Step 1-6 on CRM-7-18 method

1. Service Concept / brand experience Service for loyal customers Concept / brand experience for loyal customers Traditional CRM focus Meaningful dialogue Meaningful dialogue with loyal customers CRM-7-18 focus service loyalty + personal loyalty +++ brand loyalty ++

2. CRM-7-18 © Guest Relationship Management Step 1 The Nature of G uest Relationships Concepts & Briefing “ Organization members should think and feel about relationships in the same way”

3. CRM-7-18 © Guest Relationship Management 83% of Dutch HSMAI professionals who participated in a CRM survey (2006) believe that the personal bond with a guest outperforms any brand or concept relationship…

6. CRM-7-18 © Guest Relationship Management No ! Hotels don’t apply the meaningful relationship mechanisms check-in “have a nice stay” breakfast “room number?” check-out “minibar?”

7. CRM-7-18 © Guest Relationship Management A relationship is a (often implicit) need of many guests 90% wishes to talk friendly to a manager of those 50% have suggestions for improvement of those 30% wish to commit into “more”

8. CRM-7-18 © Guest Relationship Management CRM-7-18 hotel dialogue (example) check-in “ first time in our city ? ” breakfast “ any suggestions for improvement for next time ? ” check-out “ when will we have the pleasure of seeing you again ”

10. CRM-7-18 © Guest Relationship Management Great value & commitment requires the right mix for each guest No surprise … convivial qualities Big surprise … conceptual qualities Surprise now and then … contextual qualities

11. CRM-7-18 © Guest Relationship Management 93% of HSMAI professionals believe that CRM is a top3 operational competency to be developed

12. mission impossible ?

14. CRM-7-18 © Guest Relationship Management 6. Relational content 5. Guest profiling 4. Dynamic VIP system (relationship accounting) 3. CRM team organisation 2. Style & objectives 1-to-1 matching Accountability Content team IT team Privacy team Change team Performance team Strategy team Relationship team

15. CRM-7-18 © Guest Relationship Management Team Name Relationship team Content team IT team Privacy team Change team Performance team Strategy team Key issue for skeptics We don’t prioritize our guests well We are not refreshing our offer We’ll never get the required info Some guests really won’t like this Our staff has no time or willingness There won’t be added value The program does not fit our need So… So… So… So… So… So… So…

17. CRM-7-18 © Guest Relationship Management Reflection assignment 1.1 Give your idea about CRM and apply the Peelen scan Objective to get an overall view what CRM is about in the current organization

18. CRM-7-18 © Guest Relationship Management Reflection assignment 1.2 Give examples of the current situation in your organization of CRM, by using real life guest cases from the past and explain your opinion/decision Objective To discover the possibilities of CRM in your own organization, to visualize a possible outcome of the CRM process

19. CRM-7-18 © Guest Relationship Management Reflection assignment 1.3 Key question : is the Eden Hotel giving all (individual) guests the attention they deserve? Objective Identify relationship gaps

20. CRM-7-18 © Guest Relationship Management Reflection assignment 1.4 Which guest information would you like to have prior to the arrival of the guest - and that you don`t have today Objective Acquire guest info that facilitates you in building better contacts/dialogues/relationships

21. CRM-7-18 © Guest Relationship Management Reflection assignment 1.5 Give examples or topics and subjects that you would like to address during your contact moment with loyal guests and NOT with new guests. Objective To gain an insight and explore the ideas of your colleagues what a meaningful dialogues could be about.

22. CRM-7-18 © Guest Relationship Management Reflection assignment 1.6 Scan the CRM 7-18 whitepaper under user document and give your opinion Objective To formulate an opinion about CRM 7-18.

23. CRM-7-18 © Guest Relationship Management Step 2 Relationship management performance and “ style ” Briefing

24. CRM-7-18 © Guest Relationship Management Paradox : what comes first ? QUALITY ? RELATIONSHIP ?

25. CRM-7-18 © Guest Relationship Management Moving to a 1-to-1 focus Service program Sales & after sales program Service+ program (CRM?) Brand standards Loyalty program (CRM?) Meaningful dialogue

26. CRM-7-18 © Guest Relationship Management Moving to a 1-to-1 focus Service program Sales & after sales program Service+ program (CRM?) Brand standards Loyalty program (CRM?) Meaningful dialogue Change in Financial Perspective Turnover Cumulated turnover Lifetime value

