Hilton hotels brand differentiation through crm case study

Brushing up HBR fundamentals will provide a strong base for investigative reading. Often readers scan through the business case study without having a clear map in mind. This leads to unstructured learning process resulting in missed details and at worse wrong conclusions. Reading up the HBR fundamentals helps in sketching out business case study analysis and solution roadmap even before you start reading the case study.

Hilton hotels brand differentiation through crm case study

However, discounting products for members is expensive and it is difficult to exit such a program once it is launched. An example of a successful discount program is Canada's oldest, best known, best loved reward program - Canadian Tire Money - often suggested as a replacement for the nation's weak currency.

Points Programs To avoid the negative connotations of discounting, many loyalty programs us a points "currency" to allow participants to keep track of their earned benefits. Typically, consumers earn additional points by buying goods and services from the issuing retailer and can include bonus products, bonus thresholds and partner opportunities Pros - The basic premise is simple for consumers to understand - Can be difficult to match because earning and reward thresholds can be easily adjusted - therefore can offer greater competitive advantage - Can allow more targeted, flexible and imaginative promotions e.

Well, they are alive and well and there are a number of lessons we can take away from these programs. The first being that the "one product fits all" approach is no longer effective. This may be shocking news to some, and it doesn't matter what business you are in or the demographic of your customer; you do NOT need to treat all customers the same.

Loyalty programs need to be designed with more targeted rewards; they need to communicate differently with different groups of members based on their value; and they need to provide greater value at higher customer value tiers, by rewarding best customers to encourage higher spending levels.

Both have multiple tiers of earning, with earning accelerators built into each graduated tier. Same true for the Neiman Marcus program, with the added benefit of catalogs differing by redemption level. You don't have to recreate the Neiman Marcus catalog to be successful, but we would suggest that you start discriminating among your customers.

Customer Recognition Inherent in the loyalty level tiers of private label programs is the idea of recognition - "I'm a Gold customer.

After all, it says that "I am important. How many brag about the fact that they are a Global Services member United Airlines' top loyalty tier or a "1K" flyer?

Hilton Hotels: Brand Differentiation through Customer Relationship Management

The fact that you flew one hundred thousand miles in a calendar year, to us, is a badge of shame. But how many United Mileage Plus members wear that badge with honor? With each loyalty tier comes increased recognition. That recognition can be very tangible e.

For the frequent flyer, being able to board an airplane and hog-up all of the overhead storage space before any of the common travelers board, is nirvana.

Or being able to go through an expedited airport security line is heavenly. Don't underestimate customer recognition.

Hilton hotels brand differentiation through crm case study

And here we are talking about the intangible. What are you doing to address your customer's craving for recognition? Remember, when airline Marketing folks said that they wanted to create a special line at the airport for their best customers, the airline Operations folks balked and said they were crazy.

Don't take "no" for an answer. Program Perceived Value Your gross margin is going to dictate how much you have available for investment into your loyalty program for both hard and soft benefits.

One item to consider with your program design and execution is whether you want to, as a matter of principle, encourage redemption or pray for breakage. A lot of programs cannot support redemption.

Now, how's that building loyalty? Many Marketers don't ask the question. A survey commissioned by Maritz Loyalty Marketing reported that an overwhelming percentage of customers leave loyalty rewards programs because they grow tired of waiting for the points to accumulate.

According to Maritz, 70 percent of those polled cite the length of time it takes to accrue points.Access to case studies expires six months after purchase date. Publication Date: July 23, This case analyzes the Hilton Hotels Corporation's CRM strategy at a key juncture in its history.

Loyalty Programs. Loyalty programs are often part and parcel of a comprehensive customer relationship strategy. So welcome to our loyalty marketing best practices section.

Hilton Hotels: Brand Differentiation through Customer Relationship Management Case Solution

View Essay - 1. Hilton CRM Case from MKT at Oklahoma State University, Oklahoma City. Hilton Hotels: Brand Differentiation through Customer Relationship Management.

Hilton hotels brand differentiation through crm case study

Joonup Kim Problem%(7). Hilton Hotels: Brand Differentiation through Customer Relationship Management Overview: Incorporating the Bayada Way Hilton Hotels Background Customers Really Matter (CRM) Initiative Hilton OnQ. This case analyzes the Hilton Hotels Corporations CRM (customer relationship management) strategy at a key juncture in its history, immediately after the firm has been taken private by Blackstone.

Hilton Hotels: Brand Differentiation Through Customer Relationship Management | . Loyalty Programs. Loyalty programs are often part and parcel of a comprehensive customer relationship strategy. So welcome to our loyalty marketing best practices section.

Loyalty Marketing Best Practices