The Essay Examines CRM And Promotional Mix In Radisson Blu Edwardian Hotels.

Evaluate the effectiveness of the current use of CRM techniques used by your chosen organisation to develop their market orientation and customer centric objectives. Make recommendations as to how the organisation could improve its CRM.
40 marks

Evaluate the current promotional mix techniques used by your chosen organisation.  Using your own creative marketing skills, suggest a promotional mix strategy which could be used by your organisation in the future.  Include concepts of above and below the line and AIDA in your strategy.

Customer Relationship Management in the Hotel Industry

The report is prepared to evaluate the effectiveness of customer relationship management techniques of chosen organization that is Radisson Blu Edwardian Hotels. Radisson Blu Edwardian is a collection of distinctive hotels in Manchester and London. Customer relationship strategies are strategies that concerns customers and are about tailoring of service delivery process and physical process to customer’s requirement. Such services and products are modified as per preferences and needs of customers and leads to development of customized marketing at individual customer level. Radisson hotels are ideal for group travels by providing options of four star and five star hotels that are located close to main districts of city. They are a division of Carslon hospitality worldwide that is a hospitality service provider globally. Such hotel groups prioritize on group check in and arranging group meals, special weekend conference rates, theatre tickets and other requirements (RadissonBlu-Edwardian.com 2018). Report also demonstrates the promotional mix techniques that are used by hotel groups. Furthermore, recommendations are provided on further improving the techniques customer relationship management and promotional mix strategy by the application of AIDA model in such strategy formulation.

CRM is the philosophy of anticipating the needs of customer for providing right product at right time and at right place. A strategy aligns the interaction of customers with culture of organization, business structure and information technology to the benefits and satisfaction of customers and profits of organization (Armstrong et al. 2014). Such techniques can be regarded as a set of leadership communication between customers and representatives of customer services. In the competitive scenario, many organizations such as hotel are trying to get into close relationship with customers by capturing external and internal data for ascertaining preferences and needs of customers. Objective of CRM is to align the business process and strategies of customers for building long-term customer loyalty and ultimately generating profits for company. Hotel industry is a service sector that put great emphasis on relationship marketing for building loyal customer base and thereby increasing the profits (Gummesson 2014).

The Customer relationship management program of Radisson Hotel takes into account three components comprising of customized dialogue, incentives and personalized service and recognition. CRM is a strategic tool that is used by hotel group of Radisson that entails interaction with its customers. One of the integral parts of CRM strategy of Radisson is taking actions and recognition (Kandampully et al. 2015). Criticality of the relationship strategy is about building profitable relationship with the most valuable customers of organization. The integral part of process of CRM of organization is guest logic with the help of which Radisson delivers and recognizes high level of service to the most valuable customers (RadissonBlu-Edwardian.com 2018). This guest logic intends to address the recognition component of customer relationship management. Radisson hotel is able to identify, act, recognize and ensure successful delivery of services to customers with the help of harmony suite of products and guest logic.  Hotel is able to understand the activities of micro markets, profiles of customers and accordingly target the customers and tracking the return on investment of direct marketing campaigns (Xie and Chen 2014).

The Three Components of Radisson Hotel's CRM Strategy

The strategy of CRM is largely dependent upon commitment, attitude of staffs and performance. Primary contact for all support services and business delivery is the director of hotel services. Such services involve customer service, information technology, distribution, marketing and sales, education and training activities. Moreover, business channels of hotel levers tools of customer relationship management and such program helps in leveraging strength across entire group of hotels. Focus on practices of customer relationship management is created by involvement of nineteen-person division that uses the program management and analytics. At Radisson, there are always efforts to provide customers with some extra services and they are being offered gold point plus.  In addition to this, reward program is tailored to needs and preferences of customers. The adoption of contemporary marketing techniques in hotels would require readiness of hotels that are associated with organizational factors (Leung et al. 2017). Such factors involve financial resources, business size and experience of business.

The maintenance of relationship marketing implementation requires hotels to work on facilitation of technology installation, cost of training, cost of maintenance and subsequent enhancement. Hotels are better prepared for the implementation of relationship marketing if they have adequate financial resources. In order to pull the customers, the advanced computerized marketing efforts have been utilized by Radisson hotels. Nevertheless, requirement and expectations of customers can put pressure on hotels and customers cannot explicitly ask hotels for the application of relationship marketing strategies. Therefore, customer pressure can be regarded as an external factor affecting the implementation of relationship marketing. If hotels have sufficient support from technology vendors, then they are more willing to risk of technological innovation adoption (Nowak et al. 2015).

Customization is seen as an approach that lessens the variability by controlling the nature of yield and minimization of standards. Customized service is regarded as an instrument of administration for controlling, foreseeing and shaping the experiences of services. It has been purported that hotels such as Radisson are looking for ways for influencing youthful customers. Superior quality and superior value are the central point to the customization concept of customer relationship marketing strategy at Radisson (Padilla and Garrido 2014). However, the efficiencies of hotel relating to customer service are questionable.  

