CRM initiatives impact on both efficiency of operations and company effectiveness. Cost effectiveness
Facts:
Hilton worldwide internet websites provides cost effective customer service, including online hotel reservations and HHonors enrollment. business, technology and information services for our hotel guests, including high speed internet access at virtually all of our hotels system-wide. self-service check-in kiosks at 47 of our owned or managed hotels as of December 31, 2004.
Operational efficiency
Facts:
OnQ system is a single technology platform, which links our brands and hotels to enhance customer service and loyalty, as well as maximize operational efficiencies. matches customer reservations with profile database records in very small pace of time in order to make guest feel special. provides proper allocation of attention where needed.
It also provides for brand standards that permit each hotel to establish its own room rates, but requires the hotel to offer such rates consistently across all designated distribution channels. And “Our Best Rates. Guaranteed.” offers a price-matching guarantee to encourage customers to book their reservations through the above referenced distribution channels.
Evidences:
Period 2001-2006:
Total Calls :+ 15.31%
Net Revenue per Call: + 40.3% ($73.09 => $102.55 )
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In 2006, 41.4% people calling have booked a room. (38% in 2001) For 2004 gross reservations through HRW, GDS and internet sites increased 13% over 2003 online bookings through our branded websites increased 28% over 2003. Source: Hilton Hotel Corporation
Return on investment
Benefits and weakness of CRM
Hilton Hotel’s CRM strategy has largely been about the operational perspective of CRM rather than analytical level. The primary goal has been efficiency with a view to the bottom line. Overall, the strategy appears to be more process-centric than customer-centric.
CRM benefits in customizing experience, building loyalty, increasing productivity, utilizing resources, identifying most profitable guests. It also provides valuable information to implement continuous improvement in product and operational service.
Nevertheless, this kind of standardized CRM, which register clients in the same way in all brands, leads to achieve greater consistency and quality among individual properties, but ignores the specificity of each hotel and the clients. And it is time consuming and costly to track and update customers’ information, and it also doesn’t truly represent what customers want. Thus the analysis could be misinterpreted.
Future and Recommendation
Employee training
“From an electronic standpoint, CRM has been successful. The one that is hard is how effective are you at the front desk to create a personalized interaction.” These front-office people are not hard to directly control. Therefore, Training for all the employees to be sure they manage well on the OnQ program.
Standardized CRM :
– Register customers the same way
– Client recognized in all the brands
Advantages :
– compatible to lot of client
– Increase their market share
– Reduce costs
Disadvantages :
– lead to a consistency
– ignore the specificity of each hotel and the clients
– Best guest arrival report
– Using Call Centers to optimize the CRM concept
– Extends the OnQ and CRM technology
– customer data has to be clearly presented enough so it can be used to help to make decisions
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– Create an I-Phone application
– Training for all the employees to be sure they manage well on the OnQ program.
CRM:
-Meets customers’ preferences
-Speeds up customer check-in process
-In the future may allow Hilton to sell additional value-
added products like theatre tickets based on show availability and guest interests
-Informs when not to invest in customer
Satisfaction and Loyalty Tracking (SALT)- key component of the CRM initiative
Monitors ratings at the property for
Overall experience
Ability to recommend
Willingness to return
OnQ is the IT centerpiece of the CRM strategy
Advantages
Facilitates better service – Hotel employees have a clearer idea about customer and their previous Hilton experiences. Build Customer Loyalty – Reward guests with Hilton honor frequent guest program. Establishes value of a customer – Provides extra attention to VIP customers. Faster service times – In hand knowledge about the guest preferences enables faster allocation of rooms with specific facilities. Increased revenue generation – Sale of restaurant reservations, tee times, concert tickets, and etc.
Disadvantage
– Presenting deep customer histories to front desk at Hilton. – It can be difficult to update and keep track of the preferences of an individual customers and their history. – Customer preference may change at any point of time as they might experience different expectations and wants. – Huge cost involved to satisfy the specific needs of customers. – The estimated cost to implement OnQ was $93 million, but by 2007 the investment had grown to $102 million.
The OnQ has to be more than just customer information system. It has to developed into a decision support system. Hilton must record accurate customer data and be able to to have this data presented clearly enough so that it can be used to help make decisions. Effective complaints management system that helps to resolve dissatisfaction faced by customers and ensuring it wont occur in future stays.
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– Providing new themes in their rooms and enabling guests to experience new themes associated to their preferences.
– Providing room reservation to non Hilton customers in order to generate more income and expand customer base and knowledge.
– Front desk employees need to treat the customer as if they are coming into their own home. Try to relate with the guest and their travel. This creates a welcoming connection with each guest.
1. What are the benefits and drawbacks of the OnQ system at Hilton? The Benefits:
– Increase revenue from the Hilton to the service to purchase tickets, concert tickets, and restaurant reservations. – Establishing the value of a customer to Hilton based on personal history and on predictive modeling of the business the person is likely to do. – Build customers loyalty: use the integrated information system combined with its honors frequent-guest program. – Services at the Hilton will be faster because the employee has had an idea and the consumer experience of previous data, so that the employees can prepare the necessary facilities of each consumer. Faster service and the absence of data about consumers make allocation faster in rooms that have special facilities, will be in accordance with the wishes and needs of consumers. – Hilton has the ability where customer orders will be matched with a database record in a time of high speed, so that consumers do not have to wait very long. The Drawbacks:
– Customer preference may change at any point of time as they might expect to experience something new. – Huge costs to meet the customer’s specific needs.
– Difficult to update and keep a track of the preferences of individual and history of customers. – Information about the customer experience will expire over the time. – Presenting deep customer histories to front desk at Hilton.
2. What does Hilton have to do create a competitive advantage through OnQ? Provide some specific examples. – Hilton gives background on the new background theme rooms of consumers and allows consumers to get an impression of the new and not boring. By setting up a mood or a room with a fresh new look of the theme, interior, music etc. – Customer service should provide good service to the customers. By having data about their customer’s travel schedule, customer service should provide support services such as booking taxi, travel agents, air tickets, etc. – consumer data should be more accurate, so as to maximize the service to consumers. Hilton noted that consumer data is accurate and clearly presented, so the data by using the OnQ system can be used for decision making.
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– Should providing an effective consumer complaint against the existing management system to help resolve consumer dissatisfaction so it does not happen at another time. 3. Is it possible to have too much information about a customer? Explain. It’s possible to have too much informations about a customers, but it’s not advisable to have many informations about custumers. This will bring bad influence for Hilton. The listing of customers who are too much, will be difficult to through the listing of customer data to take a decision. Because every information will be changed to a function of time and or because of the changing lifestyle
