Key Issues in the Implementation of Electronic Customer Relationship Management in the Australian Hospitality and Tourism Sector

Key Issues in the Implementation of Electronic Customer Relationship Management in the Australian Hospitality and Tourism Sector

Chad Lin (Curtin University, Australia)
Copyright: © 2012 |Pages: 25
DOI: 10.4018/978-1-61350-041-5.ch003
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Abstract

The hospitality and tourism sector is one of fastest growing sectors in Australia and in the world. In order to become more efficient and effective in delivering products and services to customers via the use of ICT, hospitality and tourism organizations have to rethink the ways in which they build relationships with their customers by initiating electronic customer relationship management (eCRM) projects. Inappropriate eCRM decision-making and implementation can result in multi-million dollar losses, which can translate into a loss of competitiveness. Therefore, the case study approach was conducted to: (1) identify potential ICT costs and risk factors involved in eCRM initiatives in general; and (2) identify and examine key issues in the implementation of eCRM in the Australian hospitality and tourism sector. The contribution of this book chapter is two-fold. First, it offers hospitality and tourism executives with a more realistic insight about the impact of their eCRM investments on their business. Second, potential key issues, costs and risk factors associated with eCRM implementation are presented to assist these organizations in dealing with these challenges.
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Customer Relationship Management

Customer relationship management (CRM) is a comprehensive business and marketing strategy that integrates technology, process and business activities around the customer (Anton & Hoeck, 2002). The objectives of a CRM process are to shape customers’ perceptions of the organization and its products through identifying customers, creating customer knowledge and building committed customer relationships (Ragins & Greco, 2003). A well-designed and well-resourced CRM could be used to flag up potential problems and assist in resolving them (Easton & Araujo, 2003). It is a broad term that has evolved from systems such as Marketing Information Systems, Database Marketing, Decision Support Systems, Call Centre Management, and Transaction Support Systems and can cover a wide array of technologies and business processes (Woodcock & Starky, 2001). CRM is also a term for methodologies, processes, systems and software that help an organization to manage customer relationships in an organized and effective manner (Bernett & Kuhn, 2002). The aim is to create loyal customers so that the relationship can flourish over a long period of time (Kohli et al., 2001).

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