Customer Relationship Marketing

1911 Words Jul 9th, 2012 8 Pages
Delivering Customer Value – Customer Relationship Marketing


In the past few decades Customer relationship was none existence with business organization making no effort to build relationships with its customers. But since then strong competition has forced business to form long lasting relationships with its customers, if it needs to stay in business. The term Customer Relationship Marketing first emerged during the 1990’s. It was made possible due to the advancement in IT and the flow of information. IT allowed business to store and retrieve Customer information so thus it lead to the definition information enabled relationship marketing ( Ryals & Payne, 2001). However CRM does have a wide definition but what is
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Customer Loyalty
Both Hilton and Travelocity have loyalty programs to retain its customer base. For starters Hilton provides membership privileges to its customers. For example its executive membership allows executives to have overnight booking at any of Hiltons hotel so that the hotel grantees a place for them to stay. In case there is full booking then Hilton would provide an alternative on its own cost. Even though the executive membership is more expensive compared to normal rates, it allows the executives to have peace of mind. Since they are traveling a lot they want to make sure there is no hassle in finding a hotel and they want to feel like there are at home by getting familiar with the hotels. For this service they are willing to pay extra and will continue to use Hilton Hotels throughout their life time.
Travelocity does not have membership based loyalty but it has a point based system which provides rewards to its loyal customers. Customer earns reward points by going on holiday trips provided by Travelocity. These points can then be used to get discounts or can be used to get special services free of charge. Both loyalty programs used by Hilton and Travelocity are effective since they both retain customers, Travelocity has a points based system since its customers are more budget conscious than Hilton customers who are generally more rich and want convenience rather than cost savings.
Hilton Hotels
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