Customer Relationship Management

Hilton Worldwide (formerly Hilton Hotels Corporation) owns, manages and franchises a portfolio of brands which includes brands in Luxury, Full Service, Select Service, Extended Stay Suites and Timeshare segments. Per the case study, the company was poised to break a 3000 properties mark in 78 countries with a global workforce of 100,000 in 2007. This case is written prior to its acquisition by Blackstone Group in 2007.

The case discussion is centered on Hilton’s CRM strategy called the Customer Really Matter initiative, started in 2002. The case brings out certain key points and problems/issues in the Hilton Hotel strategic management and operational strategies. This case study analysis will consider the key talking points in the case and talk over the issues to provide alternative solutions, ways to implement it and monitor the success of the implementation.

Key Point: Aggressive growth strategy

Hilton Hotels strongly focused on assessing its growth opportunities since its inception. It grew intensively by penetrating the US market and developed into international markets. During its growing stage, it had a strong commitment to economies of scale. The acquisition of Promus provided that frill by doubling its property ownership. It identified that franchising and alignment with real estate owners was the only feasible vehicle for fast growth in the capital-intensive lodging industry. It also charted concentric diversification through ultimate segmentation of the lodging industry. Through this process, Hilton became a Brand Management company. Brands offered significant recognition and customer traffic (through programs, ads and electronic distribution systems).

Key Point: CRM Tool

Hilton Hotels is proud about its custom-built enterprise CRM tool, a comprehensive and integrated infrastructure called the OnQ. This tool was important to

- enable employees to deliver great customer service

- improve knowledge on customer needs and requirements

- decrease customer churn by increasing customer satisfaction and retention

- motivating employees to work towards profitability

- support property level operations

- enable Customer Really Matter initiative at each customer touch point

The OnQ was the nervous system of Hilton Hotel Corporation which was supported by an untethered funding of around $240 million.

This CRM strategy was aided by the objective of the corporation in expanding internationally and also developing in multiple segments within North America. Hilton believed technology should be intertwined with brands and culture for delivering the brand promise. This assisted the funding for information