Question

Task: Explain the importance of Customer Relationship Management (CRM) to an international chain of hotels and discuss the reasons why CRM is becoming of increasing importance to organisations (20marks)

Answer 1

Customer Relationship Management (CRM) may be a system that handles all the relationships and connections with consumers and potential customers within the business. The goal is simple: strengthen partnerships between companies. A CRM program allows customers to stay connected, streamline operations and increase productivity.

Importance of Customer Relationship Management (CRM) to an international chain of hotels.

Given the very fact that CRM offers enduring benefits to companies as an entire, a number of them benefit quite some by introducing it; CRM provides benefits to organisations that produce tons of consumer knowledge. Service organizations are inseparable components essential to determine relationships with consumers with their inherent properties of output and use.

CRM would therefore be ideally suited to an international chain of hotels, especially when effectively and efficiently applying it, taking under consideration that hotels receive tons of customer data. These details may become valuable information about them. Suffice it to conclude that the hotel industry, like all business field, must be highly competitive so as to be ready to perform better within the market world, hence, promoting consistent buyback behaviour trends and maintaining consumers to last longer is of critical importance for it. it's also clear that these aggressive targets can only be accomplished by the introduction of CRM, which might end in the event of a fruitful partnership between organizations and their clients. Additionally, it goes without mentioning that increasing consumer acquisition costs, rising client preferences, price-sensitive visitors, more savvy consumers, volatile market dynamics and reduced brand loyalty are all main reasons that strongly encourage hotels to believe CRM as a valuable tool. Needless to say, CRM is usually recognized together of the foremost successful means of promoting the expansion and extension of the buyer base and, in turn, would help to extend productivity and guest satisfaction.
The hotel market may be a highly active intelligence business. Knowledge quality has many affected both hotels and their guests. Consumer knowledge plays a key role within the application of CRM from a hotel perspective. However, from the customer's point of view, quick access to a mess of obtainable information through user-generated content has posed various challenges for hotels. Although information is quickly hospitable non-restricted consumers, this provides a wider option for travellers. Switching therefore may be an easier and enticing choice for the travellers. As a result, hotels face high turnover of guests and rising expense of acquiring customers. CRM was advised to deal with the adverse effects produced during a setting of this sort.

Importance of Customer Relationship Management to organisations are: -

1. A CRM program consists of a retrospective perspective and review of all the purchasers bought or to be obtained. This helps to attenuate market search and association, and to efficiently predict consumer demands and improve sales.

2. CRM includes each and each little bit of a customer's data, and monitoring a customer correctly is extremely straightforward and may be wont to evaluate which customer are going to be successful and which doesn’t.

3. Throughout the CRM system, clients are classified consistent with specific factors supported the sort of business they perform or the geographic position and are assigned as sales managers to multiple client managers, also named. It helps to consider and work independently on each and each customer.

4. A CRM program isn't only wont to affect existing clients, but is additionally useful for brand spanking new consumer acquisitions. First, the cycle ends by finding a buyer and retaining all the relevant information within the CRM program, which is usually considered as 'Opportunity of Business.' Representatives of Sales and Field then seek to urge business out of those clients by pursuing them elegantly and reworking them into a profitable contract. All this is often achieved with an optimized CRM program, very quickly and effectively.

5. Customer relationship Management's best feature is its being very cost-effective. The advantage of decently integrated CRM program is that much less paper and manual labour is required which needs less workers to manage and fewer resources to handle. Compared to the traditional way of doing it, the tools want to introduce a CRM program are still very inexpensive and straightforward.

6. All data are kept organized within the CRM program which is accessible on fingertips at any time, which reduces the time of the operation and increases efficiency.

7. This enhances customer loyalty by effectively communicating with all consumers and supplying them with what they require. It improves the chance to possess more business that eventually raises productivity and income.

8. If the client is happy, they're going to still be faithful to you and can remain in business longer contributing to growing customer base and eventually improving net market growth.