Client and Customer Relationship Management and Strategies - Assignment Example

Client And Customer Relationship Management And Strategies Disney use of Technology As Edward Gibon puts it, we cannot specifically certain the possible height the human species is aspiring to achieve in his own heart. In his quote, he says that we can accept in comforting position that every generation of the world is increasing in terms of the real wealth, happiness, the knowledge and at times the morals as well. This affirms the use of technology that has taken the whole world with surprise. Use of technology is applicable in every discipline how much more is it applicable in the department of Client and Customer Relationship Management and Strategy with the ever-increasing population. Walter Disney a businessperson, came with an idea to solve the problem of long queue in the field of business through the use of technology. Disney was a popular person in American animation Industry. He was a producer, director voice actor and screenwriter. He was a significant figure in the world of entertainment. As a businessman in the Hollywood industry he founded the Walter Disney Production Company in cooperation with his brother Roy Disney. The company later changed name to Wilt Disney Company which was best known in film production. Disney was well known as an innovator in the field of film production. The main question is how could he use his innovation to improve CRM in his business. This paper will help us underscore some of the technology innovations he used to solve business growth problems to ensure customer relationship management. As the business grows, the customers stream in to get services to meet their needs. Customers sometimes get it difficult to be served due to long line making them to for long hence tiring them. This was the case in Walt Disney World Company which handled more than 30 million visitors annually. One of the strategies he used was to fit an underground operation center known as Disney’s’ Operation Center. Within the center, there were technicians who could tell that you are on the line and most probably annoyed of the stay. For this matter, they could look for a mission to get out of the line very fast. To manage their clients who were over 30 million without one going unsatisfied Wilt Diney World turned the art of controlling the crowd into a science. Wilt Disney World regarded as being the best and happiest place in the world was eager to fasten the movement of the line in the company. Therefore, they shifted into the culture of impatience within the customers. Clients were fed with video games and smartphones to keep them busy before they were they served. As a result of increasing number of clients Disney fitted the underground nerve center to deal with the problem of low technology in the firm that might lead to long queues making the clients to feel dissatisfied. The new underground center was under supervision of Cinderella Castle. This center was fitted with computer programs, digital park marks, video cameras and other wiz bang tools to identify the severe congestion that might arising from the continuous queues of clients. This was to ensure that countermeasures were put in place within the specific time to prevent the congestion of clients in the queue. Disney went as far as fixing flat screens televisions at one corner for the employees. The screens were showing various attraction colors in green yellow and red. The colors were indicating gradual waiting time. If it were the time of the Caribbean Pirate the ride that always sends clients to be in a spirited sail through Spanish main then the screen would blink from green to yellow. This was meant to alert the managers to put in place the maximum number of boats that would fit the client count. There were options that were used by Disney to ensure that the clients were managed while in the queue. The funniest one was circulating Goofy or Capt. Jack Sparrow on the clients’ line to ensures that those who were on the line are entertained. This was a quick response to the problem according to the Magic kingdom vice president Phil Holmes. Incase Fantasyland had many clients as compared to the neighboring Tomorrowland which at the same time had many free rooms then the operations center would automatically display move it into the area of less clients. This was a very fast action to ensure that the employees act on the communication made by taking other clients to places that had vacancies. Through these pro-active approach it is note that the company sees monitoring as part of its effort to ensure that their clients are well managed. Monitoring is one of the strategies that the growing company can ensure that it cope with the streaming customers in the business thereby facilitating its growth. Serving the customers to their satisfaction should be the number one aim of the business as it enables the business to achieve 80% of its results. From the strategies that were employed by the Disney in his business field it shows that business is not just an art but a science of understanding the clients psychology. When this is taken care off then the business will not chase the customers but instead the customers will chase the business. One can ask why the reverse? The answer is always customers do cherish where they get better satisfaction of their needs. By applying innovation in scientific field in business Disney made it in the field of business by managing his customers in nice manner. Through this strategies Disney realized an increase in revenue from his 6.4billion to 6.5billion and his business was the first growing business in America. Disney employed the rule of 20/80 which means 20% input into the business leads to 80% results. For that matter he only spent 20% of his resources in ensuring customer relationship management which later resulted into 80% revenue from the sales. This paper pinpoints clearly to those aspiring to venture in business to spend more time in ensuring customer relation management for thriving in the Industry. PART B Customer Relationship Management in Hotel Industry Richard Koch puts it clear that the universe is unbalanced when he tried to explain the concept of 80/20 principle. He argues that few thing do matter, even the effective people and organizations do grow prosperous especially by employing few powerful forces at work place to their advantage. This is true since the aim of every business is to get more by using few inputs within their capacity. Customer Relationship Management is one of the field that supper achievers in business has explored to the depth to ensure that they satisfy the needs of their customers to the maximum. This field of CRM is very critical in Hotel Industry, as it will act as a magnet of customers. Customers who felt satisfied by the services on their first visit will come for the second time carrying along their friend. CRM is defined; as the modern way for maintaining the company’s interaction with future and current clients. It embraces the use of technology to ensure