Customer relation management to increase sales in hotel industry

The Hospitality industry which is also in the service industry has grown rapidly over the years. For decades now, the hotel industry which started with the possibility of booking only through travel agents and tour operators has now developed into a self-management industry. Where they have personal contact with their clients through direct online marketing. The hotel industry now tries to focus in the direction of upcoming technological trends where “internet of Things” (IOT) is more introduced into the hotel industry. For instance, most of the hotels have self-opening doors, self-flashing toilets, robots to welcome clients and many others all in cooperated into their services to make their clients have a comfortable stay. Clients can also check in directly from the hotel’s website and prearrange all the necessary things so by the time they arrive at the hotel, their rooms and everything they had requested would be available to them. Building customer relationship is very important to them. They therefore introduce customer loyalty programs where maybe the client gets a point for every booking they do. In the end, they receive a reward for all the points they have. However, not all hotels use this method, some hotels have different loyalty programs. “Researchers have shown that a 5 per cent increase in customer loyalty can produce a profit increase of 25 per cent to 85 per cent” (Reichheld and Sasser, 1990).

It is important to set three value disciplines of customer relation management (CRM) for your company. According to Treacy and Wiersema (1996), the values disciplines are Operational excellence, product leadership and customer intimacy. Which in this case both Operational excellence and Product leadership concerns ways by which the industry or organisation can gain new customers. It involves the process whereby the company tries to distinguish themselves from their competitors through pricing, quality, new and best products in the case of gaining new customers. On the other hand, customer intimacy is how to maintain customers. It involves the processes whereby a company offers total solutions and assistance to customers.

Therefore to apply these values to hotel industry, we can classify them into two strategic roles such as offensive and defensive strategies. Where offensive strategy focuses on gaining new customers and defensive strategy focuses on maintaining customers (Beltman, R., & Peelen, E. (2013)). In other to maintain customers it is good to increase customer satisfaction, have a customer centric approach (customer is king) and offer additional value to the clients. For instance, when guests check in a hotel, the receptionists immediately welcome the guests by their name and offer them a personal butler to assist the guests with all their needs. In the end, the guest leave feeling satisfied, write good reviews about the hotel and even recommend the hotel to other friends or family.

In conclusion, if hotels focus on being customer centric organisations and offer added value services to customers they will increase sales on their website.

References;

Beltman, R., & Peelen, E. (2013) Customer Relationship Management(2nd ed.). Edinburgh, United Kingdom: Pearson Education Limited.

Reichheld, F.F. (1996) The Loyalty Effect, New York: The Free Press,.

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