Using personal datas are very usual in these days. Especially in service areas, data managing is critical for one's survival. In fact, using an ordinary data system is not an advantage for the hotel companies anymore. OnQ customer information system, which is made by Hilton Hotel, is the example for the Hilton's recent success. Not only in data system. It Includes property management system, reservation system, revenue management system and supports Hilton's e-commerce site.
However, the most important fact that I have noticed from recent Hotel's service is that they also care about customer's small habits. It might seem little bit out from this story, but I have heard that the Ritz Carlton's success comes from the severe individual data caring system that really cares about small things. They put all kind of customer's complainments in its data system, and whenever the customer visits the hotel next time, the room has been customized as what customer wants. For example, if there was a customer who ordered an aspirin pill since the he or she forgot to bring it, the manager inputs this data in to the data system and surprisingly, the aspiring will be on the table at your next visit also.
I think the Hotel's loyalty program is the competitive weapon that can be distinguished from other hotels in these days. By developing better data program, customer will be more loyal to their favorous hotels.
Subscribe to:
Post Comments (Atom)
4 comments:
In use of customer information we should pay attention that
they do not feel interfere because of excessive interest. Sometimes it makes problem that we do not want. So we must be careful using the data about customer and think it over as a customer's point of view.
Seems to be very interesting article. In the area of Hotel business, managing customer relationship will be especially important. Therefore, creating and maintaining the mentioned Hotel Loyalty Program (the "HLP") must be very critical issues to build competitive edge.
Then, how can we construct successful HLP? In my opinion, it should be more than just IT abilities. It is about business strategy and tactics of maintaining customer relationship so that we can provide more values to our customers.
Hyunkap Yoo
I think it is very important to integrate rich information gathered from IT abilities(mining, warehouse, etc) and professional intuition from business experience. All of the IT solution including CRM is depended in human capabilities that could find meanings and customer's needs.
Many companies such as hotels and airliners get the information about their guests from guests to sign up for customer loyalty program. In fact, their loyalty programs supported by CRM are surely important means to manage customer relationship and attract them,but not a competitive differentiator any longer.For example, point systems have now become a commodity because everyone has one. So companies must leverage the one thing that can't be duplicated about their company: brand and customer service. Here is an article.
Loyalty Doesn't Come From a Program
By Jack Aaronson, The ClickZ Network, May 20, 2005 Sponsored by Omniture View print-friendly versionSend this article to a colleagueArticles by Jack AaronsonSend Feedback Read Feedback Contact Jack Aaronson Last time,
I wrote about warring trends in customer self-service, and the need for human interaction to generate loyalty. Based on feedback I received, today I'll explore that column's central conceit, which mainly went unspoken: loyalty shouldn't rely solely on a program. If it does, you've already lost the game.Way back when, loyalty programs were a really good idea. They rewarded high-value customers and built loyalty among customer bases. Then, everyone built one. Loyalty programs became synonymous with point systems, in the same way personalization was confused with collaborative filtering in the '90s.There are lots of problems with this. I'm (perpetually) writing a book called "The Unconscious Consumer," which explores various forms of loyalty, including loyalty programs. One of the major research topics is reward schedules and their effects on consumers.There are many kinds of reward schedules beyond the point program. SUBWAY, for instance, has a punch card that acts as a "buy X, get one free" card. Retail stores such as Barneys have special invitation-only sale days for high-value customers. Other retailers offer premium clubs that give members free shipping or a percentage off purchases.Airlines and hotels use what's technically called a "token economy." Points are accrued like money and can be spent on various services. Token economies operate a bit differently from other reward programs. They have a variable nature, and points can be equated to dollars. Due to their prevalence, token economies have become a commodity in a way other reward systems haven't.Nearly every airline and hotel has a point reward system. The system itself is no longer a differentiator. I belong to every reward program known to humanity. So it doesn't really matter where I stay or what airline I use. I accrue points all over the place. If I use one airline for a long time and accrue a lot of miles, my loyalty to that airline diminishes after I cash in the points. The playing field is again leveled against all other programs. Many hotels and airlines wish they could get out of point systems altogether.Unfortunately, they can't. Point systems have become a cost of doing business for those industries. Having one isn't a differentiator, but not having one is a detractor. One thing's for certain: they're no longer the most effective loyalty builders.I stay at the Fairmont Hotels because of their excellent customer service. Another hotel chain, Wyndham, doesn't have a point system in its loyalty program (it does partner with airlines, though). Its program is based on customer service and tailoring your stay. The staff makes sure your refrigerator is stocked with your favorite foods, your favorite beverages are waiting in your room, and everything is just as you like it. This correctly instills loyalty based on premium customer service.As point systems become a commodity (because everyone has one), companies must leverage the one thing that can't be duplicated about their company: brand and customer service. W Hotels can charge whatever they want for their hotel rooms. No one can compete, because no one can duplicate their brand.Mid-level companies can learn something valuable from these boutique hotels. If nothing differentiates mid-level hotels from one another because they all have the same price point, offer a reward program, and look and feel the same, who has a competitive advantage? No one.Likewise with the major airlines. United, Delta, and US Airways feel the same and offer point programs. JetBlue, Virgin Atlantic, and Song compete on price and style. JetBlue's brand, like Virgin Atlantic's, can't be easily copied. People fly on those airlines because the brand experience is unique.Real Loyalty Comes From the Brand ExperienceThese loyalty programs cost a lot to maintain. They've become so common they're just a cost of doing business, not a differentiator. Customer loyalty must revert back to the brand experience and the intrinsic desire we have to be loyal to a brand we like. That brand must somehow be differentiated so it sticks in our mind. Anyone who's flown Virgin Atlantic or stayed at one of Ian Schrager's hotels understands this. Mid-market brands (which don't cater to the luxury set) must figure out how to make their brand proposition stand out among their competitors.Brand is just as important online as off-. Companies such as hotels and airlines tend to have boring Web sites. Their brands are boring. Their design firms build traditional hotel or airline sites.Even the most boring Web pages are spruced up by a strong brand. Registration pages, for instance, all look the same: boring and brandless. JetBlue, however, inserts its brand into its registration page:Please enter your email address and a password that you're likely to remember (Don't worry, if you forget your password, we'll help you find it. If you forget your email address, we're both out of luck).Loyalty programs are running amok. Companies are mired in point systems. Those that will prevail rely on their brand differentiation. Brand experience loyalty will prove more important than any reward schedule or token economy.
Post a Comment