referrals. Leads are potential customers with
whom no contact has yet been made and learning of potential
customers from current customers is called referral. Field selling is
considered the most important vehicle for the CRM function as the
initiative is on the part of the hotel to contact the prospective guest.
Since the representative of the hotel meets the customer personally,
he is able to strike a chord instantly and has a fair chance of
representing the hotel. The difference between the customer and
consumer is apparent at this stage as, the person who uses the
hotel is a consumer (guest) and the person who helps him make this
choice is the customer (link), this link, in most cases, is the
administration personnel who is responsible for making reservations.
So with the help of field selling the executive is able to make a direct
contact with the link, the admn person and is able to take the
feedback on a continuous basis and helps to customize the offering.
The main objective of this is to maintain one to one contact with the
customer on a regular basis and also to maintain reasonable
visibility so that whenever there is a requirement the hotel is the
most obvious alternative for the customer to consider.
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2. LOYALTY PROGRAMS
2nd vehicle for CRM identified by Maurya Sheraton is the loyalty
programs. These programs are designed to reward the loyal guests
of the hotel. Every time a guest check in the hotel his every touch
point or interface with the hotel. Every time he spends on a service
provided
by
the
hotel.(use
of
Room,
Restaurant,
laundry,
Telephones etc.). The transaction is recorded at each individual

point and is added to the final bill presented to the guest at the end
of the stay.
There are certain points attached to the number of
rupees spent by the guest. Therefore higher the amount of the bill
the higher will be the number of points attained by the guest. These
points are credited to the account of each guest with the help of
technology. These are called loyalty points. There accounts having
the loyalty points are unique to every guest. Therefore whenever
after the first time that guest check into the hotels the guest history
also affects the loyalty points. The higher the number of points.
The mole loyal is the guest. The points can be redeemed by the
guest for either free stays at the hotel or free gifts as listed by the
hotel or free meals depending upon the number of points
accumulated. The objective of having a loyalty programme is not
only
to make the guest feel rewarded for his stay but also by
providing a choice to the guest to reduce them at the hotel they

essentially Gross self the other services which would be used paid
by the guest in case he redeemed (for example) his points for a flee
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stay he would spend on the
supporting services like laundry
Telephones, restaurants etc and the revenue generated from these

could be earned by the hotel. Therefore instead of numbers of
revenue they actually gain the revenue as well as certain
the
customers for life with the help of the loyalty. The loyalty Program is
called welcome avail which is for the consumer. They have another
loyalty programme for the link. The administration personnel which
is called welcome link motivated to provide more business to the
hotel. Therefore the more the number of bookings the links gives to
the hotel the more number of points are credited to his account
which are again redeemable at the hotel either by way of free stay
or gifts. This is seen as an important way to keep the source of
business motivated towards a long term relationship.
3.
DISTRIBUTION POINTS/ CENTRAL RESERVATION SYSTEMS

A customer can simply make a call at the reservation centre to make
a booking with the hotel. It sounds simple but it could get complex
in case he does not receive the expected or the desired response.
Therefore Maurya Sheraton sees this distribution
point as an
opportunity to establish CRM as the respondents at the reservation

centre could turn a prospective customer into a sale or could let
go off the opportunity to do so by not being point enough or not
giving out there information as desired by the guest.
The
information regarding all guest reservations is managed through

computer software, therefore when a customer make calls to query
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about a reservation all his hotel usage history pops up in the system
which gives a chance to the executive at the reservations to
instantly recognized the customer and address him by his name.
This moment of truth which is experienced by the customer with a
feeling of recognition to the customer who feels well service at the
first touch point itself. The input or instruction received from the
customer at the stage are recorded in the reservation system for
further reference by the hotel operations. Therefore
the wheel
does not get reinvented every time a standard instruction is to be

followed. This leads to removal of an irritant and that ultimately
leads to a satisfied customer willing to return.
4.
WORLD WIDE WEB

The world wide web is part of the internet it is a computerized,
interactive, multimedia system to import and/ or access information
world wide. It issued for both person and business purposes. But
Mauryas focus is on the business side of using the
web.
In
hospitality there are several avenues that one can take up to set up
web site to share information and
could not business with a
potential customer. Since the web gives a convenience and allows

the access to information at any time it is considered as one of the
vehicles for CRM. Though Maurya, recognizes the potential of this
system and is in the process evolving a filling automated system
where the reservations can be made by the customers on time and
also the confirmation is received back on a real time basis.
Presently they have information postal which only allows the
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customer to request a reservation which has to be checked