For improving the strategies of customer relationship management in hotel industry, continuous improvement should be made in database and technology functions. This would make organization effective in analyzing behaviour and information of customers.

Promotional Mix Strategies in the Hotel Industry

Firms among potential and current customers should take efforts to increase customer loyalty by encouraging communication and building brand communities. The strategy of CRM should be implemented in such a way that it helps in contribution to enhancing bottom line profits and ongoing relationship of customers.

An offshoot of CRM is customer experience management that is a marketing movement focusing on experience of customers at every touch points between customer and service provider. Techniques of customer experience management should be included in CRM as it is a valuable and effective practice (Rahimi and Gunlu 2016). It is depicted from industrial survey that if guest experience problem during their stay in hotel, then they are less likely to return. CRM techniques should incorporate techniques of improvement analysis so that Radisson group can eliminate recurring problems and maintain loyal base of customers (Rahimi 2017). It would have positive impact on satisfaction of guests and lowering cost of operations.

CRM techniques provides hotels with latest offering that will help hoteliers in developing comprehensive profiles of guests from reservation information and create demonstration of the fact that property of hotel is suitable to their needs. Moreover, it will also help in generating realistic profiles on stay and spending patterns of guests.  Therefore, for increasing the spending and loyalty of customers, such profile generation will help in creating marketing efforts that are guest centric. Other latest offerings of CRM that should be incorporated into the strategy are driving guest centric data down to the level of transactions (Nazir et al. 2014). This in turn would help in delivering greater value to customers by allowing guest facing technology and employees.

The hotel industry is one of the main demanding and developing industry all over the globe and therefore the organizations associated in the hotel business are in the idea of constructing an effective marketing plan with the help of which they can increase their sales and increase their customer base (Solnet, Boztugand Dolnicar 2016). The marketing mix strategy is designed by most of the organizations with the help of which the companies are able to course a path and a plan with the help of which they market their brand name and their services to the potential and the existing customers. One of the key elements of the marketing mix is the promotional mix that is looked upon as a significant aspect that helps in the promotion and advertisement of the products and services.

Importance of Continuous Improvement in Database and Technology Functions

The promotional mix techniques explains a blend of the promotional variables that are selected by the management of Radisson Blu in order to attain their goals and objectives. The promotional mix is a part of the marketing mix and it is seen that there is an ideal process of budget allocation for the different components within the promotional mix in order to attain the most effective marketing outcome. The challenge for the management is to discover the precise mix for the company (Li, Wangand Yu 2015). Radisson Blu Edwardian Hotels like any other hotel chains have their own and unique marketing mix strategies and focus mainly on the promotional mix strategies as the company is associated with the hotel business and therefore they have the main intention of serving their customers with quality and desirable services in order to satisfy their customers and generate customer loyalty. The rise in competition in the hotel industry has compelled Radisson Blu Hotels to look into their own strategies and thereafter make changes in their policies according to the changing demand in the market. Radisson Blu Hotel chain have identified that promotional mix is one of the key components that is useful for advertising and promoting their hotel in the economy and even in the market so that they can attain their desirable goals and objectives (Durna, Dedeogluand Balikçioglu 2015). It is essential to understand the techniques that have been incorporated by Radisson Blu in order to have an understanding of the changes that can be implemented in the coming future in order to enhance their promotional strategies and thereby increase their sales and customer base. The promotional mix technique incorporated by Radisson Blu has been explained as follows:

Advertising: Radisson Blu in the current time period have discovered that there has been significant rise in the level of competition and therefore rise in the level of advertisement in the market where the hotel operates is essential with the help of which the potential customers can have knowledge about the hotel and the kind of services and amenities that are offered to them (Huang and Sarigöllü 2014). The hotel chain has recognised that social media is one of the precise areas where they can advertise their company. Radisson Blu therefore advertises their company and their services and products in various social websites in the form of small videos so that the users of these websites can gain knowledge about the same. The company when making use of social media for the purpose of advertising does not initiate broadcasting (Riasiand Pourmiri 2015). The most precise campaign is the one that activates and engages most of the individuals to become their brand ambassador. The company is hugely dependent on the mouth to mouth publicity because of the fact that the customers who are satisfied become regular and loyal and thereby they are the ones who suggest the hotel to the others. Radisson even advertises in various newspapers and signboards that are displayed in the localised areas with the help of which the customers and individuals can have some idea about Radisson. Radisson has appointed distinctive mass medium sponsors who have the task of advertising on behalf of Radisson through various mediums like billboards, print media etc (Harrington, Ottenbacherand Fauser 2017). The strategies of advertising are undertaken according to the budget that is allocated for advertising. Being a hotel business, advertisement is one of the key aspects.

