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Copy of Hilton Hotels - CRM

Hilton Hotels: Brand Differentiation through Customer Relationship Management

Sherry Chain

on 11 February 2013

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Transcript of Copy of Hilton Hotels - CRM

Hilton Hotels: Brand Differentiation through CRM Conclusion Thank you for your attention! Enhance the portfolio value
Reach global brand awareness
Build trust between Hilton services
and customers
Brand diversification in customer's mind 7 elements of CRM Importance to implement CRM in the hospitality industry Importance to have a recognized brand in the hospitality industry Traditional expansion strategy Franchising = A form of business organization in which a firm which already has a successful product or service enters into a continuing contractual relationship with other businesses operating under the franchisor's trade name and usually with the franchisor's guidance, in exchange for a fee.
Franchising has become one of the most popular ways of doing business in today's marketplace. Benefits of the franchising system (1) Benefits of the franchising system (2) Performance of the CRM Standardization and multi branded positioning Strengths of Hilton brands Strengths of Hilton brands Strengths of Hilton brands (1) Room Revenues have increased by more than 136% between 2001 and 2006.

Each Hilton brand has raised its ADR and RevPAR between 2001 and 2006.
ADR = + 13.77%
RevPAR = +27.28%
RevPAR = 109.51
Hilton brands are 9.51% more profitable than the best competitor. Strenghts of Hilton Brands (2) 7 Hilton brands on 8 were leader in the industry in 2006
(all excepts Conrad International).

A strong relationship with customers leads to higher
profits. To improve knowledge, understand customer’s needs and requirements
Decrease customer churn by increasing customer satisfaction and retention
Motivating customers in order to generate revenues
Increasing the likelihood of the “right response” by a given customer
Use technology to improve customer service
Enable a greater degree of customer differentiation in order to deliver customer interactions
Attract customers through more personalized communications (and increase loyalty) Brand differentiation through Customer
Relationship Management is efficient. - Capitalized Expansion
- Continuing Revenue Streams
- Brand Development
- Economies of Scale
- Managerial Talent Period 2001-2006: Total Calls = + 15.31%
Net Revenue per Call: $73.09 => $102.55 = + 40.3%
In 2006, 41.4% people calling have booked a room.
(38% in 2001)
Brand differentiation through Customer
Relationship Management is efficient. 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 A fast growth within different steps

-The willing of share investment and ownership
-Domestic growth and organic growth
-The segment diversification
-Partnership and franchise Competitive advantage of Hilton over competitors •The Application of CRM in Hospitality Industry is required:

-To increase the satisfaction level of customer
-Resulting in maintaining long term relations,
-Helping the Social Recognition and
-Developing Customer loyalty.

•“Positive Word of Mouth” brings lot of advantages along with it like:
–Reducing marketing cost
–Increasing profitability,
–Reducing Customer turnover
–Maintaining market share and a better Return on Investment •Key of competitive advantage is that they have a lot of pieces that work well together.

•Hilton is the only company that has the same technology platform and distribution footprint throughout all the brand.

•It enable Hilton to leverage the strengths consistently accross te entire systems. Recommendations - 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

- Create an I-Phone application

- Training for all the employees to be sure they manage well on the OnQ program.
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