Customer Loyalty Marketing Research Essay

Question:

Discuss about the Customer Loyalty Marketing Research.

Answer:

Introduction

The report of the hotel chain illustrates the critical analysis of the management decision taken by the senior management of the hotel. The management decision of the hotel is based on the technology and the systems of the company based on the different IT implementation. The report will discuss about the development of the operational aspects of the ten hotel chains such as brand loyalty, continued patronage, customer choice, etc. The usage patterns of ICT in the organization are also discussed in detailed with their potential issues in it. The aim of the restaurant is to increase the strength of the customer base of the hotel chain along with the improved management operations and the goals and objectives of the company. The use of ICT is to gain the competitive advantage of the hotel chain in the market. Recommendations are to be formulated which are based on the aspects of the management decisions as well as technology implementation in the project.

The case study consists of the merging of few hotels i.e. ten hotels in a single hotel chain in order to combat the pressure of the market for accommodation purpose of the lower accommodation hotel. However, it can be said that the new hotel chain has different categories of hotel starting from bed breakfast homes to backpacker to luxurious suites. The new hotel chain is known as Stay Together[1]. The aim of the hotel chain is to combat the sales of the websites like hotels.com, booking.com, etc. that are responsible for lesser sale of the hotel rooms. The main aim is to form a single website which will be provided to the customers from where they can book the accommodation and other facilities related to it. The price of the products will be remains same in all seasons except the peak season. The following section discusses about the critical analysis of the management decisions of the hotel chains[2].

Loyalty schemes are used in any businesses that are proven to be beneficial not only in attracting customers but also in order to maintain the loyalty of the customers and residents of hotel who are using the services of the hotel. The loyalty scheme of the hotel chain will be competitive enough in order to use the services of the hotels more than the regular services of the hotel. It can be said that the customer loyalty scheme of the hotel chain is Stay Together Loyalty that will reward its customers with different facilities such as car parking, free nights, airport transfers, etc. The loyalty programs of the hotel chain are structured in terms of the marketing strategies that are formulated for the customers[3]. For instance, customers who are using regular services of the hotels, they are provided with different kinds of customers in the hotel. The loyalty programs of the hotel are formulated in a way so that they can meet the needs of the customers individually. On the other hand, it can be said that sometimes the individual schemes of the hotel chains sometimes causes failure in the loyalty schemes of the different types of customers which are not satisfying the expectations of the hotel residents. The good aspect of the loyalty programs of the hotel chains are that it can attract new customers as well as the retention of the existing customers. The marketing techniques are also included in it[4]

Free buffet breakfast and dinner

In terms of hotel industry, free breakfast and dinner or buffet are common offers that the hoteliers provide to the customers. It can be said that the free buffet or other times of meals are treated as complimentary treatment to the customers. The customers and tourists usually welcome any thing which is free. The senior management of the company decided that will include dinner and breakfast which will be included in the cost of the hotel room charges. The company StayTogether will include this thing in the website in the offers section of the website. It is one of the factors that will increase the customer loyalty of the hotel visitors[5]. The scheme of quality breakfast and meals is responsible for creating a competitive advantage of the hotels in the industry. It is seen that most of the customers search for hotels that have free breakfast or dinner. The customers will not have to go to other places in order to have breakfast and dinner which is irritating sometimes for them. It is seen that the hotels of the company are having more customers due to the complimentary breakfast provided to them. Research has proved the fact that the relationship between the visitors and the management of the hotels also gets increased due to the complementary aspects of breakfast and dinner. However, it is also a fact that this scheme will not affect the customers who are having breakfast or dinner from different exclusive restaurants. They will not be attracted towards this scheme of StayTogether[6].