27. CRM-7-18 © Guest Relationship Management Moving to a 1-to-1 focus Service program Sales & after sales program Service+ program (CRM?) Brand standards Loyalty program (CRM?) Meaningful dialogue Change in Client Perspective Average satisfaction Individual satisfaction Individual commitment

28. CRM-7-18 © Guest Relationship Management Moving to a 1-to-1 focus Service program Sales & after sales program Service+ program (CRM?) Brand standards Loyalty program (CRM?) Meaningful dialogue Change in Organisational Perspective Product level Integrated (corporate) Guest level

29. CRM-7-18 © Guest Relationship Management Moving to a 1-to-1 focus Service program Sales & after sales program Service+ program (CRM?) Brand standards Loyalty program (CRM?) Meaningful dialogue Change in Learning Perspective dispersed shared Systematic/culture

33. CRM-7-18 © Guest Relationship Management How good is your Eden Hotel at CRM ? Change in Learning Perspective Change in Organisational Perspective Change in Client Perspective Change in Financial Perspective

34. CRM-7-18 © Guest Relationship Management How good is your Eden Hotel at CRM ? Change in Organisational Objectives Change in Client Objectives “ optimized quantity and quality of dialogues” “ optimized relationship perception ” Make your choice from the list of operational objectives Make your choice from the list of guest objectives

36. CRM-7-18 © Guest Relationship Management “ maybe the objectives don’t look new, the goals and targets do ! ” feedback on service quality Before : 1,27 % of all guests After : 30 % of all guests example SAMPLING PROFILING

38. CRM-7-18 © Guest Relationship Management

41. CRM-7-18 © Guest Relationship Management Reflection assignment 2.1 "Which initiatives and programs are currently in place or will be put in place that will help improve guest relations. How will the success be measured? Which positive implications do you think these will have?" Objective To list all systems and programs that are in place at this moment that can contribute to CRM 7-18 and to set a way that this contribution can be measured

42. CRM-7-18 © Guest Relationship Management Reflection assignment 2.2 What does your hotel really expect from CRM 7-18 Objective 5-10 sentences that describes your first impression of CRM and the objectives that you expect to be the outcome of the program

43. CRM-7-18 © Guest Relationship Management Reflection assignment 2.3 Comment the HSMAI-NHTV that is already filled in by 200 hospitality professionals Objective To compare your vision on CRM with the vision of 200 pro’s.

44. CRM-7-18 © Guest Relationship Management Reflection assignment 2.4 Set the operational objectives Objective To set the objectives that we want to achieve on a operational level by implementing CRM 7-18.

45. CRM-7-18 © Guest Relationship Management Reflection assignment 2.5 Set the business objectives . Objective To set the objectives that we want to achieve on a business level by implementing CRM 7-18.

46. CRM-7-18 © Guest Relationship Management Reflection assignment 2.6 Set the objectives that we want a guest to achieve Objective To set the objectives that we want to achieve on a business level by implementing CRM 7-18.

47. CRM-7-18 © Guest Relationship Management Step 4 Segmenting the guest database Briefing

48. CRM-7-18 © Guest Relationship Management Segments are based on different needs e.g. business/leisure Target groups are based on communication e.g. viewers of television program VIP levels or classes are based on a categorization of relationships … the right segment, right relation, right attention!

49. Hilton Honours Diamond&Gold Hilton Honours Silver Hilton Honours Blue Non-member business travelers Convention & resort traveler % of guests % of revenue % of net-profit 1% 2% 6% 25% 66% 6% 5% 7% 21% 61% 28% 18% 10% (6%) 49% net-profit = revenue – real estate – operating costs - advertising How many guests do you want in each category ? How much do you reinvest in each of them ?

50. Hi, my name is Fred. I am nr 78 on your RFM-ranking of best guests. How accurate is your forecast of my future spendings with you? RFM analysis shows that Fred has a ...% chance of coming back Some guests know your organization better than your staff does ! Fred has a 50% chance of having suggestions for improvement “ relationship classification is NOT a matter of favoritism” Who knows Fred within your organization? Who will be talking to him?

52. CRM-7-18 © Guest Relationship Management The CRM Reflex interactive non-interactive low potential spending high potential spending existing client new client Satisfied ? less satisfied ?

53. CRM-7-18 © Guest Relationship Management Quote of the Day “ A relationship is not so much an emotion as it is a deal It’s about what you need to do in return for the guest who abandons choice , choice of hotel and later maye even choice of services ”

54. CRM-7-18 © Guest Relationship Management

55. CRM-7-18 © Guest Relationship Management

56. CRM-7-18 © Guest Relationship Management “ If a guest took all the trouble to go through your VIP classes why should he take the risk of changing to another hotel ?”

