CRM stands for customer relationship management. The approach to manage the interaction of the company with its potential customers is know as customer relationship management. Dalata hotel group is a hotel operator with a number of hotels in Ireland and UK. The industry operates with a portfolio of 38 hotels, with 7,500 rooms. The assignment is based on the customer relationship management. Present report will cover the different component of CRM models that helps to build the relationship with customers. It will also cover the CRM model and how they creating value by embracing the aspects of it its daily business.
a. Identifying the different components of a CRM model that a Hotel could follow in order to build relationships with customers.
CRM, the strategy for managing an organization's relationship and interactions with potential customers. CRM is the customer relationship management system which aids companies to stay connected to customers, improve profitability and streamline processes. Customer relationship management helps the company to manage the relationship with customers (Greve and Schlüschen, 2018). It compiles the system of CRM data that obtained from different communication channels which involves email, live chat, marketing materials and more recently ,social media.
The models of customer relationship management includes the five different types of models the IDIC model, the QCI model, the CRM value chain model, the Gartner's competency model, Payne's five process model. For the hotel industries, the appropriate model is Gartner's competency model.
Gartner's competency model
This model is also known as customer relationship maturity model. It is a technique which is used by the group to rate the hotel industries for their capabilities for the effectively using CRM. To identify the category in which an enterprise is placed on the model, there evaluation is done for overall CRM vision and strategy, experience of consisted valued customers, collaboration of organization , information, processes technology and metrics.
The model has been defined by the Gartner's that CRM as strategy of business that maximizes the productivity, customer satisfaction and revenue by
- Organizing the proper customer segments
- Implementing the behaviour that provide the full satisfaction to the customers.
- Building the customer centric process.
In order to receive the long -term value of customer relationship management hotel industries need to understand the strategy includes the entire business, and thus conducted in at enterprise level (Skoumpopoulou and Franklin, 2018). The initiatives of the customer relationship management requires a framework so that it can be assure that programs are conceptualized on a balances and integrated basis. To understand these approaches Gartner's has developed the eight building blocks of customer relationship management which includes vision , strategy , customer, experience, organizational collaboration , processes, info and sights , technologies and metrics.
The implementation of model is being developed in order to satisfy the customer and to make the relationship strong between the hotel industries and its customers. Today's era business are becoming consumer focused. Consumer has become the king of the market. The profitability of the organization is based on the consumer satisfaction. This Gartner's platform is being made to identify the ratings and organizations position in attracting the customers. As per the Gartner, CRM software totalled $26.3 billion in 2015 and predicts that the figure will going to rise through 2018. So to prevent the unsatisfactory of the potential customer , the Gartner's model has been implemented (Rahimi and Kozak,2017). Among all the CRM model , it is found that with over 200 organization CRM leaders can address all eight blocks to identify their relationship effectiveness with their customers.
The eight blocks of CRM are discussed as under-
According to the Sandy Shen,' to implement the successful customer relationship management vision it is very important to understand the principles guiding a customer centric strategies which aids hotel industries to develop a vision that what they want to serve the customers.
Among eight building blocks vision is the broadest in some ways and also a difficult to achieve. Creating vision does not require any step by step process. There are some objectives which Dalata must implement in order to established a vision. They are –
- To understand what CRM and Customer relationship management includes.
- Implementation of organizations personality.
- Implementation of culture that supports the mission of CRM.
- Communicate about the CRM mission.
To implement this do not require any monetary resources (Tsou and Huang, 2018). This building block of customer relationship management helps hotel industries to implement the mission that helps to potential the relationship with customers.
once the vision is being placed in the organization, the next building block is Strategy. Strategy assist in building of the actual vision. In order to turn the customer base into an asset by delivering customer value propositions the strategy is developed. It consisted of that how hotel industries will set the objectives and also identifies how the resources will be used to interact with customers.
The implementation of strategy includes the setting of goals and objectives by the customer segment , challenging existing process to adjust them with CRM scheme and setting up clear communication. If CRM can be fail if the inability to develop , document and execute a clear CRM strategy is not properly done. This failure causing due to implement of inability of strategy can be combat by -
- Make strategy of your own in concurrence with entire hotel industries don’t simply compel a management-mandated plan from above.
- Remember that the goals of organization can vary depending on the customers. To prove the strategy effective it is very important to keep the customer base in mind.
It framework based on two perspectives:
- How much does customer value the enterprise ?
- How much does enterprise value customers ?
It plays a key role in shaping the perception of the hotel industries – the value it furnish and the significance it places on the customer relationship. It is that building clock which provides the variations between the enterprises. According to the analyst of Gartner Mick MacComascaigh,' if the organization lacks the ability to give responds to the changes in target customers segments provide the changes that are relevant to individual customers. To counter in in ability MacComascaigh provided some factors that can help hotel industries to increase the target customer segments it includes continuously engaging customer experience, focusing the customers voice via cross channel feedback system and building of cross channels.
