Project Report on Customer Relationship Management in Hospitality Sector

Submitted To: SRI.ARJIT SANTHIKARI

Submitted By: Kushal Wadhera Somrup Nag Devesh Soni Manik Kumar Vivek Jain (19019) (19038) (19057) (19114) (19116)

CONTENT

Customer Relationship Management Objective of CRM Benefit of CRM Phases of CRM Definition of Hospitality Management CRM in Hospitality CRM in Hotel Activities. CRM Components in Hotel Industry CRM process at ITC Maurya Sheraton Happy guest returns and advises Blue Print of Hospitality Industry

Customer is the most important person for a business. He is not an interruption to our work but the purpose of it. He is not an outsider; he is a part of it. We are not doing him a favour; he is doing us a favour by giving us an opportunity to serve him. (MAHATMA GANDHI)

What is Customer Relationship Management (CRM)?

Customer relationship management (CRM) is a strategy that can help them to build long-lasting relationships with their customers and increase their profits through the right management system. It is a strategy for managing and nurturing a companys interactions with customers, clients and sales prospects. It involves using technology to organize, automate, and synchronize business processes. CRM entails all aspects of interaction a company has with its customer, whether it is sales or service related. It even uses technology to streamline processes that impact customer loyalty, service delivery and quality management. Today, businesses are facing an aggressive competition and they have to make Efforts to survive in a competitive and uncertain market place. People have realized that managing Customer relationships is a very important factor for their success. Customer relationship management (CRM) is a strategy that can help them to build long-lasting relationships with their customers and increase their profits through the right management system.

 The overall goal is to find, attract, and win new clients, nurture and retain the existing ones. It denotes a company-wide business strategy embracing all client-facing departments and even beyond. It is one of the key tools to fight the cut throat competition and stand out as a superior brand.

OBJECTIVE OF CRM
The objective of CRM (customer relationship management) is to recognize and treat each and every customer as an individual. It is very essential for any business to know that how to differentiate customer treatment according to an individual preferences. For differentiate customer treatment, the companies use personalized service and customized products which make some customers feel special and others simply appreciate good behavior. It humanizes their purchase or service request or complaint. Personalization and customization doesnt mean maintaining only customer loyalty, but also driving purchases higher. Getting closer to customers and effectively responding to their needs is a great way to boost their loyalty and encourage deeper business relationship. The task of getting and retaining customers requires even greater skill and effort. The business needs to ensure that the service works as the customer actually wants it to, and the customers want to do business in 'their' way, not to be forced to do it in the enterprise's way. Most companies consider them customer-focused and believe that in being so they are servicing the customer. But eventually, being customer interaction with customers in

focused means to have a consistent, dependable and convenient

every encounter. CRM technologies focus on managing all interactions that an organization has with its customers, in order to leverage the data in a variety of business applications. Where a profitable relationship already exists, CRM can especially boost superior service at a lower cost. In addition to this it helps to serve customer's unspoken needs.

Generally speaking, the five needs of customers are:(a) Service (b) Price (c) Quality (d) Action and (e) Appreciation.

Benefits
Streamlined sales and marketing processes Higher sales productivity Added cross-selling and up-selling Improved service, loyalty, and retention Better profiling and targeting Reduced expenses Increased market share Higher overall profitability

Shared or distributed data As companies realize that customer relationships are happening on many levels (not just through customer service or a web presence), they start to understand the need for sharing all available data throughout the organization. A CRM system is an enabler for making informed decisions and follow-up, on all the different levels. Cost reduction A strong point in Customer Relationship Management is that it is making the customer a partner in your business, not just a subject. As customers are doing their own order entry, and are empowered to find the info they need to come to a buy decision, less order entry and customer support staff is needed. Better Customer Service All data concerning interactions with customers is centralized. The customer service department can greatly benefit from this, because they have all the information they need at their fingertips. No need to guess, no need to ask the customer for the n-th time. And through the use of pushtechnology, customer service reps can lead the customer towards the information they need. And, most of the time, the customer can do this on their own, as the CRM system (remember, the 3 P's) is more and more able to anticipate the need of the customer. The customer experience is greatly enhanced. Increased Customer Satisfaction The customer feels that he is more "part of the team" instead of just a subject for sales and marketing (the proverbial number), customer service is better, his needs are anticipated. There is no doubt that customer satisfaction will go up. If the products sold exceed the customers expectation, of course, no CRM system can help you with shoddy products. In my opinion, the term statisfaction is a contaminated. Many companies think that if customers are satisfied that this is a good predictor for repeat business. However, this is not the case. Only delighted customers have a great level of loyalty.

Better Customer Retention If a CRM system can help to enchant customers, this will increase customer loyalty, and they will keep coming back to buy again and again, hence customer retention. Loyal customers Need I say more? Q.E.D. More repeat business The repeat business is coming from the delighted customers, who are turned from doubting clients into loyal advocates.

Phases of CRM
Three key phases: 1. Customer Acquisition. 2. Customer Retention. 3. Customer Extension.

Three contextual factors: 4. Marketing Orientation. 5. Value Creation. 6. Innovative IT.

Hospitality Management "means

The term "hospitality management" refers to a range of occupations and professional practices associated with the administration of hotels, resorts and other lodging.

CRM in Hospitality
The secret here is that retention cost is very low when compared to the cost of attracting new customers Nature and extent of the services and facilities Developing and designing services that suit customer preferences Quality of service and Customer Satisfaction are the most important factors in the service organizations CRM helps hotels to service their customers and be cost effective Major hotel chains have been wooing travellers for years with CRM tools focused mainly on "loyalty" or rewards programs

CRM Activities in Hotels

Catering to Valuable Guests Better Customer Data Yields Benefits New Directions Online

CRM Components in Hotel Industry

Sales management functionality: Telemarketing/Telesales functionality: Time management functionality: Customer service and support functionality: Marketing functionality:

It is divided in 2 steps:1. Identification of all Customer Relationship management vehicles 2. Integration of these Customer Relationship management vehicles

Maurya Sheraton has identified 5 such vehicles (from marketing point of view) These vehicles are: 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. Loyalty Programs Second vehicle for CRM identified by Maurya Sheraton are the Loyalty Programs. These programs are designed to reward the loyal guests of the hotel. Distribution Points 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 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 is used for both personal and business purposes. But ITC Mauryas focus is on the business side of using the web.

 Call Centers Typically a call center is a place that encourages customers to make calls in order to facilitate their easy usage of the product/service offered by the organization. All calls from customers regarding their queries, problems, suggestions are entertained. It consists of a group of personnel that are specifically trained in handling inbound and outbound customer calls thus catering to customer service needs. Call center services include:

lead generation tele-calling e-mail campaign market research

Happy guest returns and advises

o Guest Recognition To know more about guests and to serve better. o Incident Tracking Solving problems on time without leaving any un-solved issue. o Rapid Response Priority required requests are tracked and solved. o Improvement Analysis To improve service quality and reduce cost. o Guest Comment Card Tracking To evaluate and analyze guests feedbacks.

o Relationship Marketing Marketing through guest history analysed with requests and comments. o Facilities Maintenance Planned room and property maintenance to offer problem free service. o Communication Server All requests are delivered to specific person on time via electronic transmission.

Blue Print of Hospitality Industry