manually by the hotel reservations and then only the confirmations
are given. This is a touch point of customer relationship because a
speedy and accurate response could win you a customer. And
since it is on an individual basis.
It is
more personalized and
customized because the customer puts in his
preferences when
requesting a booking. Therefore once it is entered in to the hotels

data base the customer does not have to repeat his preference as
they are automatically suggested by the reservation form on the net.
5.
CALL CENTRE
Maurya has a Call center dedicated to servicing the loyalty
programme members. Here the customers can call in and find out
about any information related to their membership. Whether query
relates to accumulation or redemption of points it can be accessed
through these centre. This facility has been out sourced by Maurya
and is out by the premises of the hotel. This has been done to
service the quest in a most personalized and efficient manner. Call
centers can now even be accessed in e-mail. As it is the most cost
effective and time effective way of accessing information.
Call
centers are seen as CRM touch point because they usually provide
solution to a problem that is being faced by a customer. Therefore
the intangibles of listening, understanding and providing a solution to
a problem at the right time adds to the process of retaining the
customer There is a rapport which is built between the customer
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and
the
respondent which goes a long way in future
correspondence with the center.
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The
second step in the CRM process is to integrate the information
which is received through these touch points. From a marketing point of

view it is important to get the desired input back from these touch points in
such a way that all the bits and pieces picked up by different touch points
can be organized and used as valuable information by various other touch
point to offer the right product to the right customer and that too at the right
time. All this is done by creating a data base.
Database marketing
is a technology driven tool used to teach out to
identified customers in the market place. It is precision making, a one- toone sales approach to in individual customers and clients.
Database Marketing applies the concept of market segmentation, yet

instead of forgetting a particular group of customers database marketing
reaches out to customers individually. The names addresses and buying
habits of individuals customers are called from databases.
Now new
generations of faster, more powerful computers are enabling marketers to

zero in on even smaller niches
of the population, ultimately aiming for
the smallest consumer segment of all that is the individual.
Building a Database
Database marketing in the hospitality ind. Began to / building a guest
history of database feel regular
clientele.
This Dbase curtails basic
information which as name, addressing purpose of times, preferred

method of payment, room type preference, nickname and so forth . Thus
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when a customer checks information such as this is on file and readily

accessible
for the guest service agent to register in an efficient and
personalized manner. Prior to this regular guests were repeatedly asked

the same questions over and over again each time they checked into the
hotel.
From seasons and Ritz carton are renowned for their extensive guest
history databases. They include details as a preference for feathered or
non feathered pillows, breakfast menu item preferences, and preference
lines for make-up calls. For frequent travelers training of some one know
and care about your personal preferences, your likes and dislikes, in an
asset. This type of service enhances guest satisfaction and encourages
repeat customer patronage.
For Maurya Field setting, loyally programs reservation systems, web & call
centers, are major source of database development Maurya has 30,000
members in its databases.
They regard these management of their
database as an asset because it enables a superior customer

understanding.
Using the Database
Product and service improvement is just one result of tapping into a

database.
Developing special promotions and employing direct mail to
promote these campaigns is another major use of database marketing. For

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example, a sales team hand completed a review of the upcoming 26 Jam

Weekend . This review revealed
that bookings date were some what
below forecast and that a special promotion may be in order to spent the
business. The sales team then enveloped special promotion packing to
encourage bookings for this weekend. They searched their welcome break
holiday package database and scratched it to identify and segment the
customers who tend to (i)
book on long weekends (2) book on a short
term basis and also (3) respond to promotional campaigns. The direct
mailing was used as a principal means to reach out to these customers.
Activities like these are today referred to as detabase marketing.
It is
aggressive selling to the potential customers who drove particular needs

and w ants that match or fit the needs of the noted. Therefore out of the
Database of 30,000 members only a few but almost some customers were
contacted by direct mailing which resulted in sizeable sale during
the
otherwise lean weekend at Mughal Sheraton Agra.
DATABASE MINING
Database mining is the process by which you distill your target customers
groups.
Out of the massive data files typically found in
hospitality
operations. In other words there are systematic ways to distill through a

database of a multitude of databases to get the information for which one
is reaching. As quoted in the previous example.
Some hotels out source this task to companies that specialize in this field
best do it internally. It enables users to easily integrate co/ property
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management, reservations and point of sale systems, automatically

extracting operating data from legacy databases for use in the marketing
database. The systems analysis tools allow users to profile their most
profitable customers analyze their buying habits, and develop & assess.
The performance of targeted marketing campaigns.
advantage
The biggest
of database mining is that it help to focus the efforts and
available resources into one direction which is most profitable and outbase
mining helps to eliminate the non-profitable customers and hence reduces
the costs and enhances the profits. The profits enhanced one not only in
monetary terms but also in terms of customer loyalty and long term
retention.
Companies in hospitality that are adopting the database
marketing approach to enhance sales
are
seeing increased customer
satisfaction which further results in increase revenues. From the point of

