EFT Sales and Marketing in Travel USA SpecialThe Internet is an ideal medium for reaching out to customers and establishing interactive relationships with them.

Published: 29 Apr 2007

EFT Sales and Marketing in Travel USA Special

The Internet is an ideal medium for reaching out to customers and establishing interactive relationships with them.

Max Starkov, Chief eBusiness Strategist, Hospitality eBusiness Strategies, who
terms CRM as a business strategy aiming to engage the customer in a mutually
beneficial relationship, shares this viewpoint.

Specifically on e-CRM, he says, "Electronic customer relationship management
(e-CRM), in the context of Internet distribution and marketing in the travel
vertical, is a business strategy supported by Web technologies, allowing travel
services suppliers to engage customers in strong, personalised and mutually
beneficial interactive relationships, increase conversions and sell more
efficiently."

According to Starkov, it is important to understand that customer service is
only one aspect of e-CRM and is primarily a reactive function aiming to improve
performance and efficiency, while e-CRM as a whole is a proactive long term
strategy.

"On the other hand e-CRM is more than just a tool to achieve and enhance
customer satisfaction. The traditional CRM focus in travel and hospitality has
always been "Customer Satisfaction." The presumption is very simple: customers
will appreciate good service so much they would not go to your competitor. In
other words: customer satisfaction + quality of services = customer loyalty,"
Starkov told EyeforTravel.com's Ritesh Gupta, ahead of the Sales and Marketing
in Travel USA 2007 to be held in Miami on May 9-10.

Starkov points out that the truth is that customer satisfaction does not
always equal customer loyalty:

. 40% of satisfied customers switch suppliers without hesitation
(Forum Corp)

. 65%-85% of customers who choose a new supplier claim to be
satisfied and very satisfied with the former supplier (Harvard Business
Review)

. 85% of customers claim to be satisfied, yet willing to switch to
other suppliers (University of Texas)

"A recent study by Cornell University also calls into question the widely held
belief that guest satisfaction means repeat business. The results of its recent
study challenged the theory that satisfied guests generate repeat business in
the lodging industry. Analysis showed only a weak connection between
satisfaction and loyalty, which is a precursor to repeat business," he said.

In hospitality the Internet has provided hoteliers with unprecedented
capabilities to interact with their customers:

· eNewsletters

· Online promotions and sweepstakes

· Reservation Confirmation emails

· Pre-Arrival emails with value adds and upsells

· Post-stay "Thank you" emails and comment cards

· Interactive Web 2.0 applications on the hotel website (experience
and photo sharing, customer generated Top 10 lists of coolest bars, museums,
things to do, in the destination, etc.)

"Providing innovative customer service on your website and to your customers
via latest technological applications is a must. The airlines have perfected
some very neat tools in this respect. But once again, this is the customer
service side of e-CRM. Establishing mutually beneficial interactive
relationships with your customers is the ultimate goal of any e-CRM
initiative," he said.

"Here are the main components of an e-CRM strategy in travel and hospitality:

. Know Your Customer

. Customer Service

. Personalisation

. More Efficient Marketing

. Build Customer Loyalty

He further added that establishing mutually beneficial interactive
relationships with your customers is the ultimate goal of any e-CRM initiative.

As for the concerns and challenges, two key questions face travel suppliers
and hoteliers today:

· Who owns the customer in this new online environment? The online
intermediary, which made the booking, or the hotel where the guest stayed or
the airline that provided the service?

· How can travel suppliers and hoteliers establish mutually
beneficial interactive relationships with their customers in order to increase
repeat business, boost revenues, and retain loyalty?

(An interview with Max Starkov, Chief eBusiness Strategist, Hospitality
eBusiness Strategies will be posted during our event - Sales and Marketing in
Travel USA 2007 (to be held in Miami on May 9-10).

For more information - www.eyefortravel.com/smusa2007/1