Customers are the backbone of any kind of business activities. Maintaining relationship with them yields better results. By capturing, tracking and analyzing customer data, Customer Relationship Management (CRM) enables a firm to identify new performance issues. CRM is a powerful management tool that can be used to exploit sales potential and maximize the value of the customer to the hospitality industry. Hospitality sector’s greatest assets are their knowledge of their customers. They can use this asset and turn it into key competitive advantage by retaining those customers who represent the highest lifetime value and profitability.
Most hotels spend heavily towards enhancing customer experiences through various marketing ploys. They offer loyalty programs and other exclusive benefits to capture the customer’s attention. But, these promotions tend to become heavy on their pockets. Hence, including Social CRM mechanism in their framework will see a significant cut-down in their costs and also lessen the outreach efforts. Social CRM is the use of social media services, techniques and technology to enable organizations to engage with their customers. As we know, the Hospitality industry is heavily dependent on Word-of-Mouth. It can benefit immensely from Social CRM which is nothing but an electronic version of Word-of-Mouth. One thing to be kept in mind is that, any amount of negative feedback from customers can act as a dampener and affect sales, and the brand itself.