view of the internal customers a new profession is emerging in the
hospitality Industry to get and keep a customer.
The profession
is
technology-based, it is sophisticated and is called database marketing.
How does customer relationship management percolates room to the

internal customer.
The first step in CRM to the internal customer is to create awareness

among them towards the concept, advantage and disadvantages of the
function. Then equip them by training them in their own requisite functions
& scope of CRM within that function. At Maurya they are trained to train
more about the guest and this company so that when he talks the guest
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he can strike a conversation that is of some interest to the guest. That may
not be necessarily
related to his stay at the
hotel but these informal
conversations with the guest can help build an excellent rapport of the
guest which will lead the guest to know the employee by the name.
In
future interactions it is possible that the guest may only wish to most of his
work done through that employees. This is also a form of customized and
personalized selling
within the hotel Maurya does not have a separate
training for CRM. Any time when they have a special promotional scheme
for a particular property, the marketing team (who has formulated the
promotional scheme) puts together the details of the scheme clearly marks
out what is the customer expecting from the property and also if these are
some special arrangements to be made for
it.
This team briefs the
General manager of the property about the customer expectation. The

General manager then decides the path of trickling down of that
information, who should know & how much to know. In Maurya Sheraton
they use a phrase to explain this percolation which is Nice to know and
needs to know which essentially means that it is nice to know for all
employees of a particular property about the running of the promotional
scheme at their property but not all need to know about every aspect of the
scheme as it may not be relevant to their scope of work but they do need to
know the timer points of the scheme relating to their scope of work.
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THE OBEROI HISTORY

Customer Relationship Management Function has been prevalent in the
hotel industry since the inception of the concept of boarding and lodging.
The oberoi has enjoyed a superior position regarding its core product
offering and supporting services. It has an excellent brand value which it
consistently reinforced by delivering exceptional services.
The oberoi over the years has acquired an outstanding brand value which
would help sell the hotel solely on its name. Oberois has a very loyal
patronage from its guests, which has ensured a high market share in the
high-end segment of the market, which they cater to. Oberois has thus
been charging a premium for the value that its guests derive from its
services.
Till about four years back The oberoi did not have any competition and
sales and marketing team did not have to sweat it out to acquire and attract
potential clients. Today is a changed scenario. Because of globalization
India has seen the entry of International hotel chains, there has been a lot
a lot of pressure on the sales and marketing team to perform. Oberoi has
seen its market share eroding due to price wars and cost cutting amongst
the five star hotels. The loyal guests of The oberoi have started switching
due to similar international standards of services available at cheaper
rates. The oberoi thus has to work harder to sell its services since the
product has become generic in nature.
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According to the oberoi the terms Customer Relationship Management and

Relationship Marketing are used interchangeably therefore they do not
have a separate CRM department as the outlining functions of the CRM
process are integrated in the Sales and Marketing operation.
They use a variety of after sales tactics for customer bonding and loyalty.
Co-operative and collaborative relationships with customers seem to be the
most prudent way to keep track their changing expectations and
appropriately influencing it.
The obeori has ensured the above by the
various end user and Booker programs such as:
TOP THE OBEROI PLUS

This is an end user program with an enrollment fee of Rs 575 only. It is
beneficial for guests who use the services of the hotel. Each time a guest
spends he accumulates points which can be redeemed for any services of
the hotel.
By enrolling and rewarding customers with the help of this
program the hotel ensures that a greater bonding towards Long term
customer retention.
They have also tied up with the airlines for
interchangeable redemption of points.
CONNECTIONS BOOKERS PROGRAM

Bookers are an important link in materializing an actual sale therefore they
need to be kept motivated to push the hotel when the reservations are
made by a corporate account. Each time a booker gives as reservation to
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the hotel he gets credit points for that and which can be redeemed for gifts
or any hotel services.
FOOD FESTIVALS
The Obeori conducts various food festivals at its Restaurants. Regularly
and sends invites to its more profitable Clients.
TIE-UPS
The oberoi invites top clients like CEO, Managing Directors and key
decision makers to social evenings specially arranged to further enhance
the Customer relationship management functions. The most recent on was
Johny Walker night.
QUESTIONNAIRE ANALYSIS
EMPLOYEE SATISFACTION
The interviews with the employees revealed that the importance that they
give to tangible and intangible benefits in terms of compensation for their
services is very high and Oberoi does a good job at keeping them satisfied
in this regard.
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EMPLOYER COMMITMENT
The top management is totally committed towards achieving Satisfaction of
its internal and external customer. However due to excessive hierarchy
there is a greater gap between the top management commitment and
internal customer satisfaction.
EMPOWERMENT
Due to greater levels of hierarchy front line employees feel that they have
little authority to take decisions on their own.
Empowerment is am
important feature in internal and external customer satisfaction.
RECRUITMENT
The oberoi has excellent recruitment and induction process.
OCLD
Oberoi Center for Learning and Development is an asprational school post

