Performance Analysis of CRM
CRM initiatives impact on both efficiency of operations and company effectiveness.
Cost effectiveness
Facts:
Hilton worldwide internet websites provides cost effective customer service, including online hotel reservations and HHonors enrollment. business, technology and information services for our hotel guests, including high speed internet access at virtually all of our hotels system-wide. self-service check-in kiosks at 47 of our owned or managed hotels as of December 31, 2004.
Operational efficiency
Facts:
OnQ system is a single technology platform, which links our brands and hotels to enhance customer service and loyalty, as well as maximize operational efficiencies. matches customer reservations with profile database records in very small pace of time in order to make guest feel special. provides proper allocation of attention where needed.
It also provides for brand standards that permit each hotel to establish its own room rates, but requires the hotel to offer such rates consistently across all designated distribution channels. And “Our Best Rates. Guaranteed.” offers a price-matching guarantee to encourage customers to book their reservations through the above referenced distribution channels.
Evidences:
Period 2001-2006:
Total Calls :+ 15.31%
Net Revenue per Call: + 40.3% ($73.09 => $102.55 )
In 2006, 41.4% people calling have booked a room. (38% in 2001)
For 2004 gross reservations through HRW, GDS and internet sites increased 13% over 2003 online bookings through our branded websites increased 28% over 2003.
Source: Hilton Hotel Corporation
Return on investment
Benefits and weakness of CRM
Hilton Hotel’s CRM strategy has largely been about the operational perspective of CRM rather than analytical level. The primary goal has been efficiency with a view to the bottom line. Overall, the strategy appears to be