News for the Hospitality Executive
Revenue Management and Customer Relationship
By Dr. Gabor Forgacs
The theory and practice of customer relationship management (CRM) is a marketing field that has become more and more integrated with revenue maximization in recent years. The core concept of CRM is similar to the revenue management principle of identifying the highest-yield customers. It aims to generate more revenue through interacting with and engaging, plus retaining customers.
Any CRM system helps answer important questions of interest to a revenue manager:
The growth in data volume and data sources has created a demand for better business intelligence using CRM. Many companies try hard to assemble a coherent picture of the customer from scattered information located throughout the entire enterprise. Marketers cull demographic and behavioral data from various sources, but it has been a challenge to gain accurate attitudinal data. Predictive analytics has successfully taken on that challenge and contributed to an improvement in CRM in this regard.
Predictive analytics, a relatively new tool, can not only determine a customer's propensity to buy, it can also forecast whether a customer will respond to a specific marketing appeal within a given time frame. Despite exponential growth in the quantity of data available, businesses can still achieve insight by making strategic decisions based on the quality of analysis. Predictive analytics is a growing field that has already led to a more dynamic customer experience by building on CRM and helping to maximize revenue potential at customer touch points.
is an excerpt from “Revenue Management: Maximizing Revenue in
Operations,” published by the American Hotel & Lodging Educational
Institute (EI). For information or to order, visit www.ahlei.org or
call 800-752-4567 or 517-372 8800.
Dr. Gabor Forgacs
Room Rate Conundrum: The Leap from Tactical to Strategic / Dr.
Gabor Forgacs / April 2011
Management: Tactical Discounting / Dr. Gabor Forgacs / March 2010
|Strategic Revenue Management / Dr. Gabor Forgacs / February 2010|
|Revenue Management: Dynamic Pricing / Dr. Gabor Forgacs / January 2010|