graduate learning in hotel management across India. Thus Oberoi every
year receive competent personnel from OCLD and sends them through a
rigorous induction and FAM TRIP familiarization trip across the various
Oberoi Properties.
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Management Commitment
For many firms it takes years for the entire organization to begin, to
demonstrate a customer focus.
It is difficult for employees to stay
committed to customer focus when the chief executive and the manger
themselves are not dedicated to customer needs.
What kind of message do managers send workers if they Tout customer
need recognition as critical to providing good customer service, yet dont
even know the names of their employees. On the other hand think of the
tone the mangers could set in an organization by making it a point to
warmly greet all employee by name. Management should set the pace by
demonstrating how to deliver internal and external customer satisfaction.
Internal customer is the employee who receives and uses the output from
another person or area. Treating this relationship with the same respect
and attention given the external customer relationship is the focus of the
internal customer concept.
Customer Expectations
Expectations are what people think is likely to occur in the future.

Customers compare their perceptions of the new experience with previous
experiences, feelings or other information gathered from a variety of
sources.
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Many companies like politicians, are unable to live up to strong claims.

Known as lip-service, or overstating capabilities and delivering less then
promised, these exaggerated claims can undermine the credibility & efforts
of persons and organisations that, in reality, are providing superior
products and services. The perception of superior performance can be
eroded when preceded by exaggerated promises. Over zealous claims not
only disappoint customers but result is big losses for companies whose
programs dont deliver. Insupportable claims can be more damaging than
claiming nothing at all. Even nonverbal communication, such as,
advertising designs, signs, logos, or the appearance of public entrances,
can create very specific expectations for a hotels services.
Companies are responsible for the expectations they create they should
know how their products, services, promotions, personnel, facilities and
reputation affect customers. They should know what their customers weigh
this information. This process - how expectations are created and formed
in to standards by which an organisations performance is measured - can
be a valuable planning tool for management.
Expectations Model
Company-Controlled +
Uncontrollable
Customers
Expectation Creators
Expectation Creators
Stand
Product Experience
Competitors
Ideal
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Short & long term
Preferences
Predicted
Marketing Strategies
Word of mouth
Minimum
Continuum of Expectation Creators

First Purchase
Nature and
presentation
of service
Initial
Marketing &
Promotions
Repeat Purchase
Dependable
Quality, service
and pricing
Loyal Customer
Long term
relationship
marketing
CONTROLLABLE EXPECTATION CREATORS

Short Term Expectation Creator Include :
Nature and Presentation of services.
Advertising and promotions.
Image, decor, ambiance and status.
First impressions of employees and other customers.
Instore merchandising.
Long Term Expectation Creators Include

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New Product
offering and
upgradations
Consistent delivery and quality of products and services.
Innovation is products and services (changing menu, decor)
Marketing efforts (advertising, promotions)
Pricing Policy Variations (value over tine)
Uncontrollable Expectation Creators
eg : Competitors advertising and pricing practices can effect how

customers see your services.
Customers experience with competitor.
Word of mouth information.
A study of hotel guests found that repeat customers (guests who had
visited the hotel atleast once before) were less satisfied than 1st tine
customers. Explanation may be that they tend to have heightened
expectations of familiar products or services.
Customer expectations will is crease - So should your ability to meet

and exceed then
Give Customers What they Dont Expect
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Meeting expectations is only the minimum requirement for a successful

customer satisfaction strategy. Surpassing expectations is the key to
customer satisfaction. Perceptually raising product and service quality,
however is not the only way to exceed customer expectations. Although the
focus should be on continuos improvement, one way to exceed customer
expectations is through surprise - dazzle customers with something out of
the blue.
Some innovative hotels have gone beyond providing amenities to impress

guests. A marriott Hotel in Miami offers environmentally Green Rooms
that include special air and water filtration, water conserving faucet, energy
efficient light bulbs and has installed a machine that releases floral and
citrus natural plant abstracts in to the lobby. The desired effect of this
aromatherapy is to reduce stress.
SERVICE QUALITY
Service quality has been interpreted to include five dimensions : RATTER
Reliability : Dependability and Correctness
Assurance : Knowledge & courtesy of employees
Tangibles : Appearance & physical facilities, equipment and personnel
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Empathy : Providing personnel understanding and customer support.
Responsiveness : Providing prompt service
Responsiveness : Providing prompt service.
To promote consistent superior performance, it is important to assign

