What does the content of your marketing communications say about how much your company values its current customers? Interactions with existing customers tend to fall into one of the following categories: a bill, an up-sell offer, a cross-sell attempt, or a renewal offer. There may be some customer value in these actions, but they tend to benefit the company more than the customer.
2. Introduction
Marriott International, Inc. is an American multinational
diversified hospitality company that manages and franchises
a broad portfolio of hotels and related lodging facilities.
Founded by J. Willard Marriott, the company is now led by
his son, Executive Chairman Bill Marriott and President and
Chief Executive Officer Arne Sorenson.
Marriott International, headquartered in Bethesda, Maryland
in the Washington, DC metropolitan area.
Has more than 5700 properties in over 110 countries and
territories around the world, over 1.2 million rooms (as of
September 23 2016), and additional 195,000 rooms in the
development pipeline.
4. Recipe to Marriott’s Success
Key Ingredients to
Marriott’s Success:
(Acquisitions)
Excellent Customer
Service
Innovation
Some Key Innovations
First motor hotel, pioneering a
culture of roadside lodging
First hotel company to offer
reservation confirmations via mail.
First hotel company to offer a
portfolio of many brands
5. DATAANALYSIS OF CUSTOMERS
Market segmentation: The Marriott International has
identified the BUSINESS class are the primary segment.
From this business class they have identified Leisure
demanded business class as NICHE market.
The future prospective is to target the most identified level
of segmentation and that is INDIVIDUAL MARKET.
When taking about the geographical segmentation the
identified and targeted segments are ASIA and GULF. From
the ASIA segment the NICHE is INDIA and CHINA.
Marriott use Oracle(software) for data mining .
6. Demographic segmentation : Is one of the most popular bases for segmenting
customer groups. Businesspeople or business travelers are one of the customers that
Marriott focus the most. People who work in business industry can't avoid travelling
around the world for business purposes.
Psychographic Segmentation :Marriott have few luxury hotels brand such as JW
Marriott, Bulgari Hotels & Resorts, The Ritz-Carlton and The Ritz-Carlton
Destination Club. This few brands are mostly for luxury travelers. JW Marriott
provides the luxury that customer deserve.
Behavioral segmentation :Behavioral segmentation divides consumers into groups
based on their knowledge, uses and responses to a product or service. For example,
consumers can be grouped accordingly to occasions or life events such as graduations.
7. How does Marriott's utilize customer database ?
Demographic Data: Data such as income, occupation and origins are important data that Marriott must have in
their customer database so that they can analyze majority of their customers are from upper class, middle class or
lower class society and are their customer normally local or tourists.
Values Data: By knowing what its customers prefer, Marriott can target different types of segments using their
different types of hotel services which are available in their chain of hotels.
Behavioral Data: Besides that, what customers purchased when they stay at Marriott's hotels are data for
behavioral segmentation purposes. This segmentation allocates consumers into groups based on their uses or
responses to a product or service.
Needs Data :How long do customers stay when they come to Marriott, how long before their next visit and how
often they come back to Marriott are also data which are needed in its customer database.
Psychographic Data: When Marriott knows their customers personalities and lifestyles, product or service
development can be improved. At the same time, Marriott can also determine which specific advertising media
to use when targeting different segments of the market.
8. How does Data Mining help Marriott ?
(1) From stores of information, data-mining technology extracts meaningful patterns
and builds predictive customer-behavior models that aid in decision making.
(2) Data mining is a largely automated process that uses statistical analyses to sift
through massive data sets to detect useful, non-obvious, and previously unknown
patterns or data trends.
(3) Without data mining, valuable marketing insights about customers'
characteristics and purchase patterns may remain largely untapped.
(4) Under such a technology framework, datamining is a valuable competitive tool
being adopted by Marriott in an effort to create customer value. However,
(5) The purpose of this paper is to educate Marriott managers about the benefits and
application of data mining on the properties they oversee.
10. Siebel System (CRM Application)
for Business solution
Siebel
system
DB
Room
inventory
Guests
Profile
Create
Access
Booking
- Across multiple
Marriott properties
“Personal
Planning Service”
- Cross-selling
Collect & Consolidate
info.
- Corporate accounts & manage
contacts
11. Main business benefits of Siebel
Improves customer satisfaction
Improve Profitability
Strengths brand loyalty
Increases sales to corporate accounts
Increases cross-chain sales
12. XML service used by E-CRM
The Travel Web Hotel XML is an industry leading web
service and hotel affiliate program. It was acquired by
price line in 2003 and was originally founded by brands
which included Hilton, Hyatt, IHG, Marriott, Starwood,
Pegasus Systems, and more.
Features include:
• Complete control over the look and feel of your web site, access to all major
chains.
• Intercontinental, LaQuinta, Marriott, Starwood and many more. 60,000 total
properties, 25,000 merchant properties, 12,000 cities worldwide.
•Handles 30 properties per request with an excellent response time and robust
features
13.
14. • Emails about Special Offers
and Promotions
• E-folio - receive hotel bills
by email
15. In 1999 Marriott earned a
revenue of $150 mn from the
online booking through its
website.
Estimates for 2000 indicated
that every month the website
received 3 mn hits making it
one of the largest viewed
websites in the US hospitality
industry.
By 2002 the website earned
Marriott sales of $ 1 bn.
Main business benefits of website
16. Strategy
The E-CRM strategy emphasized on increasing revenues earned per customer.
1.Serving Customers Proactively
Personalized Service Offerings-
Enhancing Brand Loyalty
Cross-Selling
18. Framework for CRM
Marriott needed a campaign management platform that could scale across
brands, programs and marketing organizations; integrate guest
communication preferences; and efficiently serve offers to millions of
customers.
To accomplish this goal, Marriott built a data warehouse that provides
sales and marketing employees with a "working memory" of the customer.
Marriott knew its customers visited multiple brands; for the first time, it
had a way to tailor its offers to how guests use its different services.
A cross-functional approach facilitated the creation of an end-to-end
business process supported by technology that provides balanced
marketing with relevant offers.
19. New System, Old Employee Issues
Data Silos
Branches Separate
from one another
Slow transportation
of data from one
branch to another
Old
Business
Strategy Consolidated data
into one common
database
Much faster
exchange of data
between different
areas
Employees must
be able to work
together to make
new software
efficient
New
CRM and
e-Business
Strategy
20. Marriott Puts Security on the Forefront
. Chris Zoladz sets out
to enhance company
e-security
• Marriott Executives give his team
an unprecedented 90 minute
window to present their ideas
Marriott creates 4-
pronged
Information
Protection
Advisory
Committee (IPAC)
• Different branches given
separate tasks to focus on in
their respective fields
Marriott makes
security a key point in
their business model
• Marriott invests
4-5% of budget
in e-security,
while moving
swiftly to enact a
policy.
http://www.trexglobal.com/property-management/wp-content/uploa
ds/2010/08/Property-Managers-Make-Data-Security-Priority.jpg
21. What are their competitors doing?
• Most Decided to Change their
CRM to keep up with Marriott's
growth which includes their
websites.
• Most took up the per-room-
capita(P.R.C) over per-customer-
capita(P.C.C)
• Some Hotel Chains decided to
expand to meet consumer demand
in different regions of the world.
22. What is the Marriott doing in the future?
N.F.C (Near field communications)
in mobile phones to open your
room and to check-in.
Mobile applications for reservation
and Point of sales transactions.
Social Networking. I.E (Facebook ,
Tweeter, Google+)
Will Valentin