that sales, customer services, marketing, and technical support are organized in a way to attract customers. In this paper, I am going to discuss more about the customer service and support system. Customer support and service is the use of technology to manage customers purchasing order. It can be a call center that directs the customer to an agent that will provide the needed help. Customer support and service is also important in identifying and rewarding loyal customers. The service of rewarding loyal customers is called loyalty program. Loyalty program is an organized marketing strategy that reward and hence encourage loyal purchasing habit of the customers that is significantly important to the business. It involves the use of reward cards, point cards, loyalty cards that identifies the card holder as a member of the program. Loyalty cards have different names across the world. They have a cord that is easily scanned for access. They are also convenience to carry around, since they are pocket size. Ones presented the buyer is entitled a discount on the order of goods made. At the same time points are allotted to the buyer for future purchases. To obtain the form there is always an agreement form that the client signs. The data in the card are secrete to the firm and they can be used in market analysis on what kind of orders the customer usually make when purchasing. Across the universe, the business firms increasingly adopt the program. This is attributed to the increasing technological innovations in the world. By using the cards in business, the firms are positioned to collect ideas on their strategies implemented to ensure the smooth running of the business. The managers to this program are specialist with wide knowledge on data analysis, communication management and loyalty consultancy. In Australia, the use of loyalty program is the order of the day. Millions of the population is under this program and therefore any business holder without this program of rewarding their potential customers will easily find their way out of the business environment. Buyers always have the habit of spending less but get much from their expenditure. Therefore, a number of customers view the loyalty program as a way of spending less. As stated above we can say that customer loyalty program remains a fundamental way reward potential customers, and to show them that you want to do more business with them. For Hotel Industries, it strengthens the customers and the company’s relationship. Some of the reasons why this program should be included in the Hotel Industry are that it is easy to implement. Instead of engaging in complex loyalty programs, it is advisable for the Industry to start with the simple strategies such as offering discounts to clients who visit the Hotel during the weekends. It is also possible to offer discounts to clients after a given number of visits. Loyalty program can also be in terms of giving free hot showers to the clients. This method is simple and has low implementation cost to a business that wants to upgrade its operations. Just as Richard Koch puts more emphasis on simple inputs in business always results into big outcomes. More importantly, the customers usually embrace the simple loyalty programs. Even though such simple programs are normally associated with small-scale retailer, nonretail business has to be creative enough to offer such services to their clients. For instance, the Summer Inn should provide such services as installing DSTV channels in the rooms. A customer loyalty program is a fundamental way of recognizing the best customer and showing that you care through appreciation. A customer loyalty program would increase the income of the company. One of the outstanding principles behind customer loyalty program is to give your best client an incentive to encourage him in doing more business with you. Moreover, this is the main reason of designing the program. If it does not pay off in terms of income then it is better to have a conversation with the clients on what changes are necessary to make it more valuable to the business and to them. Some Customer loyalty programs are not limited to individual business. It is possible for Summer Inn to collaborate with other businesses around to ensure that they attend the local Hotels by providing comprehensive customer loyalty program. This can be inform of offering points for visiting local hotel, and with a certain number of points the client is given a free services for a day. Another way of offering customer loyalty program is by developing the program with complementary business. So far, we have seen one side of the customer loyalty program. Aside some disadvantages also accrue due to such program. This has led to a lot of criticism against the program. Primarily, the information given by the clients such as address, date of birth in case of point cards can be shared with the third party. This makes me feel that our privacies are not prioritized as important, as the companies track our movements of what kind of purchase we make in terms of food we eat and other items we do like. At the same time, our details are shared with the third party for doing survey for analyzing marketing strategies and advertisements. Various companies complain that the program of discounting prices to clients who do purchase their products seldom pays. Some critics say that lowering prices of goods and giving rewards to customers is in another form of bribing the customers thereby manipulating their decision to buy customer loyalty. Some firms that participate in the loyalty program violet the privacy of the public. The program is also seen as a modern way of expending the organization’s money. For example, an employee who need to purchase an airline ticket will choose the payment method that offers the most credit reward, rather than minimizing the cost of the organization. As a matter of facts, any good thing comes with other side effects. For the case of Summer Inn, it is better for the management team to view the program critically. This paper has explored in details both sides of the program and it is best for the Summer Inn to give the program a trial since it proves to be more beneficial to the strengthening the relationship between the Hotel Staff and the customers. REFERENCES Dave, B. (13 August 2002). Walt Disney Helped Wernher von Braun Sell American on Space. Associated Press Gabler, N. (2007) Walt Disney: The Triumph of the American Imagination. New York. Random House Gabler, N. (2006). Walt Disney: The Triumph of the American Imagination. New York. Random House. Graffin, S. (2000). Tinker Bells and evil queens: The Walt Disney Company from the inside out. New York. New York University Press. Joachim, D. (11 March, 2002). CRM tools improve access usability (Cover Story) Shaw, R. (1991). Computer Aided Marketing and Selling. Butterworth Heinemann Press. Sharp, B. & Ann, S. (1997). Loyalty Programs & Their Repeat: Purchase Loyalty Patterns. International Journal of Research in Marketing Vol.14(5). Pg 473-486. Read More