Creating value in relationship policy by using life events in the hotel industry.

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According to Peelen & Beltman (2013) life events are moments of truth, offering unique possibilities to prove value to the customers. Dependent on the value proposition life events can be seen as an opportunity to provide value. Creating value can be positively or in the customers’ hour of need. Assessing the impacts of life events on customer’s life are relevant for knowing whose have a high impact and need to be kept in mind. This can be shown in a social readjustment rating scale, with impacts of life events on psychosocial balance of customers. Life events can be disruptive and cause premature termination of relationships or alter a customer’s behaviour to the extent that either value to the organisation is changed indefinitely or that the value they expect from the organisation is altered. While they can be very beneficial to relationship development, creating moments where customers are acquired, where relationships are developed or deepened, can also be detrimental (Minghetti, 2003).

hhhAdditionally, taking events in customers’ lives into account, relationship policy can be fine tuned.  Firstly, considering what is going on in the life of a customer, in addition, what are the critical meaningful periods, when do important changes take place and how can the hotel supplier be relevant then? The value of the supplier’s proposition is altered by the place it takes in the lives of customers. In our relationship policy, we may want to focus on these events in particular, as they provide unique occasions of providing value (Kim & Cha, 2002).

Kim et al. (2001) empirically tested the cause–effect model of relationship quality in the hotel industry. Moreover, marketing expenses are allocated more on retaining customers under the relationship marketing strategy, this is likely to make marketing efficient (Sheth and Parvatiyar, 1995). They developed three relationship marketing activities such as guest confidence, guest contact, and communication, which affected relationship quality between frontline customer-contact employees and hotel guests. Relationship marketing can be defined as attracting, maintaining, and enhancing customer relationships in service companies (Berry and Gresham, 1986). The longer a customer stays in the relationship, the more profitable the hotel is. Furthermore, life events keep guests and suppliers in contact but can be seen as moment of opportunity but also a moment of risk. Customers change from address over time, taking notes and staying up-to-date can be useful in order to meet the restrictions of using life events as a marketing strategy.

An example of a life event used within the hotel industry can be a marriage. A marriage has a huge impact in people’s lives, therefore in order to create value into the relationship make them feel thought of. For example, offer them a special deal for a weekend in the hotel for their honeymoon.

 

BIBLIOGRAPHY

Kim, W. G., & Cha, Y. (2002). Antecedents and consequences of relationship quality in hotel     industry. International Journal of Hospitality Management.

Leggett, K. (2013). Navigate The Future Of Customer Service. Retrieved from             http://www.vocalcom.com/images/Resources/files/Navigate_The_Future_Of_Cu.pdf

Minghetti, V. (2003). BUILDING CUSTOMER VALUE IN THE HOSPITALITY INDUSTRY:TOWARDS             THE DEFINITION OF A CUSTOMER-CENTRIC INFORMATION SYSTEM. Information       Technology & Tourism, 6, 141-155.

Staff, I. (2015, January 30). Value Proposition. Retrieved September 17, 2017, from             http://www.investopedia.com/terms/v/valueproposition.asp

Vashurina, L. (2017, September 06). How to Send Trigger Emails That Keep Customers             Coming Back. Retrieved September 17, 2017, from           https://www.ecwid.com/blog/event-trigged-emails-and-how-to-make-money-with-   them.html

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