Focusing on the customers in particular is perceived to be a sure way of keeping the firm afloat the market and provides the company a competitive edge in the market (Berry 2006). This theory is called Customer Relationship Management (CRM). This paper will discuss this relatively new model and examine its effects on the operations of a company. Specifically, the paper will investigate the integration of CRM in Marriott, Hilton and Novotel hotel chains. With the purpose of providing a clear discussion on the subject, the definition of Customer Relations Management has been provided. Afterwards, the integration of CRM has been taken into consideration including the overall implications of customer loyalty to the organisation. The observations and arguments have been backed up by past and existing literature on CRM.
CRM is the short form for Customer Relationship Management. It is the efficient communication between customers and a company at every contact point. Whether this communication is done by phone, website or e-mail, the important thing is that the customer counts on getting an experience from doing business with the company (Berry 2006). CRM systems are what attempt to ensure a good experience. It is a vast system of information or a database of customers and their buying habits, e-mail address, residential address, personal information such as birthday and so on. This information is then retrievable by any department whose need it to better the company. For example, the sales force can use this information to gain customer’s trust and loyalty. The system provides sales reps with the software tools and company data sources they need to support and manage their sales activities and optimize cross-selling and up-selling. It also gives them access to their customer’s profile, describing the customer’s history with the company before they place the call.