Hilton Hotels Corporation CaseGBMP 508CUSTOMER RELATIONSHIP MANAGEMENTHILTON HOTELS: BRAND DIFFERENTIATIONDATE – 03/20/2012SUBMITTED BYGIBIN JOSEPH ZACHARIAHSTUD # – 820-334-092What is Hiltons core business? What is the value of a brand in the lodging industry?Hilton Hotels Corporation is a global hospitality company. Perhaps it is the most recognizable name in the lodging industry. Hilton offered significant recognition and customer traffic with their advertisements, programs and electronic distribution systems. The company is responsible for delivering the guest experience on property and abiding by the brand standards. Brand values have a lot to do in lodging industry. For instance two companies selling similar product at a same price. Yet people tend to buy one product more. If the question is why the answer is brand value of the product. There are various aspects that determine a brand value. This can be quality, premium price, higher market share or even a positive image. In the case of lodging industry, once the customer have a bitter experience with the service they are never going to come back to stay at the same place anymore. The brand value in this industry is more over attained through word of mouth. If a customer gets a quality service obviously he will recommend the place for his known ones too. Thats how a strong brand image is built in lodging industry. The brand should create values in customers mind by helping to assure them of a uniform level of quality. Then the customer becomes loyal to the brand.
Evaluate the performance of the Customers Really Matter initiative to date.The nervous system of Hilton Hotels Corporation was a comprehensive and integrated infrastructure known as OnQ which is custom built enterprise system designed to support the property-level operations if each hotel in Hilton Corporation to enable Customers Really Matter initiative at each customer touch point. The essence of the initiative was that CRM is a way to use technology to give you the power to solidify the relationship with the best customers. It took $650,000 to build OnQ and yearly maintenance was estimated to around $1M. Before there were barriers to good service as information was not integrated and easily available, time taken in call centres were longer, they couldnt give continuity to guests who stayed in multiple brands and also if the customers had a bad experience in their previous stay they
A new technology allowing the service providers to get people to know the guests and it was used by RVC to hire more customers for the cost of new. The data which this technology used was used to improve customer satisfaction.
In 2013, the CRM technology was acquired by BDO for a total cost of $3.5M for this company and to put into storage an estimated 12,000 customers and $3.6M to support new activities within the HR department. At the end of 2014 the CRM technology took into storage $1M.In early October 2015, the first call centre was installed by BDO and more than 400 customers took to the network for onQ. During this period, the amount of the CRM service was estimated to be over $1M.About the CRM team at BDO, we have met twice with the clientele in BDO to get a good sense of the technology being deployed, our plan as to be with customer feedback, as well as our experiences in using different technology.BDO will start using the technology as soon as it is fully operational and in November 2014 to implement the new and innovative strategy. This is a complete change that will enable this technology to be used at Hilton hotels all over for more good customer experience or to increase efficiency.