Customer Relationship Marketing Article Example | Topics and Well Written Essays - 2500 words

Customer Relationship Marketing - Article Example Introduction: The legendary question in the history of the business management is how to satisfy the customers. It is very obvious to understand that customer is the king in any business as the customers are the vital factor in the business that generates the revenue for the company. The customer’s perception and attitude towards the services provided by the hospitality industry are the vital factors. The customer loyalty programs are very much vital for this industry mainly for the hotels, in most of the hotels the loyalty programs run as these hotels want their customer to be happy and the lingering effect of the loyalty programs will get back the customers in the hotel in the near future. Part A: The correlation between the CRM and hospitality management: It is very important to understand that customer relationship management and the hospitality industry are closely related to each other and they are the supplementary factors for each other for a successful business enviro nment. It very important to understanding that service products are not the tangible product it is strictly intangible product. People don’t get the feeling of the product while they are buying the product they get the actual feelings of the product while they pursue the service and that is the reason the presales customer relation management is very much important for the hospitality industry. All the major hotels in the world follow the strict regulations of the long term customer relationship management. The loyalty is a factor which enables the customer to buy a product in repeated manner. There are some factors are related in this context to support the power of loyalty and they are trustworthiness, dependability, allegiance, devotion and excellence. The loyalty programs are the reason for the Starbucks to pull the same old customer for repeated time. The hospitality industry is surviving on these loyalty programs as the cost of acquiring new customer is high so retentio n of a customer would lower down many recurring costs. The hotel industry works with three main functional entities and they are the owner of the hotel, the management team and the brand itself. The proper alignment of the interest towards the betterment of the service is the main motto of all of these three parties. Most of the time these parties don’t want to share the customer data related to their own department and that leads toward the malfunctioning of the whole system. Most of the big hotels use CRM software to maintain the customer database. Mainly for the hotels who are having multiple locations, they use centralized CRM which is been used from the head office. Monitoring the existing customer database in very much important for the further improvement of the system. CRM is the cross functional management philosophy that focuses on reconfiguration of the activities of the firms towards their customers. The CRM and marketing management are different in many aspects. The marketing activity can be a small time promotional activity but, the customer relation management is a long term process to satisfy the existing customer. CRM focuses on maximizing revenues where marketing focuses on brand building and other activities for the future sales. The betterment of the business relies on a strong interpersonal relationship with the customers. The proper CRM (Customer Relation Management)