"Online is a critical channel, but that doesn't mean it is the first place to start for all companies"

CRM in Travel USA 2008 Special

"Many companies say they offer a CRM solution, but most provide only a portion of what is needed to manage customers truly in a holistic way. Integration with internal systems and other vendor products are key to managing customers in a consistent way."

This viewpoint, related to how suppliers are using CRM to get a holistic view of the customer, came from  David Norton, recently chosen for Chief Marketing Officer role by Harrah's Entertainment.

In today's scenario, when online medium is playing a significant role in consumer's research, planning and buying, which is the best way to approach CRM?

"Online is a critical and fast-growing channel, but that doesn't mean it is the first place to start for all companies.  It is all about what are the best ways to engender more loyalty / share of wallet from your customers," said Norton, in an interview with EyeforTravel.com's Ritesh Gupta. "Customising transactions based on customer value and preferences is critical online so that people get the same experience in the automated channel as they would in the call center."   

On the most effective sequence of the steps to have an effective CRM, Norton said for those in the early stages of their CRM journey, the prioritisation of steps is very dependent on the industry and company. However, broadly speaking, getting quick wins to build momentum internally is critical which is dependent on having analytical processes in place, he added.

As for CRM data it is crucial to understand that customers are very sensitive about privacy and sharing data, and willing to share data if there is a fair payoff. So when it comes to customer data, it has to be obtained and expanded slowly and over time, in small pieces and at a "fair" price for both sides.

"Data privacy is critical and you can never threaten the trust of customers. The value proposition has to be there for the customer to be willing to share the information in the form of an understandable loyalty programme and / or customised service offerings," said Norton.   

An expert says in hospitality, different customer segments should easily identify areas on the hotel website that "speak to them". If you do not speak to each of these audiences, you will lose most of them to your competition.

Sharing his viewpoint regarding the same, he said, "It should be easy for customers to find the information that is relevant to them in order to conduct the transaction as quickly as they would like.  Thus, intuitive navigation is critical and overtime, greater personalisation of the web experience is possible as well."   

Regarding how much one can personalise the customer experience without infringing on the customer's personal privacy, he said one has to be careful, but as long as that personalisation adds value to the experience, the customer has opted-in and the data is not shared externally, companies should be in good shape. 

On how to assess whether CRM initiatives are meeting goals which have been set, Norton said it is critical to have automated and consistent measurement tools in place.  Clearly articulate the measurable objectives for each initiative, develop a pro forma and evaluate the results against the goals.  Clearly some aspects of marketing are more quantifiable than others, but do your best to compare results as best you can, he said.   

On his agenda this year, he said, "The journey is never done so there are a number of things. (Plans include) extending the value of the loyalty programme to a broader audience, continuing to enhance our web and mobile capabilities, rollout more interactive CRM activities and a number of brand activities."