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Eurhotec 2001
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Customer relationship management (CRM) - A bold new direction for hospitality marketing

Cindy Estis Green, Pegasus Business Intelligence

Customer Relationship Management (CRM) has been around since 1999 and is an extension of the trend that started with guest history (1991), database marketing (1994), and data warehousing (1997).
It is less technology focused and more strategy focused. It involves putting data from sources (eg. PMS, CRS, sales & catering system, mailing campaigns, internet, inquiry files etc) into a data warehouse, then mining it to get the marketing intelligence to set your strategy, prospect for new business, enhance customer retention, do attrition analysis and meet customer preferences.

The CRM Cycle:
w Extract and transform data from your source systems
w Detect patterns of customer behaviour
w Execute programmes, eg. direct marketing, pro* Analyse their success

The Data Warehousing Cycle
w Creating a central warehouse
w Data mining process
w Data modelling and ROI
w Customer life-cycle analysis

How to do it
w You require clean, accurate, standardized data to ensure the resulting statistics are useable. Software exists to assist the process but varies by country. There is also software to eliminate duplicate identities, but it is expensive.
w You then transform the data according to variables such as length of stay, season of stay, demographics.
w You create customer profiles, ie. segments and sub-segments of customers, based on the assumption that one set of customers can be expected to have similar behaviour to others.
w Calculate ROI on guest loyalty, higher repeat usage and attitude analysis. It can help to create new business. This can enable marketing campaign conversion by micro segment analysis and track business of individual customers.
w It is not about making mailing lists ­ it's a 'way of life'. CRM impacts all aspects of the business: marketing, customer service, product development, distribution planning.

CRM works well in hospitality because you have specific narrow market segments, product types that support high end customers, there is a high level of customer interaction with the product, there are multiple distribution channels, a strong propensity for repeat customers and a wealth of customer data available. Typical CRM initiatives include frequent-user card programmes, booker programmes, upscale service programmes, guest comment cards.

Critical success factors include:
w Consistency in service delivery.
w Continuous customer interaction.
w Creation of customised products and implementation of metrics to test all CRM initiatives.
w Company wide commitment, the technology infrastructure, integration of the systems and measurement criteria.
w It is not fast, cheap or easy ­ but it is no longer optional.

Exhibitors

Alex-Temex Multimédia, All hotels.com, Automatic Minibar, Bartech, Book visit.com, Cais Internet, Cehmi, Citadel, Cisco, Comtelco, Chronologix, Cyberpixie, Easico, Easy Rms, Gems, Globaloop, Go co-op, Hotelguide.com, Hewlett Packard, Hftp, Hogatex, Hospitalitynet, Hotel Concepts, Hotel Information Systems, IBM, Ideas, Intens, Locatel, Lodging Management Systems, Meeting Matrix International, Multitech, Net trans, Newmarket international, Nstreams, Optims International, Philips ITV, Philips Communications, Roomwithnet.com, Scanres, Sens Interactive, Sheletron, Siemens, Synxis, Talus solutions, Teledex, Telematrix, Tesa, Tiger Communications, Trust international, Ultraserve, Videojock, Vingcard, Vulcano, Wayport, Wiredinn.com, Wizcom, Cendant.

Corporate Sponsors
Cisco Systems, Trust International, Vingcard/Elsafe.

Sponsors
Air France, CEHMI Paris, CST Europe, Hewlett Packard, L'Hôtellerie, Hospitalitynet, La Maison du Café, Leonardo, Multitech, Performances Tourisme, Philips ITV, Le Printemps, Nortel Networks, Telematrix, Topsys,
Wired hotelier.com.

Founding Sponsors
4th Network, American Express, Elsafe, Fidelio Software, Hotel Information Systems, IBM, Prologic International, Tesa, Vingcard.

Support by
Chambre de Commerce et d'Industrie de Paris, Office du Tourisme et des Congrès de Paris.


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L'HÔTELLERIE Eurhotec Special Issue 8 February 2001


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