Post on 15-Apr-2017
H il to nCRM
C a s eS t u d y
Anqi WangYingyuan Deng
Yueqi MengDongqi Wang
Guoliang Li
Conteet s1
2
3
4
Hilton’s Core Business
Evaluate the Performance of Hilton CRM system
Performance Review and Advice for Decision Maker
Strengthen Hilton CRM
Part 1 Hilton’s Core Business
Start with a Story…
Hilton Hotels
The most internationally
recognizable name in the lodging
industry
Hilton HotelsTimeline
eeee ’eeeeeeeeHilton’s Core Business
1919Founded byConrad Hilton
1964The HiltonHotelsCorporation Is formed, andbecomesthe firsthotel companyto be listed on theNYSE
1954Conrad HiltonbuysStatler Hotel, which at the time was the largestreal estate deal ever
1969The firstDouble-treehotel opens in Scottsdale,AZ
1984FirstEmbassySuitesopens in Kansas City, MOSame yearfirst Hampton Innopens inMemphis, TN
1990The Hilton Garden Innbrandmakes itsdebut
2005HiltonHotelsCorporationreacquiresHiltonInternational
2007Hilton completesmerger withthe BlackstoneGroup’s realestate andcorporateprivate equityfunds
Expansion Strategy
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Franchising & Alignment with Real Estate owners is the only feasible vehicle for fast growth in the capital-intensivelodging industry
4600
Hotels, resorts and timeshare properties
Rooms
100Countries and territories
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One of the largest and fastestgrowing hospitality companies in the world
75800
50000000Members
Multi BrandedPositioning
eeeeeeee eeee eeeeeeeeHilton’s Core Business
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LUXURYFULL SERVICE
FOCUSED SERVICE
Hilton’s Coreeeeeeeee
Service
Massage
Hospitality
Cooperate with local tour agency Airport
shuttle bus
Business center
Fitness center
Pet friendly
Rental Management
Audio Visual Equipment
Car Rental
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S W
T O
Recognizable brand nameDiversified Portfolio
Low Market ShareWeak Management
Competitors: MarriotThe individuation of consumer choiceDownturn in business travel
Digitization and use of technologyInnovation in Customer ServicesDynamic growth in emerging markets
The Customers Really Matter
Part 2
Evaluate the Performance of Hilton CRM system
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Based on Hilton OnQ
Consolidate far-flung customer data
Produce comprehensive arrival reports
100% Internal Source7 Unique Guest Experience
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Competitive Advantage to Competitors
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• Focused on Hilton’s four categories of Best Guests
• Fostering a closer relationship with best guests throughout their lifecycle
• Recognition, Personalization and Customer analytics
Segment customers
Segment sub brands – offer corresponding needs for each group
Segment strategies
Segmentation – Generaleeeeeeeeeeee
• Interaction frequency – best show this customer’s potential value and roughly predict future cooperate possibility
• Check-in Times – recognize the most likely loyal customers
• Online system engagement – easy to promote to
• Customer Value – recognize the most profitable customers
Segmentation – Customer segmentation Principles
Less than 1 Million
1.6 Million
23 Million
Hilton’s four categories of Best Guests
① ② &
④ ③
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① The 8 million active members of the Hilton Honors program
② 4+: Individuals who stayed 4+ times per year
③ Fast Rez: Individuals who signed up for an online reservation account
④ Local VIPs
Three main brands:
Homewood Suites- upscale, yet casual, all-
suite residential-style hotel brand.
- Target Customers: Traveler who want to live in a homelike environment while traveling
Hilton Garden Inn - Highly functional and
innovative facilities hotel with warm and attached staffs
- Target Customers: smart, productive and practical traveler
Hampton Inn - casual, comfortable,
personalized brand that has sincere connection with every customer. Highly value customer satisfaction.
Segmentation – Subeeeeee
e –S t r a t e g y
Recognition Personalization Customer Analytics
Supported by
technology infrastructure
Knowing the customer in person with all the information includes name, recent attainment. Make customers feel being recognized and being welcomed.
Customize the customer’s personal needs. Giving them what they really require but not just service in a general level by collecting information both in advance or inner hotel.
Personalization Recognition
Supporting strategy. Making sure Hilton can quantify the customer data and make quick reactions.
