A Study On Investigation Of Influence Of Customer Relationship Management On Customer Retention: A Case Study Of Hilton Lane Park

A Study On Investigation Of Influence Of Customer Relationship Management On Customer Retention: A Case Study Of Hilton Lane Park

 

 

. Introduction

With increased competition among hotel industry of UK, organizations have become highly concerned towards effective management of customer relationship in order to gain high loyalty of customers. Customer relationship management (CRM) is a concept that has been emerged from the field of management. It involves capability of employees working within an organization to deal with customers and clients. In case of effective customer relationship management, organizations use advanced technologies for synchronizing, automating and managing all processes of business (Nazir et al, 2014). Organizations focus on customer relationship management for increasing satisfaction level of customers and to enhance profitability of business. In case of hotel industry, there is more need of focusing towards relationships with customers. In order to build better relationships with customers, hotels use various technologies, tools and strategies. This helps firms in enhancing their sales. There is a link of CRM with strategies of business rather than technical processes of business (Payne, A. and Frow, 2005).

It has become important for organizations to build positive relationships with customers in order to utilize them as a source of marketing. While building strategies and policies, organizations have to consider customers more specifically, so that strategies and policies can be built according to demands of customers. With the help of customer relationship management, companies get an opportunity of retaining customers for longer time period. This makes them capable of increasing their sales through retained customers. Different strategies and policies are formed by hotels for retaining customers and ensuring high service-orientation in employees. In accordance with Kumar (2010) with increased changes in business environment, operations of business get affected in a both positive and negative way. In today’s competitive business world, the main of business is to satisfy their customers and retaining them for longer period of time in order to gain competitive advantage. Effective techniques of marketing are highly important for focusing on basic approach of customers. Specifically in hotel industry, there is a strong need of using advanced techniques and strategies for maintaining customers’ loyalty. It has been stated by Linoff and Berry (2011) that it is not enough for organizations to get long term success through satisfied customers. In order to earn high profitability and to ensure long term success, organizations have to retain customers for longer time period. 

In hospitality industry, customers are considered to be king, so in order to make them happy, it is significant for hotels to build long term relationships with them. For effectively fulfilling expectations of customers, there is a need of focusing on niche segments. In case of customer relationship management strategy, stress is laid on single consumer. For retaining customers, organizations try to satisfy them through various strategies (Buttle, 2009).

According to Ngai et a (2009) the main goal of marketing is providing value to customers, building long term links and providing ease to customers. In case of un-ability of organizations regarding fulfilment of customers’ requirements, there will be no benefit of marketing efforts. So, effective and appropriate strategies are required for building positive relationships with customers. It has been stated by Krasnikov et al (2009) that in case of 5% improvement in customer retention, companies get 25% to 75% increase in their profits. It has been mentioned by Heller Baird and Parasnis (2011) that for getting new customers companies have to bear high cost.

Marketing is considered as a significant aspect for customer relationship management. It helps in influencing individuals and society through various methods such as introducing new products and services, getting information about needs and demands of customers and helping people to get those services that suit them best. In addition to this, customer relationship management through marketing increases concerns relevant to ethical issues integrated with addictions, additional consumptions and the impact on society and environment. A major role is played by marketing particularly in hotel industry for making customers satisfied (Lin et al, 2010).

In accordance with Ernst et al (2011) the price of product or services is accounted for efforts of marketing. The CRM strategy implementation is based on valuable asset that are customers, so relationships with them must be made in an appropriate and intelligent way. CRM is considered to be an instrument used for making customers feel free for performing the services through different channels of communication and for attracting potential customers.

In previous days, compan

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