quality standards to each step of customer service cycle. Quality standards
provide direction and motivation for employees.
Room Service Guest Service Cycle
Quality Dimensions
Quality Service Standards
Reliability
Phone answered within 5 rings, 24 hrs a day
Assurance
Phone operator as through Knowledge of

menu and prices.
Tangibles
Full description of items and presentation

specific delivery tine stated.
Empathy
Customer
name
used.
Prescribed
guest
treatment procedure carried out with sincerely.

Order taken in courteous manner
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Responsiveness
Effort to comply with any special requests

Prompt service.
Room Service Customer Service Cycle

1.
Guest calls room service.
2.
Places order.
3.
Answers door; talks with server; signs bill.
4.
Consumes food and beverage.
5.
Sets tray outside door for pickup.
6.
Reviews room service charges at check-out.
Hotel Perspective
1.2.
Switchboard staff trained for order taking.
3.
Staff trained on the job in service techniques; uniforms required.
4.
Kitchen staff instructed on consistent preparation of all menu items.
5.
Housekeeping coordinated with room service staff for timely pickup or

trays.
6.
Charges posted on guests hotel bill.
Redesigned Room Service Customer Service Cycle
Customer Perspective
1.
Guest calls room service using speed-dailing preset button.
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2.
Places order.
3.
Answers door; talks with server; signs bill.
4.
Consumers food and beverage.
5.
Sets tray outside door for pickup.
6.
Reviews room service charges at checkout.
Hotel Perspective
1.
Phone rings in Kitchen.
2.
Call answered by staff trained for room service order taking. Kitchen
instructed on consistent preparation of all menu items. New
standards ensure adequate purchase and preparation of items to
prevent stock-out.
3.
Staff formally trained in room service delivery techniques; superior

uniform presentation, and upkeep, and quick delivery is required.
4.
All food delivered at proper temperatures, ensured by proper

equipment.
5.
Room service staff notes room number and delivery time to ensure
prompt tray pickup (timing of hallway sweep).
6.
Charges are posted to guests hotel bill, which is immediately

accessible through guests TV.
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Priority Marketing
Priority Marketing focuses on whats important to be customer. What is
important to one customer however, may not be as important to another.
Consider the varying demand placed on a hotel : An airline stewardess

may find the 24 hour room-service extremely valuable, a retired couple
may need dietary menu options, a tour wholesaler may favor low prices,
. a young female executive considers a security a priority.
and
. .
Hotels should break down their services and ask customers what is
important to them. This approach can field very valuable insight about
changing customer preferences.
Identifying groups of customers who have similar preferences or even

similar tastes (such as sharing common perceptions of quality or states),
hotels can target promotions to capitalize on known characteristics and
individualize
the presentation.
.
. .
It is important that hotels involve their guests and stay in touch with
customer perceptions of current services.
Customers Feedback Method
Surveys
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Monthly guest surveys
Monthly club surveys (of frequent visitors)
room comment cards.
Toll free guest assistance centre (GAC)
Mail, Phone, in-person, computer questionnaire.
Other Approaches
Suggestion boxes
Employee feedback
Management observation and interaction with customers
Mistery customers
Sales data
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Employee Management - finding the Best Solutions
In many organizations, management treats employees as unvalued and

unintelligent. The employees in turn convey the identical massage to the
customer. Although organizations realise this connection, the lingering
effects of changing owners, obsolete management styles, and outmoded
employee programmes have restricted attempts to increase worker
productivity.
The best solutions to increase / employee productivity are
Increasing employee loyalty
Improving productivity
Redesigning recruitment
Committed employees (Employee Assistance Programmes EAP)
Motivation
Empowerment
Training & Development
Teamwork
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Employee Compensation
1)
Increasing Employee Loyalty
Employee loyalty
is a precious commodity. Beyond the costs of
bringing a new employee on board and up to speed, service business

demand a continuity of service by defend on employees knowing the
customer, knowing the new technology etc. this requires time . Changing
faces that customers and employees have to get need to can be more than
inconvenient.
This principal reason workers leave jobs is that they lack incentive to stay.
Their needs are not being met, they are not recognized sufficiently and
often have little opportunity for a career path.
Firm should realize that there is no way to create a competitive advantage

