Customer Relationship Management in Tourism in the Digitalization Process: The Case of Turkey

Customer Relationship Management in Tourism in the Digitalization Process: The Case of Turkey

İsmail Çalık
DOI: 10.4018/978-1-7998-8306-7.ch010
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Abstract

Thischapter aimed to explicate CRM concept along with its distinct dimensions. Following the explanation of the denotation, evolution, and types of the CRM concept, the benefits of CRM, success factors, and possible causes for downfall are discussed. Another section of the chapter considers the role and evolution of CRM in the digitization process. This part introduces the reader to the concepts of E-CRM and SCRM that arose during the process, as well as the success conditions and essential aspects of these approaches. This section examines the relationship between customer satisfaction and loyalty in the tourism sector, the impact of CRM on business performance, and CRM applications in the context of destination management. In the last part, CRM practices and approaches in Turkey were discussed in terms of destination management and tourism businesses, and some applications and modules employed in the digitalization process are included.
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Introduction

Instead of traditional marketing approaches, the origin and advancement of the customer relationship management (CRM) idea are based on the relationship marketing approach, which sought to create, maintain, and develop relationships with all stakeholders, particularly customers (Gilbert, 1996). CRM techniques began to be discussed practice and in the literature in the mid-1990s, as information technologies were being used in sales and marketing applications (Payne and Flow, 2005). CRM, in its most generic definition, is an approach to enhance customer loyalty by providing tailored products and services (Rigby, 2006). In the period from the 2000s to the present, the development of the CRM concept has also changed depending on digitalization and the concepts of eCRM and Social CRM have gained importance. Furthermore, the question of how destination management organizations or tourism businesses handle their social media platforms has become a critical part of success, depending on the impact of the social media on the tourism behavior of customers.

The CRM strategy in the tourism sector is consulted in a set of dimensions such as ensuring customer satisfaction and loyalty, loyalty programs offered by tourism businesses to guests, the effect of CRM on company performance and CRM strategy in destination management. On the other hand, with the effect of digitalization, the necessity of CRM in tourism has grown even more, and the gathering, appraisal, and integrating of customer data has become fundamental for company efficiency and customer satisfaction.

Turkey is a major tourist destination due to its tourism potential. Effective marketing and promotion approaches are regarded to be possible to generate the projected revenue from tourism. At this stage, implementing a CRM strategy in both destination management and tourism businesses will help to boost customer satisfaction and loyalty. The digital tourism strategy and the integrated CRM will play an important role in improving Turkey's competitiveness in tourism and increasing its profitability.

Key Terms in this Chapter

eCRM: Internet-based techniques that focus on solving customer’s requests and needs.

CRM in Destinations: Customer-friendly tourism solutions and applications that include flexible and personalized products and services and are compatible with digitalization processes in order to establish a long-term sustainable relationship with all stakeholders in the destinations.

Social CRM: It is an approach that aims to gain the trust of customers by using social media tools and includes collaboration and experience sharing with all stakeholders in digital media.

CRM in Tourism Businesses: Applications containing personalized products and services compatible with digitalization developed by tourism enterprises in order to ensure efficiency, recognition, brand loyalty and profitability.

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