1. Hilton
CRM Case Study
Anqi Wang
Yingyuan Deng
Yueqi Meng
Dongqi Wang
Guoliang Li

2. ontents
1
2
3
4
Hilton’s Core Business
Evaluate the Performance of Hilton
CRM system
Performance Review and Advice for
Decision Maker
Strengthen Hilton CRM

3. Part 1 Hilton’s Core Business

4. Start with a Story…

5. Hilton Hotels
The most
internationally
recognizable name
in the lodging
industry

6. Hilton
Hotels
Timeline
Hilton’s Core Business
Hilton’s Core Business

7. 1919
Founded by
Conrad
Hilton
1964
The Hilton
Hotels
Corporation
Is formed,
and
becomes
the first
hotel company
to be listed on the
NYSE
1954
Conrad Hilton
buys
Statler Hotel,
which at the
time was
the largest
real estate
deal ever
1969
The first
Double-tree
hotel
opens in
Scottsdale,
AZ
1984
First
Embassy
Suites
opens in
Kansas City, MO
Same year
first Hampton Inn
opens in
Memphis, TN
1990
The
Hilton
Garden Inn
brand
makes its
debut
2005
Hilton
Hotels
Corporation
reacquires
Hilton
International
2007
Hilton
completes
merger with
the Blackstone
Group’s real
estate and
corporate
private equity
funds

8. Expansion Strategy
Hilton’s Core Business
Franchising & Alignment with
Real Estate owners is the only feasible
vehicle for fast growth in the capital-intensive
lodging industry

9. 4600 Hotels, resorts and
timeshare properties
Rooms
100 Countries and territories
Hilton’s Core Business
One of the largest and fastest
growing hospitality companies
in the world
75800
50000000Members

10. Multi
Branded
Positioning
Hilton’s Core Business
Hilton’s Core Business

11. Hilton’s Core Business
LUXURY
FULL SERVICE
FOCUSED
SERVICE

12. Hilton’s Core Business
Service
Massage
Hospitality
Cooperate
with local
tour agency Airport
shuttle bus
Business
center
Fitness
center
Pet
friendly
Rental
Management
Audio Visual
Equipment
Car
Rental

13. Hilton’s Core Business
S W
T O
Recognizable brand name
Diversified Portfolio
Low Market Share
Weak Management
Competitors: Marriot
The individuation of consumer choice
Downturn in business travel
Digitization and use of technology
Innovation in Customer Services
Dynamic growth in emerging markets
The Customers Really Matter

14. Part 2
Evaluate the Performance of
Hilton CRM system

15. Introduction of Hilton Customer
Really Matter (CRM)
Based on Hilton OnQ
Consolidate far-flung customer
data
Produce comprehensive arrival
reports

16. 100% Internal Source
7 Unique Guest
Experience
Hilton OnQ
Competitive Advantage to
Competitors

17. Hilton OnQ CRM
• Focused on Hilton’s four categories
of Best Guests
• Fostering a closer relationship with
best guests throughout their lifecycle
• Recognition, Personalization and
Customer analytics

18. Segment customers
Segment sub brands – offer
corresponding needs for each group
Segment strategies
Segmentation – General Introduction

19. • Interaction frequency – best show this customer’s
potential value and roughly predict future cooperate
possibility
• Check-in Times – recognize the most likely loyal
customers
• Online system engagement – easy to promote to
• Customer Value – recognize the most profitable
customers
Segmentation –
Customer segmentation Principles

20. Less than
1 Million
1.6 Million
23 MillionHilton’s four categories of Best Guests
①② &④ ③
Segmentation – Customers
① The 8 million active members of the Hilton Honors program
② 4+: Individuals who stayed 4+ times per year
③ Fast Rez: Individuals who signed up for an online reservation account
④ Local VIPs

21. Three main brands:
Homewood Suites
- upscale, yet casual, all-
suite residential-style
hotel brand.
- Target Customers:
Traveler who want to live
in a homelike
environment while
traveling
Hilton Garden Inn
- Highly functional and
innovative facilities hotel
with warm and attached
staffs
- Target Customers: smart,
productive and
practical traveler
Hampton Inn
- casual, comfortable,
personalized brand that
has sincere connection
with every customer.
Highly value customer
satisfaction.
Segmentation – Sub brands

22. Segmentation – Strategy
Recognition Personalization Customer Analytics
Supported by
technology infrastructure

23. Knowing the customer
in person with all the
information includes
name, recent
attainment. Make
customers feel being
recognized and being
welcomed.
Customize the
customer’s personal
needs. Giving them
what they really require
but not just service in a
general level by
collecting information
both in advance or
inner hotel.
 Personalization Recognition
Supporting strategy.
Making sure Hilton can
quantify the customer
data and make quick
reactions.
 Customer Analytics
Segmentation – Strategy

