SUBJECT: Case Study: Hilton Hotels – Brand Differentiation Through Customer Relationship Management
List of Key Issues or Problems in the Case
* Hilton’s strategy to maintain its leadership position in the US as well as in the international lodging market
* Hilton’s focus on profitability and Return on Investment
* Personalized customer service and development of Customers Really Matter initiative (CRM)
* Implementation of a new enterprise system OnQ and the associated costs
* Maintaining competition with other hotel brands
1. What is Hilton’s core business?
The case presented in the book describes the evolution of Hilton Hotels Corporation, ...view middle of the document...
The main goal of the CRM program is to create a better, closer relationship with guests and secure their loyalty to the brand. In order to do so, the CRM promise was introduced. Thus, Hilton managed to personalize check-in experience of the guest by prior recognition of the guest at the reservation center, which also significantly improved the efficiency of the front desk personnel, as well as the hotel phone operators by reducing their time of inputting the guests’ information into the system. One of the beneficial effects of the CRM on Hilton’s operations was the creation of the personal dossier for every guest of the hotel. The dossier usually contains general guest’s information as well as the needs and requests that were ever made by the guest staying in any property in the Hilton system. The Best Guests arrival report was introduced. Storing detailed information about the guest enabled the company to improve its flexibility. One of the key features of the CRM is the employment of the Satisfaction and Loyalty Tracking survey that enabled hotel management to better analyze and predict trends in guests preferences and concerns. If a guest had a bad experience staying in one of the Hilton hotels, service recovery is encouraged by the CRM in order to regain customer trust.
The CRM of the Hilton Corporation overall proved successful, though not without certain downfalls. According to Tim Harvey, EVP of Shared Services and CIO of Hilton Hotels, “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.” He also mentions that “The CRM area is the absolute hardest ROI, it is almost impossible to measure...