Customer Relationship Management in Hotel Industry
Customer Relationship Management is a tool for strategic management in an organization to improve customer relationships. CRM (Customer Relationship Management) helps a company to increase its profits on investments (Karthikeyan et al., 2016: 2). The CRM management tool which improves the interaction of the departments like the sales department, production department, service department, procurement department, etc. Such interactions aid an organization with an emphasis on relationships within its departmental systems, its customers, its suppliers and the company’s team players. CRM system increases the organization’s selling activities, production levels, marketing activities, smooth flow of operations and overall relationship within the business. On the other hand, the industry is a platform which provides for production and service dissemination to the economy of a nation. Classifying industries; primary industries, secondary industries and tertiary industries. Hotels and hotel industry are majoring in providing tourists or travelers with accommodation, goods, food, other refreshments, and other services on a commercial foundation furnished to suit the customer away from home on a journey.
Customer Relationship Management in Hotel Industry
Hotels are transforming into industries by providing goods and services to their customers and uplifting urbanization in a nation. The customer relationship management in the hotel industry is a tool used to improve customer aspect of interaction in the provision of hotel goods and services (Rahimi et al., 2016: 89-112). The use of technology to incorporate CRM in hotel sector is streamlining the processes of service delivery, goods provision, loyalty in customer relations and high-quality management. There is an aggressive competition facing the hotel businesses and other business offering the same goods and services to the same customers; the hotel industry is adopting CRM system as a tool to survive from future failures and uncertainties. The hotel industry has this strategy to maintain their relationship with them and their customers. The approach is increasing their profits by indulging in the right managerial systems and focusing on customer relationship strategies.
Customer, being an important factor in business, is part of the business. They are giving the company an opportunity to serve them as their client. The explosive growth in CRM management system is an emphasis on efficiency and effectiveness in enabling technology take part in the business. Good management systems increase revenue and improve return on relationships with clients. The practitioners require a vibrant knowledge in commitment to the customers and the stakeholders and other team players by monitoring their response, attitudes, and behavior. CRM system is a potential tool for changing the customers’ motives and relationship towards the company (Rahimi et al., 2017: 40-51). This study will focus on the Customer Relationship Management in Hotel Industry by evaluating the incorporation of CRM system in the hotel industry following some steps to improve customer relationship.
The ultimate aim of this study is:
To evaluate ‘Customer Relationship Management in Hotel Industry.'
The specific objectives of the study are:
Customer Relationship Management Evolution
The CRM has had an enormous growth in businesses in the world over the last decades. It is promising to expand enterprises from small ventures into an interactive organization through improvement in customer relationship. Since 1990 up to date, the CRM system is in play in agencies to enable easy tracking and keeping of large volume of records. The system is improving the accuracy and constant updates in the overall performances of the organization by using the recent advanced technology. In the 1980’s, there was the use of database marketing which defines practices for setting up customer service teams to offer the services to individual company’s client. However, today there is an advancement in technology which is involving systems and programs of CRM to improve customer relationships and interactions. The Customer Relationship Management is comprising a two-way communication in gathering information, giving better goods and services and acting to the client’s response accordingly. The managerial tool incorporated improves customer services and loyalty. CRM is being used to increase sales and significant improvement of customer relationships (Orenga-Roglá et al., 2016: 1462).
CRM Information System’s Analysis and Designing
The CRM information system’s analysis and design involve a method in use by organizations in developing and maintaining information systems. The system performs functions of data keeping and customer record tracking, order processing and payments to improve interactions and relationships. The primary purpose of system analysis and design is to make improvements in organization’s system by applying technology. The basis of design and analysis lies in the understanding of the company’s structure, objectives, exploitation of technology and overall processes. Analysing and designing of CRM system involve a lifecycle of operations in the hotel industry. The Systems Development Life Cycle is the process which plays a vital role in management information technology in incorporating CRM system in the hotel industry. The SDLC (Systems Development Life Cycle) implies to a term that describes processes followed while planning, designing, and testing, implementation and maintenance of the CRM system (Giachetti & Ronald, 2016).
