It further explains how revive provided within the manufacturing industry differs from the service industries. Adding to this, the report also explains how services can create value for customers and the major seen/ice function in the luxury hotel industry. Finally, the report explains how Ritz Carlton has adopted these concepts of CRM within the organization. Literature Review Customer service is a care given to customers, and comprises of organizational deeds virtually could be refers to as natural structures operations.
Customer service quality and customer satisfaction are certainly the two essential ideas that are at the core of the marketing theory and reactive. In today’s world of intensive rivalry, the key to maintainable competitive advantage is achieved by giving forth high quality service for which the outcome will be pleased customers. Customer satisfaction is regarded as a precondition for customer retaining and brand loyalty, and clearly aids in realizing economic objectives such as profitability (Surcharged, et. Al, 2002). The nature of facilities or services provided by manufacturing and service industries is quite diverse.
The primary difference is that manufacturing industries provide tangible, physical goods, whereas, he outcome Of a service firm can only be experienced and not touched. Products are generally homogeneous or standardized for fulfilling the daily needs for the mass market. Services, for example, hotel or consultancy businesses are seen as being heterogeneous in the sense that they can be tailored to suit the need of the customer (Pentagram and Dollar, 1997, p. 303). Another major distinction between products and services is permissibility.
The duration for permissibility of products is lengthier than services as they can be stored. Unlike products, services cannot be stockpiled s they are consumed as soon as they formed (Smell College of Business, 2006). Creating value for customers is something extremely important in every organization. To begin with, an organizations main purpose of existence is to mainly create value for its customers. While there are private sector businesses and industries that obtain the values they generally produce for their consumers for the advantage of their investors in terms of income or return on investments.
Creating value intended by any organization like hotels for its customers, is normally demoted to as the Customer Value Proposition. (Nadia, 2012). The major seen. ‘ice function in the luxury hotel industry is hospitality and hospitalizes with certain innovation and exceedingly high quality. The term hospitality is wide and expansive as it integrates activities such as leisure, lodging, etc. Hospitality refers to offering services that generate a feel good factor and a fine, first-class experience for the guests. Whereas, the term hospitalizes refers to genuine kindhearted and helpfulness.
The luxury hotel industry has to maintain a correct balance of both these elements by creating a homely feel or the guests to comfort them, at the same time offering them an exotic and exceptional experience (Crick and Spencer, 2010). Methodology The research for this report has been conducted through field research by interviewing employees at The Ritz Carlton along with secondary desk research from journal articles and official websites. Some of the questions asked to the staff include: Interview Questions What are the various services/ facilities you offer?
What are the packages you offer? How much do you charge for these packages? What promotional strategies do you use? Who are your different types of customers services you offer? Which income groups do your customers primarily belong to? How do you train your staff to provide the services you offer? Critical Analysis At the Ritz Carlton, customer service is kept a top priority. The hotel chain is incomparably customer service orientated, as a result of which it has managed to fetch various awards for having the Gold Standard of hospitality.
They focus on taking care of its customers as well as its employees in order to set high standards of customer service (Cline, 2008). Preference of Regular customer used by Ritz Carlton focused in care for customers and employees ringing knowledge sharing into data service and records which are personalized to guest stays in making them aware that their values are their priority. Ritz Carlton uses Motivation, socializing in relating through social events used as building trust, Managers observing complaints and attitudes handled accordingly.
Communication network are concepts and understanding are conversation, all this were done so as Guest will always know the unforgettable, distinctive capability provided for their Guest where message is relaxed through no agenda. All this are strategies used by the Ritz Hotel Methods of knowledge sharing involved learning in addition expose towards company as Colonization plus communication (Yang, 2004). Resolving organization criticisms, legal activities, and values makes Ritz Carlton service a major gain of competitors advantage, success as well as development (Peel, 2007).
It is believed that there are three major steps to provide good service at Ritz Carlton. Firstly a warm and sincere greeting followed by precisely anticipating and fulfilling the demands, needs and requirement of each and every guest. Finally, giving the guests a warm and kindhearted farewell (Ritz Carlton, 2013). The service provided is in-detachable from the person who is providing it and therefore, people, within a service organization, are one of the most essential elements.
At Ritz Carlton, their employees are the most essential resources in providing top of the class service to the guests. Their motto is “We are ladies and gentlemen serving ladies and gentlemen”. In order to fulfill this commitment the hotel chain provides adequate training to their employees. Thus maximizing their talent and working skills and bring greater benefits to the organization. The Ritz Carlton adopts a working environment that aspects and values diversity and believes in giving importance to individuals and their aspirations (Verily, 2012).
A hotel can provide good service, when all its sections work jointly in a well-organized and effectual way, thus by displaying excellent team work harmonistic and communication (Webb, 2010). Many services exist within a hotel among them, a hotel lobby could be considered as one of the most important services because of its impact informing many of the first impressions by guests (An tutus, 1988). As in the case of Ritz Carlton, has an eye-catching and appealing interior design which exceeds customer expectations and gives a positive first impression.
Apart from this, it has successfully created value for its customers by engaging with them emotionally rather than professionally. These service values include, firstly, developing strong relations with customers building loyal customers who are less price sensitive and would definitely return again. At Ritz Carlton, the expressed and unexpressed, needs and wishes of customers are attempted to be satisfied creating a pleasant and memorable experience for our guests. Also, innovation is always encouraged in order to provide top laity and latest services to the customers.
Furthermore, the privacy and security of guests are maintained and any problem or conflict is resolved right away (Ritz Carlton, 2013). Hospitality and hospitalizes are two very important service functions within a hotel industry, but at the same time it is been agreed that within a luxury service organization the services offered must be of high quality and should be innovative. The hotel industry is such an industry where customers have plenty of options to choose from for. The existence of numerous resorts and hotels around the world offering similar revise has made the hotel industry extremely competitive.
In order to differentiate and to create value to the customers it is essential to introduce certain innovative methods of hospitality such as online reservation, access to high speed in-room internet, customization of room dcore, flexible check in/ out policies etc, along with the traditional facilities such as, location, typical hotel facilities (Victorian, et. Al. 2005). On the other hand, when a customer service survey was conducted, it indicated that although 90 percent of the reviews were positive there were some negative responses as well.
For the Ritz-Carlton San Juan Hotel, Spa & Casino in Carolina few, if not many, people had said that the hotel lack of customer security, had poor maintenance and lack of customer care while many others claimed that the hotel was overrated in terms of service (Trip Advisor, 2013). This shows that although there has been an effective implementation of customer service management in many of their hotels there is still a need of standardizing these service values around the globe. Conclusion Thus, to conclude with, Customer Relationship Management is a very important element in the hotel industry.