This building block structural responses the facts that there are many organization which fails to identify that customer relationship management is a cross functional initiative that needs the collaboration of the organization, which develops the poor project execution and poor results. Robson provides the solution of this problem that includes the lots of action which on the part of IT leadership that involves the implementation of customer centric understanding in hotel industries.
The important point which need to be considered by this is that hotel industries requires deliberately utilize to their size as an advantage, conducting multiple cross departmental meetings which helps them to develop the solid CRM plan.
The framework of organizational collaboration requires-
- Effective Leadership
- Skills And Competencies
- Skilled Organization's
Processes includes the analytical and planning processes that build the knowledge of the customers. It is that building block which desire to improve the efficiency of hotel industries and reduce cost. Preprocessing not only meets the customers expectation but also support the customers value proposition, supply competitive discrimination and impart to the desired customers experience. hotel industries require to focus on the customer relationship management plan that can make whole business into consideration , that can combine the unifies vision both across and between departments.
Framework of processes
- Implement and map touch point that affect customers
- Find the key processes form the customers point of view
- Give the priority to these processes.
- Measure these key processes
- Examine properly if changes occurs.
Information and Insight
Information and insight involves the collection of right data and placing it to right place. A successful customer relationship management needs a swift flow of customer information in entire hotel industries and tight combination between the operational and analytical systems. The fundamental CRM strategies involves having correct information at the correct time, providing customers insight and permitting effective interaction across any channel.
The framework of information includes
- Identify the channels that customers should use.
- Decide the product and services sold to customers
- Enterprise must focus on the increasing satisfaction of customers
Technology includes management of data and information, customers facing application, IT infrastructure and Architecture (Bhaduri and Fogarty,2016). Customer relationship management is all about the technology. For modern CRM business strategy technologies are an essential enabler. hotel industries can use the technology in order to identify the information regarding customers so that the strong relationship can be maintained.
Metrics is the tool which helps in measuring the external and internal indicators of the success and failure of the customer relationship management. It has number of application which includes -
- Setting and observing the various levels of the success in meeting the objectives the CRM.
- Giving feedback order to modify the CRM strategy and implementation.
- Inspection of customer experience.
- Act as a tool for dynamic management.
Therefore, the best example of CRM practices includes the call centres which aims in solving all the query's of the customers and give best information about their needs and wants.
The Gartner's Maturity look likes
score description definition
|6||MAXIMUM||Theoretical highest level of achievement|
|5||LEADING||Identifies an organization that has discriminated itself based on customer centric capabilities and has combine to redefined those capabilities.|
|4||OPTIMIZING||Describes the organization that not only developed the customer centric capabilities but also actively integrates them into its daily operations.|
|3||PRACTICING||Organization that has developed basic customer centric capability , basic CRM capabilities.|
|2||DEVELOPING||Organization that has fundamental slackly woven set of customer centric capabilities have been implemented.|
|1||AWARE||Organization having few customer centric capabilities|
|0||GROUND ZERO||No action taken on CRM initiatives.|
Applying Gartner's CRM Model to the Pig Hotel Group and how it currently creating or could create value
by embracing aspects of its daily business activities where customers tend to be directly and regularly engage,Customer satisfaction plays an important role in any businesses. The feedback of the customer about the services provided by the company identifies the success and converts into profit for any company (Choudhury and Harrigan, 2014). Entire service in a business in the world is depend upon the customers. In today's era customers are the king of market. All successful business in entire world today is thrive on the customer relations of their product alone. It is important to identify the , maintain and create a dedicated customer base in competitive market.
Customer relationship management facilitates the organization's long-term growth by making strong ties with the customers. CRM helps in the maximization of profit margins within an industries by supporting the sales , marketing and services.
Pig hotel is the small chain of hotels and restaurants within two groups: Lime Wood Group And Home Grown Hotels (Krishnan and et.al., 2014). In the hotel industries not only liable to focus on the pricing , quality and delivery. They have to also serve the friendly approach , the prompt problem solving and the flexibility in option. These service helps organization to gain the value for them. For pig hotel it is very important build CRM in order to exceed the customers expectations by enhancing the aesthetic value of its services. Customer relationship management involves five models which specifically identifies various ways to make effective customer relationship for an organization. In the most appropriate model for the PIG Hotel is Gartner's Model. It is also known as the maturity model of customer relationship management.