The analysis of CRM system involves its application in the hotel industry and encouraging the employees to use it while attending to the clients. The CRM information software which will play a vital role in the industry will provide training facilities to the employees to ease its deployment in the company. The design of the CRM information system following the SDLC procedures should comply with the company’s objectives, missions, and visions. Also, it should conform to the legal and ethical regulations of the nation. The computerized information system application should provide the following information:
System analysis involves the thorough examination of the organization’s current procedures and the existing information. CRM system analysis requires a logical and interpretative review of data obtained from the customers and stored in the computer system. The use of online analytical processes to make decisions by use of online data by examining data at the lower level in the hierarchy of data mining. Data mining tool is a type of analysis which involves prediction, sequencing, and association of customer data to improve the relationship and interaction.
CRM System Modelling
After a critical analysis and designing of the system, the organization can engage in the modeling of the system. The modeling should follow all the steps specified by the SDLC procedures. Modelling can involve computer model using computer-aided designs software for simulation purposes. The other modeling method is the architectural modeling which requires paper-drawing using appropriate components (Hyun et al., 2017: 73-84). Lastly, the model should include manual procedures to follow while implementing the system into the industry. An example of such model will be as follows;
The above model is a transformation of what the CRM system will entail. Several interfaces can be incorporated later which include; the human-machine interface (HMI), customer portal, company website, contact information and customer feedback and chat channel. If the industry requires a simulated model, they can use CAD (Computer Aided Design) computer software in developing the model.
CRM System Testing
The Customer Relationship Management System model designed for the hotel industry will have testing procedures. The testing procedures involve steps to be followed to examine if the system will be useful, efficient and easy to use in the organization (Nikolaidis et al., 2016: 355-369). After the training of the employees and other related team players, the hotel can test the new system of management. The core purpose of the whole process is to develop new strategies for improving the customer relationships and increase the quality of offering their services. The CRM system testing will involve various stages for instance;
CRM System Implementation and Maintenance
The implementation and maintenance of the CRM system will only take place upon the successful designing and testing techniques (Rahimi et al., 2016: 89-112). For the improvement of the hotel product and service utilities, the hotel has to take some steps before fully deploying the CRM system. There shall be development of database for use in the management information system which includes;
The implementation of the CRM system will now take place in different departments and stages;
The maintenance of the CRM system will be taking place at a regular interval specified by the hotel organization. The responsible person shall maintain the system’s equipment and other computer facilities including website resource to keep the company up to date and safe.
Advantages of CRM System in Hotel Industry
The incorporation of Customer Relationship Management system into the Hotel Industry comes with the following benefits (Pereira-Moliner et al., 2016: 762-784);
The Customer Relationship Management system is a successful tool in the hotel industry. The system is improving the interaction and relationship of organization’s stakeholders, staff, and customers. The CRM system is boosting the availability of products and services to the customers such as swimming pool facilities, golf club facilities, health clubs, nightclubs, accommodation, laundry services, banking services, shoe shining services, beauty and barber shop services and more. The hotel industry can be a 5star, 4star or a 3star hotel. CRM is a crucial tool in the hotel industry.
Giachetti, Ronald E. Design of enterprise systems: Theory, architecture, and methods. CRC Press, 2016. London and New york.
Hyun, Sunghyup Sean, and Richard R. Perdue. "Understanding the dimensions of customer relationships in the hotel and restaurant industries." International Journal of Hospitality Management 64 (2017): 73-84.
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Nikolaidis, Dimitrios, Sotiria Christina Chrysikou, and Kostas Alexandris. "Testing the relationship between hotel service quality and hotel brand personality." International Journal of Hospitality and Event Management 1.4 (2016): 355-369.
Orenga-Roglá, Sergio, and Ricardo Chalmeta. "Social customer relationship management: taking advantage of Web 2.0 and Big Data technologies." SpringerPlus5.1 (2016): 1462.
Pereira-Moliner, Jorge, et al. "Organizational design, quality management and competitive advantage in hotels." International Journal of Contemporary Hospitality Management 28.4 (2016): 762-784.
Rahimi, Roya, and Metin Kozak. "Impact of customer relationship management on customer satisfaction: The case of a budget hotel chain." Journal of Travel & Tourism Marketing 34.1 (2017): 40-51.
Rahimi, Roya, et al. "Implementing Customer Relationship Management (CRM) in hotel industry from organizational culture perspective: Case of a chain hotel in the UK." International Journal of Contemporary Hospitality Management 28.1 (2016): 89-112.
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