Managing the Customer Experience

Executive Summary
In the following report the customer service experience of Riverbank Park Plaza has been
analysed and recommendation for its improvement has been made. The CRM system used by
different businesses in the hospitality sector has been evaluated with their advantages and
disadvantages. The different CRM systems such as analytical, operational and collaborative
are explained in the report. The implementation of digital technology to increase the customer
experience of the customers and meet the customer satisfaction standards are reviewed in the
report. The various technologies and their implementation has been analysed and evaluated in
the report to determine their advantages. The technologies such as artificial intelligence
chatbots and CRM software applications have been found in the report to be best suited for
the chosen organisation.
Table of Contents
Executive Summary ................................................................................................................... 2

Introduction ................................................................................................................................ 4

LO1 and LO2: Presentation ....................................................................................................... 5

LO3 .......................................................................................................................................... 15

P5 Employment of Digital technology in managing the customer experience with CRM

systems ................................................................................................................................. 15

M3: Evaluate how digital technologies employed in managing the customer experience
within the service sector are changing CRM systems to effectively acquire and retain
customers ................................................................................................................................. 18

D3 critically evaluate the advantages and disadvantages of CRM systems used in service
sector businesses for acquisition and retaining of customers .................................................. 18

LO4 .......................................................................................................................................... 18

P6 Illustration of customer service strategies in the context of hotel services .................... 18

P7 Customer service strategies to create and develop the customer experience ................. 20

M4 Review the application of customer service strategies of a specific service sector

organisation in creating the customer experience and make recommendations for
improvement ........................................................................................................................ 21

D4 Apply effective customer experience management within a service sector business to

maximise customer engagement .......................................................................................... 21

Conclusion ............................................................................................................................... 22

References ................................................................................................................................ 23
Introduction
Customer relationship management is essential for a business in the hospitality industry. This
is because the industry is service based and deals with direct customers on the basis of
personal interaction and communication. There are digital systems that are used for managing
the customer relationship with the hotel called CRM systems. CRM stands for customer
relationship management are handled by guest relation managers. In the digital age it has
become necessary for an organisation to apply and implement digital technology to the
management of CRM systems. This is for the betterment of the consumer relationship with
the hotel and its staff which will eventually bring more customers to the business and also
retain them for a longer time. The hotel chosen for the analysis and application of customer
service strategies is Riverbank Park Plaza. Further recommendations will be provided in the
report with the help of strategies and theories to develop the customer service experience of
the hotel.
LO1 and LO2: Presentation
LO3

P5 Employment of Digital technology in managing the customer experience with

CRM systems
Digital technology is very essential for the business to grow and expand into further regions
and at the same time be time and cost efficient. The digital implementation of services and
the ease of access for consumers have helped in building a better consumer-employee
relationship. There are different customer relationship management systems that allow the
business to manage and retain customers to deal with them again and again. The CRM system
manages are of different types such as analytical CRM, operational CRM and Collaborative
CRM (Grissemann et al. 2013). These CRM systems operate for different purposes but the
digital technology is effective for all of them. The operational CRM systems are the systems
that make use of software applications the most because they bring together all the
information of the customer because it arranges all the data about the interaction with the
customer and their purchase history in a data base (Tanford et al. 2012). The analytical CRM
system is used for critically evaluating customer data and hence coming up with better
marketing strategies to attract a certain type of customer. Finally the collaborative type of
CRM systems is that where all the functions and departments in an organisation come
together to share the information and data of customer interactions (Torggler, 2009). This
CRM is used by travel agencies and hospitality businesses the most. The different uses of
CRM systems with the help of digital technology are such as:

Digital softwares for CRM systems- Digital softwares are used for mostly all types of CRM
systems because it is a very efficient and time saving option compared to other forms of
maintaining consumer data based on interaction. CRM software applications are being
constantly upgraded to provide maximum optimization to the client information. This is
important because the software also allows implementation of various features that make it
easy to access and link between different departments for different purposes (Stein and
Smith, 2009). For example a client previous history of meals can be accessed through the
CRM software by the Food and Beverage department and at the same time their recreational
activities can be accessed by the other departments of Riverbank Park Plaza hotel.

Customer support in CRM through AI- The customer services can be essentially improved
with the help of AI in the form of chatbots and automated replies. Customer service can be
managed through CRM systems for collaborative and as well as operational CRM systems
can be properly used with this facility. The sales and customer service department can handle
consumer queries with artificial intelligence options like automated replies and chatbots to
engage consumers in conservation about their needs and preferences while they get back
(Rahimi et al. 2017). The customer’s data and information that they provide to the chatbots
with atomically be stored in the CRM software of the responsible manager. This way the fear
of losing important data will be reduced and at the same time the consumer will be kept
engaged.