other than through people. Firms are discovering slowly that highly
motivated and skilled employees are the key to long-term profitability.
Common
Problem
Goals
Best Solutions
High
Turnovers
Loyalty
Quality
recruitment
&
meaningful
orientation
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On going training
and
development.
Realistic Career
opportunities
(career patting)
Work
life
programmes.
Long
term
incentives
&
reward systems.
Low Productivity
Quality
Employee
Involvement Teams
TQM programmes.
Motivation,
empowerment,
through
enfranchisement,
and
pay
performance.
_
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for
Common
Goals
Best Solutions
Professional &
Training
Problems
Inefficient
knowledge
education
Personal
Development
Cross Training
Broadbanding.
Recruitment :
Review the selection process in your company for its
ability to detect customer oriented candidates.
Ritz Cartton Hotels uses an effective selection process to find Ladies and
gentlemen. This is called Character trait recruiting.
Any employee who feels welcome and important will make the customer
feel welcome & important.
Commited Employees
Career patting is growing in popularity, not only as an effective recruiting

and development tool, because employees will not stay without long term
opportunities.
EAPs - Such as family life, dependent cases and child care programme.
Marriott changed the name of its programme to work-life to attract a wider

range of employees.
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&
Motivating Dissatisfied Customers
Job enrichment tries to deal with unsatisfied workers by increasing the

depth of job with more autonomy and responsibility.
Vertical job loading - the principle is that as work becomes more

challenging, the employees motivation and enthusiasm also increase.
Empowerment
Empowerment is based on truest between superior and subordinate

because it gives additional power and authority to employees.
At Hyatt Regency, Chicago, every employee carries a card that says

Empowerment : / am free to take care of the guest, and management will
support me.
At Ritz Carttor Hotels, employees are empowered to more heaven and

earth to satisfy guests. They may spend up to $ 2000 per guest and be
reimbursed, to accomplish this.
Compensation
Compensation systems should promote the following messages to
employees :
Customers pay our salaries
We are rewarded for doing a better job
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We are encourage to Europe our job skills
Our income is maximize through constant improvement of customer

satisfaction
For many companies, broadbanding is the hotest thing in compensation. In this

approach, companies reduce their number of salary levels and lump their
employees into salary bands. Workers are paid different amounts (within their
band) according to a larger number of measureable accomplishments. With this
type of variable pay, workers can be moved around more and individual skills can
be compensated.
FIELD PROJECT
THE CUSTOMER LOYALTY LADDER
Advocate
BRAND ADVOCATE
STEP THREE
(Recommendations to friends)
Client
STEP TWO
Trial Buyer
REPEAT PURCHASE
SATISFACTION
COMPLAINT
STEP ONE
TRIAL
SWITCH
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DISSATISFACTION
a. Switching Costs
b. Perceived Risks
C. Lack of
Information
BARRIERS
(to buying your product)
AWARENESS
(of your product)
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FREQUENT CUSTOMER BENEFITS
Customers benefit from their own loyalty.
Superior service, improved
efficiency, and better overall value are some of the advantages earned by
customers making repeated purchases. When you are a familiar face at a
restaurant, employees may greet you by name and give you the preferred
table. Contributed patronage has also taught you when to arrive, where to
park, and which items to order or stay away from.
A comparable
experience is not readily available to others, especially not to a first-time

customer. The customer benefits of brand loyalty accumulating and, like a
good investment, increase in value over time.
FREQUENT USER PROGRAMMES

In the 1980s, airlines introduced the concept of bonus miles for frequent
fliers. This was followed by programs for frequent sleepers (hotels)
The airlines frequent-flier programs have spread to hotel and restaurant

chains. Restaurant chains were attracted by the ability of these programs
to encourage customers to visit other restaurants. Hotel
frequent-stay
programs have not produced the intense brand loyalty that the airlines
programs have, partly because travelers base hotel stays on location or
service rather than freebies.
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CORPORATE LOYALTY PROGRAMMES

Corporate loyalty programs can maintain their professional level by offering
such incentives as secretary awards, executive perks, or Christmas
luncheons for an entire department. Even employees can be tied in to the
program by offering them incentives to increase customer use of the
program.
CUSTOMER RECOGNITION AWARD
As an alternative, companies can use incentives to attract repeat

customers without establishing a frequent buyer program.
Offering
recognition rewards is a low-cost, low-risk alternative that avoids a longterm investment. Hotels created Club which rewards repeat business with
gifts.
DATABASE MARKETING
One of the first steps companies take before they start any major marketing
strategy is to build huge lists of loyal buyers who can be regularly tapped
for launching promotions and market research.
An excellent application of database technology benefiting the customer is

the development of customer history systems. The principle is the same :
building a continuous relationship with each customer maintain customer
profiles to build valuable stores of information that can be accessed to
customize products, services, and marketing efforts.
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For hotels, guest history programs capture a range of data and