Rebates are considered as a remarkable decision of the management of the company that has decided by the company in order to increase the customer satisfaction of the hotel chains. Rebate system will encourage the customers in order to book the hotels along with the other transportation facilities of the places. For instance, it can be said that the StayTogether include rebate systems to the customers in terms of the airlines booking. The visitors of the hotel are interested in the transportation of the places that are related with the tours and travels. The rebates are responsible for attracting the visitors of the hotel[7]. The management decision of the company is focusing on the development of mobile app in terms of rebates. The visitors of the webpage are provided with deals and discounts related to the hotel rentals and other services of hotels. Rebates are different for different types of customers. If they are using the website rebates are different. On the other hand, if the customers are using the mobile application then they will be getting different types of deals and offers[8]. This will affect the customer relationship with the hotel chain with the customers. Customer relationship is the important aspect in the hotel industry in order to seek customer retention and relationship. It will help in the different types of Word of Mouth Promotion of the hotel chains. On the other hand, it can be said that the sometimes the customers may not get happy with the services of transportation that are offered by the hotel chain in rebates[9].

Social responsibility

Corporate social responsibility is the important part of the aspect of the business. The business responsibilities of the hotel chain group are mandatory as it comes under the regulation of the government of the country. It is seen that the hotel chain is contributing 1% of the income of every bill received from the customers. The customers are given an opportunity in order to contribute to the charity provided by the company to the community[10].

The decision taken by the different officials of the senior management of the hotel chain is considered as a master stroke by them in terms of the marketing campaigns of the hotel group. People nowadays are responsible for the contributor of the sustainability aspects in a different way. Companies nowadays promote the element of sustainability in their operational departments of companies in order to attract more customers to it.

It can be said that the company has mentioned the impact of the charity donations to the various charity homes[11].

This is an indirect marketing technique used by the group of hotels in order to increase their corporate brand image among the different charity organizations. Apart from that, the visitors of the website are given the choice in order to select their preferred charity organizations while donating their contributions to it. Finally, it has been found that this helps in increasing rate of bookings of the hotel rooms of the different hotels of the hotel chain. It is indirectly helping the company for new customer attraction and retention of the existing visitors of the company[12].


IT and IS issues are more or less same in terms of technical aspect. IT issues refers to Information Technology issues while on the other hand IS issues refers to Information System issues. The issues can be categorized into different categories such as technology compatibility issues, scalability issues, sustainability issues, data conversion issues, employment issues, legal issues, user interface issues, employment issues, etc. The different types of technology compatibility issues are related with the improper development of the website or improper web designing elements in their company websites[13]. The scalability issues is related to the usage if the various technologies of IT and IS within the budget provided to the company. Data conversion loss is a big issue in terms of the hotel chain. It can lead to huge data loss. Data loss can leads to dissatisfaction of the customers in terms of loss of their information from the system. In terms of data conversion, sometimes technical faults can occurs that is also a cause of bad customer relationship management[14]. Apart from that, there are legal issues that the company can face in terms of the patented issues. The company must have to have the patent their technologies and their website so that the rival companies should not copy the technologies as well as other services offered by the company. The technology capability issues are related to the user interface issues of the customers to use the website of the new hotel chain. If the digital marketing and the improper website designing of the company is not done properly, then the user will find problem in using the website for finding different issues of the website. The employability issues are a vital problem for the new hotel chain. The hotel chain has to cut many employees from the office as human skill is replacing into machines which is cost effective[15].

Conclusion

It can be concluded that though the group of hotels is planning to form a hotel chain and form a website of their own in order to gain a competitive advantage in the market. The problem is related to the different types of problems faced by the hotel chain while opening the website and incorporating it to the users. There are numerous advantages as well as disadvantages regarding IT and IS issues related to the website development of the company. However, recommendations are to be provided in order to mitigate the issues faced by the hotel chain.

Recommendations are to be followed in terms of the different technical issues of the hotel chain.

  • A strong team needs to be recruited by the company.
  • The scalability issues of the company should be solved with a proper budget for the implementation.
  • Human skill is required to control the activities of the technology.
  • The technical faults should be addressed by the digital market team.
  • Different forms of technology related to customer relationship management are to be implemented[16].

References

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