Cost efficiency and removal of location barriers- Cost efficiency is a major factor along
with the location barriers removed in managing customers in the hospitality industry. To
communicate and interact with the consumers and promote new features to them a manger
does not have to call or meet them in person. Automated emails and reminders from the CRM
systems especially the analytical CRM systems will be sent to the consumer based on their
prior deals and preferences by the software. This will help the manager using the CRM
system to be reminded to follow up on the consumer and ensure that they got a clear message
about all the new facilities by the hotel (Milović, 2012). The consumer and the employee
relation will also become better with the attention provided and it might even turn out to be
new sale thus increasing revenues.

Wireless connectivity and networking- Wireless connectivity and networking is a benefit to

all types of CRM systems used in the hospitality industry including analytical, operational
and collaborative types. The ability to connect to the system at any time enables the customer
relationship and customer service managers to contact and respond to the queries of the
consumers spontaneously. This will benefit the business in terms of better consumer-business
relationship due to avoidance of delay in response (Luck and Lancaster, 2013). Consumers of
Riverbank Park Plaza will not only feel prioritized and important to the business they will
also be able to contact the responsible manager at any given time.

Advantages and disadvantages of different CRM systems

Advantages

The advantages of CRM systems is that it stores all the data of the consumers at one place
where the responsible manager as well as other related departments of the business can access
it. The other advantage is that it increases the customer relationship with the organisation
through processes like sending automated birthday or anniversary wishes. The accuracy of
the data is checked by the CRM software which increases the accuracy of implementing
marketing strategies to various customers of a business (Dong and Zhu, 2008). The CRM
software helps in the increase and growth of a business by pacing up the process digitally and
storing the data of all consumer interactions rapidly as the company grows to make more
consumer relationships.

Disadvantages

There is a constant risk of the company software getting hacked and release of consumer’s
data to the hands of people without the authority to access. The other disadvantage is the
transformation of the employee’s practices and tools to completely going digital with the
CRM softwares. This adjustment time taken by the employees slows down the process of the
business and hence creates a bit of delay in responding to the consumers. There is another
disadvantage regarding delay of process for using CRM systems is that the employees of the
hotel has to record all the telephonic conversations and personal interactions through notes
with the client (Soeini et al. 2012). This is because they will have to store in their CRM
system later for the ease of access and the implementation of all the features later on.
M3: Evaluate how digital technologies employed in managing the customer
experience within the service sector are changing CRM systems to effectively
acquire and retain customers
Customer Relationship Management deals with Contact management, account management,
quote and order management, opportunity management, campaign management, service
automation and task management along with report and dashboard. CRM is implemented to
simplify marketing and sales process, to make call centre more efficient, to provide better
customer service, discover new customer, sell product more effectively. CRM
implementation is done to increase revenue and increase customer satisfaction, to target new
prospect and increase sales and attract new customers (Grewal, et al., 2009.). Features of
CRM include customer response, and service, customer satisfaction and handling customer
complaints. Examples include Sugar CRM, Really simple system, Net suite CRM and Zoho.
There are Operative CRM, Collaborative CRM and Analytical CRM.

D3 critically evaluate the advantages and disadvantages of CRM systems used in

service sector businesses for acquisition and retaining of customers
The advantages of CRM : It helps manages all customer data in one place and allows workers
to be more productive and efficient by tracking customers history and adding reminders for
the sales call and meeting. It manages your growing database and speed up the growth
process. It centralises data. The process becomes automated sending auto mails and SMS to
customers. It builds long lasting relationship with customers and brings improvements in
business(Heller and Parasnis, 2011.). The disadvantages include transition from manual to
automatic process and psychology of being tracked with CRM software. It brings slowdown
in processes.

LO4

P6 Illustration of customer service strategies in the context of hotel services

The customer service management plays a very important role in restoring the relationships
with the clients of a hotel. The hotel staffs have to deal with a wide range of consumers from
varying needs and preferences. This requires a vast range of customer service strategies to be
applied while processing interactive communications or providing services to the consumers.
These services are such as:
Customer lifetime value- The customer lifetime value helps the staff of a business in the
hospitality sector to restore consumers for a longer period of time and value them for the
same. This strategy is applicable to the business because when the staff maintains a healthy
relation with customers that have shown brand loyalty and has returned to the business the
consumer feels important and continues to deal with the same business. The consumers in
this way are retained by the business for future purchases. When the business only focuses on
attracting consumers this not increases the cost of business but also doesn’t give the
guarantee of the customer returning for future deals (Ramanathan and Ramanathan, 2011).
Whereas when a returning customer is shown importance and priority they are more likely to
stick with the same business creating brand loyalty.

Loyalty programs- The loyalty programs for the returning customers are how the CLV is
implemented in the business operations. The consumers that show loyalty are rewarded for
their loyalty through special discounts and other incentives. The rewards in the loyalty
programs can vary from businesses to business in the hospitality industry. The Riverbank
Park Plaza can provide upgradation in rooms for loyal customers, special discounts on stay
and even free meals (Chen, 2015). These loyalty programs will attract the returning customer
to continue dealing with the business.

