The impact( positive and negative) on the customer relationship Essay

The impact( positive and negative) on the client relationship prudence in the hospitality and tourism - Essay Example221) stated that CRM has many definitions depending on different people and their industry and in most cases it is also referred to as relationship merchandise. CRM can be defined as a foodstuffing method that allows a company or an organization to use its available resources to establish a steadfast relationship with customers, thus gaining a militant advantage compared to its competitors (Mohammed & Rashid 2012, p.221). It can also be defined as a method of retaining clients using after sales strategies. CRM, if properly implemented, can be adequate for the hospitality and tourism industry considering that hotels and other industry players get lots of information regarding their clients. An effective CRM programme should ensure that the customers get the best experience, decrease management cost, source new customers and join on profitability (Sotoudeh 2006, p.1). This paper will critically look atthe impact of the customer relationship management in the hospitality and tourism. Advantages Marketing CRM is an activity that helps to source for customers and retaining them (Ku 2010, p. 1085). CRM focuses more on retaining existing customers for repurchase than recruiting new customers as well as increasing client base through and through referrals from the existing clients. In most cases, companies use the available resources such as the employees, technologies and their databases to set up this system. These methods are cheaper than advertising and marketing to new customers. It ensures that the company grows their customer from the existing customer base. CRM can also help to indentify the lost customers or those that are almost moving out, to ensure they are won back. Long lasting relationship also helps to minimize the effects of the competition through word of mouth by their customers. They benefit financially due to a lower marketin g cost. Ensuring Customer Satisfaction Customers should get value for their money from the serve ups paid for. Repeat customers feel attached to the service providers and thus are able to join with companies employees. The existing database can be analysed by the company to improve the services offered. In the hospitality sector, there is direct interaction between the company or its employees and the customers as they deliver their services. Proper interaction helps service providers understand their customers and thus help them develop proper plans that suit the customers needs. Having a direct interaction helps to develop trust between the involved parties. According to the study by Hashem (2012, p. 132) in Jordan, most hotels that use CRM has higher customer satisfaction. Relationship marketing together with CRM translates to repeat customers and customer loyalty (Shirazi & Som 2011, p. 82). Increase in Revenue Well designed CRM should help a firm reduce cost and increase rev enue by enhancing client loyalty. It helps to put together information from within and without the organization. This information can be used by the company to understand the market trends and specific customers needs. CRM helps to ensure customer satisfaction and, therefore, long term relationship. Companys personnel interact directly with the consumers and their actions impact directly the customers (Kattara et al. 2008, p. 310). Good service by the employees leads to