Customer Relationship Management Implementation and its Implication to Customer Loyalty in Hospitality Industry

Budiono Hardjono,Lai Pooi San

doi:10.15294/jdm.v8i1.10414

Abstract

Building up customer loyalty have become more important to survive in the high competition of hospitality industry. One approach to developing this is by implementing customer relation-ship management (CRM). This study investigates the implication of CRM implementation to-wards customer loyalty in the hospitality industry. The results should assist marketers to recog-nize what determinant factors and dimension of CRM that contribute to building up customer loyalty in the hospitality industry. A purposive survey of 150 respondents of all rated hotels in Malacca, Malaysia was conducted. It is found that there is a significant correlation between customer orientation, CRM organization, and knowledge management towards customer loy-alty while the another dimension of technology-based CRM has no significant effect on this research. The marketer in the hospitality industry should, however, carefully evaluate the nature of customer loyalty regarding any other variables that are not included such as brand image and brand association and some special or unique features in this hospitality industry that should be addressed in the future research.

Highlights

IntroductionMarketers recognize that customers are the core of business. This incremental growth in hotel industry forces hoteliers seeks out any possible potential competitive advantage to differentiate itself from competitors.As all marketers understanding, the customer is the source of profitability
In the business world, marketers recognize that customers are the core of business
There are many ways to adopt the loyalty, and the most common are by creating value through customer relationship management (CRM)

Summary

Introduction

Marketers recognize that customers are the core of business. This incremental growth in hotel industry forces hoteliers seeks out any possible potential competitive advantage to differentiate itself from competitors.As all marketers understanding, the customer is the source of profitability. Marketers recognize that customers are the core of business This incremental growth in hotel industry forces hoteliers seeks out any possible potential competitive advantage to differentiate itself from competitors. To clearly differentiate itself from competitors, marketers do not focus on how to improve the customer satisfaction, but they try to form a customer loyalty so that it becomes the competitive advantage for the hotel industry. Today many companies are racing to reestablish their connections to new as well as existing customers to boost long-term customer loyalty. This means that marketers are starting to believe in retaining a customer or building customer loyalty rather than attracting new customer in order can decrease the cost of marketing activities in customer attraction. Customer loyalty needs to emphasize wider by hoteliers to let customers develop their repurchase behavior

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