ASSIGNMENT 1 – Hilton Hotels
February 11, 2014
1. Evaluation of CRM
We believe that Customers Really Matter (CRM) and we do our best to prove it every single day. We aim to ensure that our customers will choose our brands over others when it comes to their next travels. What makes us different in the eye of the consumer is the way we manage our relationship with them. We believe that information technology (IT) and brand management are closely interrelated; and no successful company can survive on the global market without a sophisticated information technology system. This is why we designed OnQ, which is the company’s IT system used throughout our ...view middle of the document...
Increased Customer Loyalty
The implementation of the CRM helped in the construction of a strong customer database. This database, contained information on past transactions in addition to customers’ preferences including reservations and past reviews together with suggestions for future improvements. Having in mind that every customer is evaluating us from a personal perspective, it is safe to state that a relationship with a client is a very personalized and often difficult task to achieve or attain. Recognizing that each customer has a unique lifestyle and needs, we created a Loyalty program of Best Guests to manage our most valuable customers that includes Hilton Honors program, 4+ group, Fast Rez, and local VIPs. We did not only focus on the elite or so called platinum members, but instead our customer relationship initiative targets four customer categories which increases the pool of possible long-term relationships.
Every day we print our Best Guests arrival list, where guests are ranked by their importance along with the related personal information. By having this data already available before their arrival allows us to offer them unique experiences on a constant basis. Knowing in advance what our guests might want or need reduces the costs of serving them. Our service recovery aspect helps us regain the trust of the customers that have experienced less than the absolute best during their stay. The system allows us to track down the problems related to the rooms or to anything in the hotel that broke down or malfunctioned during their stay. We can respond quickly, fix these problems or possibly reimburse our clients fully or partially. In addition, constant monitoring and analyzing customer satisfaction levels and feedback allows us to better understand how all of our efforts are blending in together. Through The Satisfaction and Loyalty Tracking (SALT) survey, customers give their feedback and suggestions on how we can improve their experiences in our hotels. SALTs are constantly being analyzed by our managers which use them as a point of reference; oftentimes, being the first thing to be looked at in the morning. This tool aids in understanding what customers actually want; instead of making our own assumptions.
The American Customer Satisfaction Index (ACSI) which is an economic indicator that measures satisfaction of consumers across U.S. economy shows that from the implementation of the CRM initiative in 2002 and up to 2013, 9 years out of 12 (except 2003, 2007, and 2013) we were ranked the best in the U.S. market. In 2013, we took the second place with a total of 80 points out of 100, only surpassed by Marriott International which has accumulated 82 points out of 100. Our focus which was incorporated into four main aspects: recognition, customization, service recovery, and customer analytics led to customer satisfaction, and the overall success of the CRM implementation. In the hospitality business, building customer loyalty...