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CRM: Top 10 Success Factors

According to Madigan Pratt & Associates, Customer relationship management (CRM) is a relatively simple concept designed to acquire, grow and retain profitable customers better and faster than competition. Implemented properly CRM will create more loyal customers, more repeat business, more referrals through positive word-of-mouth and have a dramatic impact on your hotel’s bottom line. Consider this – companies with the strongest customer relationships – possess the most loyal guests – grow at twice the industry average and are significantly more profitable. It’s a fact. Below are the Top 10 factors to make CRM successful in your organization.

1.Completely embrace the customers

2.Conduct a CRM Audit

3.Capture and protect relevant customer data

4.Consider

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the benefits of CRM, not just the out-of-pocket costs, when budgeting programs

5.Deliver relevant content to customers and prospects

6.Banish “Email Blast” from my Lexicon

7.Measure effectiveness and allocate resources according to ROI

8.Treat marketing more as a science than an art

9.Keep Top Management Intimately

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Involved

10. CRM is a “Culture” not a “Technology”

One final thought – research from the prestigious consulting firm of Bain & Company shows that depending on the industry, when firms retain just 5% more of their best customers, corporate profits can be boosted 25 to 85%.

The best way to increase retention is to increase loyalty. And today the best way to do that is to implement an effective CRM program.

Click here to read Madigan Pratt & AssociatesLuxury Hoteliers 2006 Top Ten CRM Resolutions (PDF).

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