24. Delivering CRM Promise
Recognize guests at
the reservations
center
Print the Best Guests
arrival report every
morning
The Satisfaction and
Loyalty Tracking
(SALT) survey
Pre-assign guests
to rooms and
ensure that
the rooms were
appropriately
prepared
according to guest
preferences

25. Evaluate Hilton CRM
99.4% of Hilton
Hotel’s Brand
Portfolio
creates more
profits than
competitors by
2007
To sum up, Hilton CRM is successful!
Hilton Hotels’ Brand Portfolio (September 2007)
Hilton CRM ensures
the rapid expansion
and customer
services delivery

26. Limitations
1. Information transfer accuracy
Hilton has a large scale in franchise,
and the customer information was not
integrated and easily available. Since
the information system is not totally
automatic, there will be a challenge to
obtain all needed information
accurately.

27. 2. Hard to measure
CRM can be measured but it will be hard to be exact. Unlike quantitative figures, CRM
can be measured from both internal and external sides roughly through various channels.
Limitations

28. Part 3
Performance Review and
Advice for Decision Maker

29. Competitive Industry

30. Occupancy
Worldwide Asia/China
IHG STARWOOD HYATT MARRIOTT HILTON ACCOR
2014 Occupancy Rate of Hotel Industry

31. Financial Statistics
REV PRF NPR
IHG STARWOOD HYATT MARRIOTT HILTON ACCOR
2014 Hotel Industry Financial Statistics

32. Net Profit and
Growth Rate
Net Profit Growth Rate
Resources From googuu.net
Financial Statistics

33. Efficiency
Call Center Data Net Revenue per Call Conversion Ratio
2001 $73.09 38%
2002 $77.64 39.1%
2003 $84.39 40.9%
2004 $85.57 41%
2005 $90.30 40.9%
2006 $99.29 41.5%
2007 $102.55 41.4%
Source：from the case

34. Customer Satisfaction
• “With a score of 78 points out of a possible 100, Hilton took the leadership
position…”
--ACSI( American Customer Satisfaction Index), 2006.1
As the data shows, Hilton Worldwide led the
industry this year with a score of 80, two
points ahead of nearest competitor Marriott
International (78)
“This is the fifth consecutive year Hilton has
either held sole ownership or shared the
Hotels industry lead, according to ACSI data.“
-- By Forrest Morgeson and A.J. Singh
Source：from the case

35. Further Investment
• Customer Services Efficiency
• Customer Satisfaction
• Customer Loyalty
• Profit
• Competitive Industry

36. Part 4
Strengthen Hilton CRM

37. 1. Optimize internal management

38. 1. Since the information system is not totally
automatic, there will be a challenge for
information transfer accuracy.
2. The program costs a lot in operation:
93
Million
Total
Cost
hardware and
infrastructure
implementation
application
development
40
Million
53
Million
Solution to strengthen:
Optimize the information transfer
structure, improve the joint process
between automation and manual work,
execute it consistently and flawlessly
across the network and reduce the
management costs as well.
Challenges:
Recommendation

39. 2.Utilize data to to improve Hilton CRM
Classic web
Browser, Email, links
WEB 1.0
Social web
Wiki, Blogs, interactive
WEB 2.0
Web of Data
Any media, any place, any device
WEB 3.0

40. Basic Theory

41. Utilize data to improve cross-channel
application for customer service and experience
PHYSICAL WEB
SOCIAL
MEDIA
MOBILECALL
CENTER

42. Social
Media
U.S hotel brands increasingly use social
media tools to connect customers

43. 1. Attract more new and potential customers to get involved by
social media brand promotion.
2. Keep and increase customer loyalty
Collect customers diverse comments to track the performance
of current customer service.
3. Improve guest personalized experience by analyzing data.
Use data to personalize and provide a list of options within
Hilton's capacity.
Recommendation
BIG
DATA

44. Recommendation
4. Integrate all the data resources from different
social media channels to help improve individual
customer value management.
• Integrate customer value more effectively.
• Multi-channel provides more options for information
acquirement and enlarge customer engagement

45. MOBILE AS NECESSITY
• A user-friendly mobile site and/or seamlessly
integrated mobile brand app are quickly
becoming “table stakes” for luxury hotel
brands.
• 84% of Luxury Hotel brands now offer a
mobile- optimized site experience on
smartphones (up from 59 percent in 2014).
MOBILE
APP

46. Recommendation
1
• Add “Read Reviews” function
to enhance interactions with
users and collect customer
comments.
• Add online videos to optimize
customer experience
Improve Self-operated app “HHONORS” to satisfy
customer needs and improve customer experience.
Source: Luxury Hotels 2015 (Digital IQ Index)

47. Recommendation
2
Strengthen the cooperation with online travel mobile apps
• Attract more potential customers and create new customers.
• Increase more channels to enhance brand influence.

48. Thanks!