Implementation of CRM systems- Implementation of CRM systems will help the business
to maintain and keep a track of all the customer data. This can help the business to continue
updating consumers about all the promotional campaigns and new launches by the business.
The consumers in this way feel important and keep returning to the business to avail the
discounts offered to them through automated messages (Assimakopoulos et al. 2015). CRM
systems can help the business wish consumers on their anniversaries and birthdays which will
again make the consumers feel that they are cared for by the brand.

Implementation of social media interaction- Social media interactions in the digital age has
become a necessary step towards maintaining customer relationships with the clients. This is
because the consumers can now contact the brand through social media which will create a
sense of connectivity with the brand. Social media is also another easy and effective way to
promote the business’s activities to the consumers (Cabiddu et al. 2014). The consumers can
also be invited to all official events of the hotel through social media and build better
relationships.
P7 Customer service strategies to create and develop the customer experience
The implementation of customer service strategies to help Riverbank park plaza to develop
customer experience with the business can be done in the following ways:

Greeting the customers on the query as well as on their arrival with enthusiasm- The
customers have to be greeted when they arrive with maximum enthusiasm so that they feel
welcomed at the hotel. The Riverbank Park Plaza staff has to escort them towards their room
and offer to be at their service whenever they require. The staff has to explain to them all the
areas of the property and all the activities that they can enjoy during their stay at the hotel.
The staff should also acknowledge to them the ways they can contact the staff such as
through telephone as well as the room service bell (Shaw et al. 2011). The customers in this
way will have an engaging and fulfilling experience where they are likely to feel that their
investment has been valued.

Being available to the consumer as and when they require- Being available to the
customer is very important. This requires all the staff in the hotel to be well equipped to
handle any confusion or query that the customer may have and they should be able to
promptly resolve it. This also requires the staff of the organisation to be at the place of
contact in case a customer calls for room service or even any problem they might have with
their rooms (Verhoef et al. 2010). The customer should be given topmost priority by all
departments in the hotel such as the food and beverage department, housekeeping
department, customer service department and even the front desk.

Providing various facilities to returning consumers as gratitude- Providing various

facilities to the customer during their stay at the hotel will help the business grow and expand
with the help of customer satisfaction. The guests pay a huge amount of money to the hotel
for their stay at the property and therefore they do not only expect the room and food
services. The duty of the organisation is to exceed the expectations of the customers by
providing them excellent service quality. The total quality (TQ) has to be maintained by the
organisation by providing a huge number of facilities and best quality features (Han et al.
2011). The food quality and the room quality here play the most important part and therefore
as per the consumer preference the room and the food has to be prepared and provided.

Following up on the customers after their departure- The above mentioned

implementation of customer service strategies to increase customer engagement will be valid
while the customer is staying in the hotel. But this implementation has to be done post their
departure. The customer service managers with the help of CRM systems have to be
consistently in touch with the hotel guests and do their best to make them feel important and
pursue them for future stays at the hotel (Raza et al. 2012). The customer service managers
can use this strategy to continue keeping the customer connected and engaged with the hotel
and thus increase their chances of being loyal.

Ways to maximize customer engagement and fulfill customer and business needs

The ways customer engagement can be maximised are as follows:

 The guests shall be invited to take part in the recreational activities organized by
Riverbank Park Plaza and enjoy their stay this will increase customer satisfaction and
loyalty (Yilmaz, 2009).
 The guests shall be approached to make full use of the property and explore the
different facilities provided by the hotel such as swimming pool, playground,
restaurant and bar this will keep the guests engaged and also increase business
revenues (Hu et al. 2009).
 The guests shall be asked to provide their feedback on the services of the hotel and
highlight areas that require improvement as it will guide the hotel to make changes
and thus attract more customers (Kim et al. 2012).

M4 Review the application of customer service strategies of a specific service

sector organisation in creating the customer experience and make
recommendations for improvement
Customer service strategies include building consistencies between online and offline
communication (Homburg, et al., 2017). Take care of your employees, rewarding loyal
customers, surprising your customer with a gift, focus on employee engagement, and gain
feedback from customers, attention to detail and go the extra mile.

D4 Apply effective customer experience management within a service sector

business to maximise customer engagement
Customer experience management is the practice of designing and reacting to the
customer interaction to meet or exceed customer expectation and increase customer
satisfaction and loyalty in hospitality industry. Customer experience management
 describes how company takes control or how it reacts with customers in order to build
customer loyalty and positive word of mouth and reduce customer detractors who speak
negatively about the business (Schmitt, 2010). Customer experience management aims at
assessing market needs, experiencing mapping and touch point analysis.

Conclusion
It can be concluded from the findings of the report that Riverbank Park Plaza can adopt a
range of strategies to improve their customer service and maximise customer experience. The
hotel has to maintain a CRM system and the best system type for it is the operational system
which will allow the business to keep a track of the guests and follow up. The business can
make use of customer loyalty programs to attract and retain consumers. These strategies will
therefore help the business grow and expand and at the same time maintain customer loyalty.
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