Personal Selling:  Personal selling is the mechanism of persuading and assisting one or more prospects in order to purchase a service or a product or even perform on any ideas by oral communication generally through telephone and face to face communications (Leung, Xueand Bai 2015). Radisson has their belief on individual attention and therefore associates to their customers on personal grounds. The company forwards SMS and electronic mails to their regular and frequent customers and offers them with discount coupons for free or upgraded services in order to reward their loyalty towards the hotel chain. The process of direct selling is a key process with the help of which Radisson can interact with the customers directly and thereby can communicate with them about the services they offer and can even obtain suggestions from them with respect to what other products and services that can be introduced in the hotel. Radisson is aware of their communal accountabilities and therefore takes initiative in the corporate social responsibilities.   

Sales Promotion: This is the non-media and media marketing communication which is utilised for a pre-determined restricted time to raise the demand among the consumers, encourage the demand in the market or enhance the availability of the product (Yang 2015). In this respect, Radisson undertakes various contests where the consumers are asked to participate and the winners are given attractive prizes like free night stays in the hotel along with complementary dinners and lunches. Radisson even undertakes exhibitions where they display their special features and amenities so that the customers can be satisfied and get motivated to stay in their hotel. Radisson has huge banquet halls and therefore looks to offer wedding ceremonies and corporate meetings. Radisson offers discounts and special offers to the corporate groups where they offer a package for the banquet halls and stays so that the corporate companies can receive all the services under one roof (Dzhandzhugazovaet al. 2016).

Public relations: Radisson maintains a separate public relations within their management structure and they have the job of  communicating and meeting with the clients and interact with them with the help of which the desires and the grievances of the customers can be known and thereafter changes can be made so that they can satisfy their customers. The public relation department undertakes press releases and corporate anniversary parties and even advertises their packages and services to the market with the help advertising in the newspapers, magazines and even in televisions (Choiet al. 2016). Charitable contributions are undertaken by Radisson in order to make the customers aware of the social attributes of the company.  

Direct Marketing: The process of direct marketing is a form of advertising that permits Radisson to directly communicate with their customers and this mainly undertaken by providing feedback form to the customers so that they can write their experiences and recommendations to the hotel and they can make changes in the same. The management maintains a database of their existing customers and interact with them on frequent basis making the customers feel that the company cares about them and thereby motivating them to visit the hotel once again(Ali, Aminand Cobanoglu 2016).

Sponsorship: The management of Radisson Blu even sponsors in various events and programs with the help of which customers can observe the advertisements and thereby their promotional activities can be developed.

These are the techniques that are incorporated by Radisson with respect to the promotional mix that plays an influential role in the development of the marketing strategies of Radisson. The promotional strategies that have been incorporated by Radisson are in line with the AIDA framework. The impact of the advertising media on the promotional mix of Radisson is even observed as Radisson initiates attention, desire, action and interest among their customers so that customers are attracted towards the services they offer and become loyal to them(Šeri?, Gil-Sauraand Ruiz-Molina 2014). The sales process of Radisson are optimised sustainably and this is undertaken on the basis of the AIDA framework.

The promotional mix strategy that is incorporated by Radisson Blu is an ideal one but according to the changes in the market that is taking place, it is seen that several changes can be undertaken that can be helpful in enhancing the operational activities and the marketing strategies of the company. Radisson can undertake Guerrilla marketing which is a new and innovative concept with the help of which the hotel can bring the attention of the customers towards the services and products that have been offered. They can use flyers, posters and graffiti and even viral marketing campaigns that are not anticipated by the customers. These kinds of strategies and management can be helpful in developing the promotional strategies for Radisson. Radisson even can assess the strategies that have been incorporated by the rival companies with the help of which they can understand the changes that can be brought forward and thereby changes can be made accordingly that would be useful for the improvement of the promotional mix strategies. AIDA model of promotion helps organization in gaining attention of target market. Consumers respond to promotional messages of hotel via affective, cognitive and conative methods. Radisson can employ AIDA model in their promotion mix strategies that would help in creating demand for their services and products. Furthermore, it would also help in gaining attention of customers. Moreover, it also helps in the involvement of customers in the process of product development.

Conclusion:

From the analysis of customer relation management strategies of Radisson, it can be seen that hotel has been able to embrace relationship marketing at their best and have assisted in fusion their vision. The system of their relationship marketing intends to create credibility among customers. Prior to the implementation of such customer relationship strategies, marketing strategies were done independently by particular department. However, such relationship building strategies came with minimal effort services that elucidates decline in specialized efficiencies and sharp decline in services provided to customers. It has also been ascertained that hotel lacks coordinated marketing approach and this has the consequences of negatively influencing the Radisson hotel marketing exercise. Evaluating of promotional strategies of Radisson depicts that they are well incorporated into the marketing efforts. It is so because hotel makes use of several platforms for promoting their brand. Therefore, it can be concluded that Radisson is required to make further improvement in their techniques of CRM in order to strengthen their brand identity and adopt a suitable promotional mix strategies.

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