preferences. Guest histories remember room-style preferences, rates paid,
amenities, and special requests such as a stationary, high-versus low-floor
rooms, and even meal preferences. These are used to create the best
possible guest experience.
But guest histories go beyond simply knowing who dislikes feather pillows
or who loves California chardonnay. They offer concrete business-building
opportunities for boosting individual patronage, which has greater profit
potential than group business, by targeting repeat customers or selecting
the best candidates for certain promotional efforts. Inter-Continentals Six
Continent guest recognition program tracks which guests spend more, eat
in fine dining establishments instead of the coffee shop, buy suits, and use
concierge, laundry, and valet services. Targeted guests can be invited to
arrive a night earlier or encouraged to stay over for a family-weekend
package. Other customized benefits such as sending out birthday cards,
offering other special amenities to guests or creating a no check-in
procedure (pick up keys at a VIP station) can easily be created from these
programs.
Relationship Marketing
Frequent customer programs and database marketing efforts contribute to
a more comprehensive approach to satisfying customers called relationship
marketing. Relationship marketing depends on the goodwill generated by
FIELD PROJECT
frequent-buying programs as well as on the information provided from

database marketing efforts, goes beyond simple short term awards and
involves all the elements of a firms and services to encourage a personal
relationship with each customer.
Relationship marketing is knowing the customer and using that information
to bond with them.
Form the initial personal contact and then serve as the foundation for
nurturing this brief encounter into a friendly and accommodation
relationship by focusing on personal guest information. In addition to
knowing the purchase habits of members (room selection, certain amenity
preferences, and so forth), personal information such as spouses name
and hobbies are added to a member database (see previous section on
database marketing). The company uses this information to tailor special
events and products to small segments of the membership.
Complaint Handling
Few companies, use or pay attention to complaints. Who wants to hear
what theyre doing wrong, especially if the criticism is well founded. It is
estimated that 90 percent of dissatisfied customers whose problems were
not solved will never do business with the retailers that sold them the
product nor will they again buy the product that caused the problem.
On a personal level me all know what our faults are but get defensive whey
theyre re pointed out. Were also aware of weaknesses in our job
performance, problems in our organization and imperfections in its
products and services. But reacting to criticism is difficult. We tend to
respond in a guarded and defensive way, which may avoid squarely
FIELD PROJECT
confronting the real problem. Likewise, companies tend to let themselves

off the hook too easily : We never could have satisfied that customer.
The astonishing news is that those people who do complain and have their
problem taken care of tend to be more loyal to the company than the
people who were satisfied in the first place.
World-Class companies see complaints as opportunities to improve, to
impress customers, and to turn complaining customers into loyal ones.
Customer Driven Technology
You arrive at the hotel, pop your smart card in a doorway slot to introduce
yourself, then go straight to your room, assigned earlier by computer. To
enter, say your name, and the door automatically opens. You hang up your
coat, punch in channel 162 on the TV, and hold a videoconference with
colleagues. When the meeting ends, you flip to another channel to shop for
a gift, then call home on the videophone to see how the family is faring
while you are on the road.
This futuristic scene has arrived. Each component of this experience is
currently available from at least one of the major U.s. hotel chains.
Improved customer technology may be necessary to deliver a redesigned
work process with the required level of efficiency.
At the Peninsula Hotel in New York, the concierge desk makes use of an
airline ticket printer. Guests who need last-minute plane reservations can
book flights and pick up their tickets right in the hotel.
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SUMMARY
Using customer, employee, and competitor information, remove barriers

to satisfaction by redesigning existing processes.
Employees treat customers similar to the way they, as employees, are

treated by management.
Selecting the right employee program can add considerable strength to

the design and delivery of your customer processes.
Creating a passionate and motivated workforce starts with a vision for

the organisation.
Visions should be simple, communicated at every
opportunity, and personally conveyed by top management. Create a

human resources vision statement embodying the ideal spirit of your
organisation.
Just as products and services may be tailored to individual customer

addressed through customized programs and strategies.
Eliminate unnecessary levels of management, create worker teams,

and give production and quality responsibilities to employees.
Employee involvement activities are supported by establishing longterm goals and clear objectives and having one person responsible for
advancing the program.
FIELD PROJECT
Measure employee and supplier performance by their contribution to

customer satisfaction. Pay them according to how effectively they
achieve this goal.
The goal of a performance appraisal should be to improve future

performance. This includes talking about compensation.
The goal of a development or career review should be to assess the

ability and professional growth of an employee. This does not include
talking about compensation.
Encourage employees to tackle social issues. Consider offering them a

social service leave. Benefits include enhanced community relations,
better service to a wider clientele, and improved employee attitudes.
FIELD PROJECT
BIBLIOGRAPHY
World Class Customer Satisfaction