59. CRM-7-18 © Guest Relationship Management Reflection assignment 4.2 Captain’s table dilemma : which other guest profile criteria determine whether a guest is more important than another? Which guest gets an upgrade in his VIP level because of his profile? Objective To include strategic and marketing segmentation criteria in the VIP ranking system

60. CRM-7-18 © Guest Relationship Management Reflection assignment 4.3 What about the VIP status of complaining guests or guests with a lower than average guest satisfaction level ? And what about the guest who just show to be more interactive and interested in a relationship? And those who don’t ? Objective Linking the VIP system to the complaint handling or recovery system

61. CRM-7-18 © Guest Relationship Management Reflection assignment 4.4 How do you see the relationship with each VIP class (tip:create a VIP mood board)? Who does it (see step 3)? how much time should be invested per guest? when should relationship moments take place? Which typical benefits/incentives should be given? Objective Create an outline for the loyalty / benefit program : inform, surprise, reward, activate !

62. CRM-7-18 © Guest Relationship Management Reflection assignment 4.5 Looking back on the 3 types of program objectives set in step 2 which ones are of particular importance for each VIP class and which targets should be achieved for these objectives in each particular class? Objective De-averaging the general objectives of step 2

63. CRM-7-18 © Guest Relationship Management Reflection assignment 4.6 Find out for the hotel how many guests will probably be in each VIP class (estimations are enough for now). Determine total time and budget per VIP class and per guest in each class. Is this enough to achieve the objectives and targets set in 4.5 ? Objective Assign time and money to each VIP class

64. CRM-7-18 © Guest Relationship Management Step 4 Segmenting the guest database GOOD LUCK

65. CRM-7-18 © Guest Relationship Management Step 5 Guest profiling Briefing

68. The CRM Cycle (Nyland Consulting Group) CRM-7-18 © Guest Relationship Management Through analysis and interaction you learn what customers value, what types of service are important to them, how and when they like to interact, what they want to buy , which profitable customers they can refer. D ifferentiati on of service and communications based on the value customers are expected to deliver C ost-effective customiz ation of products, services, channels and media based on the needs of quantitative customer segments I nteraction occur s through sales , customer service , online and in many other areas. These s hould all have easy access to relevant, actionable customer information and be trained how to use customer information to tailor interactions based on both customer needs and customer value . C ustomer perceptions of value are based on a number of factors including price and both the quality and ease of use of products and services The more we learn about customers, the easier it is to pinpoint those customers that are producing the greatest value for the organization as well as the reason why and the way how . Those are the customers and customer segments that we want to clone in our prospecting and acquisition efforts. Maintain interaction; customers change as they move through life stages; be prepared to modify the service and value proposition

69. “ while the guest moves thru VIP classes we have a unique opportunity to get to know him better and thus gain an unbridgeable advantage over our competitors ” CRM-7-18 © Guest Relationship Management

74. CRM-7-18 © Guest Relationship Management Step 5 Guest profiling Good luck

75. CRM-7-18 © Guest Relationship Management Step 6 Relationship content and relationship program Briefing

76. CRM-7-18 © Guest Relationship Management Step 6 articles

81. What do your customers consider as interesting news ? Vicinity Scope or Size Importance Culturally close Familiar context Unambiguous Unexpected character Dramatical value CRM-7-18 © Guest Relationship Management

85. The customized value proposition “ CRM is about making guests jealous of your best clients ” CRM-7-18 © Guest Relationship Management

88. Action i 1 (info, question, personal contact) Action i 2A (info, question, personal contact) Action i 2B (info, question, personal contact) Response QL = A Response QL = B T O + x days T O Time Response Quality Segment i 2 ways of planning the dialogue 1. planned CRM-7-18 © Guest Relationship Management

89. clients needing to be contacted database with qualified content DAILY MATCH OR 2. pragmatic CRM-7-18 © Guest Relationship Management

90. Hotel services Guest wishes & needs Zone of profit & comfort Grow satisfaction & loyalty Consolidate & grow sales Strategic Role of the Relationship Officer and the non-core value proposal CRM-7-18 © Guest Relationship Management

92. CRM-7-18 © Guest Relationship Management Step 6 Relationship content and relationship program Good luck !