Customer Analytics
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Recognize guests at the reservations center
Print the Best Guests arrival report every morning
The Satisfaction andLoyalty Tracking (SALT) survey
Pre-assign guests to rooms and ensure thatthe rooms were appropriately prepared according to guest preferences
eeeeeeee H i l t o n C R M
99.4% of Hilton Hotel’s Brand Portfolio creates more profits than competitors by 2007
To sum up, Hilton CRM is successful!
Hilton Hotels’ Brand Portfolio (September 2007)
Hilton CRM ensures the rapid expansion and customer services delivery
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1. Information transfer accuracy
Hilton has a large scale in franchise, and the customer information was not integrated and easily available. Since the information system is not totally automatic, there will be a challenge to obtain all needed information accurately.
2. Hard to measure
CRM can be measured but it will be hard to be exact. Unlike quantitative figures, CRM can be measured from both internal and external sides roughly through various channels.
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Part 3
Performance Review and Advice for Decision Maker
Competitive Industry
Occupancy
Worldwide Asia/China
IHG STARWOOD HYATT MARRIOTT HILTON ACCOR
2014 Occupancy Rate of Hotel Industry
Financial Statistics
REV PRF NPR
IHG STARWOOD HYATT MARRIOTT HILTON ACCOR
2014 Hotel Industry Financial Statistics
Net Profit and Growth Rate
Net Profit Growth Rate
Resources From googuu.net
Financial Statistics
Efficiency
Call Center Data Net Revenue per Call Conversion Ratio
2001 $73.09 38%
2002 $77.64 39.1%
2003 $84.39 40.9%
2004 $85.57 41%
2005 $90.30 40.9%
2006 $99.29 41.5%
2007 $102.55 41.4%
Source: from the case
Customer Satisfaction
• “With a score of 78 points out of a possible 100, Hilton took the leadership position…”
--ACSI( American Customer Satisfaction Index), 2006.1
As the data shows, Hilton Worldwide led the industry this year with a score of 80, two points ahead of nearest competitor Marriott International (78)
“This is the fifth consecutive year Hilton has either held sole ownership or shared the Hotels industry lead, according to ACSI data.“
-- By Forrest Morgeson and A.J. Singh
Source: from the case
Further Investment
• Customer Services Efficiency • Customer Satisfaction• Customer Loyalty• Profit• Competitive Industry
Part 4Strengthen Hilton
CRM
1. Optimize internal management
1. Since the information system is not totally automatic, there will be a challenge for information transfer accuracy.
2. The program costs a lot in operation:
93 Million
Total Cost
hardware and infrastructure implementation
application development 40
Million
53Million
Solution to strengthen:Optimize the information transfer structure, improve the joint process between automation and manual work, execute it consistently and flawlessly across the network and reduce the management costs as well.
Challenges:
Recommendation
2.Utilize data to to improve Hilton CRM
Classic web
Browser, Email, links
WEB 1.0Social web
Wiki, Blogs, interactive
WEB 2.0Web of Data
Any media, any place, any device
WEB 3.0
Basic Theory
Utilize data to improve cross-channel application for customer service and experience
PHYSICAL WEB
SOCIAL MEDIA
MOBILECALL CENTER
Social Media
U.S hotel brands increasingly use social media tools to connect customers
1. Attract more new and potential customers to get involved by social media brand promotion.
2. Keep and increase customer loyalty Collect customers diverse comments to track the performance
of current customer service.
3. Improve guest personalized experience by analyzing data.Use data to personalize and provide a list of options within Hilton's capacity.
Recommendation
B I G D A T A
Recommendation
4. Integrate all the data resources from different social media channels to help improve individual customer value management.
• Integrate customer value more effectively. • Multi-channel provides more options for information
acquirement and enlarge customer engagement
MOBILE AS NECESSITY• A user-friendly mobile site and/or
seamlessly integrated mobile brand app are quickly becoming “table stakes” for luxury hotel brands.
• 84% of Luxury Hotel brands now offer a mobile- optimized site experience on smartphones (up from 59 percent in 2014).
MOBILEAPP
Recommendation 1
• Add “Read Reviews” function to enhance interactions with users and collect customer comments.
• Add online videos to optimize customer experience
Improve Self-operated app “HHONORS” to satisfy customer needs and improve customer experience.
Source: Luxury Hotels 2015 (Digital IQ Index)
Recommendation 2 Strengthen the cooperation with online travel mobile apps
• Attract more potential customers and create new customers.• Increase more channels to enhance brand influence.
Thanks!