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Hilton Hotels Business Case

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Hilton Hotels: Brand Differentiation through Customer Relationship Management

Business Context * Founded by Conrad Hilton in 1919, began it’s operations with Mobley Hotel in Cisco, Texas * In 1946 went public as Hilton Hotel Corporation and had 15 properties in 11 states * The chain in 1964 spun off the International business into a separately traded company Hilton International that was sold * In 1964 divided the domestic lodging segment into: * Casinos * Vacation ownership * In 2000 acquired Promus Hotel Corporation, took Hilton’s close to 1700 properties marks. * In 2005 Hilton Hotels bought back Hilton International Co. * Hilton opened 1,000th hotel in North America since 2000 reaching a presence in 78 countries and over 100,000 employees.
Key Business Drivers * Retain their excellent services improving Hilton experience * Aggressive growth strategy * Enhancing the value of its brands portfolio * Keep its leadership in the market

Initiative Objectives/Benefits Objectives | Benefits | Introduce the Customers Really Matter promise | * Recognition * Personalization of the customer experience * Service recovery | Foster a closer relationship with best guests | * Improving customer loyalty | Improve the flexibility of the company | * Storing detailed information about customers * Use the SALT survey, key component of CRM |

Initiative Challenges Challenges | Solutions | Make CRM part of DNA of the company | * Improve continually the program | Improve the operation of front desk | * Supply every day complete reports on the expected guests in easy formats * Better organizing the staff’s turnover | Measure the ROI | * Measure reducing talk time at phone * Measure of number of e-mail addresses captured | Enhance the percentage of surveyed guests who “high rated” the hotel | * Monitor daily SALT result and try to improve over and over the service * Delivery always a better personalize experience |

Results * Improved customer experience personalization * Enhanced the revenue per call * Consistency of delivery service until “the last” Hilton chain’s hotel. * SALT was implemented with success giving the possibility to measure the ratings on experience, ability to recommend and willingness to return The success of this project can be attributed to the following key factors: * Hilton implemented the CRM system having clear where it had to focus on, what were “the pain points” * The great organizational culture of the company that didn’t make any mistake during the process * The presence of “OnQ enterprise system” was a great thing because permitted to the company easyto implement the CRM.

Relevance and analysis

How described in this case Hilton Hotels is a great company, which after his very fast expansion and growth through its management had the wisdom to understand that growing more would not be easy in a high competitive global business as lodging. Afterwards analyzing all the “pain points” where they could focusing in order to improve or bolster their competitive advantage they choose to improve their customer relationship introducing a new technology “Customer Really Matter” in order to improve the consistency of delivery service across the multi-brand company. Linking the key conditions (Where does it hurt? Do we need perfect data? Where do we go from here? Business before technology) for a successful CRM program read in the article “CRM Done Right “with the Hilton Case I can assert that this was a successful CMR implementing process. First of all Hilton Co they were able to understand which were the most valuable problems to solve, and focused on them; second they were able to figure out and deliver to the front desk those information were more helpful for the project; therefore they used the system to create value until “the last” Hilton chain’s hotel enhancing cross selling and they where able to give precedence to the business over the technology. The Blackstone acquisition is a good thing for all the Hilton Co stakeholders but in my opinion the management of the chain should try to make some agreement to keep a kind of indipendency on the strategies of expansion because the experience that a management has in this high competitive sector is more than a private equity.
Hilton Co. should do continue investing in CRM because the system started very well but there are many aspects that could be implemented plugging the system with new kind of electronic SALT for the customer directly integrated; another investment could be a better constant training for the employees in order to afford them to partecipate actively to the project gathering and store more information and supply suggestions on how to improve the system. As takeaways from this case I can say I learnt that CRM as other IT systems, for a perfect implementation the company and its management must know why they are using that tool and what is the goal; therefore it’s required great organization step by step and a great capacity of consider the situation from all the aspects.

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