By Jonathan D. Barsky
Hospitality Sales A Marketing Approach
Margaret Shaw and Susan V. Morris
Customer Satisfaction is Worthless Customer Loyalty is Priceless
Jeffrey Gitomer
Customer Driven-Services Management
S.Balachandran
w.w.w. gartner.com
w.w.w. crm guru.com
w.w.w.forester.com
w.w.w.google.com
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FIELD PROJECT
Field Project
CUSTOMER
RELATIONSHIP
MANAGEMENT
FUNCTION
in
Hotel Industry
FIELD PROJECT
Submitted to :
Dr. J. D. Singh
Submitted by :
SHIVANI BERRY
SONU GARG
FIELD PROJECT
International Management Institute

New Delhi
FIELD PROJECT
Index
Acknowledgement
Introduction
CRM-Definition
Why CRM ?
Customer Satisfaction
What does CRM include ?
CRM Process Flow, how does it actual work ?
CRM Channels and Application
CRM Advantages
CRM Limitations
Aspects of CRM
Identifying with the Customer
Management Commitment
Customer Expectations
Service Quality
Customer Service Cycle
Priority Marketing
Employee Management
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Recruitment
Empowerment
Compensation
Customer Loyalty
Frequent Customer Benefit
Frequent User Programmes

Corporate Loyalty Programmes
Customer Recognition Award
Database Marketing
Relationship Marketing
Complaint Handling
Customer Driven Technology
Summary
Case Study
Maurya Sheraton
Questionnaire Analysis Graphs
FIELD PROJECT
The Oberoi
Questionnaire Analysis Graphs
Annexures
Questionnaire
nishant_banerjee@yahoo.com
harnoord@abs.amity.edu
harnoordhaliwal@yahoo.com
FIELD PROJECT

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CRM IN HOTEL INDUSTRY

WELCOMGROUP MAURYA SHERATON

Customer Service is now more fashionably called Customer Relation

MAURYA SHERATON DEFINES CRM AS

CRM IN HOTEL INDUSTRY

CRM PROCESS AT MAURYA SHERATON HAS BEEN DIVIDED IN TWO

Identification of all Customer Relationship management vehicles

CRM IN HOTEL INDUSTRY

Current Accounts are one of the best sources to

uncover new business that is within these current accounts, as they

CRM IN HOTEL INDUSTRY

Telephones etc.). The transaction is recorded at each individual

There are certain points attached to the number of

providing a choice to the guest to reduce them at the hotel they

CRM IN HOTEL INDUSTRY

stay he would spend on the

supporting services like laundry

Telephones, restaurants etc and the revenue generated from these

DISTRIBUTION POINTS/ CENTRAL RESERVATION SYSTEMS

opportunity to establish CRM as the respondents at the reservation

information regarding all guest reservations is managed through

CRM IN HOTEL INDUSTRY

does not get reinvented every time a standard instruction is to be

WORLD WIDE WEB

could not business with a

potential customer. Since the web gives a convenience and allows

CRM IN HOTEL INDUSTRY

customer to request a reservation which has to be checked

more personalized and

customized because the customer puts in his

requesting a booking. Therefore once it is entered in to the hotels

CRM IN HOTEL INDUSTRY

respondent which goes a long way in future

correspondence with the center.

CRM IN HOTEL INDUSTRY

second step in the CRM process is to integrate the information

which is received through these touch points. From a marketing point of

is a technology driven tool used to teach out to

Database Marketing applies the concept of market segmentation, yet

generations of faster, more powerful computers are enabling marketers to

of the population, ultimately aiming for

the smallest consumer segment of all that is the individual.

This Dbase curtails basic

information which as name, addressing purpose of times, preferred

CRM IN HOTEL INDUSTRY

when a customer checks information such as this is on file and readily

for the guest service agent to register in an efficient and

personalized manner. Prior to this regular guests were repeatedly asked

They regard these management of their

database as an asset because it enables a superior customer

Using the Database

Product and service improvement is just one result of tapping into a

Developing special promotions and employing direct mail to

promote these campaigns is another major use of database marketing. For

CRM IN HOTEL INDUSTRY

example, a sales team hand completed a review of the upcoming 26 Jam

that bookings date were some what

book on long weekends (2) book on a short

aggressive selling to the potential customers who drove particular needs

otherwise lean weekend at Mughal Sheraton Agra.

Out of the massive data files typically found in

operations. In other words there are systematic ways to distill through a