Microsoft Word 2007 ichrie conference Proceedings Final-Final 06-06-07. doc

 
2007 Annual International CHRIE Conference & Exposition 
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different perspectives, and sometimes it is described as marketing forms such as; quality management, database 
marketing, customer partnering, service marketing, customer retention, customer loyalty and customer share (Rich, 
2000). According to the recent literature, the lodging industry in the U.S.A. uses CRM for the following benefits: to 
gain new customers for the organization; to make the best from the existing customers; and to retain the customers 
for a longer life cycle (Piccoli, O’Connor, Capaccioli and Alvarez, 2003). CRM differs from traditional marketing 
because traditional marketing has a short-term transaction approach while CRM has a long-term relationship with 
the customers. Despite its limitations, CRM is still a new and a very hot topic in today’s competitive business world 
and the indication is that it will become a much necessary course of action for the future of the lodging industry in 
U.S.A. (Adams, 2001). 
There is a four-step process which is the core of CRM. In the first step, companies should 
identify 
their 
customers; second, they should 
differentiate
their customers in terms of both their needs and their value to them; 
third, they should 
interact
with their customers to improve cost efficiency and the effectiveness of their interaction; 
in the fourth and final step, they must 
customize 
products and services for their customers (Harvard Management 
update, 2000).