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Gartner's model of customer relationship management provides the immediate and latent benefit to PIG hotels in various ways which are discussed under-
It improves the customers services
The Gartner model of the CRM helps in improving the customers service. Its eight building blocks on combining makes an efficient CRM which helps Pig Hotels in improving its customer services (Trainor and et.al., 2014). Customer service is a communication between customer and the Hotel by using the channels like phone or emails. The customer relationship management gives a business with ability to produce, manage and allocate requests made by the customers. The best example of this is the call centres software of the hotel which helps to connect the customers to a manager or a person who can solve the problems.
Increases the Personalized services
Gartner model of the CRM helps in increasing the personalized services in the Pig Hotels. Personalized services includes one to one communication between the customer and the service providers. The one to one service renders the Hotel to amend the apprehension and cognition about the customers, that hotel do care of customers need and preferences.
Improvement in Customization of marketing
CRM model helps in customizing the marketing which means that Pig Hotel can adopt and change its services according to the customers need and wants. This model serves the main purpose by providing the assurance that customers requirements and needs are met successfully with the organization.
Responsive to the customers needs
Gartner's model of the customer relationship management helps Pig hotels in becoming responsive towards the needs of the customers (Rahimi and Gunlu, 2016). As CRM is not only the application of technology , it also provide the strategy to study about the customers needs and preferences so that Pig Hotel can implement in order to enhance the customer responsiveness. CRM comprised assemblage of information about customers to observe better ways to fulfil their needs.
Gartner's model helps in segmenting the customers according the various services provided by the Pig hotel. Segmentation is a process by which objects or items are categorised or grouped into groups that divided related characteristics. Characteristics includes one or more attributes. In CRM , segmentation is utilized to categorize customers according to some similarity , such as income, age, gender etc.
The eight blocks of the Gartner's models of customer relationship management helps in enhancing the Up sell and cross sale of the services rendering by the Pig hotels. As cross selling includes the selling the customers additional, related , products while up selling means selling the customer a more expensive version of the services (Kumar and Reinartz, 2018). This is types of strategy which helps in creating the win win situations for the Pig hotel. As this helps in better meeting of the customers needs which increases the profit. The Gartner's model provides the sales person or a customer service representative a 360 degree view of the customer based contacts which they have with the Pig hotel. With CRM the Pig hotel can analyse the sales patterns which increases the profitability for the organization. Successful up selling and cross selling improves the strong customer base which is an again the part of CRM.
The implementation of CRM model helps in acquiring new customers to the Pig Hotel. As CRM helps in organization to connect with the customers by centralisation of the customers. CRM helps the organization to take care of the customers needs and preferences which plays an important role for the Pig hotels (CRM And Customer Experience: How CRM Helps In Providing Better Customer Relationships, 2016). If organization take care of the customer needs and wants it help them to maintain strong customer base which aids them new customers. It is very beneficial tool to manage the hotel interaction with prospective customers and current customers. Gartner's models of the CRM designed the effective strategy which helps The Pig Hotel in increase their productivity and improves customer satisfaction.
This model of CRM helps in retention of the staff. It provides various benefits which helps in retention of the staff by Implementation of CRM in the Pig Hotel helps there employees in finding the right customers (Khodakarami and Chan, 2014). Employees works with the software customer relationship management which provides the large data for the customers by which they can easily find the right customers. As the Gartner's model of the CRM includes the organizational collaboration. As customer relationship management helps in collaboration of the employee’s working their in order to satisfy the customer . This collaboration lesser the work load from one single employee. As it allocate the work to each and every employee’s according to their efficiency by which employees can freely perform their task with no stress. By this Gartner model of CRM helps in the staff retention.
The effective use of CRM software creates a coherent and cohesive body of information that drives the value proposition for a given client for the Pig Hotel as it provide the one stop database which includes all the relevant data pertaining to the customers of Pig Hotel which are constantly update to accommodate any changes (Neslin,2014). The CRM enhances the sales productivity of the Pig Hotels by sending emails in bulks and generating reports. It also permit the mobile access to the hotels in order to have ready access to the preferences of their customers which aids Pig Hotel to create more lucrative offers for the customers. To drive the value proposition it aids the strategy like cross selling that involves offering to the customers.
Therefore, there are some more value proposition which are developed by the CRM such as customization as CRM software permit Pig Hotel to customize their product and services according to the target audiences. It focuses on the customer satisfaction which builds the strong customer base and effective customer support system. For, instance to maintain the good CRM, the Pig hotel developed the online feedback system which helps customer to provide the feedback regarding the product and services provided by the Pig Hotel. They can also provide the their needs and wants which the organization consider in order to making strong customer base.
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From the above report it can be concluded that customer relationship management plays an essential role in an organization in order to build the strong customers relationship base with an organization. Assignment has covered all the aspects of the CRM. Present report has provided the deeper insight of the different component of customer relationship management models that helps to build the relationship with customers. It has also covered the CRM model and how they creating value by embracing the aspects of it its daily